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In this task I am going to analyze globalization with giving three different multinational companies which working for one industry i.e. Pizza Industry. My all presentation is about globalization, cultural understanding and social responsibility.
Objectives of Task 1:
Selection of 3 multinational companies.
Detailed about the 3 Companies' history of growth & cultural Understanding.
Report on the Value of the Analyzed how these companies 'expend in global network, Cultural Understandings that were developed.
Globalization on International Companies:
Globalisation is created when different economy getting in a touch for more efficient and productive goal achievement from different tools of communications, in a different sectors of economy. It is specially used for economic terms. It is consists of trade, foreign direct investment, capital flows, migration and the spread of technology. It is generally driven by a combination of economic, technological, social, cultural, political and biological factors.
According to the Oxford English Dictionary, the word 'globalisation' was first come into existence in 1930. The early explanation of the term globalisation was explained by the American industrialist, and later he became minister- Charles Taze Russell. In 1960s the term globalisation was widely accepted by the economists and social scientists.
According to The United Nations the "globalisation is a widely-used term that can be defined in a number of different ways. When used in economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour."
Impacts of globalisation:
Globalisation has positive and negative sides as well.
Supporters of globalization argue that it is good and beneficial. Some of their arguments are here. Globalisation comes in reality when the technology, resources or new ideas are exchanged between two developed countries, for the use of new development or existing development. Then it will spread to under developed countries for replacement of traditional, unproductive and inefficient method. And above all it will give rise in human efforts and better use of natural resources.
Opponents of globalization point out its negative effects.
In the world economy there is many economies who can't afford this Globalisation because it is very expensive for them. Apart from that it will cut down human resources. For e.g. one job which is done by three people before, with the use of new technology it will done by only one person. So in this way it will cut down two human resources and one human resource needs to be trained for use of new technology which will increase the cost. More over it leads the exploitation of labor, as the job insecurity is increased. Apart from all above it will create environmental problem as well. And creating disputes in trading, politics.
Three different organizations currently carrying business across different cultures.
The three organizations that I have taken are:
Now we will take one by one and understand more about the companies.
Pizza Inn is a great adventure of two brothers from Texas. It was born in 1958 in Southern Methodist University Campus in Dallas. In 30 years it was expanded from Southern to South Western America. It becomes recognition from its handmade, thin crust and its own sauce. That create a big brand in Pizza Industry. From 1958 to 2010 company has a remarkable achievement. It introduced "Taco Pizza" in late 80's. And in early 8o's company introduced its first dessert called "Pizzert". It was famous in late 90's from its "bacon cheese burger pizza".
Pizza Inn operates more than 300 restaurants in U.S. and in abroad with the goal of new opening stores and many of them opening very soon.
Pizza Inn, Inc.
3551 Plano Parkway
The Colony, TX 75056
"To be the best Pizza Franchise in the World."
The Mission statement:
At Pizza Inn we believe that in order for us to be truly happy in this life, we need to base our lives on certain principles that, when developed in our character, will lead to happiness and success. The principles that we want to develop and to stand for at Pizza Inn are:
Respect and development of the individual
Pizza Inn has cultural understanding which described in a company policy as a code of business conduct which includes a continuous employment guarantee as a corporate code of conduct. Company also protects employees with franchisees/customers/shareholders/suppliers/governmental officers/ fellow employees and public for overview and reporting violence. This reporting by telephone which called hotline offers. The caller complete anonymity, and is not answered monitor or recorded by company employees. It will address by the audit committee of the company's board of directors. This committee will make all determination regarding issues on all reported concern and query (violence).
Company has its own policy to comply with all applicable law which they include in employee hand book. The company thinks that before making profit they have to look after the economy and public benefit which include employee, franchisees, suppliers, company representatives and customers are treated fairly over different culture. For that company is not accepting any bribes, gifts, entertainment.
Domino's pizza was establish by Tom Monaghan in 1960,in Ypsilanti.USA.with the mission of 3 pizza store and that's why Tom created logo with three dots, but his idea of another 2 store ware become bigger and Toms pizza become a dominos pizza, from the idea of franchise business Tom created a worlds leader in pizza industry, today dominos pizza known as dominos pizza group which create am any subsidiary company and it have more than 3000 store in worldwide with incredible growth in pizza delivery industry.
