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.International CollegeCentral South University of Forestry and Technology ASSIGNMENT COVER SHEET Assessment Task: _Course Name: _ Outcome: _Prepared by: _ (English name) _ (Chinese name) _ (Candidate Number)Class: _ Name of Tutor: _Due Date: _ Date Submitted: _Your report/essay should meet the following requirements. Please confirm this before submitting your assignment.oAssignment is presented on A4 size paper and is tidily typed and well presented. oPages have been firmly stapled.oA copy has been retained by me.oDeclaration below is completed.DeclarationAll forms of plagiarism, cheating and unauthorized collusion are regarded seriously by the University and could result in penalties including failure in the unit and possible exclusion from the University. If you are in doubt, please contact the Unit Coordinator.Expect where I have indicated, the work I am submitting in this assignment is my own work._ (Signature)This section is completed by tutors Marked byDate markedGradeThe report about Global Business OrganisationName: Xiao Zong Class: 2Major: Global Economic and BusinessStudent Number: 20115432HND Number: 2011100020Date: 2013/12/12Table of Contents:IntroductionMain Contents1 Outcome 11.1 Topic 1: Historic Context1.2 Topic 2: International Expansion1.3 Topic 3: Business Structure2 Outcome 22.1 Topic 1: Global Research and Development Strategies2.2 Topic 2: Production Unit and Global Position2.3 Topic 3: Pricing, Distribution and Logistics2.4 Topic 4: Marketing Communication 3 Outcome 33.1 Topic 1: International Recruitment Policies3.2 Topic 2: Global Salaries3.3 Topic 3: Labour Relations 4 Outcome 44.1 Topic 1: Financial Decision Making4.2 Topic 2: Exchange Rate Fluctuations4.3 Topic 3: Financial Influences Conclusion References AppendixIntroduction This report is the management style report, it main discuss some problems about Microsoft Ware Company, it included almost every side about the company, this report describes types of organization structures used by organization that are just beginning international expands and how theses structures charge as the organization increases its international presence. Analyze the key factors, both internal and external that influences the design of international organization structures and explains how organizations ensure that the structure is both effective and efficient. At the same time, this report also explains the relationship between the expansion of the Organisation and its global production and marketing strategies, and it also discuss some other problem about Microsoft Ware Company, such as how a Global Business Organisation operates their financial decision making in terms of centralization or decentralization, the financial influences which may play a part in the decision of the organization to produce items in one country over another.Main Contents1 Outcome 11.1 Topic 1: Historic ContextMicrosoft Corp is one of the worlds PC pilot machine software developed by Bill Gate and Paul Alan, founded in 1975, headquartered in Redmond Washington city. Microsoft Corp is the world biggest computer software provider.In 1975, 19 years old Bill Gate from the United States Harvard University School and his high school alumni Paul Alan together to sell the BASIC also translated as medium. Name means beginners all purpose symbolic instruction code, is a programming language designed for beginners to use.In 1979, MITS Company closed, Microsoft Corp BASIC program to modify the main business continued to develop. It founded early sales of the main BASIC interpreter. At the time of computer enthusiasts often developed small BASIC interpreter, and free distribution. However, because of Microsoft is one of the few BASIC interpreter for commercial producers, many home computer producers in the system uses Microsoft BASIC interpreter. With the rapid growth of Microsoft BASIC interpreter, manufacturers began to use Microsoft BASIC syntax and other functions in order to ensure compatibility with existing Microsoft products. It is because of this cycle, Microsoft BASIC has gradually become the market standard, the company has gradually occupied the whole market. (L. R. Veysey, the Communal Experience: Anarchist and Mystical Communities in Twentieth-Century America (Chicago IL, University of Chicago Press, 1993)Now, the Microsoft Ware Company has become the biggest software research and development Company in the world and also it become an international business, its head office locates American, but it has many subsidiaries in many countries.1.2 Topic 2: International Expansion As international presence increases the organization may embark on joint ventures, have overseas manufacturing units, overseas subsidiaries, area operations or international divisions. But the Microsoft Ware company is acquisitions and mergers. In 1980, IBM Company selected Microsoft Corp to write critical operating system software for its new PC, this is a major turning point in the development of the company. Due to time constraints, complex procedures, the Microsoft Corp for $50000 from a program of Seattle Tim Patterson (Paterson) bought an operating system the right to the use of QDOS, in part changed to IBM, and named it Microsoft DOS (Disk Operating System, disk operating system). The popularity of IBM-PC machine that MS-DOS was a huge success, because other PC makers hope is compatible with IBM. MS-DOS is licensed in many companies use. So the 80s, it became the standard PC operating system. And in this year, Microsoft ware company acquisitions many other soft ware company, such as jack home company, smiths software develop company etc al. In 1983, Microsoft and IBM signed the contract; provide the BASIC interpreter for the IBM PC, and the operating system. In 1991, because of the conflicts of interest, IBM company, Apple Corp and Microsoft Corp released the cooperation, but cooperation between IBM and Microsoft have never stopped, keep the complex relations and competition cooperation of the two companies.