Janet Hoffman -1- Essays - 9, , Term Papers

Janet Hoffman -1- Sociology July 10, 2000 SILENT VOICE When I read the chapter on The De-Voicing of Society, I have to say that I was not surprised. I saw this coming back in the 1960's. But I never really believed that as we grew and evolved that it would escalate to the point where people would become obsolete in many areas. Certainly we have advanced greatly in technology, but I think that we may have gone to far. People must never be replaced by machines. I have always had a voice,but just didn't use it when at critical periods of my life. I advocate free speech at every turn. Machines should enhance it, but certainty not replace our right to use our collective voices. If we can advance in technology, then we must advance as humans right along with it, and not allow ourselves to be a faceless, voiceless being. We must never ever depersonalize ourselves from society. In recent times, and using my own experience , I can now look back and understand just how isolated one can become when one is locked away in a cubicle or a room for years at a time, using only a television or radio as a source of human voice. Or using a phone for that much needed contact. My reaction to our silenced voices it that of genuine concern.Every human being needs personal contact. We are not meant to live a life of isolation. I suppose if we choose to do that on our own accord, while not healthy, it is our choice. However, when technology gets to the point where we are being replaced by machines, then I for one have a problem with it. If I had to equate a silent voice, then I would start with my own life. The last two years of my marriage, I had totally isolated myself from any human source. Not because I wanted to, but because it was a means to survive. I was so isolated. The only voices I heard was from the television or the radio and sometimes the phone. Sometimes calling an eight hundred number just to hear another living breathing person. It was during this time, that I purchased a computer. Which ultimately became my life line. While I could not hear the voice of those I chatted with, there came a time when I for some unexplainable reason became very close to someone, and would actually reach out and touch the computer screen at the same time he did. Neither of us know what it would` serve, but both of us knew that our isolation had to end. We both realized the need for human contact. Conversation, laughter. I might have gone on to look back at this and laugh and think how stupid how naive we both were. But that never happened. Our isolation from humans came to us because we had been hurt by others. Yet both of us were still human and both very vulnerable. Today we are both very dear friends, and we often remind each other that via this media, it showed us that even through the written word we could communicate, but we needed to hear the voice of another. We both recognized the world had changed so much. Writing then became paramount to me. It enabled me to see things that perhaps I never would have before. The Internet was a God send for me, and a definite life line to so many others that I have since gotten to know and have helped. Today all of us have moved beyond that time in our lives, and none of us is isolated at least from ourselves. We vowed to be vocal and not be silenced for any reason. Through my experience with this, I have come to know and understand that while we have advanced in so many areas from the time we were babies, we have lost the all important thing. Togetherness. I don't need to live in anyone's pocket and surely there comes a time when we want our quiet moments to reflect, yet I will always want to hear a voice. I won't let a day go by without expression of my thoughts. Making the decision to return to school, has enabled me to talk aloud everyday. While I may not be

Pharmacist Essays

Mba/Pharmacist Essays Mba/Pharmacist Essay Mba/Pharmacist Essay financial and legal based factor endowments, the emergence of new types of busiexpertise, is gaining momentum and size and sophistication of nesses and new ways of orga- nizing. reaching a critical mass. Thus, the demand, and psyche and The context and timing bestows Indian business is perhaps close to self-belief of the national Indian companies with a set of advana historical turning point, in many environment and home tages and challenges. This will be ways similar to that of the Japanese base. reflected not only in the business and companies in mid-1960s. The Indian organizational choices of individual experience could be equally novel companies but also in the overall and important, globally. patterns of internationalization of Indian companies as This Colloquium has the benefit of six cogent a genre. ontributions. They represent a diversity to cover the On the other hand, business corporations have various facets of the ‘Indian companies in overseas operated outside their home territory virtually from the markets’ - the academics who have intimately beginning of commercial enterprise and to talk of researched the phenomenon and the practitioners who operating over seas in a seamless and integrated world have led their organizations and have created substantial of today could appear to be an oxymoron. However, till presence in the overseas markets. The contributions the 1960s, almost all companies operating beyond their together make for a thorough perspective and a fine home territories were European or American with the repository of insights on how Indian companies can latter being slower to go overseas. Japanese companies emerge as significant global players. started emerging internationally in the late 1960s and J Ramachandran of IIM, Bangalore states that the those from Korea and other East Asian countries in the new genre of companies with international business is 1980s. Emerging market multinationals is a recent 94 INDIAN COMPANIES IN OVERSEAS MARKETS 94 ifferent from those in pre-1990 period or anytime before. Unlike commodity exporters, these companies are built upon competitive advantages of knowledge and organizational capabilities which will enable them to penetrate deeper and go up the value chain. They can emerge as globally significant players in their industries, and will also spur companies in their own and o ther industries. He analyses the dynamics of macro, industry, and company-specific factors for the recent developments and outlines future agenda for the new genre of companies and lessons for the aspirants and potential overseas competitors from India. ocalization, move up the value chain, merge in local milieu rather than stand out, and handle negotiations appropriately. Niraj Dawar of University of Western Ontario states that besides information technology, marketing is India’s key competency globally. Unlike other emerging economies like China and Russia, Indian companies have built successful brands locally, and equally importantly, Indians are entrusted with managing international brands by even the most centralized of the foreign companies. The world-class skill is there and it needs to be exploited. Infosys needs to and is becoming a global brand. The issues that have to be tackled are - ‘ways’ to acquire knowledge about local consumers in foreign markets and then evolving approaches for creating or adapting brands and ‘means’ to support the investments required in terms of funds and time. Habil F Khorakiwala of Wockhardt Ltd. reckons that ‘India advantage’ in pharmaceuticals is based on the scientific and professional resources of international calibre, entrepreneurship, and cost advantages in all components of the value chain. Interestingly, foreign companies who came to tap middleB N Kalyani of Bharat Forge class market discovered these advanThe stage is set for Indian Ltd. ays that the company’s overseas tages which the Indian companies companies to emerge as expansion began with the need to leveraged aggressively to take posiplayers of relevance in a expand market, improve productions in overseas markets. They have large number of industries tivity and technology levels, and deacquired developed country corpoglobally. risk business across countries. They rations and no country including have become the second largest China can really compare on the forging corporation in the world and breakthroughs. He emphasizes on a glocal approach for their product range extends to the most complex and anaging global business with ‘globally integrated’ high value added products. He believes outsourced management processes, manufacturing, information manufacturing is a huge and realistic opportunity and technology, human resources, and supply chain and says: â€Å"The world is beginning to believe in India; We ‘locally responsive’ approaches for sales, marketing, need to believe in our ability to compete, perform, and regulatory affairs, and intellectual property rights (IPRs). succeed! † Innovation is the key to unassailable Jerry Rao of Mphasis Ltd. ules out short cuts of competitive strength in the global market and Indian joint ven tures and partnerships if Indian companies are companies have the requisite wherewithal. He argues genuine about becoming serious global players. In IT for a Toyota-like ambitious and competitive approach and business process outsourcing where primary markets in the overseas markets. are outside the country, the ‘DNA’ of being an India based company is important - it should not be altered The major patterns or conclusions and their imperaand denied but embellished and evolved for success. ives for Indian companies are put together in the final section. However, the theme - that the stage is set for Pramod Khera of Aptech Ltd. provides a perspective Indian companies to emerge as players of relevance in from a business that, unlike most of the Indian overseas a large number of industries globally - is unambiguous. forays, needs to deal with retail consumers overseas. He Fortune ‘2004 Global 500’ lists four Indian, three cites the success achieved in China through a joint venture Brazilian, three Russian, 15 Chinese, 13 Korean, and 82 and the importance of having a credible and known Japanese companies. India can aspire to match, if not partner for brand-based retail businesses. China is a high exceed, the number of ‘Global 500’ Japanese companies potential market and Indian companies can succeed if in a decade or two. they can effectively gather local knowledge, undertake VIKALPA VOLUME 29 NO 4 OCTOBER DECEMBER 2004 95 95 DYNAMICS AND POTENTIAL OF NEW WAVE J Ramachandran BOC Professor of Business Policy Indian Institute of Management, Bangalore T he Vikalpa Colloquium on the engagement of Indian companies with global markets raises a set of interesting questions. They are interesting because while the engagement of Indian companies with overseas markets per se is not new, the nature and the character of engagement of Indian firms with global markets has undergone a dramatic change over the last decade. customers’ demands, which predominantly comprises the global auto majors. What led to the emergence of this new genre of companies? It is tempting to attribute the emergence of these globally competitive companies to the economic reform programme that the Government of India embarked upon in the early 1990s. However, that would only provide a partial explanation. The reform prograHistorically, engagement of the Indian firms with mme, by opening up the Indian markets to global overseas markets was with the export of traditional companies, made the need to be competitive - to defend products like tea, coffee, iron ore, leather, apparel, gems one’s market position - a compulsion. It, however, did and jewellery, etc. However, in the last ten years, largely not make participating in global markets necessary. That on the back of the performance of firms in the Indian was still a matter of choice for the top managements of software and pharmaceutical industries and increasingly the companies. Most of them including several large the auto component industry, Indian companies have ones in the Indian industry do not