How Do You Account for the Rise of the Born Global Essay

Since 1980s, along with the development of economic globalization, there is a new form of enterprise internationalization in the global range which called Born Global enterprises. This type of firm normally engages in significant international activity and promptly starts penetration to the international market from its establishment. But more remarkably, those Born Global firms get involved in international market and participate in international competition without any previous experience. The first purpose of this paper will focus upon the explanation of the reasons for the rise of Born Global based on relevant theoretical studies and characteristics. The second section of this paper provides a selective example of Chinese Born Global firms which focus on explain and analyse the reasons for emergence of Born Global phenomenon and assess the influence and benefits to the development of internationalization on Chinese small and medium-sized enterprise( SMEs). An Explanation of Born Global Characteristics based on Typical Examples The Born Global firm is defined as â€Å"a business organization that, from inception, seeks to derive significant competitive advantages from the use of resources and the sale of outputs in multiple countries† (Oviatt and McDougall, 1994, P. 49). While Knight and Cavusigil (1996) think Born Global refers to those small technology oriented business that engage in operating international markets since it has been in early stage of being established. Therefore, from the stated definitions above, we can get basic characteristics of Born Global. Furthermore, there is a variety of reliable samples for Born Global which reveal that the typical characteristics of Born Global. For instance, History and Heraldry is an England company that specializes in gifts for history buffs and those with English ancestry. History and Heraldry was selling in 60 countries, with exports generating about 70% of total production. The biggest markets the firm target in are France, Germany, Italy, Spain, and the United States (Cavusgil and Knight, 2009). Another example, Cosmos Corporation Inc. s a young company in US that produces telescopes and various optical devices. Cosmos has begun selling its products in Japan and Europe since it has been founded for a few years. Moreover, the firm had expanded its scales to 28 countries around the world soon after that (Knight and Cavusigil, 2009). Thus, from previous examples, we can see that companies conduct international business at or near their founding and have engaged in international business throughout history and gain competitive advantages by seeking a wide range of resources located around the world. Furthermore, Born Global firms are characterized by limited financial and tangible resource. The Reasons for the Rise of Born Global Since the early 1980s, international business rapidly developed which is initially facilitated by the globalization of markets. Historically, the most internationalization business appeared in advanced-economy countries such as North America and Europe, Japan. However firms today increasingly target emerging market, such as Brazil, China, India, Mexico (Wall, Minocha and Rees, 2010). As there are substantial market opportunities even in developing countries, meanwhile companies seek growth via market diversification and gain economies of scale in production and marketing, basically most Born Global firms achieved considerable success in international business early in their development. In the last decades, internationalization was in the field of large multinational enterprises (MNEs), however, globalization trends and high technology have facilitated the emergence of born global firms in recent years. The appearance of plenty of Born Globals helps to reshape the global economy; these firms tend to be formed by entrepreneurs with a strong international outlook and managers regard the world as their marketplace, normally emphasize international market skills. Integration and growing interdependence of national economies have both facilitated. In addition, the national governments tend to reduce trade and investment barriers also facilitated the internationalization of more firms. Therefore, the emergence of Born Global firms becomes an important trend. Secondly, the modern information technology is essentially making company internationalization cost-effective. The internet provides databases, references, and private system which rapidly increased the ability to internationalize and target numerous countries simultaneously (Zou and Cavusgil, 2002). Thirdly, enterprise founders have strong entrepreneurship; this is an important reason for the rise of Born Global enterprises. As the enterprise will face more risks and uncertainty than the omestic market when it enters into international market, therefore, only those with strong entrepreneurship will take risks of internationalized operation and seek various resources to create competitive advantages, and realize international strategy. Again, Enterprise management team with sufficient international management experience and knowledge lay the foundation for the rise of Born Global. Moreover, this would relatively reduce the risks and uncertainty for entering the international market which improve the success probability of