Académique Documents
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International Business
Question .1
While the economy and the global environment often play roles in forcing you to
make changes within your company, the results can be positive. Forced changes afford
opportunities that you may have overlooked in the past. They can lead to increased
performance, higher employee morale, and, ultimately, greater profits for you and your
business. The way you respond to the changing global economy impacts your chance of
survival and success in that environment.
1.1 Introduction
Ayeyarwady Bank Ltd. (AYA Bank) is a private bank in Myanmar. AYA Bank was
established on 2 July 2010 with the permission of the Central Bank of Myanmar. The AYA
Bank's head office is located in the Hlaing Township of Yangon.
AYA Bank has 91 branches. Ayeyarwady Bank offers retail and commercial banking
products and services.
1.2 History
Ayeyarwady Bank received its banking license from the Central Bank of Myanmar on
2 July 2010 and began operations on 11 August 2010. The bank is authorized to operate as an
investment or development bank for the domestic market and the approved banking activities
include:
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Since its inception, the bank has grown steadily with the number of branches
increased progressively to eight and customer deposits grew healthily to Kyats 163 billion as
at end October 2011, signifying increased confidence among the public in the bank.
For the years ahead, the bank will continue to extend its branch network throughout
Myanmar. It will continue to focus on building relationship with customers, providing
excellent customer service, and leverage on technology as the enabler to enhance its customer
base. At the same time, the bank aims to strengthen its governance, risk and compliance
structure as a measure to ensure balance and sustain growth.
A company can start out by using one of several organizational structures. However,
companies can sometimes increase their effectiveness using multiple organizational
structures. Other companies may switch from one type of organizational structure to another
to be more effective. The decision for organizational structure usually lies with top
management. The size of a company is sometimes the determining factor as to organizational
structure effectiveness.
2.2 Growth
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2.3 Customer Needs
2.4 Technology
Technology can have an impact on how your organization is structured and how work
flows. The Reference for Business points out that when computer networks became popular,
it became easier for people to work as groups. People did not need to be in the same room, or
even the same building, to be efficient. Technology can create positions within your company
and it can eliminate positions. When filing is done electronically, there is no longer a need for
as many file clerks as you once had but there is a need for a department of technicians to
maintain and grow the computer network. As technology continues to change the function of
jobs in the workplace, the landscape of organizational structure changes with it.
As nice as it is to greet your customers with a smile, in the digital age it is more
important to give them reliable, efficient service. Whether this means widening your social
media presence, looking out for negative customer impact or improving your overall
customer service experience, it’s clear that times have changed and business practices need to
change with them. If the needs of the consumer evolve, then the requirements of businesses
must evolve as well. It could be as simple as hiring a few freelancers to watch the net for any
mention of your business or as complicated as creating an entirely new department. No
matter which direction you take, it’s time to figure out where your customer service needs
work and start working on it.
Amazon, one of the most successful internet companies in history, is built upon the
foundation of efficiency. Their website design is warm and welcoming, but the reason
customers keep returning is because it the most efficient way to purchase products you want.
It is why Amazon thrives, while bookstores are struggling, because when given the choice
between a 5 minute easy online form and a 10 minute friendly customer service call, most
people choose the former. That’s why the newest business are thriving: More books are
purchased on Amazon more than anywhere else, Netflix has killed the video store; Starbucks,
the coffee shop with shortest time between order and distribution, has the highest paid CEO
in food industry. Efficient customer service is most important to your audience.
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Executive summary
This assignment focuses on the use of the business environment and the important
role plays for the Myanmar government’s and plan for environmental improvement. It is a
process of starting and developing a business and help to create an encouraging business
environment.
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Question .2.
1.0 Introduction
Radical economic and social policies were instituted, including the nationalization of
all industries other than agriculture, with the aim of creating a socialist state isolated from
outside influences.
At the time the new government took over in 2011, Myanmar was suffering from
deep economic malaise, characterized by low levels of industrialization and employment in
the formal economy, a dysfunctional financial sector and gross distortions and inefficiencies.
Under the 2008 Constitution the legislative power of the Union is shared among the
PyidaungsuHluttaw, State and Region Hluttaws.[35] The PyidaungsuHluttaw consists of the
People's Assembly (PyithuHluttaw) elected on the basis of township as well as population,
and the House of Nationalities (AmyothaHluttaw) with on an equal number of representatives
elected from Regions and States. The People's Assembly consists of 440 representatives, with
110 being military personnel nominated by the Commander-in-Chief of the Defense Services.
