https://research-methodology.net Necessary knowledge to conduct a business research Fri, 03 Jun 2016 10:40:40 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/alcatel-lucent-merger-failure-a-critical-analysis/ Thu, 02 Jun 2016 10:30:21 +0000 http://research-methodology.net/?p=7804 1. Introduction The level of competition in the global marketplace has become highly intensive and this fact is resulting in mergers and acquisitions between companies across countries and continents. There is no dispute that “mergers and acquisitions are a vital part of any healthy economy and importantly, the primary way that companies are able to provide returns to owners and investors” (Sherman and Hart, 2006, p. 1). However, in reality a range of issues may arise in mergers caused by cross-cultural differences, differences in management style, clash of personalities within senior level management and other reasons. This report attempts to analyse issues associated with Alcatel-Lucent merger failure. The report contains analysis of factors that enabled the merger to take place and the analysis of performance of company in present. Moreover, discussions are provided about cross-cultural issues at Alcatel-Lucent and new challenges for the company in an international area are described. 2. Factors that Allowed Merger in 2006 There were previous negotiation talks between Alcatel and Lucent in 2001 regarding the merger of the two companies. However, negotiations had failed due to suspicions of Lucent management that Alcatel was approaching the proposal like a takeover of Lucent, rather than ‘merger of equals’. The concept of “merger of equals” has been described as “a merger framework usually applied whenever the merger participants are comparable in size, competitive position, profitability, and market capitalisation” (DePamphilis, 2009, p.18). However, some circumstances have changed by 2006 that resulted in renewed merger talks between Alcatel and Lucent. First, the level of competition in mobile telecommunication and internet industry has intensified and the two companies needed to merge in order to be able to compete with Chinese manufacturers and other industry leaders. Second, as a result of numerous negotiations between the two companies on top level Lucent senior…]]> https://research-methodology.net/a-critical-analysis-of-elecdyne-international-market-expansion-opportunities-2/ Fri, 27 May 2016 00:53:54 +0000 http://research-methodology.net/?p=7752 1. Introduction Elecdyne is a Tokyo-based manufacturer of consumer electronics products that has been operating in local market in Japan for over three decades. Currently employing 100 members of workforce, Elecdyne strategic level management is keen to explore the potentials of revenue maximisation through internationalisation. This article represents a critical analysis of Elecdyne international market expansion opportunities. The article starts with a brief analysis of Elecdyne current situation and an overview of business environment for the company with the application of STEEP framework.  This is followed by analysis of country profiles of UK, Russia and Turkey as a potential new market for Elecdyne using a weighted scaling system. The article is completed by specifying strategic direction for Elecdyne and providing rationale for the choice of direction being offered.   2. Current/Future Business Environment It has been noted that “an organisation does not exist in isolation but is part of a broader business environment, making it an open system” (Amos et al., 2008, p.3). Accordingly, Elecdyne is faced with a set of challenges caused by external factors that need to be addressed in timely and effective ways. Challenges imposed to Elecdyne by external environment can be effectively illustrated through STEEP table where the abbreviation stands for social, technological, economic, ecological and political factors affecting the business. Social Ø  Intensifying level of cultural globalisation Ø  Ageing of population in developed countries (Blakemore and Warwick-Booth, 2013) Ø  Changing patterns of families (single parents, same sex parents etc.) Technological Ø  Declining duration of life cycle for consumer electronics products Ø  Increasing frequency of technological innovations Ø  Technological breakthroughs in the area of electronics products recycling Economic Ø  Declining profit margins for consumer electronics products due to intensifying competition Ø  Likelihood of economic crises such as global recession of 2007 – 2009 Ø  Rising costs of operations…]]> https://research-methodology.net/impact-of-globalisation-on-general-electric-ge-policies-2/ Thu, 26 May 2016 01:00:45 +0000 http://research-methodology.net/?p=7758 Introduction Increasing forces of globalisation have altered the terms and nature of conducting business considerably and irreversibly. As a result of globalisation businesses have been presented with a range of opportunities to contribute to the level of their revenues and these opportunities primarily include outsourcing various business processes abroad and exporting products to other countries. General Electric Company (GE) is a globally diversified technology and financial services company and its products and services include aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products (General Electric Co, Bloomberg, 2013). GE has achieved an international growth of 18% during 2011 which has contributed to company consolidated revenues of $147 billions during the same period of time. Moreover, 13,000 jobs were created by GE in US during 2011, and international sales of American-made products by GE had amounted to $18 billion during that year (GE Annual Report, 2011). This report evaluates the impact that globalisation has had on the policies of GE and specifies changes needed to be implemented taking into account the recent economic crisis in the USA and the global financial recession. The report addresses GE policy changes impacted by globalisation in an individual manner by referring to other relevant publications, and changes proposed for GE in the report have been justified in a detailed manner.   