Modern Business Concepts - Assignment Example

Business concepts In the recent wave of globalisation, developing countries have become the focus for many international businesses. Is this process of globalisation the best way to strengthen developing countries and establish a level playing field, or does it keep them under the control of wealthy industries and drive income inequality? There are many debates on the topic of how globalisation has impacted both developed and developing countries. While developed countries have undoubtedly benefitted from access to global markets and to cheap natural and human resources, the situation with developing countries is not so clear. Globalisation is viewed to act as a driver strengthening developing countries due to increased inflow of foreign direct investment (FDI), increased employment, infrastructure development, technology and knowledge transfer, etc. Inflow of FDIs is recognised to be a driver of new job creation, and therefore, has a positive impact on employment (Lee and Vivarelli, 2006). On the other hand, the impact of trade liberalisation on final employment depends on the interaction between output growth and productivity growth (Lee and Vivarelli, 2006). Even though export growth may drive employment growth in developing country, increased import and FDI may “crowd out” domestic production, and induce labor redundancy in developing country (Lee and Vivarelli, 2006). Based on the data from the 120 developing countries, Santarelli and Figini (2004 and 2005) have made the following conclusions: trade liberalisation contributes to reduction of absolute poverty but financial liberalisation and FDI inflows have detrimental effect on poverty alleviation (Lee and Vivarelli, 2006). Therefore, globalisation process is recognized to have negative impact on developing countries, leading to increased income inequality. Globalisation implies removal of trade barriers and opening of economies, and therefore, removal of controls on capital flows in developing countries. Removal of controls on capital flows combined with a shift to more flexible exchange rate arrangements expose developing countries to increased exchange rate volatility (Goldberg and Pavcnik, 2007). As the evidence shows, many developing counties that entered the world market in the last thirty years demonstrated shift in various measures of inequality (Goldberg and Pavcnik, 2007). Many researchers agree that increased trade does not automatically mean positive employment impact for a developing country. However, while analysing empirical evidence of the impact of globalisation on developing countries, there cannot be drawn some unified conclusions as the results vary from country to country. The fact that globalisation has different impact on developing countries (for example, positive impact on East Asian countries) but negative impact on African countries) implies that there are some other factors that influence on these economic outcomes (Lee and Vivarelli, 2006). 2) Should employers be allowed to use GPS devices to keep track of their employees whereabouts during work hours? (Such devices are currently available). Should employers routinely screen their employees e-mail? Should an employer routinely record telephone conversations held by employees during work hours? Employers increasingly strive to ensure high workforce production, professionalism and effective performance of work-related activities. For this purpose they use various technologies in order to monitor the activities of their employees. One of the examples of such technology is Global Positioning System (GPS), used by employers in order to track their employees. This practice was legally enforced by the US Supreme Court, however, what are the ethical considerations of such practice? (Parent, 2013). It is possible to argue that the use of GPS devices at work is a good practice in case of employees are aware of it and they have given formal consent for this type of monitoring. Also, the employer is responsible to inform/notify employees about GPS tracking (Parent, 2013). Thus, employee is self-disciplined and does his best as he understands that he is continuously observed, and employer benefits from increased commitment from his employees. Employers can use GPS tracking not only for controlling and monitoring purposes, but also for improving current processes and procedures (Parent, 2013). Therefore, it is possible to agree that employers should be allowed to use GPS devices to keep track of their employees during work hours. Another way the employers tend to monitor their employees is to screen their employees’ emails. The Electronic Communication Privacy Act allows employers to monitor employee’s e-mail stored on company-owned servers and in cases if employee provide a written consent authorising employers to access e-mail (Bahls, 2006). This is definitely a good practice in corporate world when information is crucial asset of many organisations. By tracking employee’s e-mails, the company can mitigate the risks of violations of company’s policies disclosure of trade secrets and other confidential information, etc. Moreover, the company can