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Corporate governance refers to a given set of processes, laws, policies, customs and even particular institutions that tend to affect the way a company (corporation) is controlled, administered and even how it is directed. Corporate governance may also entail the relationships among the rest of the stakeholders entailed and the particular intended goals for which the same corporation is directed. In some of the contemporary business corporations, it is worth to note that those who happen to be the main external stakeholder groups are actually shareholders, customers, suppliers, trade creditors, debt holders and those communities that are being affected by the corporations activities. The board of directors, any other employees and also the executives are normally part of the internal stakeholders (Albert, 2008).
In the public purpose companies, what is referred to as good governance normally entails more than just getting the job done. Mostly in those government and also non-profit making agencies, where values are typically known to play a crucial role when it comes to the determination of both the style of operation and the organizational purpose, process is as not only important but also much sensitive as well. It is worth noting that good governance will tend to become more than only means to the effectiveness of an organization and becomes an end within itself.
While still highlighting what it entails by good governance, it is also quite important to note that it normally includes not only achieving the desired results but also achieving them in the right way. There can be no what is referred to as universal template for the good governance since the "right way" is greatly shaped by the cultural norms and the organization's values.
There is quite enough room for varied traditions and that can be accommodated in the good governance definition. Still all is in actual fact not relative. There exist some values and universal norms that are applicable beyond the cultural boundaries. At the Governance's institute, our work may be said to be inspired by the governance principles as is the provisions by the United Nations Development Programme, though this is applicable in a manner that is suitable and relevant to the organization's context that is in operation.
Macro-economic influences on organisations
It is apparent that a business is normally affected by external environment is as the case due to competitors. It is quite crucial that firms are quite conscious on the external environments changes to become a success. Comprehending the how the Macroeconomic factors tend to impact has proved quite important as it will tend to assist the firm in the determination of the current market conditions and how beneficial they can be for the good and hence success of their business (Peter, 2009). The following are the Macroeconomic factors that influence a given business:
Interest Rates happen to be the given charges that are normally levied by banks after they lend a loan. Increase in the same rates tend directly influence that particular business as those businesses borrow the loans from banks time to time. Still, increase in interest rates proportionally lead to the increase of interest expense and apparently the business may not evade the higher cost in the process of repaying the loan. Interest change variations also tend to influence the customers who in turn affect the business. In case of rise in the interest rates, the given cash that customers need to pay for the purpose of borrowing the money will thereby increase, hence leading to reduction for large products in this particular market (Sidney, 1996).
Subsidy is the money that is from the government to assist in supporting a business or an individual the market never supports. It may be used to refer to government actions which consequently limit the existing competition or even raise the normal prices at which the producers can sell their products by for example means of tariff protection. Even though economies in general hold that these particular subsidies may distort the market and even lead to untold inefficiencies, a number of real cases exist whereby the subsidies may prove to be the most important solution (Todaro, 2009).
Variations in the social trends can actually influence on the demand for that particular firm's products besides the willingness of individuals to work. This tends to create confidence in this particular firm though the same confidence has to originate within the same firm and not outside.
There exist some interactions where the macroeconomic variations in the exchange rates tend to impact on prices and the volume of the imports and exports through the activities related to macroeconomics, which subsequently has the macroeconomic effects. When one considers the relationship between micro-economy and macro-economy, one will be able to realize that the price and also the volume of imports and exports, the given balance of payments and the current accounts have actually responded in a different way to changes in the exchange rates (Wines, 2010).
Those of the investors that hold mutual funds that are taxable accounts have encountered a classic dilemma: especially after the after-tax return to their investments will be determined by the behavior of others. The 4demptions particularly may tend to force the mutual fund to market some of its equity positions in order to be in a position to pay off the liquidating investors. Due to this, the mutual fund may be compelled to give out the realized capital gains to the shareholders (Maynard, 2010).
The Global Environment: Bartlett and Ghoshal Model
The strategy is actually based on responsiveness to the instant local demands. The given structure of the MNC will be termed as a portfolio of rather autonomous global institutions that contain their entire value chain. It is worth noting the this knowledge and also innovation developed at these particular national institutions will likely have to stay at that particular instant, and will appear to most likely be dispersed to some other companies that are within the MNC scope.
