Gulf College Business Administration Global Organization Report

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Arab Open University Faculty of Business Studies B207B- Shaping Business Opportunities II Second semester 2020-2021- Tutor Marked Assessment I. TMA overview This TMA is intended to assess the following: • • • • Your knowledge and understanding of the key concepts covered in (weeks1-10) Your ability to apply the course ideas to real business examples Your ability to use academic business and management language appropriately and effectively to communicate your ideas Your ability to work and communicate with a team This is a group TMA. Each team will consist of 3-4 students. (Consult with your tutor if it’s not possible to form a group due to the current health situation). This TMA consists of 20% of your total course grade. • • • Teams of the same section should select different ideas for this TMA. The initial task of your team is to select an innovative organization and ask for tutor approval. Teams should arrange with their tutors to verify that no other team had selected the same organization. II. TMA Topic and requirements The global trade environment and the dynamics of competition among organizations are the most important topics for understanding and practicing management in today’s markets. The focus of this TMA is to select an example of a successful global organization/brand and discuss the factors that had led to its success along with the challenges that it faces in operating globally. B207B – TMA – Second 2020-2021 Page 1 1. Essay Paper (100 marks out of 100) (1500 words) Your answer should be in the form of an essay. The essay should be well organized, that is, it has an introduction (5 marks), body (90 marks) and conclusion (5 marks). The introduction should introduce the topic. In the body paragraphs, the following points should be discussed: 1. Name the global brand/organization and briefly describe its products and activities. (10 marks) 2. What does it mean to be a global organization? Why is your chosen organization global? Link to the theories discussed in the course material. (10 marks) 3. There are many factors that could trigger an organization to expand across international boundaries. Discuss these factors and link your discussion to your chosen organization. (20 marks) 4. Discuss the main success factors of the global brand. What is its marketing strategy, competitors and competitive advantage? (10 marks) 5. Discuss the concept of globalization vs. customization and the measures taken by the global brand to recognize that offerings and communication should be adapted to local preferences and conditions. Support your answer with solid examples and Link to the theories discussed in the course material. (20 marks) 6. Discuss the ethical considerations for the global organization. Support your answer with solid examples and Link to the theories discussed in the course material. (10 marks) 7. Discuss the organization’s future plans, expansions and diversification. (10 marks) Instructions for students: • • • • Each team will work on the paper as they would normally do with other courses, but this time in a group. This is a good opportunity for students to learn a set of skills that are very important in the professional business world, such as time management, planning, communicating with others, etc. Each team is required to select a team leader. The TMA paper should be uploaded to the LMS by the team leader only. This is a very important requirement in order to avoid Turnitin similarities. The names of all the team members should be written on the pt3 form, including the name of the team leader. All team members will receive the same mark on the TMA essay paper. Students are required to use the pt3 form provided on the LMS for this specific TMA. Students papers are expected to meet the following criteria: B207B – TMA – Second 2020-2021 Page 2 o Plagiarism: It’s imperative that team members write the TMA using their own words. Plagiarism will be penalized depending on its severity and according to AOU plagiarism policy. o Format: team members are expected to write their answer in an essay format: introduction, body paragraph(s) and a conclusion. Failing to do so could result in the deduction of up to 4 marks from the total TMA paper mark. o Word count: TMAs are expected to be within the specified word count. A 10% deviation from word count limit is acceptable. Not adhering to specified word count could result in the deduction of up to 4 marks of the total TMA paper mark. o Referencing: team members are expected to use the Harvard referencing style for in-text referencing and list of reference at the end. Failing to do so could result in the deduction of up to 4 marks of the total TMA paper mark. o E-Library: team members are expected to use E-library sources to support their answers. A minimum of 3 sources is required. Failing to do so could result in the deduction of up to 4 marks of the total TMA paper mark. B207B – TMA – Second 2020-2021 Page 3
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Global Organization


Global Organization

The primary purpose of a profit-oriented company is to maximize shareholders' value.
Businesses pursue this goal using various strategies such as cost reduction, economies of scale,
and market expansion. Intensive competition and business growth drive some multinational
companies to expand to new markets. This strategy becomes significant when a business has
exploited the domestic market and aims to extend its activities beyond the national boundaries.
Although this expansion can be lucrative, it has numerous business failure risks and requires
extensive market research before implementation. The following is a discussion on Nestlé’s
triggers for expanding to the international boundaries, the success factors for the brand, and the
company's ethical considerations.
The Global Brand and Products
Nestle operates in the global food and beverages industry with its headquarters in
Switzerland but has scatted subsidiaries across the world, including Oman. Its primary activities
are manufacturing and marketing food products and beverages. The company has a diverse
product line, including confectionaries, frozen foods, cereals, beverages, and pet foods, among
other amounting to more than 8,000 brands (Nestle, n.d). It started as small milk condensing
company and later added infant formula to its product lines in 1867. Since then, Nestle has been
expanding progressively in the global market through innovation and numerous
internationalization strategies. Nestle is preferred for this discussion because it has successful
expansion strategies that have enabled the company to grow from a household to a global brand
(Nestle, n.d). The company is associated with foreign direct investments in new markets, a
strategy that has partly contributed to the brand becoming among the largest in the global
industry of food and beverages.


Meaning of a Global Organization

A global organization means it has operations in at least another country apart from its
country of origin. Such a company has facilities such as factories, supply chains, and distribution
centers in other countries. A majority of global organizations have subsidiaries outside their
home countries, which implies they control multiple sites worldwide (Zim, 2019). In some cases,
decisions are made at the headquarters and implemented downstream in other markets offering
similar product lines without considering the local tastes and culture. However, the marketing
strategies are suited to the local demand, an innovative strategy for effective communication to
drive sales.
Nestle is a global organization because it has facilities in multiple countries around the
world. Critical decisi...

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