Global Business

 Global Organization Essay

ER3S72 - Global Business

Gabor Horvath



1 . 0Introduction3

2 . 0Findings5

2 . 1STEEP5

2 . 2Porters Diamond7

2 . 3Internal Analysis9

2 . 4External Analysis10

2 . 5Weighting Analysis14

3. 0Elecdyne's Decision15

several. 1Elecdyne's Strategy16

3. 2Form of FDI17

4. 0Conclusion19

5. 0References20

1 . 0Introduction

Elecdyne can be described as Japanese SME, based in Tokyo, which made its debut in 1990. Having grown by five staff initially, it now uses 100 personnel, producing a selection of electronic items using technology licensed coming from a number of multinationals.

At the moment Elecdyne only supplies for the Japanese marketplace and only buys from neighborhood suppliers in and around Tokyo. Elecdyne had preliminary success in competing in price, nonetheless it has failed to grow their sales and it is facing it is first reduction due to its need to pay for licences, its high wage costs and decline in product sales.

The explanation for the fall due to the global competitive power of Japan manufacturers needs to weaken because of an increase in competition and the growing expenses of producing products in Japan (, 2011). " Japanese companies are finding it tough to compete against lower-priced rivals via Europe and Country several, and in the past few years competition has become so intense in the electronic industry” (, 2011). These types of factors are adding to the reasons behind Elecdyne facing it is first damage in earnings.

Elecdyne as a firm has never acquired contact with overseas markets. The management group are now thinking of the possibility of internationalisation and their discussions over ideal countries to get / offer in revolve around their three most important requirements: * access to cheap labour

* new innovations and technologies

2. better marketplaces in which to compete

The three countries that Elecdyne will be using internationalise into are the Country 1, two and 3, as it is believed that the Nation 1 provides better competitive markets, Country 2 will give you new innovative developments and Region 3 can provide cheap work.

This kind of report is going to present the info collected around the above issues which will influence Elecdyne and their plans to internationalise the organization. The information will then be analyzed and a decision will be made on which country Elecdyne should enter. The best course for entrance into the picked country will probably be identified and a strategy will probably be presented.

2 . 0Findings

installment payments on your 1STEEP

To be able to analyse the specific situation for Elecdyne, a HIGH table have been produced since it is inexpensive and adequate at this preliminary level. The HIGH table will also assist Elecdyne to discover the styles in the exterior environment which will affect the competitive environment through which it competes (Henry, 2008: 51).

Social| Social Media " development of fresh social networks like Facebook or Twitter, organizations should not delay in efforts to take edge as a good way to boost picture and increase effectiveness” (Lesonsky, 2010), Travel around and tourism " creates many new opportunities and increases sales in markets including GPS devices, travel applications” (Wang and Ohngren, 2010)Ageing population " triggered rate of growth in dedicated businesses” (Wang and Ohngren, 2010). | Technological| Hybrid devices " mobile phones and net catalogs, are more portable, smaller, better and quicker” (Takahashi and Ha, 2010). DVD players " THREE DIMENSIONAL technology is the new hit in recent years” (Takahashi and Ha, 2010)Tablets " with boom in touchscreen technology tablets can be more attractive, easier to use and businesses will start fight to master this new market” (Takahashi and Ha, 2010). Internet CloudsTouch Screen Technology| Economical| Global Crisis " has many results but the majority of countries are currently in a recovery” (Lesonsky, 2010)Rising Unemployment Charge " full-time employees might be either forced or willing to work part-time” (King, 2010). Inflation Rising cost of...

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BBC World Reports

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Boston Asking Group. (2011) Technology: Digital Devices, Application, IT Providers. Available: [Accessed: 24th Nov 2011]

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European Percentage (2011) Estonia – Everyone should be open to the pound area! Obtainable: [Accessed: fifteenth December 2011].

FDI Atlas. (2010) fDi Atlas: Purchase Incentive Navigator. Available [Accessed: 24th Nov 2011]

Global Options

Henry, A. (2008) Understanding strategic Supervision. United States: Oxford Press.

Hofstede, G. (2009) Cultural Proportions. Available: [Accessed: 6th December 2011]

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Jantsch, M. (2009) a few Trends That could Shape Small enterprise in 2010. Available: [Accessed: 7th December 2011].

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Porter, M. (1990) ‘The Competitive Benefit of Nations'. New York: The Free Press.

Propris, de T. and Driffield, N. (2006) ‘The importance of clusters intended for spillovers by foreign immediate investment and technology sourcing', Cambridge Log of Economics, 30(2), pp. 277-291.

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Schwab, K. (2009) Global Competitive Report 2009-2010. World Monetary Forum: Columbia University

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