Strengths of Manufacturing Industry

Discuss about the International Business Strategy for Global History.

The process that provides guidance to the commercial transactions that are executed between the business organizations from different countries. International business strategies can also be referred to the actions and the plans that are majorly and mostly considered for private organizations rather than government because the major goal of a private firm is increasing the profits. These strategies aid the business organizations in dealing with the competing brands on the global level (Shenkar, Luo & Chi, 2014). The strategies play an empirical role in developing a distinct image in the market regions and thus enabling the firms to enjoy a sustaining position in the competitive environment. The below-summarized report is focused on the international business strategies of Mondelez Australia. Based on the executed research it has been noted down that the firm is middle-sized business enterprise and is attempting to penetrate the markets of China. The further report will comprise of the key modern economic theories and detailed analysis of the adopted business model that is manufacturing. 

Monetary development alludes to an expansion of the products and ventures delivered by an economy over a specific period. It is estimated as a rate increment in genuine total national output, which is GDP, changed in accordance with swelling (Luthans & Doh, 2018). A gross domestic product is a market an incentive for all the last merchandise and enterprises created in an economy.

Adam Smith laid accentuation on expanding returns as a wellspring of monetary development. He concentrated on outside the exchange to extend the market and raise the efficiency of exchanging nations. Exchange empowers a nation to purchase merchandise from abroad at a lower cost when contrasted with which they can be delivered in the nation of origin.

In present-day development hypothesis, Lucas has firmly underscored the part of expanding returns through direct outside speculation, which energizes learning by doing through information capital. In Southeast Asia, the recently industrialized nations (NICs) have accomplished high development rates over the most recent two decades (Tutorialspoint 2018).

The neoclassical way to deal with monetary development has been partitioned into two areas −

• The first segment is the focused model of Walrasian harmony where markets assume an extremely significant part in distributing the assets successfully. To anchor the ideal distribution of information sources and yields, markets for work, fund and capital have been utilized. This kind of focused worldview was utilized by Solow to build up a development display.
• The second segment of the neoclassical model accepts that innovation is given. Solow utilized the translation that innovation in the creative work is shallow. The fact is that R&D speculation and human capital through learning by doing were not unequivocally perceived.
• `The neoclassical development display created by Solow neglects to clarify the reality of genuine development conduct. This disappointment is caused because of the model’s expectation that per capita yield approaches an unfaltering state way along which it develops at a rate that is given. This implies the long haul rate of national development is resolved outside the model and is free of inclinations and most parts of the creative capacity and strategy measures. 

The cutting-edge way to deal with the showcase includes a few highlights. The new economy rising today is spreading everywhere throughout the world. It is unrest in learning capital and data blast. Following are the imperative key components:

• Development hypothesis by Schumpeter, bury firm and entomb industry dissemination of learning (Tutorialspoint 2018).
• Expanding proficiency of the broadcast communications and small-scale PC industry.
• Worldwide development of exchange through present day externalities and systems

Present day hypothesis of monetary development centers essentially around two channels of actuating development through costs spent on innovative work on the center part of information advancements. To begin with, a channel is an effect on the accessible merchandise and ventures and the other one is the effect on the supply of learning wonders.

Weaknesses of Manufacturing Industry

Based on the executed research the presented instance is one recent event in the global history. Brazil and South Korea impeach their presidents. Pro-tip for democratically elected politicians and avoid scandals.

Brazilian President Dilma Rousseff and South Korean President Park Geun-Hye both missed that notice. Rousseff felt that 2016 would be a time of political triumph as Brazil arranged to have the Olympics unexpectedly (Lindsay 2016). Rather, a failure to meet expectations economy and a gigantic embarrassment at Petrobras, the state oil organization she once headed, helped drive her endorsement rating down to 13 percent. Rousseff was not ensnared in the Petrobras outrage itself. Rather, her adversaries accused her of cooking the books in 2014 to conceal Brazil’s developing monetary deficiencies and guarantee her reelection. In August, the Brazilian Congress asked her to take a hike.

