International Readiness Indicator Tool - Assignment Example

International Business Student’s Name Subject Professor University/Institution Location Date 1. Selected Articles 1: From Australian Government Initiative (2013, March 07), an article ‘International Readiness Indictor (IRI) tool’ can be discussed. Austrade’s IRI is a designed online tool which Australian business can use to determine the readiness of their business to export their products. The tool comprise of the set measures both at domestic and international level which may promote a business to launch and operate regionally and globally depending on certainty of the measures. The tool has twelve questions requiring a yes/no on different topic. Some among the topics include the business supply capacity, marketing materials, selling proposition, finances and pricing. Other includes the customs requirements, restricted and prohibited goods, assistance for importers, labelling requirements, and quarantine requirements. A business can thus complete the question and then a report card which shows their export readiness is produced. The card variously provides information and assistance sources which guide the business to work on those areas which need more attention. Selected Article 2: From Australian Government Initiative (2013, March 23) Earth Hour 2013 marked a worldwide event. Households and business around the globe were to turn off the lights for a whole hour. The purpose was in support of World Wildlife Funds campaign meant against the climate change. There was an open registration of the business to support of the same. The goal for such a worldwide undertaking was to encourage business and family units to be committed and involved in greater ways as part of corporate social responsibility. There is also an extension of events limned up in a calendar where business can appropriately get involved in. The theme of the Earth Hour is restructuring environmental management and provides information on how t operates a ‘green’ business. One of the most recent trends in sustainable business movement has been “green” production, through quick, inexpensive and production in eco-friendly way. These businesses are providing what consumers are demanding by being economical fair and appealing to targets environment and healthy environments. There are media company that constantly track green business trends and use the criteria to define green undertakings by the company’s environmental footprint, commitment towards animal welfare, ethical workplace practices, responsible marketing for children and product safety. There are mechanisms applied for rating eco-friendly businesses where interested consumers can check. After assessment, capable companies get certification for them being environmentally conscious. The implications of Articles to: a. the Australian government The government structure should be involved in dissemination of knowledge which is necessary for business to join the global economy (Peng 2009). Advanced technological capabilities and know-how can be dedicated through state promotion of human and financial resources which ensure that mot business will participate and be integrated effectively to global economy. The government will also be involved in shaping the process before the business. This will be facilitated through rules that promote cultural, human and environmental values. The government can promote incentives for Australian business to take part in globalized exportation, and build a global market economy. Apart from encouraging efficient free trade and free capital flows, they may venture to international institutions such as the World Bank and IMF to support the domestic business through raising their capacities. As Kitzmuller (2012) observes, in the second issue involving Earth Hour, Australian government has various roles in mandating, partnering, awareness raising and soft law. The role promotes corporate responsibility and enhances engagement of private sector in development. The public policy options which are critical for promoting business engagement in development are core in promoting such a worldwide issue toward sustainability. According to Sturgeon & Gereffi (2009), first, raising awareness will determine on government efforts to promote and create share understanding for its society both citizens and business concerning corporate responsibility. The target may be among the companies through the ministries and non-governmental institutions. The awareness includes core information of business proceedings to implement a conscious environmental policy. Partnerships can be designed in win-win situations where various stakeholders can work collectively to attain a shared goal. This can be promoted by the role of government in understanding various business contexts and promoting policies that align to specific businesses. The business can then define their corporate responsibility through the help of government structures. They can then identify appropriate rational and public policy that promotes their participation in corporate responsibility. Overall, the government will constantly monitor and assess the impacts of the policies adopted and assume alternatives and interventions. Soft law is a government approach which can promote and incentivise business voluntary action. Soft law acts as a complement or supplement to state regulations which are seen as rigid and are variously unsupported by business