The House of Nationalities consists of 224 representatives with 56 being military personnel
nominated by the Commander-in-Chief of the Defense Services.
AsDB, ASEAN, CCC, CP, ESCAP, FAO, G-77, IAEA, IBRD, ICAO, ICRM, IDA,
IFAD, IFC, IFRCS, IMF, IMO, Intelsat (no signatory user), Interpol, IOC, ITU, NAM,
OPCW, UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WMO, WToO, WTrO, GJC.
(May 14, 2010) In the view of Human Rights Watch, the new election laws issued in
Myanmar (Burma) in March 2010 by the ruling military regime, the State Peace and
Development Council (SDPC) "are designed to exclude the main opposition party and ensure
a victory for the ruling military." (Burma: Election Laws May Shut Down Opposition Parties,
Human Rights Watch (HRW), Mar. 10, 2010, available at http :
//www.hrw.org/en/news/2010/03/10/burma-election-laws-may-shut-down-opposition-
parties.) The main opposition party is the National League for Democracy (NLD), which won
the 1990 elections but was denied power by the military junta. All five of the new election
laws were adopted on March 8, 2010, in preparation for the 2010 elections, the first in the
country in 20 years.
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2.0 Banking Sector
They started to collapse, the contagion quickly spread to the formal banking system,
which was by that time dominated by a score of local private banks and a handful of state
banks. In the absence of timely and effective intervention by the central bank, there was a run
on the institutions. The government ordered restrictions on withdrawals and the recall of
loans and mortgages at very short notice.
In addition to the significant impact on the real economy, the private banks were left
crippled. Public confidence in the banking system was lost and has yet to be fully regained.
Myanmar now has the second-lowest level of access to credit in the world after North Korea.
This makes it difficult to start and grow businesses, as well as hard for farmers to invest in
inputs and in increased mechanization Banks have been serving the narrow interests of their
owners, rather than providing a service to their customers, making “banking an extractive
industry”. Reform of the financial sector is an urgent national priority.
One of the major distortions in the economy has been the multiple exchange rate
regime, which is now being dismantled. The kyat’s official rate was used for external public
sector transactions (such as imports and exports) and for accounting purposes.
Since the supply of external currency from public-sector exports was limited, and
demand for imports at the greatly overvalued official rate was insatiable, public imports were
rationed under a foreign exchange budget managed by the finance and revenue ministry.
This distorted system damaged the economy. The massive difference between official
and market rates, and lack of transparency of transactions, provided lucrative opportunities
for corruption and rent-seeking.
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3.0 Decision-Making
The speed with which political and economic reform is being pushed and the limite
policymaking capacity of the government have meant that decisions tend to be ad-hoc,rather
than carefully planned. Those driving the reforms have had little time to step back and make
strategic decisions or develop any sort of master plan.
4.1 Mindset
What are some of the major internal conflicts that Myanmar is going through now?
(Between political parties, age generations, demographics, ideologies, etc.) Summarize each
side’s argument.
How would you describe the views of the general public about the government of
Myanmar?
In October 26th 2014, Telenor Myanmar started their network in Former capital of
Myanmar, Yangon. I appreciate Telenor for their network coverage for city and also they can
control the market to prevent black market for their SIM Card. Meanwhile, the largest
Telecom Company MPT still doesn’t control black market of MPT SIM Card. Black Market
is quite popular in Myanmar even in football match. Recently Myanmar hosted U20 AFC cup
in Yangon and our country, Myanmar reached up to Semi-Final and they qualified for 2015
FIFA U20 World Cup which will be hosted in New-Zealand. Official ticket price for
Myanmar Team’s matches are quite cheap but it’s reached up to triple fold in black market.
It’s just an example of black market in Myanmar. Myanmar people suffer lack of
telecommunication up to 2013. Government control the SIM Card price until Foreign
Telecom companies doesn’t enter into Myanmar Market. I got my first mobile phone in 2006
and the price is up to 2300US$. Official price for SIM Card at this time is 1500US$. Many
people who know government officers and their relatives got many benefits at this time due
to black market.