Impact of Globalisation on GE Policies GE has attempted to take full advantage of possibilities provided by globalisation by formulating relevant policies mainly during the last decade under the leadership of its CEO Jeff Immelt.  Financial Time’s Crooks (2012) recites the following words from Immelt: “When I became CEO [in 2001] we were 70 per cent inside the US industrially. Now we are 60 per cent outside the US”. The specific impacts of globalisation…]]> https://research-methodology.net/acquisition-of-germanwings-by-lufthansa-german-airlines-motives-strategic-and-organisational-fit-2/ Tue, 17 May 2016 07:53:14 +0000 http://research-methodology.net/?p=7722 1. Introduction Mergers, acquisitions and formation of alliances are commonplace in global airline industry and they are fuelled by the search of competitive advantages in order to achieve long-term growth. However, the implementation of mergers, acquisitions and formation of strategic alliances in practice can be associated with a set of complex challenges that might include differences in organisational culture, clash of personalities within top level management, lack or absence of strategic fit between the two companies and others. Lufthansa Group is a global airline company that employs more than 120,000 workforces that have contributed to generate 713 million EURO through serving 100.6 million passengers during the year of 2011 alone (Annual Report, 2011). Germanwings is a budget airline company that employs 1355 members of staff and served 7.52 million customers in 2011 offering flights to more than 90 destinations with 33 Airbus A 319 airplanes (Facts and Figures, 2013, online). Germanwings is wholly owned by Lufthansa since 2009. This report investigates a range of business issues related to the acquisition of Germanwings by Lufthansa German Airlines in 2009. The report starts with analysis of motives for choosing acquisition method among other alternatives by Lufthansa. This is followed by discussions of strategic and organisational fit between Lufthansa and Germanwings. Moreover, this report addresses potential gains and risks faced by Lufthansa due to the acquisition of Germanwings. The report is concluded with assessing outcomes relative to expectations in relation to this specific airline acquisition. 2. The Motives for Choosing Acquisition Method by Lufthansa Top level management of Lufthansa have selected the method of acquisition among other alternatives such as initiating a merger or forming a strategic alliance in relation to Germanwings due to the set of reasons that include less time required to complete the acquisition, increasing the market share, overcoming entry…]]> https://research-methodology.net/vernons-product-life-cycle/ Thu, 13 Nov 2014 13:34:39 +0000 http://research-methodology.net/?p=6101 This article contains application of Vernon’s Product Life Cycle on the case study of Shanghai Vision Technology Co., Ltd, a medium sized manufacturer of 3D printers and other innovative products based in Shanghai, China. Products of Shanghai Vision Technology to be sold in new markets follow a specific life cycle pattern. This pattern can be effectively explained using Vernon’s product life cycle which comprises four stages: introduction, growth, maturity and decline. Introduction stage for Shanghai Vision Technology 3D printers and other products commences when the product is offered in new market for the first time. During this stage Shanghai Vision Technology products are purchased mainly by ‘innovator’ and ‘early adopter’ consumer categories and the role of effective integrated marketing strategy is paramount.     Growth stage for Shanghai Vision Technology products is associated with rapid increase of the sales volume due to the impact of marketing initiatives and word-of mouth marketing. It is important for Shanghai Vision Technology to ensure the supply of its products in the market during this stage. Maturity stage is reached when the majority of Shanghai Vision Technology target customer segment already posses 3D printers and other products offered by the company and its competitors. Maturity stage is associated with market saturation. Decline stage is inevitable for Shanghai Vision Technology products, as well as for products of any other company regardless of the industry and size of the market. Determining the timeframe of this stage in an appropriate manner and introducing new products to the market during the later stages of decline plays an important role for Shanghai Vision Technology in terms of retaining its share in new markets.                                                        …]]> https://research-methodology.net/dunning-eclectic-paradigm/ Sun, 09 Nov 2014 13:24:16 +0000 http://research-methodology.net/?p=6096 This article contains application of Dunning Eclectic Paradigm on the case study of Shanghai Vision Technology Co., Ltd, a medium sized manufacturer of 3D printers and other innovative products based in Shanghai, China. Exporting can be specified as the most appropriate new market entry strategy for Shanghai Vision Technology during the early stages of internationalisation. Exporting new market entry strategy can be explained a greater depth using Dunning Eclectic Paradigm (DEP) that relies upon three types of advantages – ownership, location and internationalisation advantages.   Ownership advantages The choice of exporting as new market entry strategy grants Shanghai Vision Technology the complete ownership advantage of all components of marketing mix. In other words, by choosing exporting the company retains complete freedom in terms of introducing changes to pricing, product specifications, distribution channels and promotion initiatives. Location advantages Ownership and internationalisation advantages to be derived by Shanghai Vision Technology due to the selection of exporting new market entry strategy is going to be facilitated at the expense of location advantages. Specifically, by exporting its products to new markets Shanghai Vision Technology would not possess location advantages with negative implications such as being disadvantaged from tariff barriers and higher transportation costs compared to local businesses.   Internationalisation advantages Internationalisation advantages within Dunning Eclectic Paradigm relates to cost advantages that are gained through organising operations within geographical boundaries of new markets. Positive impact of internationalisation to Shanghai Vision Technology is limited during the first stage of international market expansion strategy due to the recommended choice of exporting new market entry strategy. Nevertheless, this specific type of advantage may become available to Shanghai Vision Technology during the later stages of Uppsala model described above once the company establishes sales subsidiaries and production unit abroad.]]> https://research-methodology.net/uppsala-model-of-internationalisation/ Wed, 05 Nov 2014 13:16:04 +0000 http://research-methodology.net/?p=6092 This article contains application of Uppsala model of internationalisation on the case study of Shanghai Vision Technology Co., Ltd, a medium sized manufacturer of 3D printers and other innovative products based in Shanghai, China. Uppsala model of internationalisation also known as a learning theory of internationalisation identifies four individual steps of internationalisation. According to Uppsala model engaging in exporting in occasional manner should constitute the first step in internationalisation. Initial experience of operating in the new market is going to be gained by Shanghai Vision Technology during this step. Exporting through sales agents in new markets marks the second step in internationalisation. Presence of the company in the new market is going to be increased during this step with positive implications on the levels of knowledge about unique aspects of the market. Establishment of Shanghai Vision Technology sales subsidiaries in foreign market is the third step of internationalisation according to the model. During this step the company is in the position of obtaining experience and knowledge about the market in a direct manner. Starting the production in the foreign market through wholly owned subsidiaries is the last step of internationalisation within the framework of Uppsala model of internationalisation. This step is associated with benefiting from ownership, location and internationalisation advantages by Shanghai Vision Technology to a full extent which is explained with the application of Dunning Electric Paradigm further below. Importantly, Uppsala model acknowledges the lack of knowledge about specifications of new markets to be an important barrier in terms of becoming successful in respective market. In other words, unlike many other models of internationalisation, Uppsala model rightly specifies knowledge about the market as a critical success factors. Revised version of Uppsala model contains the application of basic networking prospect in a way that mutual interactions and influence of state…]]> https://research-methodology.net/diamond-of-national-advantage/ Sat, 01 Nov 2014 13:05:11 +0000 http://research-methodology.net/?p=6088 This article contains application of Diamond of National Advantage on the case study of Shanghai Vision Technology Co., Ltd, a medium sized manufacturer of 3D printers and other innovative products based in Shanghai, China. Main motive for internationalisation for Shanghai Vision Technology relates to attempts to increase the levels of revenues through international market expansion strategy. The idea of Competitive Advantage of Nations proposed by Porter (1990) is based on four major points of competitive advantage jointly referred to as the Diamond of National Advantage that can be applied to the case study of Shanghai Vision Technology in the following manner: Factor conditions within the framework of