In U.K dominos pizza known as dominos pizza group limited. Dominos pizza UK and IRL plc.It is subsidiary company of and operate from Milton Keynes.
In 1960 the first store was opened in Luton and now today 620 stores in UK and in Ireland.
Domino's Pizza's Vision illustrates "A company of exceptional people on a mission to be the best pizza delivery company in the world."
The mission statement:
At Domino's Pizza, our mission is to be the best pizza delivery company in the world.
"Sell More Pizza, Have More Fun".
Domino's pizza is the best example in pizza industry for cultural understanding, with one product, one mission. Today company become no.1 in the world. For example in UK Domino's create pizza menu according to English tradition, and pizza prices are also vary in according to the areas i.e. in Greater London prices are normally higher than the country side, which shows the company want to keep the balance by offering better price. In India Domino's Pizza change their whole menu because of culture of Indian food depends on the religion, so the replace the pepperoni with chicken pepperoni, have more variety in veggie pizza.
Pizza Hut is an American restaurant chain and international franchise based in Addison, Texas (a northern suburb of Dallas). In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita, Kansas. It was very small 25 seat restaurant and the building looked like a hut; so 'Pizza Hut' was born. After fifteen years they opened the first UK restaurant and since then it become the biggest Pizza Company on the planet!
In 1972, 1000 restaurants are open throughout the USA. Pizza Hut went international with restaurants in Japan, Canada and England, in 1973. PepsiCo bought Pizza Hut in 1977. By 1986 there were 5,000 restaurants worldwide. In 1992, there were 9,000 restaurants in 84 countries.
It offers different sizes of pizza along with side dishes including pasta, Buffalo wings, breadsticks and garlic bread. It is a subsidiary of Yum! Brands, Inc. Classic "Red Roof" locations can be found throughout the United States. The building style was common in 1960s and 1970s. The name "Red Roof" is somewhat anachronistic now, as many locations have been relocated or rebuilt. The company moved into other successful formats in the fast food "Express" model.
Pizza Hut, Inc.
14841 Dallas Pkwy
Texas 75254 -7558
"To make the people know that for all the eating items they desire to eat can be made available in minimum time without our effort excluding money."
"To improve the well being of customers, community and people connected to our enterprise."
"Run great Restaurants."
The mission statement:
The mission statement of the Pizza Hut is "To be the best pizza for every pizza occasion"
"Alone we are delicious, together we are YUM!"
Pizza hut is workplace where employees are enjoying their job with great rewards because of their team work for best result and their great job. They are motivated on training support for improving the skills, and by giving management training company create pizza hut leader.
The company believe that their business is not serves the food but serves the people and they depend on each other for building an honest and open sprit at the workplace.
Brand magic in India
To establish the international brand in India is difficult because in this subcontinent different religion, different culture, and their traditional value, but pizza hut greatly established brand all over the country, same test, and same product but in form of their culture and value. For example halal meat.
TASK 2- Management Policies and Practices for Global culture
In this task I am going to give my idea of management practices implement by organisations for indentify different cultural needs. I will analyze different management practices for different cultures. This will describe how these organisations have developed formal and informal multicultural relationships.
Objectives of the task 2
Analyses different Management Policies in the organisations
Show Formal and Informal Relationship in the organisation
INTRODUCTION TO MANAGEMENT PRACTICES
Corporate and Social Responsibility Policy:
The Corporate Social Responsibility refers the understanding impacts of the business on the wider world. It also considers how one can use these impacts positively. This policy would function as a built-in, self-regulating mechanism. By which the business would monitor and ensure its support to law, ethical standards and international norms. It refers to take a responsible attitude, to go beyond the minimum legal formality and to follow clear-cut principles which apply to the business.
On the night of 13th April Dominos pizza corporate ware struggling because of one of their employee was engaged in an act of food violation,& posted on You tube, this video watch by millions of people before it was blocked. On 14th April, the employee was dismissed from their employment and arrest warrant was issued against him, company apologies to public, customer and employee.
