Sunday, January 26, 2020

The Negotiation Strategies In International Business Commerce Essay

The Negotiation Strategies In International Business Commerce Essay In business relationships, parties negotiate because they think they can influence the process in such a way that they can get a better deal than simply accepting or rejecting what the other party is offering. Ghauri (2003) says business negotiation is a voluntary process of give and take where both parties modify their offers and expectations in order to come closer to each other. In literature, sometimes bargaining and negotiation are used interchangeably. Negotiation, also called integrative bargaining, refers to win-win negotiation where both or all parties involved can end up with equally beneficial or attractive outcomes. In other words, everyone can win. It is more related to a problem-solving approach, where both parties involved perceive the process of negotiation as a process to find a solution to a common problem. In integrative bargaining however, if negotiations are not properly handled, both parties can end up with a jointly inferior deal. With negotiation, it is possible for both parties to achieve their objectives and one partys gain is not dependent upon the other partys concession. Business negotiation is considered by many authors as being this type of negotiation. The power/dependence relation is another basic characteristic of all negotiation processes. It is closely related to the actual power relation, which is influenced by the value of the relationship to the parties and their available alternatives. Background factors for example the market position can influence the power/dependence relation. The ability to control a relationship is related to the perceived power of two parties, their relative expertise and access to information. This power is a property of the relationship and not an attribute of the actor; in fact, it is closely related to dependence. Therefore, the power relationship is in balance if both parties perceive equal power. The power relationship is unbalanced if one of the parties perceives more power, or if one party is dependent on the other. The dramatic growth of international trade over the last five decades has been not only in terms of volume but in complexity as well. International marketers are now more and more business negotiators, who constantly discuss deals across borders with a variety of people, ranging from consumers to intermediaries and even competitors. Technology often plays a major role in such deals and this could mislead people into believing that the whole negotiation process is principally an engineers discussion based on rational and scientific facts. In fact, technical complexity intermingles with human complexity to render such negotiation processes difficult to manage. A considerable amount of literature is available on negotiations, some of it also on business negotiations but the field of international business negotiations is quite neglected. Strategic Negotiations. Richard Walton etal,1994 identify three primary negotiations strategies. These are forcing, fostering, and escape. Each represents an overarching pattern of interaction that characterizes the negotiations. A strategy does not emerge all at once, but over time as a result of consistent patterns of interaction. A forcing strategy generally involves taking a distributive or win/lose approach to the negotiations, combined with a divide and conquer approach to internal relations in the other side, and an attitudinal approach that emphasizes uncertainty and distrust. By contrast, a fostering strategy generally involves taking an integrative or win/win approach to the negotiations, combined with a consensus approach to internal relations in both sides, and an attitudinal approach that emphasizes openness and understanding. Escape is a non-negotiations strategy in which one or more parties seek to end or undercut the relationship. Dietmeyer and Kaplan (2004) use a res earch-based approach to negotiation that assists sales professionals in reaching their own business goals, while ensuring that their customers meet budget and professional objectives as well-going beyond win-win to achieve true, measurable business value for all parties at the negotiating table. Power and Diplomacy Power. Susan Strange (1998) brings out that power accrues to those who can offer or deny security; those who manage the creation of wealth by production; those who create credit to allow or deny other people to spend today and pay back tomorrow; those who (mis)manage the currency in which credit is denominated; those who have knowledge (advanced technology) which provides military superiority and dominance in other power