actively participate been successfully participating in what can be broadly in the global markets even today. Indeed, one could classified as ‘new age’ industries that argue that it is their participation in are ‘technology-knowledge-servicethe global markets, by choice, instead Indian firms have been intensive. Thus, the participation of of compulsion, that has resulted in successful in making an Indian firms is no more restricted to the successful emergence of the impact on the global ‘commodity’ like industries. Second, globally competitive firms cited markets when the and more important, is the emergence earlier. In fact, the earlier policy enga gement has been of globally competitive companies in regime did require companies to voluntary and not these industries. Infosys, Wipro, TCS, ‘export’ if they wanted to gain access imposed by policy. nd Satyam in the software industry; to (the then) precious foreign Ranbaxy Laboratories, Dr. Reddy’s exchange to import capital goods, Laboratories, and Aurobindo Pharma in the pharmainput materials, etc. This compulsive characteristic of ceutical industry; and Bharat Forge and Sundaram the ‘export requirement’ however, failed to result in the Fasteners in the auto component industry would be emergence of globally competitive companies. The relevant examples. In sharp contrast, despite decades ‘exports’ of most of the companies was largely a sham. f exports of traditional goods listed earlier, India has They, typically, fulfilled the requirement by ‘routing’ not seen the emergence of a single firm that is a force exports of trad itional products made by the traditional to reckon with in those industries. Third, even though exporters through their books of accounts! Thus, Indian the competitiveness of these new age companies is still firms have been successful in making an impact on the largely anchored in the country-specific advantage of global markets when the engagement has been voluntary. ow cost, the managements of these companies have And not imposed by policy. However, policy regimes sought to go beyond cost competitiveness by focusing can enable. That is precisely what the economic reforms on the organizational dimension. They have built highly of the early 1990s did. responsive organizations that compete fiercely in the global Similarly, it is tempting to attribute the successes markets, including, critically, in the most advanced achieved by the new genre of companies to the visionary markets of the world. Bharat Forge, for example, competes leadership of these companies. That would be a facile on the basis of its ability to respond rapidly to its 96 96 INDIAN COMPANIES IN OVERSEAS MARKETS explanation. Visionary leadership is a necessary but not success in this industry despite, even more interestingly, a sufficient condition. Beyond leadership, what has led the absence of a robust or a well-developed domestic to the successes of these companies is the set of difficult market for their services. While one could argue that the choices they made. The most important of them was the huge demand for software services and availability of decision to pursue opportunities in the most competitive low cost software engineers was the prime reason for markets of the world. Consider Ranbaxy. It is often cited their success, it would not do justice to the achievement as a stellar example of visionary leadership. Indeed, Dr of firms in the industry. While these two factors provided Parvinder Singh, the late Chairman and CEO of the the initial window of opportunity, they were not all. The company, was a visionary. He did set the company on firms of the industry have not only achieved phenomenal the path of globalization. However, what proved to be growth in terms of revenues and profits, but have also a critical inflection point in the displayed a remarkable resilience company’s successful journey was and importantly consistency in their This pattern of its decision in the mid-1990s to performance. This is truly laudable engagement with the most participate in the fiercely competitive considering the technological and competitive markets of US markets. Until then, Ranbaxy was business volatility that this industry the world and display of exporting its products essentially to was subjected to over the last decade. a willingness to learn and a number of what can be termed as Their emergence as world-class invest in building the India-look-alike (read developing) players can be traced to a series of necessary competencies is markets. In these markets, price is complementary and continuous discernible across this the key success driver. They are not managerial innovations that they new genre of companies. demanding on other parameters like unleashed. For example, they pioThus, one would argue quality, delivery, innovation, etc. On neered the off-shore model of that the commitment to the other hand, the advanced markets software service delivery. They overlike the US and Europe are very came the traditional concerns with engage with the most demanding on these counts. In these outsourcing to a remote location by competitive markets and markets, customers punish firms for innovatively leveraging software the concomitant underperformance on these other process quality certifications under willingness to learn and parameters. It is the commitment to the capability maturity model (CMM) adapt to the requirements serve demanding customers of the developed by Software Engineering of demanding customers advanced markets of the world with Institute (SEI) of Carnegie Mellon led to the success the attendant willingness to learn and University. For example, they used achieved by these critically invest in developing the it to overcome the ‘country of origin’ companies in the global requisite competencies (regulatory and bias that firms from ‘developing’ markets. egal in this case) exhibited by it that countries like India typically conmade a crucial difference to Ranfront, particularly in knowledgebaxy’s performance in the global markets. This pattern intensive industries like software. To assuage fears over of engagement with the most competitive markets of the ‘loss of control’ over remote location operations by client world and display of the willingness to learn an d invest personnel, they developed a set of metrics and governance in building the necessary competencies is discernible mechanisms that were anchored in the well-accepted across this new genre of companies. Thus, one would SEI-CMM framework. While the metrics enabled ‘output’ argue that the commitment to engage with the most control by the clients, the governance mechanisms competitive markets and the concomitant willingness to developed around them gave them a strong sense of learn and adapt to the requirements of demanding ‘behaviour’ control over the operations and mitigated customers led to the success achieved by these companies their apprehensions. 1 Thus, the success achieved by the firms in the software industry suggests that, in addition in the global markets. Participation in the advanced markets of the world, however, was not an option to the Indian software industry. Yet, Indian firms have achieved spectacular VIKALPA VOLUME 29 NO 4 OCTOBER DECEMBER 2004 1 See Mukherji, S and Ramachandran, J, â€Å" Complementary and Continuous Innovations: Case of the Indian Software Industry,† Journal of Academy of Business and Economics, forthcoming, for a detailed exposition of this thesis. 97 97 to choice of markets to compete in, execution matters. And, more importantly, innovation in execution matters. harmaceutical majors have acquired some local manufacturing facilities. But, these have largely been done to gain a toehold in these markets. Textbook The success achieved by the new genre of companies distinctions of ‘going global’ vs. ‘going international’ are is also due to their careful selection of the market segments largely irrelevant in an increasingly globalizing world. to participate in. For example, t he Indian software majors The impact on competitiveness should drive the choice of largely participate in the service space and not in the activities to locate in different geographies. Not academic product space. Similarly, the pharmaceutical majors niceties! These companies seem to have followed this essentially participate in the generic segment of the edict. For example, most have, quite appropriately, pharmaceutical industry and not in the research-intensive located the customer acquisition function closer to the new-to-the-world products segment. The companies in customer in the various geographies they participate in. the auto component industry too supply relatively Similarly, many of these companies have opted to ‘standard’ products like crankshafts and radiator caps. obilize funds from the international capital markets. They do not, as yet, offer ‘original’ products designed In addition to lowering their cost of capital, mobilizing and developed by them on their ‘own’ technology funds from global capital markets signalled the platforms. The advantages of participating in these kinds willingness of the managements of t hese companies to of market segments are multi-fold. First, the decisionsubject themselves to high standards of corporate making process at the customers’ end governance providers of capital in would be more rational than impulglobal market. Additionally, raising Textbook distinctions of sive. Second, communicating the financial resources from international ‘going global’ vs. ‘going compelling nature of their value promarkets brought these companies international’ are largely position (competitive quality at low cost) within the radar of global investment irrelevant in an to these kinds of customers is bankers all of whom started tracking increasingly globalizing relatively easy. Third, evaluation of and reporting the performance of world. The impact on their ability to perform and their these companies. This resulted in competitiveness should subsequent performance by these high visibility and, more importantly, customers is fairly straightforward. drive the choice of accorded credibility to these firms Witness the high retention rates of activities to locate in and subtly aided their customer customers by these companies. different geographies. acquisition process. Fourth, they do not need to invest heavily in building complementary Increasingly, this new genre of assets like product brands or distribution that are critical companies, as they seek to move up the food chain by for success in other segments of the industry. In most offering more sophisticated products and services, are of these cases selling is direct to the customers, and enhancing their overseas presence, largely through where access to distribution channels (as in the case of acquisitions. However, they have been highly selective pharmaceutical products) was required, they were easily in their acquisitions. They have typically used available. That does not mean customer acquisition is acquisitions to access the difficult-to-build competencies of easy. These firms needed to compete, and compete the acquired companies rather than to achieve scale. Even vigorously, with other suppliers. However, the parawhere companies have preferred the green-field route, meters of selection are relatively well-specified (largely their overseas initiatives have been driven by the need cost, quality, and delivery) and that makes the task of to access skills (leading edge research talent in the case customer acquisition that much less complex as compared of Dr. Reddy’s and consulting skills and talent in the to, say, the FMCG industry. case of Infosys) than scale. Significant components of the value chain of these companies are located in India. And, rightly so, considering the fact that they are essentially leveraging the country advantage of low cost- both for manufacturing operations and talented human resources. The A final interesting characteristic of this new genre of companies is the visible influence they seem to be subtly wielding over each other. Perhaps because they are, by