International business management
International Business Management
Introduction
Nowdays the world is like a globalised stage where the barriers to cross-border and investment have been broke down, the national economies are merging into an interdependent global economy system. Therefore, international business has become a very important role in the world economy.
According to P. K. Sinha and S. Sinha (2008), international business is all commercial transactions- private and governmental- between two or more countries which including sales, investments and transportation. All companies, whether large or small, can obtain a great amount of benefits by engage in international business such as expand sales, acquire resources and diversify or reduce risk. International business management is concerned with the international business evironment, the strategy and structure of intenational business, country differences in political economy and culture, the type of business operations and the impact of techniques on businesses opereate intenationally such as information systems. This report will expand the analysis of how companies implement their strategy to achieve goals which based on the case study of Asea Brown Boveri (ABB) company, analyse the investment environment in China and also how infomation system affect intenational business.
1.1 The Reasons for ABB bought Zamech
ABB is the world’s foremost electrical engineering company, the global leader in power and automation technologies (new.abb.com). As can be seen from the case, Mergers and acquisitons (M&As) is one of its long-term strategies. According to C. T. Schlachter and T. H. Hildebrandt (2012), there are some various reasons for M&As: increasing capabilities, gaining a competitive advantage or larger market share, diversifying products or services, replacing leadership, cutting costs and surviving. Regarding ABB bought Zamech, the reasons include:
Increasing capabilities
To expand research and development opportunities or even more
Introduction
Nowdays the world is like a globalised stage where the barriers to cross-border and investment have been broke down, the national economies are merging into an interdependent global economy system. Therefore, international business has become a very important role in the world economy.
According to P. K. Sinha and S. Sinha (2008), international business is all commercial transactions- private and governmental- between two or more countries which including sales, investments and transportation. All companies, whether large or small, can obtain a great amount of benefits by engage in international business such as expand sales, acquire resources and diversify or reduce risk. International business management is concerned with the international business evironment, the strategy and structure of intenational business, country differences in political economy and culture, the type of business operations and the impact of techniques on businesses opereate intenationally such as information systems. This report will expand the analysis of how companies implement their strategy to achieve goals which based on the case study of Asea Brown Boveri (ABB) company, analyse the investment environment in China and also how infomation system affect intenational business.
1.1 The Reasons for ABB bought Zamech
ABB is the world’s foremost electrical engineering company, the global leader in power and automation technologies (new.abb.com). As can be seen from the case, Mergers and acquisitons (M&As) is one of its long-term strategies. According to C. T. Schlachter and T. H. Hildebrandt (2012), there are some various reasons for M&As: increasing capabilities, gaining a competitive advantage or larger market share, diversifying products or services, replacing leadership, cutting costs and surviving. Regarding ABB bought Zamech, the reasons include:
Increasing capabilities
To expand research and development opportunities or even more