monitor the way the employees communicate with partners and clients and thus to improve this process if necessary. However, it is important to set up clear policies whereas employees are forbidden to use corporate e-mail for private communication. Otherwise, it is also a good practice that should be adopted by employers. The practice of recording telephone conversations held by employees during work hours is similar to e-mail and GPS monitoring. Taking as granted that the company has clear policies in this case, that there is informed consent signed with employees, and all employees are aware of this practice, the company should record telephone conversations. Thus, the company will be able not only to monitor employees but also identify gaps in communications and other relevant issues that might be improved (for example, customer service department or call-centre). 3)There have been several major data breaches in the last few years. How do you see these lapses in corporate security affecting consumers? Does it make you less likely to purchase from certain companies or to purchase certain products? Has it changed how you protect your identity information? Lapses in corporate security definitely undermine consumer’s trust and confidence in a particular company specifically, and makes them (consumers) to be more suspicious in relation to other companies, especially those where they have shared important private information. Therefore, data breaches can be expensive for the companies not only because of legal proceedings and imposed fees and fines, but also by negative reputation of a brand leading to enormous sales’ loses. In case if I was in a situation where my personal data was stolen from a company or a brand I used, I would more likely stop buying from this company at all. This is especially the case if my credit card data was stolen when I did my online purchases. I believe that the companies offering online services and online payment are for 100% responsible to ensure safe transactions. The news on recent data breaches definitely made me to reconsider my approach to data security and protection of identity information. I still use online payment services and provide my personal information where required. However, I have established a strong anti-virus system on my computer in order to mitigate potential risks on my behalf. 4)Briefly outline the ten mental locks that can limit individual creativity. Give an example of a situation in which you subjected yourself to one of these mental locks Roger von Oech (1983) has identified 10 major mental locks that are hazardous to human creativity. There locks are briefly outline below: 1) “The Right Answer” – is a lock, which makes us to fit with only one answer possible, while there can be two, three, ten other alternative answer, which can provide solution to a problem in new creative way; 2) “That’s not logical” – a lock, which makes us to search mainly for logical solutions, and disregard the illogical ones; 3) “Follow the Rules” – is a lock, which makes people to stick with existing rules and norms. However, in order to be creative, people need to be flexible with the rules and be responsive to changes; 4) “Be practical” – being practical lowers the possibility of being creative as in this case people tend to be focus more evaluative and pragmatic, leaving less space for imagination and brainstorming; 5) “Avoid ambiguity” – is a lock that disciplines people to be clear in their communication and to avoid misunderstandings. However, ambiguity can help people to set up creative state of mind; 6) “To Err is Wrong” – the lock of avoiding errors is practical in everyday life but might be useless at the germinal phase of creative process; by admitting errors, people get more creative in searching for new solutions; 7) “Play is Frivolous” – is a lock which discourages people to play. Invention and play are two closely interrelated subjects; 8) “That’s not my idea” – is a lock that narrows human perception of own capability and sets a barrier of investigating other fields; 9) “Don’t be foolish” – is a lock which makes people’s ego’s grow and believe that their ideas are the best. 10) “I’m not creative” – is a lock of self-perception. If people believe they are not creative, they will hardly be and even try to do something (von Oech 1983). In my opinion, I have experienced all of the above listed locks to creativity. Moreover, I still continue doing so. One of the examples of the situation in which I subjected myself to one of these mental blocks relates to my school days, when I was appointed to create a program for one event. I was absolutely sure that I was not creative (lock №10), and the task was given to my classmate. Later, I helped him and practically wrote this program for him. 5) Watch the following you tube video and summarise the contents The video is in the form of press-conference carried out by Stanford Graduate School of Business, whereas four entrepreneurs (Gurbaksh Chahal, Carol Sands, Mat Choler, and Jorn Lyseggen) answer questions related to entrepreneurship. They aim to identify thus major pitfalls faced by entrepreneurs and major mistakes they