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GLOBAL COMPANIES.
Term Paper ID:30528
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Essay Subject:
Discusses successes and failures of international firms.... More...
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4 Pages / 900 Words
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Paper Abstract: Discusses successes and failures of international firms. Role of stress. Pressure exerted on international companies and American companies expanding overseas. Diminishing importance of technological advantage. Competetive advantages. Competition pressures from the Internet and global companies. Difficulties of U.S. in competing with other nations. Quality and communication problems. Strategies for U.S. firms.
Paper Introduction: GLOBAL COMPANIES AND PRESSURE EXERTED ON THEM.
This is an overview of international success, stress, and occasional failure. “Why do some nations succeed and others fail in international competition?…The United States is an obvious example, with its growing debate about the apparently greater economic success of other trading nations.” (Porter 1990 1)
Until recently, “one of the greatest comparative advantages for U.S. firms involves their level of technological innovation.” (Evans 1990 638) For years, as an example, Boeing, located in Seattle, was the world’s premier creator and builder of passenger and military aircraft. In recent years, however, Airbus Industrie, financed by a consortium of governments including France, Germany and Great Britain, have cut into the near-mono0poly of Boeing. Now, Airbus is planning an enormous double-dec
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is number two. when its industries come tomanage, buy, or take over local national companies that have been used todoing things their own way. There is another factor, in which quality may be included: the factthat government responsiveness outside the U.S. and many nations is theslowness of the communications process. One answer may lie in the catch-upEuropeans, and the Japanese, are performing in technology. While most people tend to believe that Japan is the world's leadingexporter because of their balance of trade numbers, actually West Germanyis Number One, and the U.S. approval came more than a decadelater." (Porter 199 649) Part of this quality problem in the U.S. The technology was quickly approved bySwitzerland and Germany, while U.S. tends to be more prompt. One answer, according to some international experts is"to focus our resources on a particular area....(to) network aggressivelyto become expert in that field." (Taylor 1996 1 6) Again, Boeing is aperfect example. Andoften, nations (especially those of the Third World) feel threatened by apowerful industrial nation, such as the U.S. They are not going to compete with Airbus Industrie insuper-large aircraft, but stick to what they are now producing: midrange,mid-size jet liners that tend to have more customers waiting. firms to provide a meaningful competitive advantage in terms ofquality assurance? "Slow or uncertain application ofstandards....both wastes resources and undermines innovation. For this reason, the U.S. Now, Airbus is planning an enormous double-deckaircraft that can seat as many as 6 people, and is already taking ordersfor this concept. Lucie Press Porter, Michael E. Given globalization and internationalization, what can be done byU.S. finds it difficult tocompete with those nations producing quality products and services, yet areable to find competent work-forces not necessarily hampered by high wages.The Italian ship building industry, the Finnish and Swedish mobiletelephone industries (Nokia and Ericcson) are leaders in their respectiveindustries. A goodexample is aseptic food packaging. For example, Ford has purchased Jaguar andLand Rover in Britain, Volvo in Sweden, and is a majority investor onJapan's Mazda. In fact,they have decided to concentrate more on midsize aircraft which may be morein demand by domestic airlines. References Evans, Joel R. In recentyears, however, Airbus Industrie, financed by a consortium of governmentsincluding France, Germany and Great Britain, have cut into the near-mono poly of Boeing. Yet, Volkswagen and Daimler have "retaliated" by - in thecase of Daimler- buying Chrysler (which is not working out too well), whileVolkswagen is active in the luxury market of Rolls Royce, and continuingits Audi market penetration. (1998): International Business and Trade Boca RatonFL: St. Dell Computeris another example: they are sticking to personal computers and those forsmall or mid-size businesses, leaving the huge mainframes to others,worldwide. American business, therefore, needs to limit its sights and focus onspecific target markets, but not separate domestic from internationalgoals. Boeing's leadership in this area is now dubious. Jonnard, Claude M. Weall know about drugs certified in Europe or the Far East, which are stillon hold in FDA files in Washington. has fallen by the wayside. By concentrating on one area, quality can be better establishedand maintained. (199 ) The Competitive Advantage of Nations NewYork: The Free Press Sjursen, Katie (ed): (2 ) Globalization W.H. is also the world's largest importer. The balance of trade numbers areskewed, because the U.S. This is an overview of international success, stress, and occasionalfailure. Despite the fact that we are in theInformation Age, when it comes to globalization and the need for a unifiedsystem of quality assurance, "acquiring information from geographicallydistinct and culturally diverse sources ...is a key advantage inglobal...policy making." (Sjursen 2 125) The very meaning of quality,and the determination to live up to a certain standard differs widely. Wilson Co. Thus, the technological advantage, onceceded to the U.S. "As a resultof high-level imports, the United States has a trade deficit of $138billion...(but) this represents decline from the record amount of $17 billion in 1987..." (Evans 199 643) So, in an overview of the competitive pressures both from Internet aswell as other global companies, why are U.S. "The centralquestion to be answered is why do firms based in particular nations achieveinternational success in distinct segments and industries?" (Porter 199 18) There is no single answer, but quality is certainly near, if not at,the top of the list. "Businesses become large and prosperous when they adopt a globalvision and strategy." (Jonnard 1998 4) Quality Assurance speaks aninternational language. Motorola, an American-based company is now struggling tomaintain a profit in a nearly "adult" mobile phone business. The pressure is also on American companies who are expanding overseas,gobbling up various companies. Relations with any and all authorities needed for licensingor approval is therefore limited to that area, reducing the bureaucraticlayer and, hopefully, saving time. and Berman, Barry (199 ) Marketing: 4th Edition NewYork: MacMillan Publishing Co. Taylor, William C., and Webber, Alan M. (1996) Going Global New York:Viking Penguin Publishers "Why do some nations succeed and others fail in internationalcompetition?...The United States is an obvious example, with its growingdebate about the apparently greater economic success of other tradingnations." (Porter 199 1) Until recently, "one of the greatest comparative advantages for U.S.firms involves their level of technological innovation." (Evans 199 638)For years, as an example, Boeing, located in Seattle, was the world'spremier creator and builder of passenger and military aircraft. GLOBAL COMPANIES AND PRESSURE EXERTED ON THEM. Corporations facing problemsin the first part of the 21st Century?
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