structures. John De La Mothe (2002), argues that science, technology and innovation have long been key factors in the competitive advantage of nations. Today, however, the new international political economy is being increasingly driven by science and technology in new ways. Integration, globalization and internationalization have all become watchwords for a series of dynamic processes in which science and technology are deeply implicated. As a result, not only are the policies of national governments being exposed in terms of the limits of their sovereignty, but sci ence and technology are being increasingly implicated in a wide array of public issues ranging from security, privacy, development and economic growth to employment, environment, foreign policy and geopolitics. Clearly, in todays emerging world, the ways in which governments organize their science and technology policy, their science and technology intelligence, and their research advisory structures and resources matter more today than ever before. Diplomacy. James Rosenau was one of the first to suggest that the domestic and international are somehow linked and elaborated upon what he termed linkage politics (1969). Scholars focusing on the regional impact of domestic politics are Karl Deutsch (1957) and Ernst Haas (1958). Haas highlights two types of spillover. The first type, functional spillover, occurs when cooperation in certain sectors of the economy (or society) creates technocratic pressure for cooperation in adjoining sectors, thereby propelling integration forward. The second type, political spillover, occurs when ongoing cooperation in certain areas empowers supranational officials to act as informal political entrepreneurs in other areas. In order to manage complex technocratic issues more effectively, rational governments must delegate discretion to experts, judges and bureaucrats, thereby creating powerful new supranational actors with an interest in cooperation. Graham Allison in Essence of Decision: Explaining the Cuban Missile Crisis (1971) too, speaks of an overlap between international and domestic politics. In State Power and the Structure of International Trade, Krasner argues that that openness in the world economy is most likely to occur during periods when a hegemonic state is in its ascendancy. As long as the states technological lead is increasing, its leadership will perceive economic advantages to openness, since openness will expand markets for the products of its technologically sophisticated industries. The hegemon will also gain politically, since the opportunity costs of closure will be low, relative to those facing smaller and poorer states. Conversely, when several large, unequally developed states coexist, Krasner predicts that the more backward states will find openness economically and politically costly and will therefore resist it. Greater trade closure will, therefore, result (Keohane 1997). Like Gilpin before him, Krasner too stresses on the influence of the strength of the state on international trade. The crucial point is the correlation between what occurs withi n a state is related to what occurs beyond state boundaries. Robert Putnam in Diplomacy and Domestic Politics: The Logic of Two Level Games (1988) argues that domestic structures and diplomacy are interminably entangled and says that the negotiator is under pressure to reconcile domestic and international conflicts. Putnams work challenges the level of analysis approach to studying international relations which stresses the importance of classifying data under three clusters: the systemic, national and the individual (Singer 1961). Mayer (1991) develops a model to explore the implications of domestic political divisions for international strategic engagement in international trade. He explores the subject by treating international trade as a game and identifying the players and examining how they play. The observation that there are several overlapping games being played, a few of them being strategic and others not, is significant. Policies such as tariff, quotas, and export and production subsidies are the tools used by the players to gain a n advantage in the international strategic trade game (Krugman 1986). Work on strategic trade policy builds on game theoretical models which analyse how states use trade policies to leverage their economic performance. India and Nanotechnology (The literature survey included, amongst others, a perusal of annual reports of GOI MOD, DST, CSIR, TIFAC, CII; back issues (app 3years) of Business world, New Scientist, Hindu Businessline and Business Today. ) GOI initiatives include DST launched Nano Science and Technology Initiative (NSTI) with an allocation of Rs. 1000 crore, Government has spent approximately Rs. 250 crore, over the past five years to promote RD in the area of nanotechnology. 