the Diamond of National Advantage are favourable towards Shanghai Vision Technology internationalisation perspectives. This is because adequate infrastructure has been developed in China mainly during the last two decades in industry of advanced technologies such as 3D printing to serve as a platform for local manufacturers to compete globally. Demand conditions can also be specified as an important factor that contributes to the level of global competitiveness of Shanghai Vision Technology. In other words, there are not major differences in the nature of demand for 3D printers in home market in China and foreign markets. Therefore, Shanghai Vision Technology’s present successful operation in home market in China can be rightly perceived as a prerequisite for success in the global marketplace to a certain extent. Related and supporting industries in relation to advanced technologies such as 3D printer manufacturing are effectively established in China. Moreover, China is a manufacturing home for a wide range of components of advanced technological products and cost advantage of those components can be specified as an additional point of strengths for Shanghai Vision Technology to compete in a global market. Firm strategy, structure and rivalry is another important point…]]> https://research-methodology.net/role-of-international-organisations-in-regulating-trade-between-countries/ Thu, 25 Sep 2014 04:53:19 +0000 http://research-methodology.net/?p=5991 With the increasing forces of globalisation the need for trade regulation in an unbiased and objective manner increases. This role has been assumed by World Trade Organisation (WTO) and its functions include administration of trade agreements, serving as a forum for trade negotiations, dealing with trade disputes between its members, and monitoring policies of its members related to trade. Established in January 1, 1995, WTO comprises 159 members and it is based in Geneva, Switzerland (Annual Report, 2013). There are contradicting assessments of WTO performance in terms of regulating trade between counties in an effective manner. You can read more scope, contribution and criticism related to WTO here. On one hand, WTO has been praised for such positive impacts as stimulating economic growth and increasing the level of employment, encouraging good governance practices, contributing to peace and stability and settling trade disputes amongst its members (Ahern and Fergusson, 2010). On the other hand, WTO critics argue that the organisation has made a counter-productive impact on development of a range of its members, and it also has been blamed for neglecting environmental issues. Moreover, WTO has been criticised on the grounds of political bias for serving as an instrument at the hands of its few hegemonic members. Moreover, there are other international organisations which are parts of United Nations Organisations (UN) such as World Bank, and International Monetary Fund (IMF), that have certain impacts in international trade practices. UN in general, and its Economic and Social Council in particular can be specified as another international organisation that does have impact on trade regulation between countries. Comprising 54 members for three-year terms, the Economic and Social Council aims to promote international cooperation in order to achieve economic and social development. Millennium Development Goals is one of the most noteworthy economic initiatives proposed…]]> https://research-methodology.net/objections-to-free-trade-and-their-validity/ Sun, 21 Sep 2014 04:52:28 +0000 http://research-methodology.net/?p=5986 In line with the advantages of free trade discussed here, there is a set of objections to free and these objections can be represented through the following four points. Firstly, free trade is criticised due to its perceived disadvantages to local producers. The concept of free trade promotes open competition without barriers in the global scale. Thus, companies from abroad with strong competitive edge may present serious threat to the levels of revenues of local businesses. However, this threat can be used as a positive factor as well, in terms of motivating local producers to innovate and search for additional sources of competitive edge in creative ways. From this perspective, local producers need to be assisted by government through building effective infrastructure for competition rather than being protected from foreign competitors limiting their motivation to innovate. Secondly, free trade is blamed for causing trade deficits with detrimental impacts on national economy. Specifically, trade deficit is an absence of balance between imports and exports and reducing the levels of trade deficits is one the main macroeconomic goals of the government. Trade deficit between US and China has been estimated to be as much as USD 40.6 billion (Crutsinger, 2014, online), and a range of economists point to this number as one of the main reasons for severe economic issues in the US. At the same time, counter-argument can be formulated in a way that “a growing trade deficit, despite its misleading name, is a good for the economy. It is typically a signal that global investors are confident in America’s future” (Boudreaux, 2014, online). In other words, there is a positive correlation between trade deficit and the levels of investment