global standards, individually (and collectively! ) small, or perhaps because they are so few in number in INDIAN COMPANIES IN OVERSEAS MARKETS 98 98 a large country like ours, or perhaps because the country toehold in these markets. Fourth, to do what it takes to as a whole is looking up to them as a group of pioneers win. Specifically, it requires a willingness to learn and who are making an impact on the global markets, or invest in the development of the requisite competencies. erhaps because of the significant recognition accorded Finally, and most importantly, to focus on building an to them by a very competitive media organization that constantly seeks to which has given them a near iconic innovatively exploit opportunities In addition to the status, peer level competition seems to that the global markets offer as the traditional stimuli of spur the managements of these companies firms in the software industry did. opportunity exploitation on! Thus, in addition to the traditional What next for the new genre of and capability leverage, stimuli of opportunity exploitation Indian companies? Their achievepeer influence that is pan and capability leverage, peer ments are commendable. They have industry in character influence that is pan industry in attained critical mass. That gives seems to drive Indian character seems to drive Indian firms them a platform. They would need firms to go overseas! to go overseas! to convert this platform into a springWhat is the message from the board. That calls for them to go performance of this new genre of companies for the rest beyond leveraging country-specific advantage of low of the Indian industry, especially the large companies cost and develop firm-specific advantages, preferably that dot the country’s industrial landscape? First, it can one that is anchored in intellectual capital. Cost and be done. Second, it calls for something more than quality competitiveness have today become qualifying visionary leadership. It requires commitment to compete conditions. Intellectual competitiveness, competitiveness in the advanced markets of the world. Third, to choose anchored in difficult-to-imitate knowledge, defines the market segments that offer opportunities to gain a rapid winning conditions. LEVERAGE INDIA ADVANTAGE THROUGH GLOCAL APPROACH Habil F Khorakiwala Chairman MD, Wockhardt Ltd. Mumbai T he single biggest driver behind the globalization become globally competitive. Good policies often beget of Indian companies is the liberalization process unforeseen beneficial consequences. Overseas companies, ushered by the government in the early 1990s. which came to India to tap the large Indian middle class Liberalization did several things. market, discovered India’s potential High tariff walls were lowered, as a low cost but skilled production Our management costs, encouraging imports and opening up base to tap overseas markets. Autoour scientists, our legal the domestic market to international mobiles and auto component indusbrains - all of competition. Foreign companies were tries are perhaps the best examples. nternational calibre - encouraged to set up shop in India Companies like Hyundai have made offer a cost to value exposing Indian companies to global India a global hub for small cars. proposition that cannot products and practices. Liberabe found anywhere else The realization of India Advanlization also allowed more Indians to in the world. Even tage emboldened Indian companies travel abroad for business and overseas companies have to aggressivel y explore offshore pleasure. recognized the India markets. Let me give the example of Advantage. All this led to a great churn in the pharmaceutical industry. The the Indian industry- on the one cost of setting up a modern pharhand, companies started upgrading maceutical plant in India would be quality of their products to compete with the world’s one-sixth of what an identical plant in Europe or the US best; at the same time, they innovated to cut costs and would cost. It is not a question of wages as often made VIKALPA VOLUME 29 NO 4 OCTOBER DECEMBER 2004 99 99 out. Our management costs, our scientists, our legal brains - all of international calibre - offer a cost to value proposition that cannot be found anywhere else in the world. Even overseas companies have recognized the India Advantage. Leading overseas generic pharmaceutical companies like Teva and Sandoz have set up shop in India to leverage the India Advantage. and the US over the last 10 years. I do not think any other country can compare with India against this backdrop, not even China. ‘Going global’ and ‘Going international’ are entirely different. For going ‘global,’ one requires a global mindset and global aspirations. Becoming ‘international’ historically meant supplying out of India. You do not have to be globally competitive in the true sense to export out of India. In some areas, you may not be globally competitive. Going international only means leveraging some country and company advantages to tap overseas markets. That does not make you a global organization. These advantages may not last long. It is a slow, limited process of growth. You can fumble. You can be rebuffed. Your terms of reference are different. In one case, you are investing for long-term global competitiveness. You can be an international player without having a global mindset and without creating a global organizational system. India’s high value, highly competitive resources offer potential in the global market. But, what helped India harness this potential and catapult us to the global stage is Indian entrepreneurship. Our entrepreneurs, many of them first generation businessmen, have been the driving force behind globalization. Look at the pharmaceutical industry - India accounts for less than two per cent of the world market in value terms, despite the fact that we are the fourth largest in volume terms. No ambitious entrepreneur in the pharmaceutical industry can grow big unless he ventures out of India to Europe and India’s high value, highly the US, the world’s largest and the Indian pharmaceutical industry most sophisticated markets. Comcompetitive resources has one of the world’s richest resourpanies like Ranbaxy, Dr. Reddy’s, offer potential in the ces - in manufacturing, research and Wockhardt could not have global market. But, what capabilities, and entrepreneurship. grown to what it is today if they had helped India harness this Our industry has capacities and not successfully tapped global potential and catapult us capabilities across the value chain markets. Against the backdrop of to the global stage is and, what is more, we are costIndia joining the global patent Indian entrepreneurship. ompetitive across the value chain. regime with effect from January We have taken two approaches in 2005, today, every player in the our quest to become a global orgapharmaceutical industry is looking at harnessing its nization. One pertains to our acquisitions. The second inherent strengths to global advantage as a matter of pertains to the larger issue of creating a global growth as well as survival. orga nization. In the case of acquisitions, we follow a Each nation has its country as well as industryspecific advantages which it tries to leverage. India is a significant manufacturing base for the pharmaceutical industry - we are the world’s fourth largest producer of pharmaceuticals in volume terms. Indian companies live in an intensely competitive environment. Most Indian companies make their own bulk actives. After liberalization, Indian companies have built RD capabilities that have enhanced their innovative ability. Indian pharmaceutical industry today is a knowledge intensive industry. Indian companies also have the advantage of access to the Global Indian - scientists of Indian origin play a significant role in leading pharmaceutical and biotechnology companies worldwide. Indian companies have acquired over 15 companies in Europe ‘glocal’ approach. When it comes to management processes, manufacturing, information technology, human resources and supply chain, we follow a uniform system that is global. This helped Wockhardt become a globally competitive, seamless organization across geographies. We get the value of efficiencies borne out of global buying. We do not have to reinvent the wheel. The same language of management thinking rules the entire organization. At the same time, we follow a local approach when it comes to sales and marketing. In each market, whether it is the UK or Germany, distribution systems and the like are dynamically different. So when it comes to sales and marketing, our approach is customized for local markets. As far as the US is concerned, we have created INDIAN COMPANIES IN OVERSEAS MARKETS 100 100 an organization called Wockhardt USA, Inc. that handles sales, marketing, regulatory affairs, and IPRs. Wockhardt’s Indian operations serve as the research and sourcing hub for the American organization. We follow a similar approach in Russia and South American countries like Brazil. Same is the case in Africa. In other countries, we export out of India with sales and marketing people stationed in these markets. ESCHEW SHORT CUTS AND RETAIN THE INDIAN ‘DNA’ Jerry Rao Chairman CEO, Mphasis Ltd. Bangalore F or the Indian companies operating in IT and allied by these intrepid adventurers, and so on. sectors, the markets overseas are the primary ones As students of economic history, we must realize and going overseas is not a choice but an essential that there is nothing unique about our actions or motives. pre-condition of being in business. It makes sense for We too go in search of markets, market shares, revenues, American companies to talk about going overseas or for inputs, and profits. We are no different than Dutch or that matter about not going overseas. They have such Swiss or Japanese or Korean companies all of whom have a big domestic market that it is entirely possible to grow gone in search of the ‘bigger pie,’ having decided that without going overseas. Given the small pigmy-sized their domestic wells were too small for them. Being domestic markets we have and if we accept the truism followers, we are lucky. We can and we should study that the absence of growth will lead the empirical data on the successes to decay, Indian companies have no and failures of our professional choice except to pursue growth ‘Going overseas’ is not an forebears. aggressively beyond our borders. option, going ‘global’ is Some findings are obvious: if Incidentally, the reverse is possible. an imperative if the you genuinely seek global posiAn Indian company can focus almost Indian company seeks tioning and global market shares, exclusively on overseas markets and rowth. If it seeks global then the interim steps of joint vengrow handsomely. Many Indian IT market relevance, it has tures and partnerships are out. They companies have followed this to be in its own right are meant for those who see the strategy. In the days of the permitbuilding and flaunting its outside world as peripheral, as good licence raj, the regulators of the own brands. Partnerships for a low risk flutter, not as c rucial ubiquitous Indian state almost and JVs will not do. n the search for global importance always insisted that Indian com(did I whisper the expression global panies should set up capacities to dominance? ). Those who drop the expressions ‘domestic’ ‘meet’ the demands of the domestic market. Going and ‘overseas’ and opt for the phrase ‘global markets’ overseas, literally even travelling overseas was a torture have no choice but to venture out as full-fledged hundred as ‘scarce’ foreign exchange was only doled out for percent owned/controlled branches and subsidiaries government-approved missions. ith overarching global brands. Having spent close to half a century in a hothouse As far as culture is concerned, it seems to me that atmosphere, we find ourselves ill-equipped to deal with the world outside our desi cocoon, hence the prevailing the attempts to alter an organization’s DNA in order to meet the so-call ed prescriptive