100 research projects on the synthesis and assembly of ceramic nanoparticles, nano tubes, nano wires, nanoporous solids, and DNA chips have been supported by the Government. CII Initiatives have resulted in; India-UK Joint Economic and Trade Cooperation, Indo-US High Technology Cooperation Group (HTCG), Nanotechnology partnership with Taiwan, a number of Nanotechnology Conclaves, Nanotechnology Cluster-CMTI, Jharkhand Nanotechnology Initiative, West Bengal Nano Park etc. CII is working closely with the Government of India on US India High-Technology Cooperation Group (HTCG) formed on November 2002. The HTCG acts to facilitate and promote bilateral high-technology trade. The focus areas of the core group include Information Technology, Defense, Life Sciences and Nanotechnology. Realising the potential of nanotechnology, HTCG working group on Nanotechnology is formed to facilitate seamless flow of knowledge between both the countries and joint development projects involving industries. The Confederation of Indian Industry (CII) has put together a 10-point action plan to empower Indian industry to come out with commercial nanotechnology products, which it believes will drive the future of industry worldwide. The action plan includes awareness creation, training and skills development, technology facilitation and networking and facilitating collaborative projects. The Nano Science and Technology Consortium works to create a platform conducive for the growth, promotion and partnering in the field of Nano Science and Technology taking together industries, academics and government through consultative, advisory and educative processes which will provide growth platform for organizations, academics and governments for harnessing the Nano potential at Global level. Companies like Samsung have already entered the Indian market with a range of products using nanotechnology such as refrigerator, washing machine and air-cooler. Samsung uses nano-silver in various compositions in its product range. Further, companies like Tata Steel, Tata Chemicals, Mahindra Mahindra, Nicholas Piramal and Intel have invested around $250 million in the domestic market towards this end. Yash Nanotech has inked agreements with IIT Mumbai, NCL Pune and the Jawaharlal Nehru Centre of Advanced Research, Bangalore, to undertake global contract research and set up nanotech manufacturing facilities. Civil Applications. These can be grouped under four heads, namely, detection, including imaging, sensors and sensor networks for the detection of pathogens and chemicals; protection, including decontamination equipment and filters, and personal protection; identification, including anti-counterfeiting and authentication, forensics, quantum cryptography and the market for counterfeit and grey goods; societal impacts, including current regulatory and ethical frameworks, potential impacts on ethics and human rights, and public perception. Application in the field of medicine is one of the most fascinating areas that include new cancer therapies, drug delivery systems, and biomaterials for implants or prosthesis or diagnostic tools, which are under development or already in market. An important area of application of nanotechnology includes novel drug delivery techniques, which are quicker less risky, compared to the costs of developing new drugs. Military Applications. These also flow out from civil applications in areas like; higher performance platforms (aircraft, ships, subs, boats and satellites), enhanced sensing through more sensitive and selective sensors, enhanced human performance, information dominance through enhanced information technology, improved battlefield casualty management, lower life cycle costs with improved materials, coatings, and condition-based maintenance etc. Stake holders. The various stake holders include; governments, Industry, Entrepreneurs, RD, Institutions, Academic Research Institutions, and Society. Case Studies. These can be subdivided into those which pertain to PSUs, RD establishments and Defense and the private sector enterprises. The private sector industries which can be studied for negotiations resulting in various types of partnerships/JVs/MOUs/TOTs etc. are listed below:- Measuring devices equipments: Bharat Heavy Electrical Ltd, Icon Analytical equipment. Ltd., Veeco .Health Care: Dabur Research Foundation, Bharat Biotech International Ltd., Ranbaxy Laboratories Ltd. Materials processing: Tata Chemicals, Pune. Reliance India Limited. Automobile: Mahindra Mahindra, Tata Motors, United Nanotechnologies Pvt. Ltd. Electronics: Bharat Electronics Ltd, SemIndia Systems, Samtel India.