Recruitment and Selection Policy:
This is a framework for recruitment in the Authority. All individuals involved in the recruitment and selection process have a duty to become familiar with the requirements of the policy. We should recruit the right person to fill every vacancy to achieve the objectives of the organisation.
The recruitment procedure of the Domino's Pizza team member is done by a store manager because of the team member required for the particular store is depend on the area of business, for e.g. people living in a one area may not speak an English or not understand English in this case company require the person who knows what the customer wants. And it will give better service to customer which will bring more business and increase the profit of the company. And the same team members are trained by management development program to create a strong manager.
Training and Development Policy:
The training and development policy is intended to set out the course of action. And purpose of the training and development of employees is gaining the skills they need for their career. This policy highlight the importance of maintaining a continuous learning program to develop the core of well-trained individuals. The performance of the trained workforce will enhance the company's abilities, growth and profitability.
Domino's Pizza training development program is divided in three different levels. In this process employee starts as an insider or driver and reach to the shift manager and company will send him for level two examinations. Then after he trained as a store manager in trainee and run the shift independently and on a success of their achievements, company will send him for level three examinations. After this he will start to work as an assistant store manager and learn all managerial aspects of the business on the successful achievements as an assistant store manager, company will send him to become an approved store manager.
FORMAL AND INFORMAL RELATIONSHIP
Formal teams are building blocks of organisations. The formal team has high-level of boundary spanning in that it may operate across departments within organisation. The formal team has a more rigid organisational structure, as team members tend to have distinct roles and the workload is distributed accordingly. Formal teams may be set up to address particular tasks that the organisation seeks to accomplish within a specific time period. In a company new product development department have a different branch i.e. team of different engineers, product analyst, market research and marketing team and sales team members, when all team coming together it will create a formal relationship for a company.
Informal relationship comes in a picture when a particular problem is arising in the organisation which will create a temporary relationship between two different departments. In many cases they need a permission which will take a long time. But members of informal teams have a lower level of interdependence than formal teams. They consist with a less-rigid organisational structure. An informal group might be formed in micro-credit organisation. Indeed maintaining informal relationship of mutual trust is of greater importance in reality.
STRATEGIC PARTNERSHIP - INTRODUCTION
Strategic partnership is a structured collaboration between organisations to take joint advantage of market opportunities, or to respond to customers more effectively than could be achieved in isolation. Strategic partnership occurs both in and between the public and private sectors. Besides allowing information, skills and resources to be shared, a strategic partnership also permits the partners to share risk.
It is an agreement between two or more organisations to cooperate in a specific business activity, so that each benefits from the strengths of the other and gains competitive advantage. The formation of strategic alliances has been seen as a response to globalisation and increasing uncertainty and complexity in the business environment. Strategic alliances involve the sharing of knowledge and expertise between partners as well as the reduction of risk and costs in areas such as relationships with suppliers and the development of new products and technologies. A strategic alliance is sometimes equated with a joint venture, but an alliance may involve competitors, and generally has a shorter life span.
List of five relationships of the Pizza Hut
Distribution Network Relationship
Relationship with suppliers
World cup project strategic partner
Sales executives relationship
Relationship with engineers in USA
Distribution Network Relationship of Pizza Hut:
The type of distribution channel used by Pizza Hut is the direct channel. Pizza Hut uses three different methods of selling its products directly to the market. The first one is home delivery, by call of the customers. The second method of distribution is for customers to dine-in. And the third method is online ordering by internet.
Relationship with suppliers:
The Suppliers of Pizza Hut deals with the logistics of getting more than 300 food products from the field to the fork. They also supply the procurement of the company's non-food items like chairs, uniforms and cutlery in the restaurants. Its distribution network also includes the vitally important Quality Assurance department, where they closely monitor the quality of all the products and ingredients.
Sales executives relationship:
Sales executives in Pizza Hut are enthusiastic, ambitious and self-confident. They are best at communicating with all types of people. They sell products to customers. They sell either business to business or business to consumer. They keep records of their orders and invoices of the company. They get salaries from around 15,000£ and can get commission almost more than 50,000£ a year.