needs of overseas markets academic and journalistic interest in the phenomenon will be a serious mistake. Organizations have to be of Indian companies going overseas. At one end of the faithful to their core DNA if they wish to succeed. This discussion is the legal structure, the choice of branches, does not mean that the genetic code does not evolve, with subsidiaries, joint ventures, greenfield ventures or time and with unfolding of the organization as it grows acquisitions and so on. At the other end is the so-called issue of ‘culture’ - what is the culture we need to and spreads out much in the way that a biological organism does. succeed overseas; what are the unique challenges faced VIKALPA VOLUME 29 NO 4 OCTOBER DECEMBER 2004 101 101 ‘Going overseas’ is not an option, going ‘global’ is an imperative if the Indian company seeks growth. If it seeks global market relevance, it has to be in its own right building and flaunting its own brands. Partnerships and JVs will not do. The culture of the organization must be faithful to its genetic make-up - the ingredients that have been created so far - but must adapt to the new growing, expanding global habitat where the company now chooses to live and try to succeed. A mixture of metaphors with a streak of audacity in it †¦. a starting point of the journey. SOUND PARTNER AIDS REACHING RETAIL CUSTOMER Pramod Khera Managing Director, Aptech Ltd. Mumbai I ndian companies are looking at the overseas markets where brand building and distribution are critical for because they have understood that success in the their success. domestic market does not ensure sustained success. Aptech pioneered, along with New Delhi-based Globalization does not just mean that there are NIIT, the IT education in private sector. The intent was opportunities for Indian companies outside the Indian to exploit the gap between the fast growing demand for shores that they can exploit; it also means that global IT professionals and the output of formal education companies have opportunities in India. The Indian market sector. The franchisee and centre approach provided the is increasingly becoming global and Indian companies wherewithal and impetus for rapid expansion from have to succeed domestically and globally if they want around 1990. Aptech increased its network to cover most to survive and grow. Hence, in many of the country and set up the first cases, international businesses are overseas centre in Bahrain in 1994. International businesses being developed by Indian comThe major breakthrough was China are being developed by panies in order to gain economies of where Aptech entered into a 50:50 Indian companies in scale and to de-risk their depenjoint venture with Beijing Beida Jade order to gain economies dencies on limited domestic geoBird Company, an associate of Beijing of scale and to de-risk graphies and markets vis-a-vis their University. Today, Aptech’s internatheir dependencies on global competitors. tional operations account for about limited domestic one-third of the business with close Companies from the lessgeographies and markets to 300 international centres. developed countries, like India, face a difficult and challenging task in Aptech’s foray in the Chinese competitors. going international but not an market has been a highly successful impossible one. There are examples one aided to a large extent through of successful companies from developing countries like its strong joint venture partner. The joint venture - with Taiwan’s Acer (tiny start-up electronics consulting Aptech providing the model of education, course content, company growing into one of the world’s largest and managerial guidance and the Chinese partner looking manufacturer of PCs), Mexico’s Cemex (competing with after government regulations and day-to-day manaworld players in the cement industry), Philippine’s gement - is guided through board meetings with Aptech Jollybee (taking on McDonald’s across the world), Brazil’s charing the joint venture. Aptech has approximately 110 Weg in the electrical motors market and India’s Ranbaxy, centres in 57 cities and has trained over 50,000 students Infosys, TCS, and Wipro. The Indian companies menin Mandarin. It is present in 20 of the 26 provinces in tioned above have built strong international businesses China and some of the best companies, both related to on a powerful value proposition - competitive quality IT and otherwise, have selected Aptech students for their at low costs. These companies have operated in a direct companies. Some of the learnings that can help companies selling environment where decision-making is by succeed in China are as follows: corporations based on a rational buying process. They Partner: If a company is contemplating entering do not operate in markets like FMCG or IT education vis-a-vis their global 102 INDIAN COMPANIES IN OVERSEAS MARKETS 102 China with a partner, selecting a partner with credibility and standing is important. The government has an undoubted hold on all enterprise. Hence, a partner with linkages with the government is the most ideal. Beijing Beida (Beijing University) is a premier education institution in China. It has a good local standing and reputation. Beijing Beida Jade Bird Company, Aptech’s joint venture partner, is an equally focused and receptive partner. move up the value chain and keep ahead of competition. This has also helped retain and build the partner’s dependability on Aptech. Merge in local milieu: Whilst India is known for its software and IT supremacy in the media, Aptech has been positioned as a local player with the best quality and understanding and not as an Indian company. Local knowledge is power: The Chinese believe that Negotiations: Doing business in China is all about negotiating. There are three stages of doing business most foreigners do not understand them and their - pre-negotiation, formal negotiation, and postcountry, and that is why they do not succeed. negotiation. The pre-negotiation stage includes Succeeding in China is all about understanding the presen tations, lobbying, and trust building. Formal country - its history and its past (in terms of negotiation involves task-related exchange of communism, Maoism, closed economy), psyche and information, persuasion, concessions, and mentality (follow the leader, never question the agreement. Generally speaking, the Chinese honour governance, limited risk taking ability, lack of an their agreement and commitment. entrepreneu- rial culture), However, being a very large country culture and social framework Building downstream with its experimental nature of (traditions, tradi- tions, and capabilities, knowledge of reforms, unevenly developed more traditions, e. . , signifimarket, local laws, and infrastructure, scarce natural recance of colours, toasting a drink sources per capita, and large client relationships are with a boss), and political envibureaucracy makes most people essential but developing ronment (communism and burwant to keep re-negotiating these can be expensive eaucracy). situations. Hence, very often, with for an organization. Language: Some knowledge of the signing of an agreement only Mandarin would always be begins the process of negotiations in useful, both to impress as well as to comprehend. China. Most Chinese can read and write some amount of In conclusion, the oft-repeated cliche - ‘Think English, but lack the confidence to speak it, especially Global, Act Local’ - has been one of the biggest learnings in front of a foreigner. Hence, negotiations in English for Aptech in its global, especially Chinese quest. Aptech put the Chinese at a slight disadvantage. has moved beyond being an education franchiser and Localization: In terms of products offered (courses), has moved up the value chain with new technological the method of delivery (example-based learning), and educational innovations, i. . , content services and and the medium of delivery (language), adaptation ‘online portal development. ’ of the business model to local market conditions Building downstream capabilities, knowledge of the also assumes significance. Understanding the target market, local laws, and client relationships are essential audience helps in the localization effort. In Ch ina, Aptech found that the students were more attuned but developing these can be expensive for an organization. to step-by-step thinking and not multi-tasking. Franchising provides a very effective method for Accordingly, the pedagogy of the curriculum design acquiring downstream capabilities and penetrating a was amended to address these learning objectives. market effectively. Strategic alliances like the one with Beijing Beida in China have brought in a new perspective Moving up the value chain: Schools and colleges to Aptech, especially about the recognition of role that have been licensed content and provided support it is playing in developing the education and IT infrasfor classroom delivery. This has enabled Aptech to tructure in the host countries. VIKALPA VOLUME 29 NO 4 OCTOBER DECEMBER 2004 103 103 IS INDIA’S MARKETING MUSCLE EXPORTABLE? Niraj Dawar Nabisco Professor of Marketing Richard Ivey School of Management University of Western Ontario, Canada I nfosys is building a global brand. The effort is differentiate India from other emerging economies such noteworthy not only because there are so few as China and Russia. Those markets have only recently successful Indian brands on the world stage but also reformed their centrally planned economies. They lack because it represents a marriage of two of India’s key a history of marketing. Even a few years ago, few competences - information technology and marketing. Russian or Chinese brands had been built on the strength Indeed, India has enormous marketing talent and a of marketing (although that is changing rapidly) and reasonably good track record of building brands locally. multinational firms operating there still tend to employ Nirma, Bajaj, Titan, Mother Dairy, and Dabur are expatriate managers to handle marketing strategy and complemented by Lifebuoy, Lipton, Dettol, and Colgate planning. Indian managers, by contrast, are strong on as brands built in India by the Indian talent. The marketing. arketing of these brands has always been local even Yet, India’s marketing strength is conspicuously if the products and the initial brand concepts for some absent from the global stage. If India of them were imported. In recent has such abundant marketing talent, years, as liberalized imports have why have so few Indian brands It is not surprising that opened the market to a flood of new ventured abroad? Why have Indian even the most centralized entrants, many a business has been companies not leveraged their foreign companies launched and grown on its marketing marketing advantage to compete entering India quickly acumen. The business of consumer internationally? Why do Indian learn to entrust marketing electronics, for example, has Onida, brands not adorn the shelves of to local managers and Videocon, and Baron International supermarkets in consuming that the most savvy building businesses on the strength countries? Why do Indian goods international marketers of their marketing while relying still compete as commodities in pricequickly come to entirely on ‘outsourced’ RD and driven markets at the bottom of the recognize the formidable manufacturing from companies such value curve? What prevents Indian local competition they as Sony and Samsung. The computer companies from leveraging their hardware business is another face in India. marketing competences outside of example of business models founded India? on downstream activities - marketing, sales, distribution, and afterAside from the usual rich-country predilection for sales service. All of this marketing activity has led to protectionism, two inter-related reasons come to mind: a considerable pool of marketing talent and capital among knowledge and means. Marketing is a downstream Indian firms and managers. It is not surprising then that activity that requires intimate knowledge of the market. even