Saturday, January 18, 2020

Vershire Porter’s Five Forces

1. Prepare an industry analysis using Porter’s 5 Forces model. What are the key determinants of Vershire’s aluminium can profitability? Explain. (20%) * Barriers to entry I would suggest that the barriers to entry are relatively high in this industry. Although there would not be huge capital requirement to enter into the aluminum cans producing business and customer-switching costs are considered to be low, the fact is that the competition in this industry is very intense. There are already many aluminium cans manufacturers exist in the market, with some large packaging manufacturers dominating the market shares.Some large beverage processors even manufacture cans themselves (one large beverage company produced one-third of its own container requirement and ranked one of the top five beverage producers in the industry). Also, three of the global aluminum supplier companies also themselves manufacture aluminum containers. Although there would be high demand in the indust ry (from both small and large breweries and soft drink bottlers), there are too many competitors that could keep new entrants out of the market. * Power of suppliers There are four global companies supplied aluminum to can producers: UC Rusal, Alcoa, Alcan, Chalco (as shown below).There are many buyers (can producers) in the market while there are only few major suppliers. In addition, aluminum is a highly differentiated product. Resources of bauxites, the raw material for aluminum, are not widespread throughout the world. The main deposit of high-quality bauxites are already dived by those main players. Therefore, whoever owns the resources ‘wins the game’. Today the ‘Big Ten’ aluminium manufacturers are: Although it can be argued that steel is one of the substitutes, aluminum has many advantages over steel: it is easier to shape and allowing more attractive packaging; it reduces the problems of flavouring and it educes the transportation costs because of its lighter weight. Therefore, there would be constant demand for aluminum because of its beneficial nature. According to the above, I would say that the power of supplier is extremely high in the aluminum can manufacture industry. * Buyer (customer) power Buyer power is relatively high in the aluminum can manufacturing industry. Their buyers are primarily the soft drink bottlers, which are small independent franchisees of Coca-Cola and Pepsi Cola. Most of these customers maintained at least two or more suppliers and spread purchases among those suppliers.Thus, in order to retain customers, division must meet customer’s cost and quality specification or its standards for delivery and service, otherwise customer would turn to another supplier. * Threat of substitutes As I have mentioned above, one of the substitutes of aluminum can is steel can. Yet there are a lot of advantages of aluminum over steel. A ton of scrap aluminum has almost three times the value of a ton of scrap steel. Other substitutes for breweries and soft drink bottlers would be plastic or glass bottle.An study conducted by the metal can industry leader, Silgan Containers, revealed that 81 percent of shoppers prefer metal cans compared to 9 percent for plastic and 6 percent for glass. In addition, Aluminum is a more attractive recycling material compare to steel, plastic or glass. A US record also showed that 56 billion aluminum cans were recycled in 2010. Aluminum never wear out, it can be recycled forever. Therefore, aluminum is still considered to be the most attractive material for the can manufacturing business. * Rivalry amongst competitorsCompetition is high in this industry in term of supplier power, customer power and number of competitors as mentioned above. Conclusion As Vershire is one of the largest manufacturers of aluminum cans in the industry, it is assumed that it has access to sufficient raw material to produce aluminum cans. They would also have large number of loyal customers but just the matters of maintaining their high level of products and on-time delivery. I would argue that the key determinants of Vershire’s aluminium can profitability would be the costs of the production. A lower costs while maintaining its quality can attract new customers.Thus, the relationship with suppliers could become critical. Vershire could renegotiate prices and develop long-term relationship with one or two suppliers. Cutting costs in purchasing can be a big saving for the company. Vershire could also improve its production efficiency to eliminate unnecessary production costs. 2. Which of Porter’s generic strategies is Vershire following? (10%) Porter claims that there are two ways of responding to the opportunities in the external environment and developing a competitive advantage, there are: cost leadership and differentiator.Veshire would most likely be a cost leader. Aluminum can itself is not a highly differentiated product. Every metal can m anufacturer produces the same kind of product. In addition, most of the customers maintain two or more suppliers. In other word, if a manufacturer failed to meet the customer’s cost and quality specification, it is very likely that the manufacturer would lose the customers. Therefore, being a cost leader is essential in this industry and it is the strategy adopted in Vershire.