Relationship with engineers in USA:
The engineers of Pizza Hut in USA are keen to implement affordable energy-saving tools and runs initiatives focused on the energy, environment and economic impact of its buildings. They use the tools to monitor the energy use in individual sub-circuits at a reasonable price. Their bottom-up approach is to energy monitoring that works.
TASK 3 - Implement sound management practice in a virtual organisation
In this task I am going to carry out research between two organisations which organise in a 'virtual' manner. In this work I will recognise and develop suitable areas of management in Furniture Works needs to look into when making a virtual organisation. I am going to produce a presentation advising management on a sound management practice in a virtual organisation.
Objectives of the task 3:
Investigate two virtual organisations and say why they are virtual
Presentation: identify the areas which Furniture works need to consider for a virtual organisation and do a presentation on good management
Virtual Organisation is kind of organisation which operates their business from their origin place from using of other organisation resources on their brand name and values without any restriction of geographical boundaries. Many times the organisation provides a new technology or new development techniques for better services or improvement of the services.
Organisations which work in virtual manner:
Virgin Mobile is a part of Virgin Companies which was founded by Sir Richard Branson. His first company is a student magazine and then after he launched Virgin Mail in Oxford Street in a London. From 1968 to 1977 he made lots of innovations in a print and music industry. In 1984 he launched a Virgin Atlantic and Virgin Cargo which is the first step of Virgin in aviation industry. Then after he launched Virgin Holidays, Virgin records in US, Virgin mega store in Briton, Europe and in US. And it was expanded to Japan in 1990. In 1991 Virgin entered in a publishing industry. In 1992 Richard sold out Virgin records and in this whole decades Virgin achieved remarkable place in all above.
In 1999 Virgin Mobile was born by sold out of Virgin cinema. And Virgin Mobile becomes number one in a virtual network operator. Telewest was UK's first company who launched HDTV series which was acquired by Virgin in 2006 which was expanded in coming two years with of Virgin Media and become ultra fast internet provider Company in the UK Broadband industry.
In Australia Virgin Mobile launched in 2000 to serve Aussiae Telco Industries with Optus network and in 2006 this virtual organisation reached a new level and Singtel Optus took full ownership of Virgin Mobile.
Virgin Mobile Canada was born in 2005. They make a joint adventure with Bell Canada and now Virgin Mobile is own subsidiary company of Bell Mobility.
Virgin Mobile India Ltd. Came in existence with the joint venture between Tata Tele Services. And they provide CDMA network by using name of Virgin Mobile. Many of states in India also served with GSM network services by Virgin Mobile.
On July 28, 2009 Sprint purchase Virgin Mobile US with the permission of Federal Trade Commission and Sprint came in an existence with Virgin Mobile after the deal. At present Sprint is running the business under the name of Virgin Mobile.
DELL COMPUTERS (US)
In the university of Texas one student name Michael Dell launched his adventure called PCs Limited. Michael Dell started the business by selling computer systems to the customers. He understands the customer's requirements for their personal PC and provides good services with better service. He left the school to concentrate on his business. He got some capital from family, and in 1985 PCs Ltd. Innovates its own computer called Turbo PC. In 1988 PCs Ltd. comes in the world market with the name of Dell Computer Corporation. Fortune magazine recognised Dell in its magazine of the world's 500 largest companies. And Michael Dell became the youngest CEO. In 1996 Dell using marketing tools i.e. e-commerce and started to expand globally. Dell put its first step in Ireland. In 2002 company concentrated on other products like digital audio players and printers. Dell make acquisition with Alienware, from that acquisition Dell product produced with AMD micro processors. Alienware is a subsidiary company of Dell Corporation. Today Dell operates their business from Round Rock, Texas.
Dell started globalisation in first year of its existence. By purchasing of converge Net Technologies in 1999, company successfully done its first acquisition. When Michael Dell stepped as CEO for four years at that time Kevin Rollins acquired Alienware, in this time they introduced AMD micro processers. The reason behind introduction of AMD micro processer is mainly prevent from another market product and at the same time Dell running Alienware as a separate company but the ownership is with the Dell Corporation.
