What are some of the critical ethical challenges to firms competing in the global economy?

 **must write in own words – most answers provided – no plagiarism, please

Answer the following quest

Strategic Management: Concepts and Cases: Competitiveness and Globalization , 13th Edition

 

Answer the following questions after studying the Week 1’s content:

1. Business success is often tied to effectively managed strategies. Using the Internet, study Starbuck’s current performance. Based on analysis, do you judge Starbucks to be a success? Why or why not?.

Starbucks Corporation is an American organization that manages espresso, serving hot and cold beverages, miniature ground moment espresso, entire bean espresso, full and free leaf teas, drinks, and a few bites (Moore, 2012). The Chain was established in the year 1971 and it works 23, 450 areas across the reality where the larger part is in the United States. This makes it the most mainstream Coffee Company and café chain on the planet. The solid and notable brand name permits Starbucks to keep up its high edges concerning the general benefits and permits it to raise costs when important.

 

The examination of the organization’s deals and extension patterns shows enormous development. In the year 1984, the first proprietors of Starbucks, drove by Baldwin, bought Peet’s. During this period, the absolute deals of espresso in the US were diminishing, yet the deals of claim to fame espresso were expanding, coming about in a 10% of the market continuously 1989 (Herbold, 2013). The organization worked in just six stores in Seattle continuously in 1986 and had recently started to sell coffee espresso. At the hour of the organization’s first sale of stock on the securities exchange, which was in June 1992, it had 140 sources, with an approximated income of 73.5 million US dollars, up from 1.3 million US dollars in the year 1987. The development of Starbucks has been rising dramatically. By August 2015, the organization had opened stores in Williamsburg, Ho Chi Minh among numerous different urban areas and had made declarations that it would before long enter.

 

 

Combodia and Italy 99000 940cd 18000 16oca 14000 12cco Stores loooo 8000 boco 4000 2000 1977 1974 1977 1986 1983 1986 1989 19

 

Starbucks ‘ current execution shows that it has the stuff to pass on the strong turn of events. Through my eyes, Starbucks offers an unprecedented outline of how effectively administered systems achieve business accomplishment. The chain diners appear like it is any place in strip malls and on city streets, even though I think there is room left for extra improvements (Franta, Fluhrer, Keiter, Myers, and Feinberg, 2015).

 

Anybody feeling that Starbucks isn’t productive should look at the store improvement in different bits of the world, particularly China to see how the accompanying massive advancement stage is starting. India, which is straightforwardly on China’s doorsteps with more than 1 billion people, offers another huge opportunity to be created. Estimations show that there are 70 Starbucks stores in the entire Republic of India, and the Teavana chain can similarly acquire immense ground in a nation for its tea (Herbold, 2013).

 

There is adequately clear to legitimize my dispute that Starbucks is a victory. In any case, there are such incalculable overall possibilities, particularly in China and India, offering the extraordinary potential to pass on basically on Starbucks advancement. In China, for example, there are 750 stores opened simply inside the latest year. Also, the compelling flexible mentioning a portion application as of now speaks to 20% of the solicitation made, and this is driving the rollout of the coffee movement organizations (Franta, Fluhrer, Keiter, Myers, and Feinberg, 2015).

 

Looking at the most recent things in the show of Starbucks. New monetary experts have a for the most part fantastic chance of a solid profit for the remote possibility that they purchase the quality stock surmising that future accomplishment is throughout managed. Whatever endless people have gotten a basic stock tip in the wake of having been to the bistros and taken advantage of their tea. A bit of those customer has become long stretch speculators. In particular, the strong and striking brand name grants Starbucks to keep up its high edges concerning the overall advantages and allows it to raise costs when crucial.

 

Considering, this paper saw that Starbucks’ advancement to new business areas and things have been a victory. With the various diverse business areas that it is as of now starting by then, it is obvious that the Company will have the choice to keep up its high accomplishment even later on.

 

2. Think of an industry in which you want to work. In your opinion, which of the three primary stakeholder groups is the most powerful in that industry today? Why? Which do you expect to be the most powerful group in five years? Why?

3. Do you agree or disagree with the following statement? “I think managers have little responsibility for the failure of business firms.” Justify your view.

