International Management

Topics: Geert Hofstede, Management, Peru Pages: 22 (5117 words) Published: September 18, 2011
1 Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors? Ans The theory of free markets can help indian services providers gain competitive edge over their compititors because India has got an edge over other countries at this point of time but other nations may try to make their products look cheaper by manipulating their currencies or by imposing restrictions on imported service especially from india You only need one theory - do something better than your competitors (either make a better product, market it better, service it better, price it cheaper, whatever). ONE SUGGESTED THEORY to gain dynamism and competitiveness IN OPERATION .

A.Developing executive leadership at three levels that is
-top team,
-the personal development of individual executives as leaders and -the Chief Executive Officer (CEO)

B.Getting strategy to work

C.Achieve learning through knowledge management

D.Achieve supply chain excellence

E.Develop branding strategy.
2 Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO.

Ans Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyses their strengths and weaknesses as active players in BPO. The Diamond Model of Michael Porter for the competitive advantage of Nations offers a model that can help understand the comparative position of a nation in global competition. The model can also be used for major geographic regions.

Traditional country advantages

Traditionally, economic theory mentions the following factors for comparative advantage for regions or countries:

1. Land
2. Location
3. Natural resources (minerals, energy)
4. Labor, and
5. Local population size.

Because these 5 factors can hardly be influenced, this fits in a rather passive (inherited) view regarding national economic opportunity.

Porter says that sustained industrial growth has hardly ever been built on above mentioned basic inherited factors. Abundance of such factors may actually undermine competitive advantage! He introduces a concept called "clusters" or groups of interconnected firms, suppliers, related industries, and institutions, that arise in certain locations.

Porter Diamond Nations

According to Porter, as a rule competitive advantage of nations is the outcome of 4 interlinked advanced factors and activities in and between companies in these clusters. These can be influenced in a pro-active way by government.

PORTER argued that a nation can create new advanced factor
endowments such as skilled labor, a strong technology and
knowledge base, government support, and culture. PORTER
used a diamond shaped diagram as a basis of a framework
to illustrate the determinants of national advantage. The
diamond represents the national playing field that the
countries establish for their industries.

The points of the diamond are described as follows

-a country creates its own important factors such as skilled resources and technological base.

-these factors are upgraded / deployed over time to meet
the demand.

-local disadvantges force innovations. new methods and
hence comparative advantage.

-a more demanding local market leads to national advantage.

-a strong trend setting local market helps local firms anticipate global trends.
3 Compare this case with the case given at the beginning of this chapter. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained. Ans A theory attempts to explain (modernist), describe so as to produce understanding and appreciation of (symbolic-interpretive), criticize or create (postmodernist) a segment of reality. Which of

purposes you believe theory serves depends on your ontological and epistemological assumptions.
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