Friday, January 10, 2020

Australian Society in the 1950s and 1960s Essay

During the 1950s-1960s Australia’s popular culture was heavily influenced by American culture, trends and images. The 50s and 60s was the era of Rock ‘n’ Roll, Hippies, Rebellious teenagers, and drugs. These themes were all part of America’s culture and were portrayed to the rest of the world as important elements of American culture. These important elements of culture heavily influenced the growing nation of Australia – particularly during this period. Teenagers were the prominent generation of this time, with the consumers market aimed strait at them. The 60s saw the uprising of a new generation who strived to be different from their elders. During the 1950s-1960s American artists, American themes and American styles of music dominated the Australian music scene. Australian charts were packed with foreign American hits, Australian acts rarely making it into the Australian top ten. Radio stations devoted much less time to talking so they could fit in more American music, because that is what the Australian people wanted to hear. American artists such as Elvis Presley and Bill Haley (and his band ‘The Comets’) we hugely popular in Australia and were idols for the teenagers generation. During this time, Australia’s most notorious rock ‘n’ roll singer rose to fame – Johnny O’Keefe, Heavily influenced by American rock ‘n’ roll artists. The 50s and 60s saw the birth of a new generation – hippies. Hippies were a generation mainly composed of young people, either in their teens or early twenties. A generation of ‘free spirits’, whose main goals in life was to just be one with Mother Nature and promote peace and love. Hippies were looked down upon by older people because most hippies did not seem to care much about a stable, settled-down life. Hippies were usually involved in drugs (LSD was popular) and also believed in free love. Influenced by the growing American trends of hippy culture an Australian hippy culture began to emerge. The generation of hippies sometimes formed anti-government groups. This was evident in Australia when hippy anti-Vietnam war groups and hippy anti-communist groups started to appear. Aussie hippies spent a lot of time surfing and the stereotype of an Australian hippy included a VW Kombi, painted colorfully with peace signs with surfboards in the back. Australian hippies were following many of the movements of American hippies, especially  supporting the psycadelic and folk music scenes. In the mid 1950s television was introduced into the home and became a part of typical Australian households. Television was a gateway for Australians into American culture, since most of the earliest television shows were American. The Australian public was constantly watching American ways and American trends and began to adapt to those trends because the TV shows portrayed the American way of life as ‘cool’. Actors such as Elvis Presley playing rebellious teenagers in motion pictures influenced teenagers to be rebellious, because their own idol was. Australia’s own film industries did not kick off until the mid-80s, although film was a major part of Australian culture during the 50s and 60s. Families would regularly go to the movie theatre to watch American films on a Saturday night or go to the new American inventions – drive-ins. Drive-ins at that time were a symbol of American culture, and were a popular Saturday night entertainer. The reason why Australia was so heavily influenced by America during the 1950s and 1960s is because Australia was a young country, without any real identity that had to look abroad for influence. In comparison to America and the United Kingdom, Australia was still a very undeveloped nation. John Douglass Pringle, a Scottish journalist living in Sydney in the 50s and 60s said this about Australia’s outside influences; â€Å"Some Australian nationalists find a painful irony in the circumstance that, having fought against the British influence all their lives, they have won their battle only to find that American influence has taken it’s place†. It seems as though as Australia was striving to be different from its mother country, Great Britain, it became more and more like America without even realizing. Nowadays, in our multicultural society, it is difficult to stereotype a particular country as every country now influences countries across the globe. Popular culture in mega countries such as Australia, Great Britain and America is now very similar, because many companies and trends can easily spread across the globe due to better communication, although these countries are not without an individual and unique popular culture.

Thursday, January 2, 2020

The Elizabethan Er A Standard Of Power, Authority, And...

In the Elizabethan era, there was a standard women and men had to follow. The Elizabethan society was patriarchal, meaning men were considered leaders, and the women were inferior to men. The men in Elizabethan life was to be of power, authority, and head of the their families, and above all to be obeyed. In this time wealthy men were to become courtiers, diplomen, clergymen, and lawyers. The men made the decisions and whatever decision they make women have to obey them. They were also responsible for taking care of the family while working different jobs..And they were expected to improve the positions of all members of the family through influence and patronage from wealthier people and families than their own. As for the women in this time frame they were raised to believe that they were inferior to men. Their roles in Elizabethan society was very limited, and their job was to be housewives and mothers. Women at the time were to be watched for and if she was married it would be her husband but if she was single then her father or brother. Gender conventions in Elizabethan Era is key to understand my argument about how women in Shakespeare’s plays break their gender conventions. I will be using parts from Romeo and Juliet, Othello, King Lear, and Twelfth Night, to show how women in this time period broke gender conventions. In Shakespeare’s Romeo and Juliet, we see that it defies most traditional gender roles in the play by allowing his characters to surpass the