the most centralized foreign companies entering For the same reason that multinationals operating in India quickly learn to entrust marketing to local managers India prefer to hire Indian managers, these managers’ and that the most savvy international marketers quickly talents do not necessarily translate abroad. The Indian come to recognize the formidable local competition they managers’ marketing knowledge and knowledge of the face in India. Indian marketers know not just marketing; Indian market are intermeshed. Separating them and they also know their market. They are not just a less applying the marketing knowledge to a foreign market expensive resource than expatriate managers; they are is not easy. This is not to say that Indian managers better at marketing in India. cannot learn about foreign markets, but rather that On the global stage, these marketing strengths clearly learning is an expensive activity that requires tremendous INDIAN COMPANIES IN OVERSEAS MARKETS 104 104 commitment and large investment. Opportunistic exports and market entry ithout a long-term brand building plan are not conducive to building that foreign-market knowledge. Indian brands may be formidable competitors locally, but abroad, where they are unknown entities, they have to work very hard to stand out in a crowded field. Indian managers do have the marketing talent to sell abroad but they lack the means to establish brands in markets where media are fragmented and do not come cheap; any decent share of voice r equires a substantial investment. Brand building requires enormous fixed investment before a single unit of the product is sold. This means, the brand builders must not only have deep pockets but a considerable appetite for risk. Few Indian firms have been willing to take the bet. This is not surprising. There is a chicken-and-egg problem here. It is not easy to take on the costs of building a brand abroad without prior experience in brand building in foreign markets. So is Infosys making a huge mistake? I would not bet on it. Betting against Infosys has not been a profitable game in recent Indian managers do have years. Infosys has certain advanBut what of the parade of strong the marketing talent to tages. It is building a brand in an Indian brands? Well, what of them? sell abroad but they lack industry in which the needs of Despite satellite television and the means to establish customers are fairly uniform across spillover of other media to other brands in markets where the world. Its brand needs little countries, Indian brands have dismal media are fragmented and adaptation for different country awareness and even more limited do not come cheap, and markets, reducing the costs and risks appeal to consumers there. In the any decent share of voice of brand building. The company Persian Gulf region, Indian brands knows the needs of its customers requires a substantial may look like they are doing well, and has already made a significant investment. but this is brand leveraging, not operational commitment to delibrand building. Indian brands in the vering to world-class norms. BrandGulf region rely on awareness and loyalty created in the building is a natural extension of this functional ability. home market. They are simply exporting to consumers Infosys is already a credible player in the global market. ho have been previously exported to these markets. Therefore, brand-building is as much a means of To truly do well abroad, the brands would need to be consolidating its position as it is of attracting new (re)built to suit the requirements of local consumers in customers. Finally, Infosys has the deep pockets required foreign markets. This is far more expensive than the and is willing to take a bet not just on its superior brand leveraging curre ntly practised. Few Indian brands product/service offering but on its marketing talent. ave succeeded in replicating their home market success Will its branding lead be followed by Indian firms outside abroad. Even Titan Watch’s valiant attempt to build a the information technology space? brand in Europe disappointed. ASPIRATIONS OF GLOBAL LEADERSHIP IN MANUFACTURING B N Kalyani Chairman MD, Bharat Forge Ltd. Pune harat Forge Limited’s (BFL) journey towards becoming an international player began in 1997. Three factors determined our need to go global. First, we appreciated what globalization could do to improve quality, delivery, costs, supply chain, RD, productivity, and business processes. We, therefore, wanted to venture out and learn best practices. Second, while we had sufficient faith in domestic demand, we VIKALPA VOLUME 29 NO 4 OCTOBER DECEMBER 2004 B wanted to grow beyond the Indian market. Third, we recognized that different geographies often follow separate business cycles. We wanted to not only reduce our over-dependence on a single market but also take advantage of different growth opportunities across varying geographies. Now, we are India’s only forging company supplying globally and the country’s largest exporter of auto components. 05 105 Contrary to popular perception, outsourcing is not limited to IT. In the emerging international scenario, the potential for growth of global outsourcing in manufacturing could very well outstrip that in IT and IT related services. In this, automobile components play an important role. Moreover, most automotive OEMs and their Tier-1 suppliers have begun to understand the ‘India Advantage’ i n auto components as well as other products that have relatively high engineering and design content. We feel well positioned to leverage these outsourcing opportunities. become a global base for exports of manufactured goods (e. g. , auto components), build Indian MNCs (e. g. , Infosys, Ranbaxy) enhance competency levels (e. g. , manufacturing clusters at Surat - gems and jewellery; Tirupur - Textiles; Pune - Auto components) radically improve quality of infrastructure (e. g. , telecom, roads, power, ports) design conducive government policies (e. g. , Special Economic Zones to overcome constraints, of infrastructure, e. g. , labour and be the means to attract huge domestic and foreign investments). Bharat Forge has the largest single location commercial forging facility in the world and we are moving up the value chain - from raw forging to machined components and to more complex subGovernment and industry have to build a strong assemblies. In early stages, the approach was to increase partnership and create conditions for Indian companies market size by exporting to overseas markets. However, to become global MNCs. The Japanese have been in the recent past, the company started realizing the need particularly successful in this and we can emulate their to have international manufacturing facilities - example. Today it is a matter of great pride and especially in Europe, where autosatisfaction for Japan to see Toyota mobile companies prefer component Motor Corporation, which till a few Government and industry manufacturers to be located close to decades ago was a fledging company, have to build a strong their factories. In early 2004, we to be ranked the second largest partnership and create acquired a German forging company automobile company in the world. If conditions for Indian which provides close synergies in Toyota could do it, I see no reason companies to become terms of production facilities, why at least five to six Indian global MNCs. eographical coverage, and customer companies cannot acquire global base. This acquisition makes us the leadership in their businesses in the second largest forging company in the world. It also next ten years. provides us access to the huge market for passenger car components that will synergize with our strong global Innovation is the key to real growth and unassailable presence in engine and axle components for medium and competitiveness. To produce more growth per dollar heavy commercial vehicles. f investment, a company must produce more innovation Moving on to Indian industry as a whole, the ten basics to compete in the global market are: produce world class quality (e. g. , software, pharmaceuticals, auto component, etc. ) build international scale capacities (e. g. , Bajaj Auto, Hero Honda, TVS), leverage India’s low cost advantage (e. g. , software, pharmaceuticals, auto components) develop strong product development capabilities (e. g. , Indica, Scorpio) expand size of domestic market to provide foundation for exports (e. g. , Bajaj Auto, Indica) per dollar of investment. Companies can improve innovation efficiencies by: raising the ratio of innovations to total number of employees (foster a culture in which innovation is encouraged across the organization and not restricted to only the RD department) raising the ratio of radical innovation to incremental innovation by focusing on changes that change customer expectations and behaviour (e. g. , wireless money transfer), basis of competitive advantage (e. g. , digital cameras) or industry economics (e. g. , no frills airlines) raising the ratio of learning over investment in INDIAN COMPANIES IN OVERSEAS MARKETS 106 106 innovation projects (focus on effective locations for production - Forces of globalization - low cost experimentation vis-acan make India a huge global the search for more costvis high cost product testing and manufacturing and supply base. We effective locations for development). are the only country that can compete production - can make The key enabler for competiwith China with s ome important India a huge global tiveness for Indian companies is our advantages - a more familiar and large capacity of ‘brain power. This predictable legal system, better manufacturing and supply needs to be carefully nurtured and protection of IPRs, and strong English base. expanded. Other factors that will language skills. In auto components, contribute to our competitiveness are Indian companies are projected to be emphasis on IT-based technologies in manufacturing, able to meet 35 per cent of the global demand for auto engineering, and product development and training to components by 2015. Several other sectors hold the same improve marketing skills required to create delivery promise. The world is beginning to believe in India; we systems for global customers. eed to believe in our ability to compete, perform, and Forces of globalization - the search for more cost- succeed! CONCLUSIONS AND IMPLICATIONS Rajnish Karki T he contributions present an extensive exploratio n of the phenomenon of ‘Indian companies in overseas markets,’ which is multi-faceted in terms of activities and issues and is variegated among industries and companies. As the proportion of Indian companies engaging substantively with overseas markets is not more than a tenth, and for these too the experience is less than a decade long, these are very early stages of the phenomenon. However, the breakthroughs and aspirations of Indian companies that have ventured overseas portend major two-way engagement between Indian business and the world economy. The context of overseas expansion of Indian companies is different either with respect to American and European companies or Japanese and Korean companies and so the process will be unique and could be unprecedented in terms of pace and impact. The Colloquium does identify some issues and patterns. These are analysed for extending and drawing implications and for addressing apparent contradictions. Major conclusions on the phenomenon of ‘Indian companies in the overseas markets,’ which can be converged upon are as follows: From comparative to competitive advantage: Historically or till about 1990, the engagement of Indian companies with overseas markets was with the export of traditional products like tea, coffee, iron ore, leather, apparel, gems and jewellery, etc. These were based on natural endowments or on first-level comparative advantages of India and the companies played a role of little more than intermediaries or traders. There was a shift during the previous decade when companies found and deployed second-level advantages - availability, lower cost, and skills of the technical and scientific manpower in India. The second-level advantages, though comparative in nature, required creation of complementary capabilities in sales and marketing and in production systems which needed to be evolved within the companies or firms. Software companies that primarily operated with posting of professionals in overseas assignments or ‘body shopping’ till the mid-1990s started moving to projects and offshore production units by late-1990s. As a result, companies moved beyond India-based comparative advantages to create firm-based ‘competitive advantages. ’ The competitive advantages are more expandable in terms of scale and scope as they are governed by the competencies developed within a company and the aspirations of its top management. The trajectories are relatively similar in case of pharmaceuticals and auto components companies, though on a smaller VIKALPA VOLUME 29 NO 4 OCTOBER DECEMBER 2004 107 107 agnitude and with a lag of few years, and many other industries are likely to mo

