Family Business and Women in International Business - Assignment Example

International Business Contents Contents 2 Wiki Family Business 3 Wiki 2: Women in International Business 4 Wiki 3: Business and the euro 6 References 9 Wiki 1: Family Business Global business world is being dominated by family business in present scenario. The economies across the globe are being dominated by family businesses. Family business in global context is not only responsible for controlling companies but even individual firms. This form of business has greater scope in global economy since it occupies greater percentage than public companies. Concentrated ownership and long-term thinking are key elements which drive success and growth of family business. Their disadvantages are mainly family fueds and succession problems. Future of family business is high in global scenario because there are wide array of push factors. Push factors encompass three important aspects like strategic drivers, family demands and competitive forces. Strategic drivers are accessing resources in least cost possible like research and development, data processing, outsourcing, product design, etc. Operational synergy can be exhibited by family companies through leveraging distribution and service capabilities, sales volume, etc. Competitive forces drive company to establish off-shore presence and utilization of supply chain facilities so as to facilitate cost-advantage sourcing. High performance teams are developed by family business which enable lower staff turnover in global scenario. Family companies possess a common competitive advantage in the form of foretelling stories about their overall experience. Family connections are the strength required in global economy. Family dynasties are witnessed in every field across the globe. Public companies are an essential instrument because it helps in acquiring resources as and when required. However the growth of family business in global context has been phenomenal because of the trend to pass on skills or knowledge to children. Modern capitalism was developed by certain family names like Baring and Rothschild (The Economist, 2015). Other family owned businesses such as Lee and Godrej would establish their image further in global platform. In the last few years, two-thirds of the total family business has witnessed growth in their sales percentage. The growth of family business is magnificent in global economy. 65% of family businesses have shown growth in their total sales percentage. This kind of growth is observed in certain locations like Middle East, Eastern Europe and Latin America. Family businesses are highly ambitious by nature and this has contributed towards growth of many global economies. It has been forecasted that in next five years, 81% of family business shall account for aggressive growth. This growth percentage might even increase across Middle East to Turkey. They would help in driving in funds and even help to stabilize economy. Family owned firms located in Hong Kong, Austria, Mexico, Canada, Middle East, India, Singapore, Malta, Turkey, Sweden and Switzerland, have received governmental support from past many years. Improved tax situation, specific set up networks and financial incentives has enhanced growth percentage of family business in global economy. Future economic conditions can be improved through driving in investors and satisfying local demand. From future perspective, employment conditions can be improved with the support of family businesses. They are responsible for creating employment opportunities which shall help in regulating disposable income and thus stabilizing global economy in future years. Wiki 2: Women in International Business Discrimination in workplace on basis of gender is a common factor witnessed across the globe. Women have established strong position in international business forum. There are examples stating success grabbed by women in real world organizations. A women director of an organization clearly denotes her international reach in an article. International trading is exhibited by her and her business partner. Product range of the firm was eco-friendly and best suitable for international markets. She was determined to reach out to global markets with their innovative product range. This company currently operates across 62 countries and focuses on four different languages. Female has not affected success of this business but identified a path of international growth. Women have outnumbered men in context of board member proposition. In international business, there needs to be proper coordination between both genders. Women face similar challenges as faced by men during running a business. A firm can succeed in commercial world only when there is shared set of expertise and values with team mates. Men and women needs to share their knowledge and skills while working together in international business. Global platform provides opportunities to individuals and there is less of gender related issue. Men and women should be able to share talents in the form of proven competence, experience depth, sector expertise and professional integrity. For instance, an article clearly portrays sharing of talent between men and women. They effectively utilized their experience of pharmaceutical industry to develop innovative products along with international patents. Influential trade shows were designed by both of them to facilitate global presence (The Guardian, 2015). Men and women needs to be well aligned in term of ethical goals while conducting international business. This would help them