I disagree with the statement, “I think managers have little responsibility for the failure of business firms.” Because, management is the biggest support system for the entire organisation for bringing success. Managers have more responsibility for the failure of the business organisation, as they are the authorised and powerful people, who manage, control and use the important resources that are important for a company to attain it’s goals.

 

Managers play many roles in the firm, viz, facilitator, motivator, organiser, leader, director, guide, controller, and many more. They can really being greater profitability to the firm by optimising the use of resources and guiding the employees in a proper direction. Thus, they have a huge responsibility for the firm’s success as well as it’s failure.

Managers are primarily responsible for the failure of business firms. One should agree with this statement. Although some factors are beyond the controls of a manager, however he can save the company during such period.

 

Managers are responsible for the failure of firms as they fail to modify the company strategy as per the changes in external environment. A manager is responsible to lay down the policies and strategies of a firm. An effective manager needs to continuously review the company’s policies and practices to identify the required changes. It would help the company to maintain long-term competitiveness in the market. The main failure behind a company’s failure includes lack of character and vision of the manager. Some examples are given below:

Daniel Bouton, Chairman of Société Générale: His risk taking behavior along with lesser internal control led to $7 billion losses for his company.

Lack of vision and control of James Cayne the former CEO of Bears Stearns led to the collapse of the company.

Strategic control refers to the overall control in the policies and practices of a business firm. Contrary to this, the financial control only deals with the assets and liabilities of the business firm.

 

 

 

4. Do vision and mission have any meaning in your personal life? If so, describe it. Are your current actions being guided by a vision and mission? If not, why not?

 

5. Can a firm achieve a competitive advantage and, thereby, strategic competitiveness without acting ethically? Explain.

 

No, in my opinion, a firm cannot achieve a competitive advantage and, thereby, strategic competitiveness without acting ethically. Competitive advantage is a position that is being established by offering a better quality of goods and services to the consumers in comparison to that of competitors. This is the most important factor that allows companies to achieve increased sales volume and profit margins. Strategic competitiveness is a similar factor that describes that a firm wants to achieve its goal even in the presence of competition in the market.

Being ethical means conducting business operations in such a way that no individual is getting harm and treated fairly, there is a rational use of resources and there is no such practice that can hurt the goodwill of the company. A company that wants to establish a competitive advantage and strategic competitiveness should act ethically and if it does not, it will go down soon. When a company fulfills ethical responsibilities, its image appears superior in the market which helps in establishing a competitive advantage outside the firm and strategic competitiveness inside the firm.

 

6. What are some of the critical ethical challenges to firms competing in the global economy?

When a firm competes in a global economy, it faces several critical ethical challenges. A business should take into consideration the legal and ethical issues to gain success in the competitive environment. The common ethical challenges that the global firms face are:

– Workplace diversity- The international business gives rise to diversity in the workplace. There are lot of ethical issues in recruiting, selecting and hiring the diverse sector in a global economy.

– Equal opportunity and employment for all- This is one of the common ethical challenges by international business as it requires equal employment opportunities for all to avoid any biases.

– Trust and reputation – In order to maintain trust and reputation, the global company might face ethical challenges such as ethical dilemma in their business.

– Working conditions and standards- Sometimes the global companies maintain poor standards of working conditions to compete in the intense competitive market.

– Outsourcing its tasks and activities- Ethical challenges are involved in selecting the correct third party and outsourcing nominal tasks as per the company policies.

– Bribery and corruption – to get things done in the foreign country

ions after studying the Week 1’s content:

1. Business success is often tied to effectively managed strategies. Using the Internet, study Starbuck’s current performance. Based on analysis, do you judge Starbucks to be a success? Why or why not?
2. Think of an industry in which you want to work. In your opinion, which of the three primary stakeholder groups is the most powerful in that industry today? Why? Which do you expect to be the most powerful group in five years? Why?
3. Do you agree or disagree with the following statement? “I think managers have little responsibility for the failure of business firms.” Justify your view.
4. Do vision and mission have any meaning in your personal life? If so, describe it. Are your current actions being guided by a vision and mission? If not, why not?
5. Can a firm achieve a competitive advantage and, thereby, strategic competitiveness without acting ethically? Explain.
6. What are some of the critical ethical challenges to firms competing in the global economy?