International buiness Assignment Example | Topics and Well Written Essays - 2000 words

International buiness - Assignment Example Under this theory, the role of government is highly important. Government needs to push and encourage companies and organization to a more competitive level, in this manner, increasing performance and eventually the overall combined benefits. Competitive Advantage and Porter’s Diamond Theory Competitive advantage is that area of expertise of a firm where it outperforms its competitors or more specifically, other nations or countries. Through researches, it has been observed that marketing plays a vital role in building up the competitive advantage of companies. The name ‘Diamond’ has been labeled due to the four factors, which the natural environment conceptualizes. According to Porter’s Diamond Theory, a country can capitalize its competitive advantage in any of the area where it excels other countries. For instance, due to the climate and weather conditions of European countries, Starbucks is very popular among those countries but if the company intends t o expand itself in South East Asian countries, then the weather conditions of South East Asia do not permit the company to expand its’ business in these areas. Therefore, European countries have competitive advantage of having cold weather. Another example includes Nike. Nike chose China for manufacturing concerns due to cheap labor and overhead expenditures in lieu of European countries, where overhead expenditures and labor are much higher as compared to China. Therefore, China possesses competitive advantage of having low labor and overhead costs than European Countries. Literature Review Droge and Neven (2001) stated that it is difficult for agricultural food SMEs to become and stay competitive in this period of globalization. The paper of Droge and Neven (2001) argues that the holistic diamond model of Porter is superior in investigating the cluster dynamics; here cluster is defined as a homogenous group of firms involved in marketing specific product in a specific locat ion. Droge and Neven (2001) concluded that despite of the fact that this model has not been tested in most of the developing countries, but those rare researches that have been conducted to validate the diamond model, affirm that the diamond model of Porter is intrinsically better. Rugman and Verbeke (1993) proposed an article to study the interaction between international and national determinants of a country, which leads to competitive success of a country at global level. Rugman and Verbeke (1993) stated that the model can be made even better and therefore, suggested extending the Porter’s Diamond framework and used a variant, i.e. SWOT analysis in order to functionalize the Porter’s Diamond model (Rugman and Verbeke, 1993). Narula (1993) stated that the diamond model of Porter is a static one. The author further stated that it is based just on the subjective analysis of only those countries, which are industries based. Narula (1993) further stated that this model is not applicable for the developed or developing countries. The author highlighted the role of technology in the development

Global Inequality and Development Essay Example | Topics and Well Written Essays - 2250 words

Global Inequality and Development - Essay Example Different schools of thought emerged since time immemorial to explain the various perspectives and viewpoints that help us in the in-depth analysis of the occurrence of such diversities. The works of various prominent scholars continue to influence the various stand points that individuals might take to help in understanding disturbing issues why other nations are much more developed than others, many of the nations particularly developing nations continue to lag behind in terms of development and are faced with abject poverty that limits their capacity to achieve full development (Giddens, 1978, 65, 119). These perceptions also try to explain the relationship that exists between underdeveloped nations and these nations that have taken an enormous leap in terms of social, political and economic advancements and the instruments that they employ to maintain this status quo and inhibit other nations from achieving this aspired level of social, political and economic stability. ... Various theoretical perceptions emerged to help explain the nagging question of poverty and its relationship to development. However, these theories tended to different issues and were nearly the same in the theoretical traditions that strengthened this association. The most common classical theories include theories put forward by Karl Marx, Marx Weber and David Durheim. Even if they have similar family tree, these theories clashed for dominance. Every scholar preferred his theory as the best for social theory analysis. Marx Weber advanced his conjecture of weberianism, which led to the arrangement of the society into social stratifications. He studied this division using three dimensions namely economic class, social status and political power. The economic class was associated with the goods and services and amount of income that an individual owned, the social status was associated with the amount of respect that an individual enjoyed while the political power represented the amo unt of influence that an individual exercised. The dimensions of social stratification were interrelated with political power being the determinant of the economic class and social status that an individual enjoyed. His theory recognized the legal order and emphasized it never guaranteed the three dimensions of stratification but only acted as a means to realize massive powers necessary to ensure economic and social success (Giddens, 1978, 119). The economy was viewed as a peaceful means of exercising power of control to ease the acquisition of goods and services. This would later lead to the rise of state monopolies that were precursors of capitalism. This atmosphere created room for unfair competition between holders and non holders of power in the scramble to