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King Henry VIII - Essay Example In 1503, Henry became the Prince of Wales and in that very year his mother and grandmother were gathered unto their forefathers. In the year 1509, his father passed away and he ascended the throne as Henry the VIII (HENRY VIII (r. 1509-1547)). At that time England was an isolated kingdom in Europe. It had limited natural resources. England was surrounded by the sea on three sides. Scotland was to its north. The Scots were inimical to the English they joined forces with France, which was also an enemy of England. His father Henry VII had strived hard to restore independence to England and to enrich it in all respects. In order to achieve these goals, Henry VII had executed his opponents and enemies and annexed their properties in England. He had increased the amount of taxes to enrich the crown. He was disinterested in wars as they depleted the wealth of the nation. His son had totally different ideas in this respect and after his coronation; he adopted novel means to expand the power of England and to make it the greatest power in Europe (Kishlansky). Henry VIII was inimical of France and in the year 1513, he mounted a successful campaign against the French. This infuriated the Scots who waged a war against England. This engagement was famous as the Battle of Flodden Field. In that battle, the armies of Henry established their supremacy over that of the Scots. James IV, the king of Scotland was killed in that battle (Kishlansky). Henry VIII played the role of an arbitrator between France and Spain. He provoked these countries to wage war against each other, in order to assume a superior position in Europe. His subsequent military operations were failures. In the year 1520, Henry met with the king of France, Francis I, in France. Their meeting was a spectacular event in Europe. Despite, the existence of diplomatic relations with each other, they were unable to stop the

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Example Dissertation On Defining And Discussing A Family Business There are various definitions that describe a family business, and each definition describes the family business with a different way. According to Birley and to Godfrey, whether utilizing a broad or narrow definition of family business, it is clear that family businesses comprise a very significant proportion of business throughout the world. Family businesses can range in size from a small corner store to a large multinational corporation. (Birley Godfrey, 1999). According to Chua, Sharma, and Chrisman (1996), family business as a business governed and/or managed on a sustainable, potentially cross-generational, basis to shape and perhaps pursue the formal or implicit vision of the business held by members of the same family or a small number of families.. For the purpose of our dissertation, a family business is a company whose ownership and management are concentrated in one family, with at least one member of the family at the helm of the business and another being groomed or considered for eventual leadership. (de Pontet, Wrosch and Gagne, 2007) In order for a family business to survive through the years an appropriate succession plan must be created to ensure in the long run prosperity and success for the family firms. According to Viktorin and Downs the definition of succession planning is the identification and development of an individual, or a small pool of individuals, with the skills, attributes and experience to fill specific roles. In reality this is more like Replacement Planning-where companies look to replace individuals based on a never-changing organisational chart. (John Viktorin and Lee Downs, 2010) http://www.hrpa.ca/ProfessionalDevelopment/Pages/PDinaBox%E2%84%A2TopicDescriptionSuccessionPlanning.aspx Also, according to Christee Gabour Atwood, succession planning is described as having the right people in the right place at the right time. More specifically, succession planning is the ongoing process of identifying future leaders in an organization and developing them so they are ready to move into leadership roles. This process includes reviewing the organizations strategic plan, studying the current workforce, forecasting future trends and developing employees in a structures plan to replace leaders as they retire or depart from the organization. (Atwood, 2007) http://books.google.com/books?id=rdMijyE7Q58Cprintsec=frontcoverdq=succession+planninghl=enei=IclvTLvNFMim4Abr58iRCwsa=Xoi=book_resultct=resultresnum=3ved=0CDwQ6AEwAg#v=onepageqf=false In order to enhance Business continuity in the long term after a major event that affects the business a succession plan must be provided that will give ensure survival. According to David Honour An holistic management process that identifies potential impacts that threaten an organization, and provides a framework for building resilience and the capability for an effective response which safeguards the interests of its key stakeholders, reputation, brand and value-creating activities. (Honour, 2006) http://www.continuitycentral.com/feature0398.htm Business Continuity planning is defined as the Planning which identifies an organization exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, whilst maintaining competitive advantage and value system integrity. (Dominic Elliott, Ethnà © Swartz, Brahim Herbane,2002) http://books.google.com/books?ei=s9NvTM7LBY6k4QalxYXeCAct=resultid=Igcza506veICdq=business+continuity+definitionq=business+continuity+definition#v=snippetq=business%20continuity%20definitionf=false Why succession in family business is important According to the survey from the Price Waterhouse Cooper Cyprus they found that the 50% of family firm across Cyprus are expecting a change of ownership and the 30% of these will change in the next five years. However in Cyprus the 34% expect change of ownership in the five years, which is higher than the rest of Europe. Also 58% would pass their business to next generation and 29% would sell to another company. Unfortunately this 29% of family business in the future will have a problem in the future. The succession to family firms is a key moment in the life of any family firm. Although only 16% of the Cypriot participants of the survey respond that they will manage succession. This indicates that only a few Cypriot family firms will be able to survive in the future. In the U.S. only the 30% of family firms will survive in the second generation and 10% to the third generation. In general the 50% of worlds economy is made up of family businesses and only 10% will survive to the third generation, these shows that the world economy depends wholly in the long term sustainability of the family entity. According to Aronoff It has been said that the three important issues comforting the family business are succession, succession and succession. In order for a family business to survive it must be succeeded each and every generation must be succeeded by the next which is the most crucial family business No one can plan for the worst case scenario because even you can predict your financial status for the future and make a breakeven analysis there is no way to predict the unpredictable. The unpredictable can be natural disaster, national economy collapse, CEO illness or retirement which is a good reason for having a succession plan prior. Contingency planning can anticipate the worst case scenario that will help the company to stay afloat. Succession planning together with current evolved practices over the year have grown and changed. Succession planning is not only a plan for leadership change is something more, it helps to establish a strong leadership that will ensure the survival of the business from competition in the marketplace and stress the executives the importance of reviewing and examining the mission and objectives of the company. Also having a well prepared succession plan for a family business it gives the opportunity for the rest of family members to have a voice and express their needs and concerns. It will make them more responsible and care more about the organization which will enhance a successful succession planning. It will increase the team spirit and will avoid the temptation to solely carry the entire weight of creating and sustaining a plan. Income and expenses are sustained when a succession plan is in place, because it can provide answers as to the future income the company will need and what expenses will occur once the founder steps back from the main leadership role. Having a good succession planning gives to someone a helicopter view on how to examine his or hers employees and not mistakenly focus solely on replacing high level executives. Neglecting to add all the employees from all layers of management and their subordinates, not just the high executives to succession planning can cause a series of consequences into the future. Moreover succession planning increases better relationships between departments by developing better communication between them and resulting into a more cooperative environment of synergy which develops a culture of strength and team spirit. Succession planning activities must be linked with human resource practices because after all Human Resource is about people and people are the most valuable asset of every company. Including HR in succession planning can reveal important processes such as employee evaluation processes that help to decide whether to fill vacancies with internal candidates from the company. Succession planning keeps emotions always high because change is major component of succession plan. Change can be a source of stress in case of people where the jobs at risk. On the other hand it can be an exciting process because it plans for the future and can inspire employees to get involved and loyal to the company. 