Entrepreneurial Orientation and Export Intensity - Free Samples

Question: Discuss about the Entrepreneurial Orientation and Export Intensity. Answer: Introduction Kareska (2016) stated that globalization is a process that is adapted by the organizations to expand their business operations and to develop international influence on an international scale. Stromquist and Monkman (2014) on the other hand stated that there are the economic activity of the organization that takes place across different countries is termed as global business and the process to attain the same is known as globalization. However, contemporary organization faces series of difficulty in making the business function global. This essay will highlight the problem faces in management practices by Australian companies during the transition process of globalizing the business. Additionally, this essay will also emphasize on the organizational behavior and management theory that can be utilized for analyzing the underlying values of these theories. This essay will also demonstrate the impact of the implementation of the management theories and organizational behavior on the pra ctice decisions making ability for Australian business. Contemporary organizations desire to make their business global for expanding their market share, increase their profit base, reducing the production cost and become more competitive (Taube et al. 2014). However, the difficulties that Australian organization faces due to globalizing their business are- accelerated pace of change, maintaining a diverse workforce, implementing variability of technology, fluctuations of the economic conditions and market, complex managerial environment, maintaining ethical standards and political policies of different nations and practicing global crisis management (Kareska 2016). These highlighted problems are also demonstrates the challenges of organizational behavior. Bond and O'Byrne (2014) furthermore highlight that management and supervisors should also possess the knowledge regarding the overseas business and people of the nation in order to align their workforce with all the industrial sectors. This process is a part of the management theory and is important for the companies that desire to perform in international context. Stages in the phase model of globalization The stages of the phase model of globalization includes- exporting of the products, generating cooperative contracts, developing strategic alliances and wholly owned affiliates. However, strategies like global new ventures help an organization for being more global and less domestic. Ruggie (2017) stated that in order to make the business global, there should be large number of export from the home to host nation. On the other hand, cooperative contracts illustrate the relationship between the state government and the company of the nation (Warszawski et al. 2014). The government of the nation provide fund to the business authorized by public statute in order to expand the business values and nations economy. Picciotto (2017) moreover states that there should be some agreed upon agreements between two or more parties in order to make entry in new geographic market and this is known as development of strategic alliances. The term wholly owned affiliates comes into consideration when s ome Australian company intends to acquire other company in order to enhance their brand presence. Filatotchev and Nakajima (2014) stated that exporting business materials to other nation need the awareness of the culture of the host nation, political instability, knowledge about legal system and have proper source of funding. Australian contemporary organization faces the problem that of deciding the skill-sets that match with the requirement globalizing their functions. The strength of the exporting phase highlights the ability of the organization to ship their materials to the other nation. However, the weakness of this phase is that the contemporary Australian faces the problem in communicating with people of other culture and tradition. This results in less understanding of the customers and business partners which furthermore leads to poor business relations in the globalization process. Kolk (2016) stated that Australian organization focuses on the political impact of the host nation but omit the economic and social impact of the political instability which leads to further loss in market and a failed globalization procedure. The cooperative contacts in globalization allow the Australian organization to get enough financial and non-financial resources for expanding the business. However, the managers have to provide proper justification regarding the funding and the blueprint of the usage of the funds and the benefits that the organization and the Australian economy will attain (Cheney et al. 2014). Wirtz, Tuzovic and Ehret (2015) argued that the lack of future perception and insufficient planning of the funds results in adverse impact on the economy of Australia. Taken for instance, in Australia, marketers make their price a competitive in order to establish themselves in global market. As a result, they have to lower their production cost which furthermore results in lower labor wages and unemployment (Fernndez-Mesa and Alegre 2015). Child poverty is also the main reason in Australia that is generated due to the impact of globalization. Wirtz, Tuzovic and Ehret (2015) furthermore highlighted that if an Australian organization selects a developing nation for their business expansion, lack the resources and human force furthermore lacks in business profits. The culture difference and lack of adaptability of this diversity in their organization become the major challenges in formulating strategic alliances. Experts say that lack of innovation in the Australian company is the major reason for matching their partnership goals with other nation in host countries (Kolk 2016). Other nations spend a percentage of the annual revenue in research and development so that new innovative ideas can be explored; on the other hand Australian companies are more task-oriented and values only profitability. The managers of the Australian company have to be more specific about the cultural beliefs and the working competency of the other nation so that the home and the host countrys people can collaboratively work together for greater productivity and profitability. The advantage of the phases of the third phase that is wholly owned affiliates is that it allows Australian company to establish their brand value and brand position in other nation (Filatotchev and Nakajima 2014). Picciotto (2017) furthermore depict that wholly owned subsidiaries resulted in higher profitability. However, Ruggie (2017) argued that the managers of Australian company lacks strategic vision towards executing strategic priorities for developing wholly owned subsidiary. This resulted in poor direction regarding operational control towards their subsidiary (Stromquist and Monkman 2014). Kareska (2016) stated that this lack in strategic perception does not allow the managers to negotiate better terms with suppliers by combining the size of the parent and the subsidiary company. Conclusion: The entire study has provided in-depth overview on how contemporary business organizations of Australia from different sectors are facing innumerable challenges in establishing their entire business wings in the international market. With the rapid growth of globalization business organizations have to render diversity within their products as well as services. As emphasized by Wirtz, Tuzovic and Ehret (2015), globalization has left major impact in business growth of Australian industry. At the same time, it is undeniable that the entire organizational have faced immense challenges in fulfilling the needs and demands of customers from diverse cultural backgrounds and attitudes. Employees associated with the business process have to face immense barriers such as linguistic barriers, cultural barriers and psychological barriers for maintaining business glory and reputation. The study by using phase model has critically evaluated on how an organization can expand their entire process of business beyond going the regional market (Kolk 2016). The study has critically evaluated the emergence of strategic innovation on various business industries of Australia. In order to draw the attention of global customers the organizations should render product strategic diversity at the workplace. Influences of globalization on the overall progress of contemporary business organizations of Australia are critically analyzed in this very specific study. Reference List: Bond, C. and J. O'Byrne, D., 2014. Challenges and conceptions of globalization: An investigation into models of global change and their relationship with business practice.Cross Cultural Management,21(1), pp.23-38. Cheney, G., Santa Cruz, I., Peredo, A.M. and Nazareno, E., 2014. 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