Internal assignment 1 (302)

Q. 1. Answer all the questions:

4 Explain four characteristics of US culture.

1. Americans come in all colors, have all types of religions, and speak many languages from
all over the world
2. Americans believe in freedom of choice
3. Americans need a lot of elbow room; they like personal space around them
4. Americans and their police follow the law
5. Littering (throwing garbage on the street), graffiti (writing on walls), and loitering
(standing around and doing nothing in public spaces) are against the law and punishable by
a fine or jail.
6. Discriminating against or making any insulting statement about someone elses religion or
ethnicity is against the law and could be punishable, known as a hate crime

5) How legal environment affect International Business?

The International Legal Environment

Public international law is the system of rules and principles governing the conduct of and
relationships between states and international organizations as well some of their persons.
Private international law governs relationships between persons and organizations engaged in
international transactions and addresses which laws will apply when the parties are in a legal
dispute.
Foreign law is a law enacted by a foreign country.

Conceptual Framework
If your company engages in any transactions overseas, it will have to familiarize itself with the
general concepts of public and private international law as well as foreign law, because all can
affect the manner in which you can engage in business abroad. We'll look at the most essential
aspects of the international legal system that are relevant to businesses.

Q 4)Explain the importance of supply chain in International Trade.

The Importance of Supply Chain Management
It is well known that supply chain management is an integral part of most businesses and is
essential to company success and customer satisfaction.
Boost Customer Service

Customers expect the correct product assortment and quantity to be delivered.

Customers expect products to be available at the right location. (i.e., customer satisfaction
diminishes if an auto repair shop does not have the necessary parts in stock and cant fix
your car for an extra day or two).
Right Delivery Time Customers expect products to be delivered on time (i.e., customer
satisfaction diminishes if pizza delivery is two hours late or Christmas presents are
delivered on December 26).
 Right After Sale Support Customers expect products to be serviced quickly. (i.e.,
customer satisfaction diminishes when a home furnace stops operating in the winter and
repairs cant be made for days)

Reduce Operating Costs

Decreases Purchasing Cost Retailers depend on supply chains to quickly deliver

expensive products to avoid holding costly inventories in stores any longer than
necessary. For example, electronics stores require fast delivery of 60 flat-panel plasma
HDTVs to avoid high inventory costs.
Decreases Production Cost Manufacturers depend on supply chains to reliably deliver
materials to assembly plants to avoid material shortages that would shutdown production.
For example, an unexpected parts shipment delay that causes an auto assembly plant
shutdown can cost $20,000 per minute and millions of dollars per day in lost wages.
Decreases Total Supply Chain Cost Manufacturers and retailers depend on supply
chain managers to design networks that meet customer service goals at the least total
cost. Efficient supply chains enable a firm to be more competitive in the market place.
For example, Dells revolutionary computer supply chain approach involved making each
computer based on a specific customer order, then shipping the computer directly to the
customer. As a result, Dell was able to avoid having large computer inventories sitting in
warehouses and retail stores which saved millions of dollars. Also, Dell avoided carrying
computer inventories that could become technologically obsolete as computer technology
changed rapidly.

Improve Financial Position

Increases Profit Leverage Firms value supply chain managers because they help
control and reduce supply chain costs. This can result in dramatic increases in firm
profits. For instance, U.S. consumers eat 2.7 billion packages of cereal annually, so
decreasing U.S. cereal supply chain costs just one cent per cereal box would result in $13
million dollars saved industry-wide as 13 billion boxes of cereal flowed through the
improved supply chain over a five year period.
Decreases Fixed Assets Firms value supply chain managers because they decrease the
use of large fixed assets such as plants, warehouses and transportation vehicles in the
supply chain. If supply chain experts can redesign the network to properly serve U.S.
customers from six warehouses rather than ten, the firm will avoid building four very
expensive buildings.
Increases Cash Flow Firms value supply chain managers because they speed up
product flows to customers. For example, if a firm can make and deliver a product to a
customer in 10 days rather than 70 days, it can invoice the customer 60 days sooner.
Lesser known, is how supply chain management also plays a critical role in society. SCM
knowledge and capabilities can be used to support medical missions, conduct disaster relief
operations, and handle other types of emergencies.

Whether dealing with day-to-day product flows or dealing with an unexpected natural disaster,
supply chain experts roll up their sleeves and get busy. They diagnose problems, creatively work
around disruptions, and figure out how to move essential products to people in need as efficiently
as possible.

Internal assignment 1 (304)

Q. 3. Explain Organization mission, vision, goals & objectives.

Organization Strategy
Vision and mission statements play an important role in strategy development by providing
vehicles to generate and screen strategic options. They also provide organizational identity and
understanding of business directions.
Created by consensus. Forms mental image of future to which
Dream or a picture
people can align. Describes something possible, not necessarily
Vision to be achieved
predictable. Provides direction and focus. Pulls people, who hold
ultimately.
it, towards it.