make. The first question referred to the motivation that has driven invited respondents to become entrepreneurs. There were given four different stories with several major aspects that can be outlined as follows: necessity to survive, passion to what you do or want to do, desire to change established routines and processes, desire to fix something that is broken or to create something that doesn’t exist but should exist (based on the entrepreneur’s vision); ability to be creative and to work with people you want to work (Youtube, 2010). Further, the respondents outlined the good and bad things associated with entrepreneurial activity. The key positive aspects were: ability to make the change happen, ability to solve problems in shortest possible term, ability to make your dream a reality. On major limitations of entreprenership activity entrepreneurs mentioned: lack of stability, narrow line between personal and business life as entrepreneurship becomes an integral part of individual’s life (if he is passionate to what he does), sacrifices, etc. There was also raised a question about partnerships and cofounders in entrepreneurship. It was said that people are free to choose any partner or cofounder unless they feel confident with this. Important aspects in these question play the sum of required investment and cofounder’s support of a long-term vision of the business. Actually, wrong founding team and lack of long-term vision was identified as one of the major reasons of start-up’s failure. People in a team should demonstrate hunger to success rather than just pursuing greedy motives (Youtube, 2010). Another tricky question related to black days the respondents experienced on practice and how did they manage to cope internally with these challenges and recovered from these setbacks. Some of the major lessons outlined were: never keep yourself vulnerable, always surround yourself with people who want you to win, find a hope in black days and deal with the situation, perceive black days as the moment when the Universe is going to change, continue to believe that your goal is achievable even if everybody around says it is not and ensure you do everything you can (unless you can afford it), never recognize you could fail, be stubborn. Actually, some of the essential characteristics of entrepreneur are: passion in everything you do, balance of craziness and complete belief in viability of idea (but still be rational); desire to express himself through entrepreneurship, optimism and positive mindset, ability to absorb rejections and disappointments, to be a good leader capable to create effective team and capability adapt to changes (Youtube, 2010). Entrepreneurs live in risky environment and actually are risk-takers. They are seeking for change and should be prepared for risks. However, some entrepreneurs view entrepreneurship as ability to pursue opportunity and minimize risks, striving to have greater control over business. Further discussion ends with the issues related to how entrepreneurs are more likely to succeed: to create something new and completely different that will change the world, or to do the same what others do but to over execute and innovate to beat competition. While there is space for both types of entrepreneurs, the discussion is expanded to three types of motivations of entrepreneurs: (1) Change the world, (2) Build a great company, (3) Get rich. All panelists supported the idea that money issue is not a proper motivation for entrepreneurs, on the contrary, they strive to be successful and aim to change the world to better (Youtube, 2010). Finally, discussion ends up with the ideas for business, where people can great ideas and how they can implement them. The main concept is that ideas come from personal considerations, people should focus on their own thoughts and perceptions, rather than chase for what is hot. The idea should be something an entrepreneur is passionate about and how they can positively impact the society. References: Bahls, J. 2006, Should You Monitor Employee E-mail?. [online] Entrepreneur. Available at: http://www.entrepreneur.com/article/83768 [Accessed 24 Jun. 2015]. Goldberg, P. and Pavcnik, N. 2007, Distributional Effects of Globalisation in Developing Countries, Journal of Economic Literature, 45 (1), pp.39-82. Lee, E. and Vivarelli, M. 2006, The social impact of globalisation in the developing countries, Institute for the Study of Labour, Discussion Paper No.1925. Von Oech, R. 1983, ‘A Whack on the side of the head: How to unlock your mind for innovation’, Warner books. Parent, J. 2013, McLane, Graf, Raulerson & Middleton : Article Detail. [online] Mclane.com. Available at: http://www.mclane.com/resources/article-detail.aspx?id=929 [Accessed 24 Jun. 2015]. Santarelli, E. and Figini, P. 2004, Does globalisation reduce poverty? Some empirical evidence for the developing countries, in Lee, E. and M. Vivarelli (eds.), Understanding Globalisation, Employment and Poverty Reduction, Palgrave Macmillian, New York, pp. 247-303. YouTube, (2010). Top 10 Mistakes Made by Entrepreneurs. [online] Available at: http://www.youtube.com/watch?v=gtHZUr3mdlY [Accessed 24 Jun. 2015]. Read More