Doing Business in Myanmar is not so easy. Government still controls almost all the
steps and need permission from respective government’s department. If you want to do
business in Myanmar, you should build the close relationship with high level government
officer or give them some under table money will help you easier and save the time.
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4.3 Started sale of SIM Card in Myanmar
Ooredoo Myanmar started their sale of SIM Card in August in Yangon but network
coverage problem still alive in some area of Yangon. Telenor Myanmar launched their SIM
in Mandalay and Nay Pyi Taw firstly at the start of October and started their sale in Yangon
at the last week of October. Telenor promoted with 1month free unlimited Facebook usage
and Wikipedia zero programs for their SIM Card. Facebook is the most popular social
network and almost all people in urban area use it. So many people will like Telenor’s one
month free unlimited Facebook programs. According to my experience, many people use
Facebook when they woke up, even my mom. They looks for news, trend and popular topics
on Facebook and they regard Facebook as their second life. The wave of Facebook is affected
on many Myanmar people’s daily life. Many lobbying cases that concern with politics and
religious occurs recently in here and many people quarrels for each topic by social
influencers. Role of social influencers on Facebook is quite important and need more control
by Facebook to prevent Social side-effects for Myanmar.
The economic reform process will not necessarily be without friction, and success is
not guaranteed. The enormity of the task threatens to overwhelm the government’s limited
policymaking capacity. Decision-making is ad hoc, not yet based on a carefully-devised
master plan. It will be a challenge to maintain a balance between the speed of the reforms and
their effectiveness, as decades of isolation have created a political urgency that will be hard to
resist. Despite the best-laid plans, changes in one policy area noften create a quick or
unintended need for adjustments in another. There is limited ability in the bureaucracy to deal
with the workload of regulations and management that each policy and new law will create.
Executive summary
After decades of repressive rule and self-imposed isolation, Myanmar has recently
begun an unprecedented array of fundamental political, economic and social changes. Since
2011, the country has moved to institutionalize a more democratic system of governance,
open up the economy, unshackle the press, promote access to the internet and consolidate
peace agreements with armed ethnic insurgencies. Although these reforms are still in their
nascent stages, it appears that the country has embarked on an irreversible transformation in
both political and strategic direction.
However, many challenges continue to confront Myanmar and could upset the
country’s rehabilitation into the mainstream of international politics. The main ones are
widespread scarcity and underdevelopment; a lack of organizational and institutional
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capacity; a governing system that continues to lack true accountability and transparency;
ethno-nationalist insurgent movements that have yet to fully make peace with the state; a
dangerous escalation of religious violence between Muslims and Buddhists; and competing
regional major power plays between China and the US. Australia and ASEAN both have a
vested interest in promoting and consolidating reform in Myanmar.
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Question. 3
International Business
1.1 Introduction
Ayeyarwady Bank Ltd. (AYA Bank) is a private bank in Myanmar. AYA Bank was
established on 2 July 2010 with the permission of the Central Bank of Myanmar. The AYA
Bank's head office is located in the Hlaing Township of Yangon.
AYA Bank has 91 branches. Ayeyarwady Bank offers retail and commercial banking
products and services.
1.2 History
Ayeyarwady Bank received its banking license from the Central Bank of Myanmar on
2 July 2010 and began operations on 11 August 2010. The bank is authorized to operate as an
investment or development bank for the domestic market and the approved banking activities
include:
Since its inception, the bank has grown steadily with the number of branches
increased progressively to eight and customer deposits grew healthily to Kyats 163 billion as
at end October 2011, signifying increased confidence among the public in the bank.
For the years ahead, the bank will continue to extend its branch network throughout
Myanmar. It will continue to focus on building relationship with customers, providing
excellent customer service, and leverage on technology as the enabler to enhance its customer
base. At the same time, the bank aims to strengthen its governance, risk and compliance
structure as a measure to ensure balance and sustain growth.
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2.0 Financial services
Financial services are the economic services provided by the finance industry, which
encompasses a broad range of organizations that manage money, including credit unions,
banks, credit card companies, insurance companies, accountancy companies, consumer
finance companies, stock brokerages, investment funds, real estate funds and some
government sponsored enterprises.
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• Notary service for financial and other documents
• Accepting the deposits from customer and provide the credit facilities to them.