In South Korea, Park experienced harsh criticism in October when news broke that a long-term companion had utilized their kinship to impact government choices and blackmail cash from Korean organizations. A huge number of South Koreans hit the avenues to request Park’s arraignment. In December, the South Korean National Assembly followed up on the general population’s desires. She is currently suspended from the administration while South Korea’s Constitutional Court surveys the National Assembly’s choice.

The jury is still out on whether and how quick Brazil and South Korea will react to their political changes. A lot is on the line. Brazil and South Korea are the ninth and eleventh-biggest economies on the planet, individually, and South Korea sits over a noteworthy geopolitical blame line. 

Strength
? One of the biggest strength of the manufacturing industry is the stability despite its fluctuating demands according to the economy but with the help of both workers and machinery, the manufacturing industry provides an efficient result which is its major strength (Keynes, 2017).
? manufacturing industry provides a large number of employment and due to the job vacancy, many workers will be attracted towards it increasing the competitive advantage for the company and therefore encouraging growth. This will also draw lots of people with great skills and who acknowledges all the advantages of working in the manufacturing industry (Schaltegger, Hansen & Freund, 2016).

? Growth rate mainly depends on the GDP, and manufacturing usually shares a good rate of GDP outcome which aids in more power to this industry and increasing competitiveness therefore it is one of the profitable industry, another factor like skilled labor and skilled employees, required and available resources and relatively low-cost labor is like the cherry on top and makes (Morecroft, 2015) manufacturing industry stronger in its field along with stabilizing it according to any ups and downs in the demands.

Impact of Global Competition on Manufacturing Industry

Weaknesses
? Most of the manufacturing industries still rely on old technology and methodologies or in other terms they have not evolved enough yet and work according to their old tradition which is a huge setback and therefore results in lowering down the products which can be achieved with the help of all the latest machinery and technology and that is why other savvy organization take advantage of this and use better ways to increase the competitive advantage for themselves (Negishi, 2014).

 ? Due to heavy competition in manufacturing industry most of the entrepreneurs take a very little interest in this field because this is a very mature industry and it focuses on growth so little and all new business entrants are more interested in expanding their business so this gives them a reason to think twice before choosing manufacturing business (Weber, 2017).
? Another weakness is low knowledge of technology and IT sector, which downgrades this sector in the field of global technologies, and therefore it will eventually lead up to low production and low progress or growth rate. 

? High cost of transports, fuel etcetera are also a disappointment for the manufacturing industry and on the top of those several laws which restricts the working of the manufacturing industry or we can say intervention by government is a major drawback (Schumpeter, 2017).

Manufacturing industry makes a clear way towards welfare of economy because of high skilled labor and combined use of workforce and machinery, the manufacturing industry has succeeded in creating a competition all over the world (Keynes, 2016). The manufacturing industry basically has increased competition, it’s low-cost production and on-time delivery etcetera are few factors which aid in global competition along with the employee’s skill set which provides expertise in technology and IT sector and because of unleashing their potential, the manufacturing industry has been able to accomplish a huge global success and an increment in this industry can be seen and due to increment in the number of manufacturing industry, their arises competition and for everyone it becomes a race against each other and it leaves a major impact on the ongoing global economy (Ritzer & Stepnisky, 2017).

With the increasing labor demand, the shortage of workforce occurs and due to lack of workers which can be very difficult for this industry. Another impact of global competition on manufacturing is less profit, and that occurs because of relatively high cost of manufacturing and as an end result, decline in the amount of profit. Strong and powerful countries uses their best technology to do all the manufacturing work which reduces the labor cost and does the work even faster than them but some poor countries which are not developed or are not financially stable and therefore they require a group of manual labor which charges them a pretty good amount, and that is why they suffer from unlike the developed countries and this gives the developed countries to earn more hence creating competition (Clark, 2017).

China’s Approach to International Business and Management

Country like China does the manufacturing work at a very low cost with a very strong dynamic, which also arises competition for other countries globally, and since the labor charges are very high, it becomes nearly impossible for many countries to lower down the production cost and this low-cost manufacturing gives a competitive advantage to countries like China. Low productivity by the workforce is one of the primary reason behind any manufacturing industry’s failure and therefore creates a competitive advantage for other company (Brim, 2017). In the era of globalization each and every industry wants to get ahead of each other and get competitive advantage over other which has many pro and cons of it’s own therefore creating some challenges and obstacles in their paths but along with that it also gives chance to improve.  