in the national economy from abroad, and these investments have great potential to revive national economy. Thirdly, free trade is criticised for…]]> https://research-methodology.net/free-trade-and-its-perceived-advantages/ Mon, 08 Sep 2014 11:31:10 +0000 http://research-methodology.net/?p=5978 Free trade can be defined as “a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports)” (Britannica, 2014, online). In simple terms, free trade can be explained as an absence of government intervention to the practices of selling to and buying from another country. Promoted by famous economist Adam Smith and David Ricardo, perceived advantages of free trade include benefits to be gained from specialisation practices engaged by countries according to their competitive advantages. This benefit based on theoretical frameworks of absolute advantage and comparative advantage. Specifically, according to the theory of absolute advantage proposed by Smith (1976), countries are perceived to have absolute advantage in producing a product if the production is facilitated in the most efficient way than other countries. Comparative advantage proposed by Ricardo (1817), on the other hand, refers to “the ability to produce a specific product more efficiently than any other product” (Pride et al., 2011, p.70). According to theories of absolute advantage and comparative advantage focus on manufacturing products that can be produced more efficiently than other countries and trading these products for other products with different countries generates more economic gain and value compared to attempts to diversify production within a single country. A basic classical example of trade of two products between two countries found in the most economics textbooks illustrate the advantage of free trade in the most effective manner. Moreover, free trade encourages competition in the market, motivating local producers to find and utilise sources for competitive edge on a constant basis, and high level of competition in the market offers benefits to consumers in terms of more variety of products and services, higher quality, and competitive prices. Another advantage of free trade can be specified…]]> https://research-methodology.net/doing-business-in-indonesia/ Thu, 12 Dec 2013 13:06:17 +0000 http://research-methodology.net/?p=5101 The report starts with the identification of gap in the knowledge about doing business in emerging markets in general, and Indonesia in particular. This is followed by providing recommendations to managers in relation to dealing with specific issues and practices they are likely to be faced with in Indonesia. The report is concluded by providing a summary of the key points of the research and mentioning the key points of advice. International market expansion opportunities for businesses enabled by intensive economic globalisation during the last several decades have increased the numbers of international assignment for managers at top levels. Importantly, “international managers need to have a clear view of where they want their firm to be in the future; they have to organise to implement their plans; they have to motivate those who work for them; and they have to develop appropriate control mechanisms” (Griffin, 2010, p.161). However, implementation of all of these tasks in practical levels is associated with a set of significant difficulties that relate to cross-cultural differences, family adjustment issues in a new country, language adaptation challenges and others. This report advises managers seeking to work in an emerging market on management practices in an international and cross-cultural context focusing on Indonesian consumer electronics market. The main reasons for the choice of Indonesia as an emerging market to be discussed in this report relates to the importance of Indonesia Investment Guarantee Fund – the best practice guarantee facility for investors and the potential possessed by Indonesia to become the next member of BRIC (Wagner, 2012, online) with positive implications on the performance of businesses operating in this country. 1. Introduction 1 2. Identification of Gaps in Knowledge 2 3. Recommendations Regarding Issues and Practices in Indonesia 4 3.1 Cross-Cultural Differences 4 3.1.1 National culture 4 3.1.2 Organisational…]]> https://research-methodology.net/impact-of-global-forces-on-uk-business-organisations/ Wed, 11 Dec 2013 05:17:27 +0000 http://research-methodology.net/?p=5097 Global forces impacting UK businesses include, but not limited to increasing scale of international trade, increasing levels of multiculturalism in UK organisations, increasing levels of inter-dependency of national economies and others. The impact of global forces on UK Business Organisations can be effectively analysed using PESTEL analysis where the abbreviation stands for political, economical, social, technological, ecological, and legal factors impacting businesses. The following table contains the application of PESTEL analysis in relation to businesses operating in the UK. Political The level of global political stability The level of bureaucracy in international affairs The extent of freedom of media Global trade control initiatives Threat of international terrorism Tariffs between the UK and other countries Global copyright, patent and intellectual property disputes Economical