This strategy makes an attempt to maximize both the integration and responsiveness, whereby the innovation and the knowledge is sought developed and finally dispersed within the rest of the network. One will tend to realize that the MNC is normally regarded as a network, and of the subsidiaries is granted responsibility when compared to its strategic mission and capabilities. Control in the MNC is by the people within it and this facilitates the mutual dispersion of knowledge and innovation besides facilitation of the mutual development.
This particular strategy is normally based on home country expertise. The most of the value chain will have its maintenance at the headquarters. The technology's control applicable, for example, production and general management systems will develop and structured at home. The innovation and development of knowledge will stream to the subsidiaries from home organization.
This particular strategy is squarely based on scale economies. The MNC's subsidiaries are rather weak and a full chain of value only is seen at home. Tightly coupled to the home organization are the subsidiaries of the MNC. They highly depend on resources and know-how from the basic home organization. The development and innovation will be created at home and later spreading to remaining subsidiaries.
Global Organisational Environment - PESTEL Analysis
It is also important to note that there are various set of factors that exist in the macro-environment that tend to influence the decision of the management regardless of which organization is in play. The existing tax variations, the new laws, demographic change, trade barriers and finally the government policy are all the changes that are being referred to as macro change examples. In order to do the best analysis as pertains to these factors, managers tend to analyze them using the PESTEL model. This particular classification will tend to distinguish between:
Variation in social trends can adversely impact on a firm's products demand besides having the willingness and availability of individuals to get working. In the United Kingdom, in particular, the population has been of course ageing. It is notable of how this has raised the cost of the given firms whose commitment is to pension payment to the employees considering the fact that their staff are living for a long period of time. The ageing population also tends to have an impact on the demand: like for example demand for medicines and sheltered accommodation is high whereas demand for things like toys is sharply falling.
The newer technologies happen to lead to the creation of newer processes and newer products. High definition TV's, online gambling, computer games and the MP3 players happen to be all new markets and their existence is due to technological advancement. All these developments tend to benefits tend to benefit the consumers just like the particular organization responsible for production of the same.
These include the weather and also the climate change. Temperature variations can adversely impact some industries like the insurance, tourism and the farming sectors. With some major climatic changes taking place especially due to the global warming issue and with much keen on this factor of late has become an external factor highly considered by firms.
These are those factors that have some relations with the legal environment in which the firms tend to operate. The introduction of disability discrimination and also the age discrimination legislation, even an increase in the minimum wage and also much greater requirements for all firms to recycle are good examples of the recent laws that tend to influence the actions of an organization.
European Business Environment
The given idea of 'Unified Europe' creation to ensure maintenance of peace and the creation of common European culture has in actual fact resurfaced repeatedly over the European history, even though the ideal of a truly united Europe tends to have its origins in what is commonly referred to as classical philosophical thinking. Back in the Fourteenth century, Pierre Dubois 1 for example gave a proposal for a European confederation that was to be led by a European council. Also in during the nineteenth century, Victor Hugo 2 envisaged a political, Federal Europe, and also uniting nations besides unifying people.
Taking a close scrutiny about Europe's economic and political integration, one will realize that both have been driven by a common predominant fundamental objective, "keeping peace among nations". The prevalence of interaction between peoples' economies and the people themselves has highly led to the maintenance of peace for a longer period of time when compared to any other region of the world. A certain group of European nation have joined hands and then led to the creation of unique organization for this particular purpose: the European Union. It is an organization of states, not really a confederation, nor is it an organization of the types generally recognized in international relations, but rather and sincerely the most advanced form of the economic integration in the entire world that is flirting in a close range with the temptations of politics and the their unions.
Analysis of the economic impacts, particularly the costs, of globalisation
This term 'globalization' has been extensively used by academics and media in the recent past. It is meant to explain the entire process in creation of networks of connections through a varied variety of information technology and capital goods. Globalization in economics engages many aspects of transactions that are cross-border, international capital flows that are free, portfolio investment, foreign direct investment and immediate widespread diffusion of technology.
The existing proponents of globalization argue that it plays a crucial role in enhancement of economic prosperity and even leads to more allocation of resources that are efficient and consequently this leads to a higher output, lower prices, more employment and even higher living standards. Apparently some critics are worried about the outsourcing and off shoring. It is alleged that it has even led to the destruction of the American manufacturing sector.