international business. Meanwhile, those entrepreneurs are more confident for internationalization, therefore it is naturally for such enterprises choose involved into international market after establishment. Finally, the diversification of products and markets create advantages for the formation of Born Global enterprises (Andersson and Wictor, 2003). Along with the development of economic globalization, the consumers’ demand trend to homogeneity in the world region which makes easier to sell the same products in different countries and regions. The Reasons for Emergence of Born Global Firms –Taking China as an Example There is an example of Zhejiang Born Global firms which indicates the motives of Born Global enterprises. Yang (2007) thought that the entrepreneurship, organizational learning and the enterprises network are the initial causes. Zhao (2004) demonstrated the importance of the global economy, niche market, technology improvement, and the implicit sensitivity. Comparing with the Born Global firms oriented high technology abroad, most Zhejiang Born Globals focus on the traditional industry because of their traditional inheritance. Basically, the motives of Zhejiang Born Global firms is attributed to the unique entrepreneurship, the network of business globally, the precise niche market, and technological development. Firstly, Zhejiang is famous for its private economy in its inception and booming stage, and the innovation is key factor of the Zhejiang entrepreneurship. Moreover, the core competency of Zhejiang is being good at seeking market opportunity and starving for change which create advantages for the formation of Born Global. Above all, the entrepreneurs are scattered in government administrative departments, private owned firms who are talents for Zhejiang economic development, so as lead the small and medium-sized born global enterprise. Secondly, the niche market is crucial for the Zhejiang born global enterprise (Robinson, 1986). As limited natural resource and size, it is difficult for Zhejiang small and medium-sized enterprises to compete with the large scale rivals. Therefore, they normally choose niche market at the early stage and concentrate on international market, then expand their market frontier, afterwards build the competitive barrier, and finally, achieve competitive advantage in global market by stages. Most importantly, these firms focus on the specific industry and reply on the persistence to obtain the profitable market gradually. Thirdly, the previous international management background is very helpful for the Born Global enterprise. Once the firm gets involved into international markets and obtain much international experience, they start to employ top foreign talents to conduct research and development in order to extend the global market within expected period. On the other hand, Zhejiang government provided favorable policy to encourage and attract overseas to start their business in Zhejiang during the last decades, which ensure the firms booming in the international market rapidly. Finally, the Zhejiang Born Global enterprise is famous for its extensive enterprise network which refers to interpersonal relationship (Freeman, Edwards and Schroder, 2006). This kind of relationship network promotes their business. For instance, after contacting with Wenzhou businessman who has settled down abroad, Wenzhou lighter will march into international market and get the most shares in light industry soon, which makes the company dominate comparative advantages over the rivals. Furthermore, Zhejiang Born Global enterprises normally set up overseas industries zone led by powerful firms and attract other enterprises to settle down in order to avoid the marketing risk. However, the Zhejiang Born Global enterprise not only makes full use of current network, but also develop new network to make the global network perfect. Therefore, the more extensive network they have, the more resources they share. Conclusion With the further development of opening up and reform policy, more and more Born Global enterprises have been found in China and many other countries and regions. It is of practical significance to study the characteristics and the reasons for the emergence of Born Global phenomenon, which provide eference for small and medium-sized enterprises (SMEs) to march the international markets. Furthermore, along with economic globalization and marketing integration, the Born Global enterprises, emerging as a new kind of enterprise, have become popular and attractive recently. Based on the explanation and analysis of Born Global phenomenon above, the main forming reasons of the Born Global including entrepreneurship, niche market, international management experience, and extensive enterprise network. There are crucial factors for the rise of Born Global. China has joined the WTO, economic globalization, consumption personalized and the development of information communication technology which are indicating the business opportunities for small and medium-sized enterprises internationalization. In addition, Chinese government officials and departments are beginning to make policies for supporting the small and medium-sized enterprises (SMEs) internationalization in order to encourage the SMEs engaging in international competition and improving the international competitiveness.