4- The Family Business Challenge Family businesses in developed countries such as the U.S account for the 50% of the gross domestic product from small business to large corporations. However in the fortunes 500 companies list family businesses account for the 35% which shows that big family corporations rule the world. These family businesses are powerful and at the same time very complex that create both of them advantages and opportunities as well as challenges. The most important challenge is to effectively align the business system with the family system which it cannot come naturally. In the one hand we have the family which is driven by emotions and on the other hand the business that is driven by economics. The interaction of family cohesion and business achievement often creates outstanding business performance but at a cost. If there is lack of coordination, good things that benefit the business can damage the family and when there are family conflicts can damage the business. The crossroad between ownership, management and family found in family business creates challenges for succession. During succession trust and harmony in the family can complicate the transition process and cause conflicts. Elements affecting family business succession can be the influence of the board of directors and other experience with succession that can be considered as business factors. According to Carlock the following diagram describes the conflict between the family expectations and the business demands in planning a family enterprise strategy which includes the strategy for all the activities that need to be conducted by a family business family including its operating businesses, its investments and other business activities. Family Enterprises have four general strategies: invest, hold, harvest or sell. These strategies reflect the owners investment commitment based on the business strategic prospective for value creation. Moreover looking at the diagram we can see that family expectations, business demands and result in different tactics and actions shape the choice of enterprise strategy. Figure 1: Aligning family expectations and business demands Family Enterprises need to develop family and business plans because of five important issues that arise from the conflict between the family expectations and the business demands. These issues appear to be in most of the family firms not caused by conflicted relationships among members but driven by life cycle and life events, family values and experiences and real differences between family goals that are emotional and business goals. In order to have the control of these issues, cautious planning and decision making must be considered, in order to ensure family harmonization and business performance. Also to secure effective communication between these family and business goals, conflicting demands must be addressed from both aspects. The five structural issues are:  · Control: How are decisions made?  · Capital: How are financial resources allocated?  · Careers: How does the family create career and leadership roles?  · Connection: How do we keep family relationships strong?  · Culture: What values drive our planning, decision-making and behavior? Looking to the above issues closely we can understand how family expectation and business goal often dont match and result in to conflict. Preparing the next generation careers is often a source of stress and misunderstanding. All businesses need capable and well trained executives to manage the firm. However most of the parents see their children as the most suitable and entitled to the family business than anyone else but is not always like that. Usually there are children that are entitled to run the business but they lack of expertise and attitude, these cannot be entitled of the business because they will drive the business downward. When a family member expects to run the business like its parents, his or her dream collapse because the family havent planned succession properly or there is a lack of fairness in recruitment method. These scenarios may cause conflicts among family members relationship within the company and losses for the business. So, in that case family and busi ness planning must be completed and linked with each other in order for the family members to be informed and focused about the business requirement, where family is treated fairly and the business has capable employees. Figure 2: Structural Conflicts in Family Business Systems A good start for the family is to identify its values and its future vision. Its values can be filled in the vision statement of the company that will inspire and determine what the actual business and its strategy will become. However if the familys vision is to remain a small family business that competes in the local market, then family employment is feasible. The criteria of selecting family members will be devotion and interest only, which in case of staying within the family business, then the management positions for family members are certainly possible. On the other hand if the vision of the family is to grow the business and dominate the market or industry, the family will think of its business requirements and consider a professional management that includes skills of being able to identify strategies that suits the family business needs to dominate the market or industry. Hence, the family business will require key management people with elevated skills that could come from the family or not. In conclusion, families that identify their values helps them to agree on their vision statement that drives planning for align family and business activities that will ensure in the family and business performance. Leaders of family businesses who usually are the primary owners can exercise great control over the process of succession. According to much of the research on this subject has focused on their unwillingness to cede control, which according to relevant theories is an example of people who lose leadership and suffer from a psychological loss from retirement due to their role as leaders that offered them respect and admiration which they may not discover it somewhere else. Another challenge may be consider the emotional burden of the leader of choosing a successor from among his children, which can delay the succession process. Additionally they rely on income from the business to fund retirement and they may not forward with succession if they believe the business cannot function without them. Referring to the successors experience of succession, its interests and abilities have an impact on succession outcomes. In most organizations they gain control through demonstrating their previous experience and competence but in family business it is unclear if this process works in the same way. Relevant family business research finds that the way the heir experiences the succession process can add to his or her fulfillment with work as well as to be prepared to take over. (Stà ©phanie Brun de Pontet, 2007) An Exploration of the Generational Differences in Levels of Control Held Among Family Businesses Approaching Succession 5. Determining the current owners needs and objectives The base of family business succession plan is to determine what, when and how the owners goals and objectives. It is important to know about the goal and objective of family business because this is necessary to decide about financial planning, retirement planning, business planning, business succession planning, tax planning and strategy of company. The goal and objective can help the owners advisors to establish a good outline for succession planning. This information can give guideline to balance between family situation and business situations. Also difference between current situation and their goal and objective situation can show strengths, weakness and reality of the family business situation. Therefore, achievement of good plan needs many parameters that it is including family values and business values. Family values present their situation in the business, the owners family dynamics, Restrictions of the business and the family currently. Business values can present companys cash flow, competition level, reputation and their role in current market. In a nutshell, this part involves determining and considerate the business owners goal and objectives that present situation and the Limitations, observing the reality of the situation and making realistic recommendations that achievable by the owner and his business and family. A family succession plan needs to involve the financial needs of the owner and his or her spouse. In reality most of the family business owners are depending on the business to provide for their retirement because they can have less cash in hand and more cash on paper which means that most of their money is invest into their business. Family Business Owners having in mind that one day their money from pension will be spend after they retire and do things that they have not done before where for many years they made sacrifices to run their business. Also whatever they have not done all these years even for the rest of the years they have left they want to spend their time with their family and get involved in community and not profit activities. However is it possible for the business to support their owner and his or her spouse after succession? And is it possible for the family business to support the new owners children. In addition the owners goals and financial needs need to be synchronized in order to be brought into harmony because most of the times the owner evaluates its company much more that it actually. A true business valuation will convince the owner about the correct value of the business in order to be cautious to make correct decision that concerns his or hers personal goals and financial needs, particularly for retirement. The Vroom-Yetton-Jago Normative Leadership Decision  Model Management or leadership in family business is all about making decision, setting the goal, set guideline to achieve the goal and assess strategy of succession plan. Leadership can be effective when the leader can take decision in difficult times and situations. An effective leader is considered when he/she gives ideas and suggestions in appropriate situations when advice is needed. The decision making is base thing for leaderships. How decision-making and decision-making positions is very important. A decision could have different result in variety situation. One of these decisions is creating and choosing succession plan. In decision making we have to know that what things effect our decisions. , what is the managers expectations about his/hers output of its decision?, when the managers require consultation from for others in their decision making?, and How does the managers get commitment from his/her employs on specific decision? Therefore we need a theory for identifying the leaders decision making. Vroom-Yetton-Jago Normative Decision Model can help us to answer the above questions. This model present five different styles on the different situation level of involvement. These five styles are following: Autocratic 1 (AI): This part is completely autocratic that means the manager solve the problem and crisis with himself decision by managers information that is available. Autocratic 2 (AII): In this part, manager collect specific information from members and staff. Ultimately, the managers decision is individual decision and maybe the follower doesnt have aware about this decision. They involve in this part only for data Collection. Consultative -1 (CI): The manager explains the problem or situation to each follower individually and asks to evaluate from each followers. In this part, followers do not constitute a group and manager will decide alone. Consultative 2 (CII): The manager and flowers constitute a group about their situation and will consult together but the final decision will give manager. Group-based 2(GII): The managers and followers constitute a group about their situation or problem and they will decide together. In this part manager will accept final decision and he/she doesnt force his/her individual decision. Vroom-Yetton-Jago formulated some questions on decision quality, commitment, problem information and decision acceptance, with which leaders can determine level of followers involvement in decision. These question are following and the managers has to answer only Yes/ No for each question. 1- Is there a quality requirement? Is the nature of the solution critical? Are there technical or rational grounds for selecting among possible solutions? 2- Do I have sufficient information to make a high quality decision? 3- Is the problem structured? Are the alternative courses of action and methods for their evaluation known? 4- Is acceptance of the decision by subordinates critical to its implementation? 5- If I were to make the decision by myself, is it reasonably certain that it would be accepted by my subordinates? 6- Do subordinates share the organizational goals to be obtained in solving this problem? 7- Is conflict among subordinates likely in obtaining the preferred solution? Quoted from: (Vroom Jago, 1988) Then the manager cloud find type and level of decision from below graph.