fraternities. The government also require mandating instruments that allow and facilitate government monitoring and enforcement of corporate responsibility. b. Australian businesses (domestic firms) According to Kose, Otrok & Prasad (2008), the International Readiness Indictor (IRI) as a tool is very useful for the information Australian small and medium enterprises (SMEs). When information about the larger set of goods and services becomes available, it is easier for the business to work towards a world class production. This will mean that the domestic businesses can be able to satisfy the local markets based on reputation on international quality production. The access for such information is significant as it allows business evaluation and sponsor activities through guidance on steps to follow toward reaching international standards. The focus and trend to globalized production will increase the competitive advantage of Australian firms. As Czinkota & Ronkainen (2009) observes, the domestic small and medium businesses will variously confront their existing and new challenges to remain competitive according to the areas in which they qualify. Further improvements may target costs, technology, management practices, marketing strategies and credit. The information provided is important for the success of the domestic businesses. They can integrate into a value chain industry where they can act in partnership to promote their international requirements. The merging will mean more economic outputs in both the internal and external market. The improvements are vital steps to become a part of larger economic community. According to Lynch (2010) the tool opens up how business can cope up with problems for the new opportunities. The idea behind can be taken to promote multinational corporations and communication networks around the globe for Australian domestic firms. It critically point out the permeability of business beyond national borders, the power of domestic markets to change and grow stronger and participate in an world where globalization has emerged and developed. The domestic firms concerning the Earth Hour corporate responsibility are required to integrate more responsible business practices. As Werther Jr & Chandler (2010) argues, they may do this by assuming a corporate responsibility index. The approach may be taken through physical and online self-assessment to identify the strengths in performance and management and the gaps towards making the future progress. Self-assessment is a starting point for business practices improvements. There should also be submission of such assessment results to ensure consistency and reliability. According to Matten & Moon (2008), companies’ roles will include the identification of gaps to improvement so as to reinforce a good and sound practice. They will constantly track the progress to drive a continuous improvement. Critically they should ensure a benchmarked performance against the peers and leading a sound practice. The practice, goals and outcomes should involve and engage the board members raising awareness of corporate responsibility issues internally. The tool can be used on private or public basis. On public participation, companies may include annual corporate responsibility index to demonstrate commitment toward transparency and improvements to social and environmental performance. On the other hand, private participation is a company’s design not to readily disclose their performance but focus to provide guidance and a feedback that help organizations to integrate and improve their corporate responsibility better. c. Multinational corporations (international firms) Multinational corporations are involved in foreign direct investment through gathering assets and control income in multiple countries. The Australian multinational corporation through the International Readiness Indictor (IRI) tool will fearlessly engage in international production. One possible outcome of Australian MNCs will be merger and takeover where after some time they can assume greater power and enjoy huge profit amount (Kose, Otrok & Prasad 2008). They will then take part in prevailing opportunities in other countries. Another possible outcome through the tool information is multilateral resources transfer. This will take place through transfer of know-how, machinery and equipments, finished products, materials, managerial services into other countries. This will then be integrated in the complex technology used in production, marketing, management and financing. Qualification for such international activity will promote the use of various efficient resources in form of raw materials, labour and market sizes in different countries and therefore reduce the cost of production which results from concentration of market in one region. As Carroll & Buchholtz 2011 argues, multinational corporations are perhaps the most imitated business model and activities. As key participants their trends on corporate responsibility is either detrimental or meaningful to Australia performance. Earth Hour was meant for all business and the conspicuous nature of MNCs in the media can promote this. There are four aspects involved with MNCs in corporate responsibility. They include human rights, environment, consumer issues and community involvement and their development. On the top of these issues is a strong management which guide, and improve the efforts of corporate social responsibility. When