Importance of Friends Essay

â€Å"The silver friend knows your present and the gold friend knows all of your past dirt and glories. Once in a blue moon there is someone who knows it all, someone who knows and accepts you unconditionally, someone who is there for life.† This is a quote I read once in an article by Jill McCorkle in my cousin’s house. McCorkle’s description of a â€Å"gold friend† describes a friendship that I have with a group of girls who mean the world to me. These friends are the pearls of my life. This word bears its great meaning to me and only to those who could understand the greatness of its meaning. It’s something sacred, it needs to be cherished and build up for many years with much care. It’s a complex, magical process, which must contain fluid that will start spinning the wheel. Let me tell you something about my friends.When I was a freshman in high school, I became friends with these girls-Guia,Krisha, Carla, Magz, Cj, Jian, and Chantel. Since the beginning of that year, we have all been best friends. There were many times we rode around together. However, this particular Jeep ride was very significant because I realized what friendship is all about. One Tuesday night, we all went to Greenwich in SM, except Chantel, and eat there with the parents of Guia because it was the celebration of her birthday. This experienced will remain and will never be erased from me because it was one of the happiest things that had happened to me. Friendship like ours was something many people had never experienced. To me, the significance of our relationship is a unique bond that I feel with these ladies. They are like sisters that God did not give me. They have been there for me at times when my world was falling apart. As I finally drifted off to sleep that night, I thanked God for allowing me to have them in my life. These eight girls, including RIchel of course, have been my guardian angels. I have always been able to count on them, no matter what the situation is. They have helped me face the next day when I did not know if it was possible. We have been through everything; we have laughed, cried, and then laughed at ourselves for crying together. There have been many times when I have been lonely and I reminisce back to the experiences I had with them. It reminds me that there are people who care about me and accept me for who I am. A true friendship is a magnificent thing and as Talbot Jennings said â€Å"Friend is the finest word in any language. Life without friends is a life I could not imagine.

Trail of ghenus khan

Mr.. Genesis Khan not being civilized, I believe that the Mongol Warrior (Adam) helped bring out the fact that Mr.. Khan was Indeed innocent of this accusation. This Mongol warrior brought forth the fact that they did indeed give the civilizations a chance to surrender to the Mongols. The Mongol warrior also acknowledged the laws that Mr..Khan had made, (This was backed up by the Historian Javelin (Rachel) and the research that was done by that errors). He also brought forth the fact that, many people thought that there warfare, was part of being civilized, but when we asked the prosecuting witnesses, (the ones before the Mongol Warrior was called up), what the deflation of being Cleveland was, many of the prosecuting witnesses did not Involve warfare Into their definition of being civilized.The Mongol warrior also helped us when the other prosecuting attorneys tried to ask him questions that were related to warfare, Instead of being elated to the main question, â€Å"Is Mr.. Khan c ellared, we then brought them to a dead end, with us (the defensive attorney's) putting objections towards their questions, because their question's had nothing to do with the main topic of the trial. The prosecuting side then ran out of questions to ask, due to irrelevance of the questions that they were asking.On the opposing side, the Mustangs, caliph of Baghdad (Harrison) presented the most convincing evidence, to go against Mr.. Genesis khan. This witness was a victim f the torment, this man was, I believe, rolled up in a carpet drug around beaten and trampled until dead. This man also had answers for most of our questions, and was ready for almost anything. In this simulation, I liked that we all worked together as a group, and we each had an important part in the trial. When we work as a group, the work seemed to go faster.For instance, my partner and I were both defensive attorneys, and when it came to looking for questions to ask our witnesses, we were both able to come up tit many different kinds, and when we were up there asking the questions we both took turns asking them and retrieving the answers. With the work going faster, and being divided up, it made it easier to develop a better understanding of what we were studying. I believe that the simulation was Just fine, but I feel that we should have had more time to debate about the topics, and maybe a little more time to get things prepared and ready for the trial.BY erne indeed innocent of this accusation. This Mongol warrior brought forth the fact that caked up by the Historian Jiving (Rachel) and the research that was done by that before the Mongol Warrior was called up), what the definition of being civilized was, many of the prosecuting witnesses did not involve warfare into their definition of attorneys tried to ask him questions that were related to warfare, instead of being related to the main question, â€Å"is Mr.. Khan civilized? â€Å", we then brought them to a dead end, with us (th e defensive attorneys) putting objections towards their questions,

