International Management Essay Example | Topics and Well Written Essays - 1750 words - 3

International Management - Essay Example The brand was launched by the company Jahwa in the year 1998 and since then Herborist has experienced significant growth. Herborist has achieved $ 8.2 million of revenues in the year 2004 which led to a huge amount of profitability for the brand. The brand already has its existence in numerous European countries including Poland, Spain, and Italy with 80% growth in sales annually. The entry modes for organizations into foreign markets are considered to be of two types such as non equity and equity modes. Non equity modes of entry comprise contractual agreements and export. The equity modes of entry are considered to include wholly owned subsidiaries and joint venture. The best way for the brand Herborist to get access to foreign markets such as Thailand is to enter into joint ventures with other reputed organizations that focus on personal care products in the market of Thailand. This will provide the brand Herborist with immediate access to the market of Thailand. Since the brand is already recognized on a global platform to provide quality personal care products, it will be easy for the brand Herborist to form a joint venture with another reputed personal care company operating in the country of Thailand. It could consider forming a joint venture with Sephora group in this regard. The brand will enjoy numerous benefits by entering into a joint venture with the Sephora group such as gaining access directly to local markets, reduction of political and marketing risk, overcoming the restrictions of host government in an efficient manner, and sharing the risk of failure. As the brand has already established a partnership with Sephora group in France, it will play an important role in their working efficiently in a combined manner in Thailand. There are also certain disadvantages in this regard such as problem of transfer pricing, problem of adjusting to different cultures may lead to different

Shareholding versus Stakeholding Assignment Example | Topics and Well Written Essays - 1000 words

Shareholding versus Stakeholding - Assignment Example After suitable measures to overcome the conflict have been taken, the business climate of the enterprise will be readily acceptable by the public investing in the shares of the company. This may indirectly raise the prices of the shares, leading to the generating of profit of the shareholders. Another reason for the rise of the difference between the stakeholders and the shareholders is the lack of protection rendered to the third party. Thus it is very important for the managers to pay heed to the rising differences between the stakeholders and shareholders of the company. But the main issue that the company faces is whether to use single value objective function or balanced scorecard (Siems, 2007, p.180). The challenges faced by managers to be ‘socially responsible’ In the process of being socially responsible, managers face a few challenges, for example the process of value seeking rather than value maximizing. Therefore, through the achievement of the value seeking f unction, the confusion that leads to maximizing the value is difficult to overcome, as the way the world is structured is quite complicated. Under no situation can the maximization of the value of the managers be guaranteed, but the assurance can be given that the movement of the managers is in the right direction. The absence of the negative externalities in the input factor market does not lead to the rise in the opportunity cost of the firm. If the firm is still earning the social cost of the company, this may result in the dilemma caused to the managers during the performance of the social responsibilities. Self-serving manager exploiting social responsibility for his/her personal gain Sometimes the managers of the companies with a purpose of performing the social responsibilities tend to serve their personal gains. The reason behind this is the use of the stakeholder’s theory, through which the personal short run-interests of the shareholders are accomplished. Since a be tter criterion cannot be provided, the proper evaluation of the managers is not possible. Thus, by the application of the shareholders theory, the managers pursue their own interest at the expense of the firm’s financial claimants and the society at large. The directors and the managers use the resources of the firm for their own needs, such as art, medical research, etc. without being held liable for the expenditures caused to the company. As with the practice of the stakeholder theory the internal control system of the company is being hampered, hence arguments are being placed for the government intervention – anti-takeover provisions, for example – in these areas (Letza S., et al., 2004, p.247). Budgeting and strategic management accounting tools as an encouragement for shareholder or stakeholder centric focus Such accounting tools as budgeting and the strategic management, Balanced Scorecard, and the others had been a helpful encouragement in the focusing o n the shareholders and the stakeholders of the concerned country. These tools help decide to what standard the company should stick to avoid neglecting the interests of both the shareholders and the stakeholders of the company. With tools like budgeting and strat