to understand culture, sector, resources and tactics of different geographical regions. Gender equality is gaining significance in current scenario within business environment. In 21st century there is less number of individuals who believe in gender disparity. Men and women are given equal opportunities and there are incidents when women have outperformed men. Gender equality would be supported more in future years. This is simply because women empowerment is becoming reason behind international business. There are courses designed which enable women to explore opportunities related to business. In current scenario there is desirable percentage of women director in companies. This form of gender equality will be increased in future years. Gender equality in future will be solely responsible for business growth and success. Team members can perform well since they would not be concerned about discrimination. At University, I need to focus on developing skills and expertise, which should be efficiently shared with my other classmates. I firstly need to prove my abilities then only can I get opportunity for my future positions. In my University, there are lecturers who support the fact of gender equality and they do not engage into gender discrimination. This would help me in my future positions since I can prove my talent without fear of discrimination. Greater gender equality can also be supported through team work at University. Wiki 3: Business and the euro Businesses are expanding at a faster rate across the globe and this is increasing impact of currency fluctuations on these global firms. Currency fluctuations have proved to be beneficial for business organizations as well as cause adverse impacts on firms. It is responsible for decreasing receivables of exporters and simultaneously enables higher profit margins for importers due to low import prices. Sharp currency fluctuation is noticed to affect medium and small companies rather than large firms. It is observed that large players either operate within specified scale or manage currency efficiently. For instance increase in gold prices in global markets reflects lower profit margins. This is simply because of rupee appreciation in relation to dollar. Currency fluctuation can enhance growth of international business when currency value in domestic market is lower than that of foreign markets (The Economist, 2015). However currency appreciation can drastically hinder global business operations in terms of more investment and less revenue margins. Every local market in current scenario can be stated as a foreign market for a company. The growth of international business has led to proper exploitation of market opportunities. Currency fluctuation can have positive impact on business operations. For instance all firms desire to have cost advantage so as to acquire higher profit margins. When import prices are low due to currency fluctuation it is beneficial for those firms who are planning to import goods. On the other hand, currency fluctuation also initiates flow of funds across regions. It acts as a driver towards capital flow and this in turn enhances economic stability. Currency fluctuation can also be viewed as a medium to control inflation rates. Stability in currency condition is decreasing with increasing competition in international markets. It can be stated that adverse impacts of currency fluctuation can be observed in exports more in relation to imports. Currency devaluation shall lead to increase in prices of goods. This would encompass risk of inflation. The relationship between exports and fluctuating currency comprises of other risks as well such as reduced economic growth, local consumption and investment. Currency fluctuation decreases the margin of return on investment, which is inappropriate for multinational enterprises. On the contrary, it might even hinder consumer income and this shall have direct impact on profitability margins of global firms. Risks are even associated with economic stability of other regions which are dependent on fluctuating exchange rates. Multinational enterprises have to monitor economic factors of various geographical regions. Foreign markets are equally important to multinational firms like that of domestic market place. GDP growth of foreign markets might change with time and this needs to be taken into account by multinational enterprises. Household income or per capita income can also be determined by analyzing this factor. Other economic factor shall be trend of disposable income of consumers. This would indicate their spending in context of service or products offered by multinational firms. Tax situation is another economic factor as it shall highlight scope of gaining desirable profit margins by companies. Availability of funds or rate of capital flow also needs to be monitored well by multinational enterprises. References The Economist., 2015. A weaker currency will help but cannot rescue the stagnant euro zone. [Online] Available at: http://www.economist.com/news/business/21641300-weaker-currency-will-help-cannot-rescue-stagnant-euro-zone-only-tailwind [Accessed 3rd May 2015]. The Economist., 2015. Survival of the fittest. [Online] Available at: http://www.economist.com/news/special-report/21648176-success-family-companies-turns-much-modern-business-teaching-its [Accessed 3rd May 2015]. The Guardian., 2015. Is being a woman a barrier to international business? [Online] Available at:http://www.theguardian.com/women-in-leadership/women-in-leadership-blog/2013/oct/02/gender-barrier-international-buisness [Accessed 3rd May 2015]. Read More