States the business reason for the organization's existence. Does

not state an outcome. Contains no time limit or measurement.
Statement of
Mission Provides basis for decisions on resource allocation and
business.
appropriate objectives. Defines current and future business in
terms of product, score, customer, reason, and market price.

Describes ideal states to be achieved at some unidentified future

Results to be time. Defined consistent with and related directly to vision and
Goals
achieved. mission. Guide everyday decisions and actions. Do not
necessarily deal with measurable results.

Focuses on critical organization issues and milestones. Describe

How - Actions and
activities to be accomplished to achieve goals. Identify dates
Results - to plan to
Objectives when specific results are to be accomplished. Measurable in
achieve the desired
terms of whether or not they are achieved. They may be changed
results.
when necessary for progress towards goals.

Internal Assignment No. 2 304

Q. 2. Explain the process of Choice of Strategy.

Process of Strategic Choice:

Two techniques are used in the process of selection of a strategy, namely:

(i) Devils Advocate in strategic decision- making is responsible for identifying potential
pitfalls and problems in a proposed strategic alternative by making a formal presentation.

(ii) Dialectical inquiry involves making two proposals with contrasting assumptions for
each strategic alternative. The merits and demerits of the proposal will be argued by advocates
before the key decision-makers. Finally one alternative will emerge viable for implementation.
Strategic Choice Process by BMS Team

Q. 3. Explain the concept of Core competence and competitive advantage in detail.

What is Competitive Advantage?

Competitive advantage occurs when a company is able to achieve a competitive edge with
regards to is products, services, strategies, skills, etc. than its competitors. There are two types of
competitive advantage; cost leadership and differentiation. A competitive advantage is
something that will help the company stands out from its competitors.
Competitive advantages can be achieved by gaining access to cheaper raw materials, through
intellectual property, first mover position, convenience in location, etc. An example of a
competitive advantage would be the edge that Google has above other search engines. Google is
the best at optimizing searches and has pushed technology beyond what competitors thought
was possible. A competitive advantage will aid a firm to differentiate its goods and services from
competitive offerings. Having a competitive advantage can also contribute towards improving
customer loyalty which can go a long way in times of financial difficulty. Building a strong
brand name through creative advertising can aid in marketing a companys competitive
advantage.
What is a Core Competency?
Core competency refers to a specific set of skills and expertise that a company may have over its
competitors. In order for a core competency to exist, 3 criteria must be met; those are market
access, benefits consumers, unique and difficult to imitate. One of the most essential aspects of a
core competency is that they help gain access to a range of markets and consumers. Core
competencies also bring benefits to consumers in terms of lower cost and better quality products,
and cannot be easily copied or imitated. Core competencies include things like, technological
knowhow, skilled individuals, supply systems and processes, customer relationship management
skills, etc. For example, Tesco has emerged as one of the largest retailers in the world because of
their core competencies in effectively managing supplies through their innovative supply
systems, customer focused selling strategies, personalized customer interface for online
shopping, an efficient delivery mechanism, etc.
Competitive Advantage vs Core Competency
Even though these terms may sound quite similar to one another, competitive advantage and core
competency are quite distinct. A core competency is a specific skill set or expertise that can lead
to a competitive advantage. For example, a core competency in innovative supply systems can
lead to increased efficiencies and lower costs; the lower cost being the competitive advantage.
Volvos core competency lies in their ability to research and develop automobiles that offer the
high protection and safety standards. The companys competitive advantage lies in providing a
differentiated product valued for its high safety standards that surpass its competitors.

Q. 4. Describe the role of strategic management in business and non business

organization.

trategic Management is all about identification and description of the strategies that managers
can carry so as to achieve better performance and a competitive advantage for their organization.
An organization is said to have competitive advantage if its profitability is higher than the
average profitability for all companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which a manager
undertakes and which decides the result of the firms performance. The manager must have a
thorough knowledge and analysis of the general and competitive organizational environment so
as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats), i.e., they should make best possible utilization of strengths,
minimize the organizational weaknesses, make use of arising opportunities from the business
environment and shouldnt ignore the threats.
Strategic management is nothing but planning for both predictable as well as unfeasible
contingencies. It is applicable to both small as well as large organizations as even the smallest
organization face competition and, by formulating and implementing appropriate strategies, they
can attain sustainable competitive advantage.
It is a way in which strategists set the objectives and proceed about attaining them. It deals with
making and implementing decisions about future direction of an organization. It helps us to
identify the direction in which an organization is moving.
Strategic management is a continuous process that evaluates and controls the business and the
industries in which an organization is involved; evaluates its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reevaluates strategies on a
regular basis to determine how it has been implemented and whether it was successful or does it
needs replacement.