Soft Money: It?s Elimination from Governmental Campaigns :: essays research papers fc

Soft Money: It’s Elimination from Governmental Campaigns   Ã‚  Ã‚  Ã‚  Ã‚  The current use of soft money in the US Governmental elections is phenomenal. The majority of candidates funding comes from soft money donations. Congress has attempted to close these funding loop holes; however they have had little success. Soft money violates standards set by congress by utilizing the loop hole found in the Federal Election Commission’s laws of Federal Campaigns. This practice of campaign funding should be eliminated from all governmental elections.   Ã‚  Ã‚  Ã‚  Ã‚  In 1907 it was considered illegal for any corporation to spend money in connection with a federal election. In 1947 it was illegal for labor unions to spend any money in connection with any federal election. And since 1974, it has been illegal for an individual to contribute more than $1,000 to a federal candidate, or more than $20,000 per year to a political party (Campaign Finance). Congress defined this as a way to prevent the influence of a candidate or federal election. The so-called â€Å"soft money† which is used to fund candidates’ elections is defined as money which violates the Federal Election Commission’s laws on federal elections. In laments terms a simple loophole was created by the FEC in 1978 through a ruling which allowed corporations to donate large amounts of money to candidates for â€Å"Party Building† purposes (Campaign Finance). In reality, the $50,000 to one million dollar donations gives the candidate the power to put on the most extravagant campaign money will buy. This loophole remained almost completely dormant in federal elections until the Dukakis campaign in 1988, then fully emerging in the later Bush campaign, which utilized millions of dollars of soft money(Soft Money). This aggressive soft money campaigning involved the solicitation of corporate and union treasury funds, as well as unlimited contributions from individuals, all of which were classified for â€Å"Party Building† purposes. The way the money flows is basically from the corporation or union to the political party which the donator favors. The spending of soft money is usually controlled by the political parties; however it is done in great coordination with the candidate. Aside from unions and corporations special interest groups have been large supporters of soft money. These groups band together for a candidates such as groups for, textiles, tobacco, and liquor. The textile giant Fruit of the Loom, successfull y lobbied a campaign which stopped an extension of NAFTA benefits to Caribbean and Central American nations.

Lecture Ready – Chapter 4 – Lecture Outline

Bui Ng? c Minh Anh BABAUH11045 Listening AE1 Chapter 4 – Lecture Outline TOPIC: Technology is changing the music industry. I. Democritization of music industry: 1. Making of music: a. Professional tools of recording studio on personal computers. b. No longer needs a recording company to make high-quality recordings. 2. Promotion of music: a. On the internet, anyone can be a critic. b. People post preview, opion and their music work on music sites, blogs or create their own audio blogs. . Promotion tools has been popularize. 3. Distribution of music: a. MP3 files – the most popular way to get music. b. There are many sites to buy single or album of music. c. Files sharing – P2P networks – sharing all over the world. II. Copyright: (The U. S. laws and international agreements on ownership and rights to distribute property) 1. Tools make music easy to record, promote, distribute also make it easy to steal. 2.P2P networks can be used in legal way, however, 90% of music downloaded violates copyright – people trade music illegally. 3. How to stop, or reduce copyright infringement: a. Music companies and musicians believe that it’s needed to restrict file-sharing on the internet: – Companies that make it easy to share file and make money from it should not be allowed to operate. – Should nstall security devices that make it harder to copy and share files to protect the companies and musicians’ rights. . The file-sharing sites and technology companies disagree to restrict all uses to protect copyright: – The free flow of information led to some of the most technological advances of the world. – Restrict internet sharing not only limit the file sharing but also limit the innovation. c. Other group of people think that it’s needed to have new models for how to pay artists and the music companies, that restrict file-sharing just won’t work.

The Rainbow Warrior Bombing

The Rainbow Warrior Bombing Just before midnight on July 10, 1985, Greenpeace’s flagship Rainbow Warrior was sunk while berthed at Waitemata Harbor in Auckland, New Zealand. Investigations showed that French Secret Service agents had placed two limpet mines on Rainbow Warrior’s hull and propeller. It was an attempt to prevent Greenpeace from protesting French nuclear testing in the Mururoa Atoll in French Polynesia. Of the 11 crew on board the Rainbow Warrior, all but one made it to safety. The attack on the Rainbow Warrior caused an international scandal and greatly deteriorated the relationship between the once friendly countries of New Zealand and France. Greenpeaces Flagship: The Rainbow Warrior By 1985, Greenpeace was an international environmentalist organization of great renown. Founded in 1971, Greenpeace had worked diligently over the years to help save whales and seals from being hunted, to stop the dumping of toxic waste into oceans, and to end nuclear testing around the world. To aid them in their cause, Greenpeace purchased a North Sea fishing trawler in 1978. Greenpeace transformed this 23-year-old, 417-ton, 131-foot-long trawler into their flagship, Rainbow Warrior. The name of the ship had been taken from a North American Cree Indian prophesy: â€Å"When the world is sick and dying, the people will rise up like Warriors of the Rainbow†¦Ã¢â‚¬  The Rainbow Warrior was easily recognizable by the dove carrying an olive branch at its bow and the rainbow that ran along its side. When the Rainbow Warrior arrived at Waitemata Harbor in Auckland, New Zealand on Sunday, July 7, 1985, it was as a respite between campaigns. The Rainbow Warrior and her crew had just returned from helping evacuate and relocate the small community that lived on Rongelap Atoll in the Marshall Islands. These people had been suffering from long-term radiation exposure caused by the fallout from the U.S. nuclear testing on the nearby Bikini Atoll. The plan was for the Rainbow Warrior to spend two weeks in nuclear-free New Zealand. It would then lead a flotilla of ships out to French Polynesia to protest the proposed French nuclear test at the Mururoa Atoll. The Rainbow Warrior never got a chance to leave port. The Bombing The crew aboard Rainbow Warrior had been celebrating a birthday before going to bed. A few of the crew, including Portuguese photographer Fernando Pereira, had stayed up a bit later, hanging out in the mess room, drinking the last few beers. Around 11:40 pm, an explosion rocked the ship. To some on board, it felt like Rainbow Warrior had been hit by a tugboat. It was later discovered that it was a limpet mine that had exploded near the engine room. The mine tore a 6  ½ by 8-foot hole in the side of the Rainbow Warrior.   Water gushed in. While most of the crew scrambled upward, 35-year-old Pereira headed to his cabin, presumably to retrieve his precious cameras. Unfortunately, that was when a second mine exploded. Placed near the propeller, the second limpet mine really rocked the Rainbow Warrior, causing Captain Pete Willcox to order everyone to abandon ship. Pereira, whether because he was knocked unconscious or trapped by a gush of water, was unable to leave his cabin. He drowned inside the ship. Within four minutes, the Rainbow Warrior tilted to its side and sank. Who Did It? It was really a quirk of fate that lead to the discovery of who was responsible for the sinking of the Rainbow Warrior. On the evening of the bombing, two men happened to take note of an inflatable dinghy and a van nearby that seemed to be acting a bit strangely. The men were intrigued enough that they took down the van’s license plate. This little piece of information set the police on an investigation that led them to the French Direction Generale de la Securite Exterieure (DGSE) – the French Secret Service. The two DGSE agents that had been posing as Swiss tourists and rented the van were found and arrested. (These two agents, Alain Mafart and Dominique Prieur, would be the only two people tried for this crime. They pled guilty to manslaughter and willful damage and received 10-year prison sentences.) Other DGSE agents were discovered to have come to New Zealand on board the 40-foot yacht Ouvea, but those agents managed to evade capture. In total, it is believed that approximately 13 DGSE agents were involved in what the French termed Operation Satanique (Operation Satan). Contrary to all of the building evidence, the French government at first denied any involvement. This blatant cover up greatly angered New Zealanders who felt that the Rainbow Warrior bombing was a state-sponsored terrorist attack against New Zealand itself. The Truth Comes Out On September 18, 1985, the popular French newspaper Le Monde published a story that clearly implicated the French government in the Rainbow Warrior bombing. Two days later, French Minister of Defense Charles Hernu and Director General of the DGSE Pierre Lacoste resigned from their positions. On September 22, 1985, French Prime Minister Laurent Fabius announced on TV: â€Å"Agents of the DGSE sank this boat. They acted on orders.† With the French believing that government agents should not be held responsible for actions conducted while following orders and New Zealanders completely disagreeing, the two countries agreed to have the UN act as a mediator. On July 8, 1986, UN Secretary-General Javier Perez de Cuellar announced that the French were to pay New Zealand $13 million, give an apology, and stop trying to boycott New Zealand produce. New Zealand, on the other hand, had to give up the two DGSE agents, Prieur and Mafart. Once handed over to the French, Prieur and Mafart were supposed to serve out their sentences at Hao Atoll in French Polynesia; however, they were both released within two years – much to the dismay of New Zealanders. After Greenpeace threatened to sue the French government, an international arbitration tribunal was set up to mediate. On October 3, 1987, the tribunal ordered the French government to pay Greenpeace a total of $8.1 million. The French government has yet to officially apologize to Pereira’s family, but has given them an undisclosed sum of money as a settlement. What Happened to the Broken Rainbow Warrior? The damage done to the Rainbow Warrior was irreparable and so the wreck of the Rainbow Warrior was floated north and then re-sunk in Matauri Bay in New Zealand. The Rainbow Warrior became part of a living reef, a place where fish like to swim and recreational divers like to visit. Just above Matauri Bay sits a concrete-and-rock memorial to the fallen Rainbow Warrior. The sinking of the Rainbow Warrior did not stop Greenpeace from its mission. In fact, it made the organization even more popular. To keep up its campaigns, Greenpeace commissioned another ship, Rainbow Warrior II, which was launched exactly four years after the bombing. Rainbow Warrior II worked for 22 years for Greenpeace, retiring in 2011. At which time it was replaced with Rainbow Warrior III, a $33.4 million ship made specifically for Greenpeace.