Impacts of intensifying economic globalisation Global economic crisis Sock market fluctuations Cost advantages possessed by emerging superpowers such as China, India etc. Impact of The World Bank and The World Trade Organisation Increasing importance of outsourcing and offshoring initiatives   Social Changes in family values in global scale Changes in family patterns (same-sex marriages, single parents etc.) Increasing popularity of immigration and migration practices Increasing mobility between social classes Greater concern for minorities in society Technological Level of global technological infrastructure Industry-specific technological breakthroughs Regular emergence of innovative communication technologies Adoption of technology as competitive edge by increasing numbers of businesses Ecological Impacts of global warming tendencies Increasing levels of air and pollution Increasing level of sensitivity towards “green” problems among business stakeholders Activities and initiatives of global environmental organisations   Legal Laws and regulations related to data protection Global data protection rules and regulations Increasing levels of “legal globalisation” Changes in cross-country employment and health and safety laws The case studies of Martin Lishman and Aquaco mentioned above represent a few cases where UK businesses benefit from…]]> https://research-methodology.net/significance-of-international-trade-to-uk-business-organisations/ Mon, 09 Dec 2013 00:44:37 +0000 http://research-methodology.net/?p=5084 International trade is the exchange of capital, products and services across borders. Advantages of international trade include greater utilisation of resources, importing products that can not be produced locally, and increasing the variety of choice to consumers. However, international trade may be associated with disadvantages as well such as loss of local jobs and high level of dependency on foreign markets. Significance of international trade to UK business organisations can be explained by referring to the concept of comparative advantage. According to the concept trade between two countries can be made in a mutually beneficial manner, if each country has comparative advantage to manufacture products to be traded. One of the leading English economists of the 19th century David Ricardo uses the cases of England and Portugal producing cloth and wine as it is presented in Table 2. According to Table 2, England possesses relative advantage in producing cloth as it less labour hours are required. Portugal, on the other hand, has relative advantage in wine production, because only 80 hours are required to produce wine as compared to 90 hours to produce cloth. Cloth Wine Ratio of price of wine to the price of cloth Ratio of price of cloth to the price of wine England 100 120 1.20 0.83 Portugal 90 80 0.88 1.12 Illustration of the concept of comparative advantage Source: Hunt and Lautzenheizer (2011) In other words, England can produce each unit of cloth for lower prices compared to wine, while for Portugal it is cheaper to produce each unit of wine than producing each unit of cloth. Accordingly, both England and Portugal can consumer maximum amounts of cloth and wine if they focus on producing products within their relative advantage, and engage in international trade. Impact of international trade to UK businesses can be illustrated…]]> https://research-methodology.net/national-business-environment-in-uk/ Sat, 07 Dec 2013 00:03:42 +0000 http://research-methodology.net/?p=5074 Resource allocation plays an integral role in facilitation of a national economy in any country. Economic systems can be centrally-panned, free, and mixed and economic systems have a direct impact on the nature of resource allocation. UK has a free market economy, and accordingly resource allocation in the UK is facilitated purely according to the forces of supply and demand. In centrally-planned economies, on the contrary, such as former USSR “resource allocation plans and decisions are made by central government and then promulgated through government agencies” (Folsom and Boulware, 2004, p.58). In mixed economic systems, such as in China and present state of former USSR members, there are elements of both, free market and centrally-planned economies to varying proportions. The extent of presence free market and centrally planned elements in each mixed economy depends on a range of factors such as political agenda, the level of corruption, the levels of dependency on exports and imports etc. The effectiveness of free market economy such as in the UK has been traditionally perceived to be greater compared to alternative types of economies in terms effective resource allocation. However, global economic and financial crisis of 2008-2010 and its continuing implications have shed a light on inefficiencies associated with free market economy. Fiscal policy is a type of government economic policies that affect macroeconomic situation in the country. Impact of fiscal policy on businesses is evident and straightforward and this impact is facilitated through taxation, and the levels of government spending. Monetary policy is can be defined as government economic policy to control the supply of money through interest rates. In the UK the monetary policy is conducted by The Bank of England, whereas in Russia the