After four years Michael Dell was back to take a charge of CEO and introduced a new marketing policy "Dell 2.0," in the same time they give the name to Equal Logic and take hold in the ISCSI storage market and the whole business now in the name of Dell Corporation. Because of this acquisition Dell Corporation product manufacturing prices was became down. In 2009 Dell made a bigger acquisition with Perot System based at Texas. They bought several of software, system tools, managerial services etc. This acquisition brings new operational services in America and ten other countries in the world. Apart from that they also provide services in outsources of data, processing insurance claim, customer call centre.
In current year Dell has purchased data Storage Company called 3PAR. Last month, i.e.in Sep. 2010 HP wanted to deal 33 $ per share which was decline by Dell.
Virtual organization is a temporary network of independent companies-suppliers, customers, subcontractors, even competitors-linked primarily by information technology to share skills, access to markets, and costs.
ISSUES SETTING UP VIRTUAL ORGANIZATION FOR FURNITURE WORKS
Furniture works always changing frequently from the competitors and demand of the people, which will increase the buyers, quality and quantity of the product. As we know furniture works needs to take help from another product to complete the project if we create virtual organisation. The product what we offer should be something special but a very general in the market but in the same time it should not be similar than other.
Furniture work is universal industry which covers every type of skills, education and ability from the universe. From that furniture work fulfil the all criteria in virtual manner.
By understanding employees needs, their approach for work, their values for the organisation are main factors for production. These all factors are coming in the picture from furniture work. Employees' personal life and their requirements are considerable factors.
In a furniture works we can increase the capacity by reducing per person work load. That will be done from the different physical location.
In a virtual organisation concept the furniture works can also take advantage from other movable workers like auditors, consultants, sales and marketing persons and technicians.
"A virtual team works across space, time, and organizational boundaries with links strengthened by webs of communication technologies."
Virtual teams realize a new concept of work: "working anywhere, anytime and with anyone."
Virtual teams offer many opportunities and inescapable trend.
Communication and relationship-building is constrained by technical and cultural boundaries and are likely to affect a group's performance.
Implementation of Sound management practice in a Virtual Organisation
Following are the three solutions advised management for a sound management practice in a virtual organisation:
Translation solutions for clients that need translation of documentation such as letters, website, reports, marketing materials or who need instant translation for meeting.
Administration salutation to help busy business, small, medium or large, with important administrative required.
Cultural awareness salutation for client who need help at important meeting who need help with making their people and business understood, including meet and greet service, business etiquette, meeting service, travel services.
TASK 4 - Create effective online and direct communication processes
In this task I will try to define communication with the more emphasis on internet communication with their benefit and advantage. There is short report on communication aspects. I also describe brief summary of indirect and direct combination.
Objectives of the task:
Identify different online and direct Communications Tools
Suggest a Proper communications means for Furniture works.
Communication is a process of transferring information from one entity to another. Communication processes are sign-mediated interactions between at least two agents which share a repertoire of signs and semiotic rules. Communication is commonly defined as "the imparting or interchange of thoughts, opinions, or information by speech, writing, or signs."
The definition of communication is "sending, giving, or exchanging information and ideas," which is often expressed nonverbally and verbally. Communication is the life blood of an organization. All the people through communication are connected in company and all the activities are co-ordinated to achieve their goal and objectives.
Communication is the meaningful interaction with people in such a manner that ideal through getting same feedback. It is commonly defined as "the exchange of thoughts, ideas, information, feeling, opinions and knowledge. Good communication involves pro-activeness, to talk with body language and to vary voice tone, pace and volume. There are two types of communication i.e., verbal and None-verbal communication. All efforts must be made for quality of communication from time to time including methods and approaches.
From: Tanuja Patel
To: The Company CEO.
Subject: To create effective online and direct communication process.
Communication means the information collected from confidential or non confidential manner and creates a note or a letter by sender to receiver. When receiver gets this message and analyse it and send another note or letter to sender which includes opinion from the sender. This process is done through interpersonal skills, reporting skills, listening and speaking skills and at last evaluation. When all these factors come together it will create a communication. Communication is a continuous process.
