Globalization trends

Each of these stakeholders gains when a company improves the value Hahn. The common key processes that should be used to improve the value and supply chain revolve around the customer, stakeholder, and supplier. Strategic planning to change management to customer service all serve a purpose. That purpose is to enable companies and partners to do business in such a different way that creates competitive advantage. When performance is elevated to a level in which success is imminent the company not only sees increase in profits but also sees new levels in customer service, inventory, production, and synchronization of key operations.

Country Risk Analysis – Struck Entering Japan Any number of risks can affect an organization’s global operations and the way to overcome these risks is by implementing advantageous strategic goals and strategies. In any new business venture a firm must take risks to achieve objectives set. When expanding into a new country a higher degree of risk must be taken. However, a higher degree of risk does not mean the company will be venerable to losses because of changes in the economies or political situations in countries in which they are investing.

Understanding the types of risk involved and properly planning for these risks will allow the company to mitigate most problems and revert losses. As described by A. M. Best’s assessment (2009) of the three categories of risk, Japan has been rated low in economic, political, and financial systems. Economic Environment Japan is the second largest economy in the world behind the United States. Yet, revised figures for the final quarter of 2009 grew by less than what was estimated, 1. 1 percent. “Japan continues to face the problem of deflation” (BBC News, 2010, Para. 6).

Because deflation is bad for the economy, the tendency is for consumers and businesses to delay in making major purchases. With the value of currency rising all he higher value of currency to purchase more. Bank of Japan board members during their February meeting had mixed views on the economy. Some members believe that upside and downside risks were becoming balanced, whereas others felt “considerable downside risks to the economy’ (Toasts, 2010, Para. 2). Believing that brand recognition alone could aid in the success of expansion into Japan was not a good move for Struck.

Because the Japanese have a taste for everything western Struck was sure about the marketability of the Japanese. Unfortunately, Struck suffered because of “bad predictions” (Gators, 2009, Para. 0) and not enough information gathered on Japan’s economy. Political Environment Presently, Japanese Prime Minister Taro Ass is struggling to implement strategies to bolster Japan’s economy. The Liberal Democratic Party (LDAP) has not passed a supplemental budget needed to fund the first economic stimulus package discussed back in October 2008 (Hashish, 2009).

The political paralysis of Japan takes part in the global financial crisis causing the eroding of consumer product purchases. Once a business is up and running the worry becomes entering and enforcing contracts with errs and sellers. Even with guidelines set in formulating and enforcing contracts variations are still placed on certain ways a country views the legal system. Japan is a civil law system country encouraging shorter and less specific contracts because the general civic code deals with many pertinent issues (Daniels, Redheaded ; Sullivan, 2007).

The wealth of the country decides on what business regulation procedures are required when opening a business. With free trade becoming more popular in countries that at one time placed strict regulations on foreign businesses he increase in capital has effected multinational and international companies to expand outside their home countries. The relaxed restrictions result in opportunities for people to experience global products and brands. Components of a Global Business Plan A business plan tells a story about a company’s strategies and goals.

Along with this information, a business plan also requires specific components. The first section must start with an executive summary. The executive summary is a brief synopsis of the business plan that includes a description of the nature of the business, a reason rodents or services is needed, description of the organization and management team, and a brief explanation on the sales and marketing approach. The next section is more detailed information taken from the executive summary including the business, market analysis, financing, and management sections.

Conclusion Stakeholders can be anyone directly and indirectly associated with the company, such as customers, suppliers, employees, and shareholders. Each can benefit as well as lose. The key is making sure all activities are streamlined and work in a synchronized manner. When this happens stakeholders benefit by lower costs, new reduce design and development, and trustworthiness of the company. Economic exposure is defined as, “the extent to which a firm’s market value is sensitive to unexpected changes in foreign currency’ (Perry, 2009, Three Types of Foreign Exchange Exposure for Mans, Para. ). Before expanding into another country, researching the economic structure of the country is important. Economic risk comes from the inability of a country to meet financial obligations. Sustaining, and self-governing society (Daniels, Redheaded, & Sullivan, 2007, Para. 1). Creating a majority of people in society that accepts present political views an result in positive benefits including the attraction of foreign investment and international trade. When turmoil among the people and the roles of government exists, friction occur creating unpleasant unrest.

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