Central Bank of Russia is responsible for monetary policy. The importance of adequate fiscal and monetary policies…]]> https://research-methodology.net/how-can-we-better-understand-the-ideology-of-washington-consensus/ Fri, 06 Dec 2013 03:02:23 +0000 http://research-methodology.net/?p=5070 This paper critically analyses the ideology of Washington Consensus. The paper starts with discussions about factors and circumstances that have caused the emergence of Washington Consensus. This is followed by discussing positive implications of Washington Consensus for certain countries by referring to relevant facts. Moreover, the paper highlights major points of criticism of Washington Consensus and the attempts to assess the level of their validity of these points and discusses reasons and circumstances for introduction of Post-Washington Consensus also known as Washington Consensus II. The paper is completed by attempting to the future of Washington Consensus prescriptions in modern dynamic global geo-political environment. There always have been disparities between countries in terms of the levels of economic developments and this tendency is most likely to continue in the future. However, there have been attempts by highly developed countries to assist the level of economic development of developing countries through various programs involving financial aids and recommendations. A set of policy recommendations proposed by the US to developing countries has been known as Washington Consensus, and there are mixed opinions about the implementation and outcome of these recommendations (Bandelj and Sowers, 2010). Introduction 1 Emergence of Washington Consensus 1 Potential Positive Implications of Washington Consensus 4 Criticism of Washington Consensus and the Level of their Validity 6 Washington Consensus II and the Level of its Effectiveness 10 The Future of Washington Consensus 11 Conclusions 14 References 16 International Monetary Fund World Trade Organisation World Bank How do I receive the report? Once payment is made you will receive a link to you e-mail you have registered with on Pay Pal or the e-email you have entered when specifying bank details to download the report. The report is downloaded in PDF format. The link will stay active for 7 days. How can…]]> https://research-methodology.net/acquisition-of-germanwings-by-lufthansa-german-airlines-motives-strategic-and-organisational-fit/ Fri, 29 Nov 2013 15:20:01 +0000 http://research-methodology.net/?p=5018 Mergers, acquisitions and formation of alliances are commonplace in global airline industry and they are fuelled by the search of competitive advantages in order to achieve long-term growth. However, the implementation of mergers, acquisitions and formation of strategic alliances in practice can be associated with a set of complex challenges that might include differences in organisational culture, clash of personalities within top level management, lack or absence of strategic fit between the two companies and others. Lufthansa Group is a global airline company that employs more than 120,000 workforces that have contributed to generate 713 million EURO through serving 100.6 million passengers during the year of 2011 alone (Annual Report, 2011). Germanwings is a budget airline company that employs 1355 members of staff and served 7.52 million customers in 2011 offering flights to more than 90 destinations with 33 Airbus A 319 airplanes (Facts and Figures, 2013, online). Germanwings is wholly owned by Lufthansa since 2009. This report investigates a range of business issues related to the acquisition of the budget airline Germanwings by Lufthansa German Airlines in 2009. The report starts with analysis of motives for choosing acquisition method among other alternatives by Lufthansa. This is followed by discussions of strategic and organisational fit between Lufthansa and Germanwings. Moreover, this report addresses potential gains and risks faced by Lufthansa due to the acquisition of Germanwings. The report is concluded with assessing outcomes relative to expectations in relation to this specific airline acquisition. 1. Introduction 1 2. The Motives for Choosing Acquisition Method by Lufthansa 2 2.1 Short Time Required to Complete the Acquisition 2 2.2 Willingness to Increase the Market Share 3 2.3 Overcoming Entry Barrier in Budget Airline Sector 4 2.4 Easiness of Integration 4 3. The Strategic and Organisational Fit between Lufthansa and Germanwings 5 4. The…]]> https://research-methodology.net/major-sources-of-economic-growth-in-china-a-brief-overview/ Mon, 02 Sep 2013 20:39:09 +0000 http://research-methodology.net/?p=4274 The “Open Doors Policy” or the economic reformations of the late 1970s in China enormously changed the entire economy of the country. The trade reformation which focused on liberalizing the trade which shifted the country a step closer to free market attracted huge foreign capital into the country in the form of FDI since 1978. The huge scarce resources of China had to be utilized soon after the reformations which indeed required huge capital. However,China heavily relied on the external funds in order to promote its manufacturing industry and the financing of newly privatized formerly state-owned companies. Therefore,China’s government issued series of policies which favoured the foreign investors. The inflows of