The advantages of communication
There are several distinct advantages and some of them are mentioned below:
Effective communication reduces the workload of workers and understands their job better. When communication happen in a company or with two individuals, group it will give better result or a goal achievement.
Direct communication can bring many benefits to both buyers and sellers. Direct communication is a low cost, efficient alternative for reaching to customer through its lower costs of media, and reaching to customer over internet. Direct communication provides convenience, easy to use, and private way to interaction. People have question about comfort for their house, office that can browse mail catalos or company website at any time of the day or night. It gives ready access to wealth of product and information at home around through the global.
Internet services is very effective communication tools because it can be used by anyone because it costs nothing. Because these services available free in many public places or in a very lower cost at your home or office.
From this service we can draft a letter and sender receives this letter in a half of second time by using any e-commerce mailing services. Basic e-commerce mailing services are free in the world. Many of e-commerce services are available with audio visual communication. Further innovation is still going on information technology which we can't predict. Today we make communication in any part of the world without losing any time.
With the help of plenty services on internet, it become very easy to establish a kind of global friendship where we can share our thoughts, can explore other cultures of different ethnicity.
It has also helped to bridge the culture gap by helping people from different cultures to communicate with one another and also allows exchanging view and ideas.
Various aspects of effective direct communication of organizations are:
Don't leave the conversation until one understands what is expected. Don't feel unprofessional for asking the boss to explain what he wants. Write it down. Gaining a deeper and more clear understand will greatly enhance the final product.
Other factors are online communication can help the company to answer the queries regarding the products. Customer may feel that being given importance by quickly replying to these queries.
Online communication enhances cost factors as well. Organization can design its own website where all the products offered can be displayed with all its features. This may help the customers to get maximum information on website itself.
Online communication should be flexible enough as furniture works staff should answer the queries spontaneously. For this furniture works staff should be well trained and should have enough staff to answer customer queries online.
Other advantages for the organization are through online communication are increase in sales, customers given priority, information provided instantly, and minimize risk.
Report by Tanuja Patel
TASK 5 - Create effective global structure
This task based on the theory that operating overseas can pose various threats to the organisation. So in this task I am going to carry out the reflective report making suitable recommendations to management of Furniture Works on how effective global structures could be created. I will produce a report on the same.
Objectives of the task 5:
To make suitable recommendations to management of Furniture Works to create effective global structures.
To prepare a reflective report on it.
INTRODUCTION ON MULTINATIONAL COMPANIES
A multinational company means they are expanding their business via new establishment, taking over other similar companies, or giving their name and technology to other similar companies in different countries of the world.
If we can look over who are they, this is the list of companies which famous for their brand name and for their market value, so many companies are huge in their beginning and from adopting a policy of multinational companies it will become giant companies in the world market.
All multinational companies mainly born in USA, Europe or in Japan and reach every corner of the world.
Pepsi and Cocoa Cola are the one of the best example of multinational companies.
From: Tanuja Patel
To: The Company CEO.
Subject: To create effective global structure
Operating overseas can pose various threats as threat to global economy, political impact, and legislative boundaries.
Recommendations for furniture works:
If furniture works wants to establish globally, the first step is they have to innovate a new technology by reducing usage of wood and replace it with similar product. It can be done from acquisition or making virtual organisation. For global establishment they have to provide training, new learning equipments use of new technology and support from the management. This is a social responsibility of the company. The e-commerce tool and other factors like market research in a furniture works industries which will increase the demand of product and if demand will increase, the globalisation tools help out for more expansions. Furniture works increase their retail services by adopting new tools hat is assemble in the product from that the size of a particular product become a smaller, from that they can sell the product directly to the customer in any corner of the world. At present many online companies selling ward board in a flat box which is easy to transport and save lots of money to customers and the company.
Furniture works increase their sales, more people get secure jobs, from increasing the services the other organisations come as a useful tool for furniture works and create virtual organisation. These all above factors expand the industry.
Report by Tanuja Patel