2.3 Investment banking services
Capital markets services - underwriting debt and equity, assist company deals
(advisory services, underwriting, mergers and acquisitions and advisory fees), and restructure
debt into structured finance products.
Brokerage services - facilitating the buying and selling of financial securities between
a buyer and a seller. In today's (2014) stock brokers, brokerages services are offered online to
self trading investors throughout the world who have the option of trading with 'tied' online
trading platforms offered by a banking institution or with online trading platforms sometimes
offered in a group by so-called online trading portals.
Foreign exchange services are provided by many banks and specialist foreign exchange
brokers around the world. Foreign exchange services include:
Currency exchange - where clients can purchase and sell foreign currency banknotes.
Wire transfer - where clients can send funds to international banks abroad.
Remittance - where clients that are migrant workers send money back to their home
country.
Asset management - the term usually given to describe companies which run
collective investment funds. Also refers to services provided by others, generally registered
with the Securities and Exchange Commission as Registered Investment Advisors.
Investment banking financial services focus on creating capital through client investments.
Hedge fund management - Hedge funds often employ the services of "prime
brokerage" divisions at major investment banks to execute their trades.
Custody services - the safe-keeping and processing of the world's securities trades
and servicing the associated portfolios. Assets under custody in the world are approximately
US$100 trillion.
Bank cards - include both credit cards and debit cards.According to the Milson
Report, Bank Of America is the largest issuer of bank cards.
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Credit card machine services and networks - Companies which provide credit card
machine and payment networks call themselves "merchant card providers".
Private equity - Private equity funds are typically closed-end funds, which usually
take controlling equity stakes in businesses that are either private, or taken private once
acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in
which they invest. The most successful private equity funds can generate returns significantly
higher than provided by the equity markets
The marketing planning process involves forging a plan for a firm's marketing
activities. A marketing plan can also pertain to a specific product, as well as to an
organization's overall marketing strategy. Generally speaking, an organization's marketing
planning process is derived from its overall business strategy. Thus, when top management
are devising the firm's strategic direction or mission, the intended marketing activities are
incorporated into this plan. There are several levels of marketing objectives within an
organization. The senior management of a firm would formulate a general business strategy
for a firm. However, this general business strategy would be interpreted and implemented in
different contexts throughout the firm.
The field of marketing strategy considers the total marketing environment and its
impacts on a company or product or service. The emphasis is on "an in depth understanding
of the market environment, particularly the competitors and customers."
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Thus, the issue of divest, or a ceasing of production, may be made. Each scenario
requires a unique marketing strategy. Listed below are some prominent marketing strategy
models.
3.2 Positioning
The use of it is inseparable from its purchase (i.e., a service is used and consumed
simultaneously)
It does not possess material form, and thus cannot be touched, seen, heard, tasted, or
smelled.
The use of a service is inherently subjective, meaning that several persons
experiencing a service would each experience it uniquely.
A company can start out by using one of several organizational structures. However,
companies can sometimes increase their effectiveness using multiple organizational
structures. Other companies may switch from one type of organizational structure to another
to be more effective. The decision for organizational structure usually lies with top
management. The size of a company is sometimes the determining factor as to organizational
structure effectiveness.
4.2 Growth
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but, as time goes by, more employees may be hired, necessitating the introduction of
departmental managers to help create a managerial structure. Additionally, an executive team
may be required to run the various aspects of the business, and there may be the need for
middle managers who would report to the managers.
As nice as it is to greet your customers with a smile, in the digital age it is more
important to give them reliable, efficient service. Whether this means widening your social
media presence, looking out for negative customer impact or improving your overall
customer service experience, it’s clear that times have changed and business practices need to
change with them. If the needs of the consumer evolve, then the requirements of businesses
must evolve as well. It could be as simple as hiring a few freelancers to watch the net for any
mention of your business or as complicated as creating an entirely new department. No
matter which direction you take, it’s time to figure out where your customer service needs
work and start working on it.
4.4 Conclusion
In conclusion, with a list of advantages, franchising the business is a good way for a
successful business to further expand. To be successful in franchising one must fully
understand the business and legal consequences of the responsibility and relationship with
the franchisor and all the franchisees. The main focus have to be on working together with
other franchisees and business managers to market and promote the brand, and fully utilize
the operating system to get and keep clients.
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Reference
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