China adopts a cultural innovation technology and emphasizes interpersonal relationships with customers. The pattern of buying products from China is focused on innovative technology and also enhances business performance. China in today’s era is practicing the best international management due to the innovation of the latest technology. The technology has made the work life easy and fast for the people of China. Apart from that China has a global emergence manpower that has allowed China to expand their business globally (Becker, 2017). The labor force of China plays an important role in development.

A risk is a major cause of failure in manufacturing and service industry. In such cases, risk management is needed as it is essential to control the threats. The risk in a manufacturing process is associated with the quality of products and to make sure that there are no defects in the goods. Thus risk management has become a dominating feature in today’s industry as there are chances of many potential losses (Nikaido, 2016). Firstly it is important to identify the risk of the company products with their own company along with other companies proximate. In the manufacturing sector, it is difficult to identify the risk at first step. The risk in the manufacturing department arises due to the change in the product that was promised to be delivered. It happens due to a difference in the delivery of products.

The risk can be mitigating in the manufacturing process by working on a process that takes feedback at every stage and all the operations are tested so that chances of penetrating the risk are avoided (Ruccio & Amariglio, 2016). Apart from that, all the parts of a product should be manufactured in an isolated way so that even if one part has some risk associated with it the entire product is not at risk. It is difficult to predict the risk and its consequence can have the severe impact. There are many research strategies that can be used to mitigate the risk in manufacturing. A reactive approach is used to reduce the consequences and respond to the risk immediately. The risk mitigation plan works on getting the detailed study of the market so that support is achieved from all the reliable sources (Platteau, 2015). In the manufacturing process, it is required that a strong and trained sales support team is there to deal with all the miss happenings. The constant feedback mechanism used also improves the overall service.

Conclusion

After summing up the above-executed analysis, it is inferred that international business strategies play an empirical role in enhancing and developing the brand image of an enterprise. The above-presented report is focused on the modern economic theories and on the concept of global business strategies. 

References

Becker, G. S. (2017) Economic theory. New York: Routledge.

Brim, O. (2017) The economic theory of representative government. Routledge.

Clark, J. (2017) Preface to Social Economics: Economic Theory and Social Problems. Routledge.

Keynes, J. M. (2016) General theory of employment, interest and money. Atlantic Publishers & Dist.

Keynes, J. N. (2017) The scope and method of political economy. New York: Routledge.

Lindsay, J. M, (2016) [Online]. The 10 Most Significant world events in 2016, Retrieved from: https://www.theatlantic.com/international/archive/2016/12/ten-most-significant-world-events-in-2016/511079/.

Luthans, F., & Doh, J. P. (2018) International management: Culture, strategy, and behavior. McGraw-Hill.

Morecroft, J. D. (2015). Strategic modelling and business dynamics: A feedback systems approach. John Wiley & Sons.

Negishi, T. (2014) History of economic theory (Vol. 26). Amsterdam, Elsevier.

Nikaido, H. (2016) Convex structures and economic theory. Amsterdam, Elsevier.

Platteau, J. P. (2015) Institutions, social norms and economic development. NewYork: Routledge.

Ritzer, G., & Stepnisky, J. (2017) Modern sociological theory. California: SAGE Publications.

Ruccio, D. F., & Amariglio, J. (2016) Postmodern moments in modern economics. New Jersey: Princeton University Press.

Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for sustainability: Origins, present research, and future avenues.

Schumpeter, J. A. (2017) Theory of economic development. New York: Routledge.

Shenkar, O., Luo, Y., & Chi, T. (2014) International business. New York: Routledge.

Tutorialspoint, (2018) [Online]. Modern theories of economic growth, Retrieved from: https://www.tutorialspoint.com/managerial_economics/modern_theories_economic_growth.htm.

Weber, M. (2017) General economic history. New York: Routledge.