The Strength of Weak Ties

Here I would like to emphasize a bit on Social Capital. Social capital according to me is the pool of ties that a person encompasses during his lifetime including strong and weak ties. Persons with higher social capital are bound to be better off with greater health and general well being. Social capital helps to leverage the people we communicate with for the benefit of our shared and individual interest. We can relate this with a famous punch line – â€Å"I scratch your back, you scratch mine. The basic hypothesis of Granovetter’s work is that our acquaintances play a very important part in connecting different networks to one another. A personal example which I would like to share is that I have around 30 very closely knitted friends and family members and about 300 odd acquaintances. These acquaintances are comprised of my old classmates, co-workers and some friends through social networking groups. In the digital world these are friends connected through facebook, LinkedIn, orkut etc. Personally speaking it makes sense that in some cases my family and my close knitted friends are best suited to provide me with quality options and choices. For the most part I believe this is true under certain circumstances during personal care when I am sick or when I need advice for some personal decisions in life. But when it comes to looking out for a job the theory comes true to life. I would be naturally tapping my network of acquaintances and assuming I have a good amount of social capital in my network, I would be more likely be presented with more opportunities than my family and close knitted friends. Another example explaining the theory of weak ties is between the social networks existing in this globe. We can take an example of how LinkedIn is different from Facebook and why that difference matters. Weak ties are the social â€Å"degrees of separation† beyond the people we actually know. Facebook primarily is about knowing who you know, connecting with people who are already in your social circle. In my experience it does little to help you develop weak ties and it does nothing to introduce you to people you do not know. There is an interesting paradox that Facebook, perhaps, reinforces our stereotypes, because we are just getting content from our mostly like minded friends. LinkedIn by contrast, is about helping people expand their circles and improve their opportunities. LinkedIn has been slower to take off because it is a harder â€Å"get. † Beyond being a resume building site, why do I need this? If I'm not looking for a job or to find sales leads, why bother? Once you look at it from a content perspective, however, the benefit becomes clearer. Those â€Å"weak ties† provide you with â€Å"micro-nutrients† that your â€Å"strong ties† may not. Further investigation into the analogy of strong and weak bonds in physics is warranted, but the most immediate application in terms of content strategy is the serendipitous model of magazine content. If we consider content that a reader is looking for (through a Google search, for instance) to be strongly bonded, then the content they find along the way (in sidebars and various â€Å"asides† to use the html5 term) are weakly bonded. Magazines have always created content environments where their readers discover new things—and some of those things are advertisements. This serendipity of discovery is key to the pleasure of magazine reading and the financial success of the magazine business, but it has not translated all that well online. To end my observations I completely agree with this theory however I would like to bring an important aspect that a perfectly balanced strong and weaker ties help an individual to do the best and for the society at large. Thanks & Best Regards Pranav

