The tactical and strategic plans of most business organizations have been dealt severe setbacks by the recent recession. Many forecasters did not anticipate that the…
Abstract
The tactical and strategic plans of most business organizations have been dealt severe setbacks by the recent recession. Many forecasters did not anticipate that the Administration's fiscal program would create a crisis of near‐term economic difficulties. Only a few predicted the persistence of high interest rates and the prolonged decline in business activity, and the present economic crunch caught most corporations by surprise. As a result, management attention is now focused on the immediate financial problems caused by disastrously low sales, excessive borrowing costs, and price cutting, and not on tactical or strategic planning.
Economic forecasts play indispensable roles in organizational decision making. The revenue and expenditure figures contained in annual budgets and long‐range plans are based…
Abstract
Economic forecasts play indispensable roles in organizational decision making. The revenue and expenditure figures contained in annual budgets and long‐range plans are based either explicitly or implicitly on a variety of assumptions about future economic and industry conditions. Tactical decisions, such as advertising, personnel allocations and strategic plans, including acquisitions and divestitures, also rest on tacit or formal expectations about the future economic environment. Yet, all too often, far less effort is devoted to preparing and utilizing economic forecasts than to formulating the budgets, plans, decisions and strategies they support.
The financial decisions of American consumers are swayed by a multitude of forces. Business cycle fluctuations and vagaries in fashion are short‐term influences. Long‐term…
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The financial decisions of American consumers are swayed by a multitude of forces. Business cycle fluctuations and vagaries in fashion are short‐term influences. Long‐term determinants include changing demographics and structural economic shifts, such as double‐digit inflation, abnormally high borrowing costs and Federal economic policies. Because of their collective effect on consumer spending, saving and borrowing habits, these developments foretell profound strategic implications for American business in the 1980s.
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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According to John Dunning’s eclectic paradigm, firms need to have ownership, location, and internalization advantages in order to cross borders and engage in foreign direct…
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According to John Dunning’s eclectic paradigm, firms need to have ownership, location, and internalization advantages in order to cross borders and engage in foreign direct investment. By drawing on historical evidence on the evolution of a group of leading marketing‐based multinationals in consumer goods, this paper claims that, despite its richness, the eclectic paradigm, and in particular the concept of “ownership advantages,” needs to be revised and extended to take into account different levels of institutional analysis. For the eclectic paradigm to give a rounded view of the internationalizing firm, it needs to acknowledge the critical importance of firm‐specific ownership advantages, such as the role of the entrepreneur.
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Lorraine Eden and Li Dai
John Dunning introduced the OLI (Ownership‐Location‐Internalization) paradigm 37 years ago to explain the origin, level, pattern, and growth of MNEs’ offshore activities. Over the…
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John Dunning introduced the OLI (Ownership‐Location‐Internalization) paradigm 37 years ago to explain the origin, level, pattern, and growth of MNEs’ offshore activities. Over the years, OLI has developed into perhaps the dominant paradigm in international business (IB) studies. However, the costs of being a paradigm are reflected in Dunning’s efforts to include an ever‐expanding array of IB theories and phenomena under the OLI “big tent.” In this paper, we focus specifically on the O in the OLI paradigm, tracing the history of Dunning’s ownership advantages. We argue that the modifications of O advantages over the past 37 years, as Dunning attempted to bring all IB phenomena and IB‐related theories under the OLI “big tent,” has had mixed results. However, we continue to believe that the typology of ownership advantages retains its relevance for IB scholars; that O advantages cannot and should not be subsumed within internalization advantages; and that O advantages are necessary for explaining the existence and success of the MNE as an organizational form
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We examine the mode of international expansion as an equilibrium governance contract between home country and host country factor owner. The focus is on agency costs, a form of…
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We examine the mode of international expansion as an equilibrium governance contract between home country and host country factor owner. The focus is on agency costs, a form of transactions costs. Two phenomena are shown to be related to the agency costs imposed by factor owners: (i) the choice of different modes of international expansion by one firm in different locations, and (ii) the simultaneous occurrence of several forms of foreign involvement in the same location. We attempt to characterize the dynamic relationship between the mode of an offshore operation and changes in factor market conditions that affect agency costs.
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Romina Gómez-Prado, Aldo Alvarez-Risco, Jorge Sánchez-Palomino, Berdy Briggitte Cuya-Velásquez, Sharon Esquerre-Botton, Luigi Leclercq-Machado, Sarahit Castillo-Benancio, Marián Arias-Meza, Micaela Jaramillo-Arévalo, Myreya De-La-Cruz-Diaz, Maria de las Mercedes Anderson-Seminario and Shyla Del-Aguila-Arcentales
In the academic field of business management, several potential theories were established during the last decades to explain companies' decisions, organizational behavior…
Abstract
In the academic field of business management, several potential theories were established during the last decades to explain companies' decisions, organizational behavior, consumer patterns, and internationalization, among others. As a result, businesses and scholars were able to analyze and decide based on theoretical approaches to explain the current conditions of the market. Secondary research was conducted to collect more than 36 management theories. This chapter aims to develop the most famous theories related to business applied in the international field. The novelty of this chapter relies on the compilation of recognized previous research studies from the academic literature and evidence in international business.