In order to shed some light into the ensuing debate over the issues pertaining to globalization, the research project tends to explore more about the impacts globalization has on the economic growth and also employment confining oneself much on the cost issue.
Main characteristics of emerging economies and their rising influence globally.
World's interest for the assets of the emerging economies has sharply risen up in the recent past. Those of the assets that belong to the Emerging economies have also proved to be volatile at times, and apparently the return is actually worth risking for. EME's funds have also resulted in a much higher percentage of wealth than the rates as per the benchmark.
The emerging characteristics have shown that the currencies belonging to the Emerging markets do not actually trade like currencies of the seven great countries that have been most popular in the past recent times. It is however notable that the fluctuations are still the same for all the currencies although still the EME currencies tend to pose many differences. The GBP and the Yen, which belong to the two emerging economies are times commanded by their own monetary rules and their own policies (Jain, 2006).
The prevailing political situation of the country has of late been considered and they make up the external and the internal factors. The monetary policies can be the same for the emerging markets as the economies of this given markets are time to time adjusted and also dictated by the decision from the central banks. A good example may be got from the both Mexico and South Africa's polices which apparently are quite similar. However the only existing difference is the usage of a system where the trade is weighted. This then means that the currency in that particular country is being stabilized versus the other currencies of other big foreign traders.
Final reflection for all essay above linked to Toyota Corporation
Toyota motor, is of course the world's largest automotive manufacture (having overtaken GM in the year 2008), designs, besides manufacturing a diverse product line-up ranging from the subcompacts to the luxury and sports vehicles to SUV's, buses, minivans and trucks. Its vehicles' production may either be with combustion or even the hybrid engines, as with the prius.
The Toyota industries as is the culture usually strive to enhance the stability of its corporate value besides maintenance of the society's trust by just earnestly fulfilling its CSR commitments as pertains to its Basic philosophy. They actually strive to enhance their corporate governance on the basis of the belief that maintenance cum improvement of management is of utmost importance.
When viewing the entire issue in terms of a research, it is quite relevant to confine oneself upon the impact of globalization on the given management of the production. Another factor that cannot be put into assumption is the section on analysis of the human resource management of this particular corporation since the time it was traditionally termed as the one termed as the most successful companies in this respect. It is apparent that globalization produces quite a profound impact on the kind of functioning and the given Toyota management that has it those ethical changes related issues that are normally caused by globalization show up.
The Toyota motor corporation, considering the current and also the future environment, particularly the business environment, must actually deliver what is referred to as total customer experience. It is however quite prerequisite to have total care when it comes to interpretation of customer's total experience. By definition, it is obvious the TCE is customer depended hence varies to each customer. When comparison is done with the services outlets like the restaurants, banks or hotels, there exists potential for even great diversity when it comes to the customer's experience, as it is the case the customer may tend to seek a more wide variety of provided products or services.
This explains why it is quite crucial to enhance definition of the current ethical challenges cum dilemmas the company is bound to face as in actual fact it has to carry on with its international market expansion. The macro-economic environment greatly depends on whether there is the making of its human resource management even more effective that it tends to naturally rise such ethical questions as to whether it is in line with ethics giving in to the justification as pertains to the rejection of the traditional management style.
The corporation, that was in actual fact created and revolutionized by Sakichi Toyoda, who happened to the inventor of what is to ate referred to as world's automated loom in 1918. The corporation is said to have been lucky to find its establishment in Japan whereby the surrounding European states apparently are nations whose economy and hence buying potential is not questionable. This was a great promotion on the part of the corporation's sales and it has to date made the Toyota's excellent performance remain.
This automotive industry has proved to be major economic and industrial force worldwide. It is apparent that the corporation makes 60 million cars and also trucks per annum. This means that they are responsible for about half of the world's oil consumption. Also the industry has about 4 million job opportunities per annum directly, and many more indirectly. Establishment of this industry had tremendous impact on the economy. Many people got employed in this company any this means that the purchasing power increased greatly as many people who would otherwise be jobless were offered with jobs.
The Toyota Corporation has of late been expanding and this has ensured constant upgrading of the Japan's economy. Many other sectors of the country's economy have been proportionally been expanding and this has seen the country uphold its reputation even in the eyes of the rest of the world.