they are understood they can be communicated in creative and in the best of the context to achieve the highest desired outcomes. The purpose for this is to protect the community after long term basis and operations. The business areas involved with MNCs that can enhance corporate responsibility include the machinery and infrastructure, energy use, promotion of lifestyle, innovation and cross functional operations. Every area when broken down and shaped by the requirement s of CR can yield positive results in internal and external markets and promote the channels and subsidiaries to promote the parent company’s agenda into their various niches (Matten & Moon 2008). Globalization Trends The two articles primarily emphasize the aspects of globalization. Globalization entails various changing economic, cultural, political, environmental and ideological processes which are seen as accelerating and intensifying in some past few decades. The articles have promoted the aspects of social life, local, regional and global issues. Globalization presents various dimensions of looking into the issues. One of those issues is ecological dimension which has been discussed through the lenses of Earth Hour as a requirement for Australian firms, the community and the global organizations. As indicated it is a continuous action aligned in a calendar of events to promote full participation of global businesses (Werther Jr & Chandler 2010). The critical issue is sustainability which the world economy is seen to ignore in pursuit of profit. When the globe diminishes its capacity to sustain the current and future populations, a detrimental outcome is expected. One of the way to deal will the evil consequences of globalization is promoting such campaigns that increases awareness to community and businesses, enhance partnership, policies and mandates to improvement from institutional, local, regional and global levels. On International Readiness Indictor tool, globalization is marked as key in the discussion. This is because it involves the integration of various economies to share in global networks of trade (Peng 2009). The role of the government and domestic firms is important in the support of globalization process. It discusses the 12 forces promoting global economy development and the process of how to realize them at institutional level. The relevant aspect of governed policies are brought in the spotlight which will then allow specific business to assume important steps toward improving its operation and gain a competitive advantage by competing with multinational corporations. Globalization is positioned as an open-participatory undertaking but defined and regulated through various measures and topics. The article discussed the economic activities for both developing and developed economies and emerging consumers markets. This is widely viewed as an important aspect of globalization (Carroll & Buchholtz 2011). The International Readiness Indictor (IRI) tool is also an aspect of globalization which has much contribution as a technology based tool that promote free information flow on a worldwide scale. Both issues have manifested a lot to do with global trends in assessing local, regional and international standards that are agreed and promote individually and corporately to promote both the national and international economic, environmental, social and cultural agendas. References An Australian Government Initiative (2013, March 07) International Readiness Indicator tool. Retrieved, 2013, Mar 28 from http://www.business.gov.au/Newsandfeatures/2013/Mar/Pages/International-Readiness-Indicator-tool.aspx An Australian Government Initiative (2013, March 23) Earth Hour 2013, Retrieved, 2013, Mar 28 from http://www.business.gov.au/Newsandfeatures/2013/Mar/Pages/Earth-Hour-2013.aspx Carroll, A B & Buchholtz, A K 2011, ‘Business & society: Ethics, sustainability, and stakeholder management,’ South-Western Pub. Goldstein, A 2009, ‘Multinational Companies from Emerging Economies Composition, Conceptualization & Direction in the Global Economy,’ Indian Journal of Industrial Relations, 137-147. Kitzmuller, M (2012, May 17), ‘Do the economics of Corporate Social Responsibility matter for Private Sector Interventions?’blogs.worlbank.org, Retrieved, 2013, Mar 28 from http://blogs.worldbank.org/psd/do-the-economics-of-corporate-social-responsibility-matter-for-private-sector-interventions Kose, M A, Otrok, C & Prasad, E S 2008, ‘Global business cycles: convergence or decoupling?’ (No. w14292) National Bureau of Economic Research. Matten, D & Moon, J 2008, ‘“Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility,’ Academy of management Review, 33(2), 404-424. Peng, M W 2009, ‘Global Business 2009 Update,’ South-Western Pub. Werther Jr, W B & Chandler, D 2010, ‘Strategic corporate social responsibility: Stakeholders in a global environment,’ SAGE Publications, Incorporated. Czinkota, M R & Ronkainen, I A 2009, ‘Trends and indications in international business,’ Management International Review, 49(2), 249-265. Lynch, R 2010, ‘How does globalization relate to strategy, especially in large companies? Global Strategy.Rerieved 2013, Mar 28 from http://www.global-strategy.net/categories/Globalizationandbusinessstrategy Sturgeon, T J & Gereffi, G 2009, ‘Measuring success in the global economy: International trade, industrial upgrading and business function outsourcing in global value chains,’ Transnational Corporations, 18(2), 1. Read More