Final Research Paper Example | Topics and Well Written Essays - 500 words

Final - Research Paper Example Social media plays several functions. In previous generations, before the advent of social media, people relied on traditional news outlets such as television, radio, and newspapers. Fast forward, and nowadays people log into their social media accounts to see current trends (Ahn 1436). For that reason, social media is a source of information, available on a handheld gadget. In addition, several people have started their businesses online, and thus, it is a form of startup and a means of employment for both ordinary and techno savvy individuals (William 11). Finally, social media allows people to show their emotions transparently and reveal their whereabouts in a general manner that alerts their friends. There are several benefits of participating in various social media. Firstly, social media keeps people up-to-date and informed about current events (Pernisco 12). Although it may sometimes be unreliable in terms of content, it is the fastest source of information in the modern world. Secondly, social media promotes social justice. The ability to express opinions online reaches several people and concerned parties. For that reason, a mass of people can pass a point across, create social awareness, and in consequence, enhance social justice. Thirdly, and most importantly, interconnectedness through social media promotes tolerance of other cultures and races. Social media enables people from different regions to interact like friends. There are several drawbacks of participating in various social media. The loss of face-to-face interaction is one of the detrimental effects of social media in my life. I am unable to communicate and relate with friends as I used to during my childhood years. Illiteracy is another detrimental effect (Pernisco 8). The use of slang and shortened abbreviations has lessened the level of literacy of most people in the society. Overall,

Vivendi Universal Case Assignment Example | Topics and Well Written Essays - 750 words

Vivendi Universal Case - Assignment Example In the case of EBITDA, deprecation and amortization which does not involve the payment of cash but represents estimated annual charges for tangible and intangible assets respectively are not taken into account. These charges relate to the portion of assets used up during the period. Operating free cash flow which is seen as a more useful measure is the net operating capital after tax with a deduction for expenditures on operating capital during the period (Brigham and Ehrhardt 2010). Increasing free cash flow (FCF) is seen as the means by which managers seek to improve their company’s valuation (Brigham and Ehrhardt 2010). FCF takes into consideration interest and taxes as well as the company’s gross investment in operating capital in order to determine what is available to be distributed to investors. EBITDA does not differ from accrual earnings as it takes into consideration revenue earned during the current period but not yet received as well as expenses incurred but not yet paid. However, it does not take into consideration interest and taxes which relates to the net income earned during the period. Additionally, depreciation charges which seek to allocate the cost of operating assets over their estimated useful life and amortization charges on tangible assets for which amounts are capitalized in the accounts. Operating free cash flow differs from accrual earnings because it not only focus on expenses incurred during the period and revenue earned during the period but also investments in operating capital – fixed or non-current assets and current assets. Earnings accrual does not take gross investment in operating capital into account. I believe that auditors should be held responsible for auditing such information since the income statement and the cash flow statement form part of the financial statements that they provide opinion on in there audit report. They state whether these and

Should the Multinational Firm Be Involved In International Business or Essay

Should the Multinational Firm Be Involved In International Business or Investment with a Developing Country - Essay Example In this study, Supermart is taken as a frictional multinational company which is based in the United Kingdom. It is a developed country. Supermart is a retail company doing its business for a long time in various countries of the world. It is one of the largest companies in the retail industry segment of UK. But for the large numbers of players the market of UK has become very much saturated which limits the growth of the company. Therefore expanding its business internationally will help this retail company to generate more revenue by acquiring the new customer base. For this reason, this UK based company has made a plan of expanding its business in the emerging market of China. Supermart can have many benefits and advantages of this decision. China is experiencing a huge growth in its retail market. A significant rise in the income of household people influences the retail industry of China to grow. China is a developing country having an emerging market. The improvement of the Chi nese economy Influences its people to spend more which becomes an advantage in its retail industry. The purchasing power of the people is increasing in this country which leads to the rise in demand. A positive marketing environment is created for this reason. The government of China is providing business licenses to many new companies for the development of the country. But in some cases, its government policies create many difficulties in case of foreign companies for establishing its business. Some of the reforms of China opens the country’s market and attracts many big companies. The political factor of China influences a lot in its national institutional system. Previously there were many trade regulations in the retail industry sector of this country. This industry was not considered as a prestigious industry by its government and it was not sanctioned. But modernization of China facilitates the growth of its retail industry. The open market system of the country influe nces its institutional system. The economic system of China has become market-oriented economy. The country has become a significant player in a global economy. It supports the growth of its private sector industry. For business operations, the country maintains strict regulations and laws. There is a specific framework under which the companies have to operate its business.