Global Investement Strategies Research Paper Example | Topics and Well Written Essays - 750 words

Global Investement Strategies - Research Paper Example Globalization has been defined comprehensively by the IMF as a historical process that is the result of human innovation and technological process and encompasses the increasing integration of economies around the globe especially through trade and financial flows (IMF, 2000). The phenomenon of globalization has touched markets, nation states, corporations, businesses and individuals alike. There are advantages and disadvantages that have resulted from this change to all involved stakeholders (Friedman, 1999) but this change has affected businesses like never before. On the positive side businesses have been able to access more markets than ever before as markets are becoming more and more integrated. This has allowed businesses to reach greater audiences and this in turn has increased their revenues to newer levels. Market integration has also meant that businesses can now distribute their functions to around the globe depending on specialties. For example it is common for electroni c businesses to have manufacturing facilities located in China, to have marketing facilities in North America and Western Europe and to have operational offices and retail centers all across the globe. This kind of market integration has meant that businesses have been able to lower their operational costs as each specific business function is handled by the most economically feasible option. Lower costs of labor and other inputs have meant that relocating manufacturing facilities to developing nations would reduce base costs. This reduction in base costs has enabled businesses to lower overall production costs which in turn are encouraging businesses to expose their products to larger audiences. The lowered costs have in turn allowed consumers all over the world to purchase goods and services from manufacturers and service providers which has meant increasing revenues for business around the globe. This can simply be seen as the creation of a singular world market which is the ulti mate object of the globalization regime (Shirakawa et al., 2000). While on the one hand these changes have allowed businesses to reap the wide benefits of integrated markets but difficulties in financial transactions have intensified as a result. Although the entire globe is more connected than ever before but the movement of capital has become far more intricate given the large number of interfaces involved to make these transactions possible. The financial markets around the globe have been integrated using modern electronic communication but this has represented a new constraint on the already developed systems. It is essential for a business to increase its workforce to encompass people with requisite IT skills and expertise to support the system required to carry out such financial transactions. The use of these systems has also exposed businesses to new menaces such as online attacks and chances at fraud. It is not uncommon for internationally integrated businesses to become v ictims of DOS (denial of service) attacks as well as being victims of unethical hacking activity. In turn the consumers of these businesses have also been victim to such actions and certain nations have been blacklisted for transactions in order to protect both consumers and businesses.

The Ford Motor Company Term Paper Example | Topics and Well Written Essays - 750 words - 1

The Ford Motor Company - Term Paper Example This has lead to $153 billion in revenues and a market value of $ 73 billion (Hochman 90-7). However, due to the economic crisis, the company has seen its revenues and market value slumber in the recent past (Hochman 90-7). As one of the leading automobile producers, Ford Motor Company competes in the oligopoly market (Hochman 90-7). Its main competitors include Honda, Toyota, Kia, Subaru, and many other companies. The market entry in the automobile industry is free to every interested party; however, due to huge initial capital investment requirements needed only a few firms are players in this industry. When Ford Company started with the Model T, they were enjoying the monopoly power as they were the only producers. But this has changed since many firms have also ventured into the industry (Hochman 90-7). A market-centered company is a company that identifies the needs and the wants of its customers and tailors all its businesses towards those needs and wants (Hochman 90-7). The customers have enough knowledge about the products and the market; and are willing to be persuaded. The company offers mass customization and utilizes the importance of 4 Ps in its marketing. Ford as a company had experienced both the good and bad business experience. From one of the leading automobile companies accounting for 25 percent of all cars and trucks to drop in revenue and market share to $146 and 14 percent respectively (Hochman 90-7). It may have attributed to the financial crisis that had befallen the entire motor industry hence reducing the sales. However, Ford did not explain its drop in market share or magnitude of its losses compared to the rest of the companies in the industries. Ford’s company operations were characterized by excessive costs, it had lost touch with its main customer's needs and finally, his innovation was not up to date (Hochman 90-7). After the arrival of Mulally, the company started to improve their innovativeness, reducing the costs, and axing some of the un-performing brands. Mulally was convinced that competition in all market segments was the way to go and this policy was adopted.