foreign capital in the form of FDI brought in advanced technology, knowledge, management know-how which accelerated the economic growth in China in the last three decades. Since the “Open Doors” policy and trade reformations in the country in 1978, the country has been consistently achieving significant economic growth which averages at 10% of GDP. When the growth rate of China is compared to other developed economies such as USA which has an average of 3% GDP growth in the 100 years and Germany which has an average growth rate of 1.3% of GDP and Japan at 3.85% of GDP in the few decades, China is far ahead (IMF, 2009). However, many western policy makers and commentators believe that the main source of growth of China has been mainly due to FDI inflows which have been encouraged by fixed exchange rate. The source of economic growth of China is derived from three phases of development which are broken down into three periods of years. The first phase of development lasted from 1952-1978 where the Chinese government prioritized the development of heavy industries such as steel, chemicals and machinery. The second…]]> https://research-methodology.net/market-entry-strategies-in-restaurant-industry-a-brief-overview/ Wed, 17 Jul 2013 04:49:37 +0000 http://research-methodology.net/?p=4029 This article represents a brief analysis of diversification and expansion opportunities into Chinese market for a local restaurant and cafe in the UK. The article contains a brief overview of Chinese market, discusses market entry strategies available to the business, and discusses a range of most important factors impacting the business proposal.     Overview of Chinese Market China is a newly emerging superpower, with the levels of GDP suppressing 72.1 trillion USD in 2011 (Statistical Yearbook, 2012) and the further increase has been forecasted with positive implications on the on the amounts of consumer spending. Currently, a set of multinational fast-food brands such as McDonald’s KFC, and Pizza Hut restaurants are increasing the level of their presence in an aggressive manner that can be interpreted as a signal for increasing level of demand in China towards foreign food and lifestyle.   Market Entry Strategies Alternative market entry strategies the restaurant and café can employ in order to enter China consist of licensing, franchising, joint-ventures and wholly owned subsidiaries. Licensing involves local restaurants in China to trade under the license of the UK restaurant. This type of market entry offers the advantages of low risk and lower level of capital requirements. However, the disadvantages include limited scope of participation in operations, and lower potentials for generating significant revenues. Franchising is similar to licensing to a certain extent, but different in a way that it involves closer level of cooperation between the parties, and grants the right to a local business in China to use the logo and trademark of the restaurant in UK. Joint-ventures are another form of market entry available to the restaurant and café in the UK to enter China. The advantages of joint-ventures include shared risk and expenses, and gaining expertise in the local market. However, joint-ventures…]]> https://research-methodology.net/influence-of-international-perspective-of-employment-laws-on-expatriates/ Thu, 07 Mar 2013 20:16:29 +0000 http://research-methodology.net/?p=3291 Intensifying forces of globalisation have caused the numbers of expatriates to increase in many counties around the globe. An expatriate is anyone “living or working in a country of which he or she is not a citizen and who can be classified as possessing skills critical to the success of the performance of foreign subsidiaries” (Weber, 2011, p.1). While the skills and competencies brought by expatriates can be highly beneficial for businesses, as well as, for the development of a host country economy; expatriate human resources are influenced by a range of factors. This article analyses the influence of international perspective of employment laws on expatriate human resources. Specific issues discussed in the article include labour law, expatriates, and the impact of legislations issued by international bodies upon expatriate human resources.   Labour law and expatriates Specific issues covered by labour law in HR include recruitment and selection, pay and benefits, employment rights, employment contract, provision of training and development, assurance of equal opportunities for all employees, health and safety issues etc. Each of these issues can be analysed from the spectre of expatriate human resources. Recruitment and selection of expatriates differs from recruitment and selection of resident candidates in a way that specific attention needs to be paid to the issues of adaptability to a new culture, candidate’s level of cross-cultural awareness in general, and the level of empathy to the local culture in particular, family situation of candidates, his or her language skills etc (Briscoe et al., 2008). The issues of pay and benefits, as an important aspect of employment covered by employment law represent another point where expatriate human resources are directly influenced. Specifically, a set of related issues such as medical insurance of expatriates and their retirement plans are regulated to the labour law of local…]]>