(British Psychedelics. Unterberger, all music. Retrieved 7 June 2011.)1.3 Topic 3: Business Structure The structure of international organizations can be divided into two categories: the traditional organizational structure and global organizational structure. Traditional organizational structure in which the development of enterprises in accordance with the order from the export department is divided into structure, self-subsidiary structure, the International Department of the structure. Global organization is currently the worlds main form of organization. Organizations can structures in a variety of ways, dependent on their objectives and culture. Structure of an organization will set the manner in which it operates and its performance. A good organizational structure will allow for working relationships between various sections of the organization. It will retain order and command while promoting flexibility and creativity. Obviously, as companies grow the organizational structure will be designed to offer maximum returns.Microsoft Company uses decentralized organization structure. Conversely decentralized organization structure will spread responsibility for specific decisions across various outlets and lower- level managers, including branches or units located away from head office or head quarters. The decentralized structure has many advantages, for example, senior managers have time to concentrate on the most important decisions and decision making is a form of empowerment. Empowerment can increase motivation and therefore mean that staff output increases, people lower down the chain have a greater understanding of the environment they work in and the people that they interact with. These knowledge skills and experience may enable them to make more effective decisions than senior managers, empowerment will enable departments and their employees to respond faster to changes and new challenges whereas it may take senior managers longer to appreciate that business needs have changed and empowerment makes it easier for people to accept and make a success of more responsibility.2 Outcome 22.1 Topic 1: Global Research and Development StrategiesThe global research and development strategy has many types, such as alliances, joint ventures, organic growth, acquisition, contract manufacture and global sourcing. But Microsoft has their own strategy, because of Microsoft has own research and development team and they have the advance technical and many high quality person. In other hand, the Microsoft located near American famous university. Due to this, they have many potential technical workers, so the Microsoft ware Company do not need research and development with other ware design company, but they should learn about some information for these company to keep their strategy is new.2.2 Topic 2: Production Unit and Global Position The process for choice of production unit is important for Microsoft, because it can help them to look on product development as investment rather than risk. The process divided into a number of stages.First is creativity, it include the way you continually come up with new ideas for your business and how do you capture and assess these ideas and distil them down to the ones that are worth investing more time and effort in. Second is defining the concept, this requires a number of questions to be answered. Such as what is the market potential? Is it technically feasible? How will the competition react? And so on. On this information the decision to go ahead and invest will be made. Then is developing the concept, generally speaking, the stage of early defined customer requirements, followed by translated into some form of prototype or pilot service. To solve this problem, the key lies in the customer requirements into perception of a possible solution to their needs. In fact, in the design and development of product or service, will continue in later stage of refined products, services, and release to the market. Fourth is testing and finalizing the concept, this is sometimes referred to as alpha and beta testing of products. It is the controlled release of the product so that the sales, customer, manufacturing and support organizations can test and modify the product. Fifth is full product launch, this is probably one of the most difficult and expensive stages. It includes developing the market, the correct sales channels, ramping up the volume of business and supporting the product. The last step is managing the life cycle, managing the decline of a product, or extending its life with a mid life kicker, is often not considered. Unfortunately when this activity is not planned the need to develop new products is often triggered by falling sales. At this point there may not be enough time for new products to be developed.(P. Houe and S. H. Rossel, Images of America in Scandinavia (Amsterdam: Rodopi, 1998), p.77.) 2.3 Topic 3: Pricing, Distribution and LogisticsPricing and distribution policies are most important for Global organization. There are some factors will influence it, such as currency fluctuations, government or legislative controls, level of disposable income, inflation and cost of living and competition will affect the selling price of product. But transport infrastructure, retail and wholesale market structure and location and density of customers will influence the distribution policy of products. So Microsoft should according to self condition to choice a right pricing and distribution policy to achieve success in target markets. In the pricing and distribution policy, logistic play an important role because it is in the chain of suppliers, manufacturers and customers, so logistics should be operate at the right time, right quantities and right place and it will help the organization save time and money and increase profits. Due to the logistics is the process that the product out of the manufactory and put into the store. So the logistics make the product packaged and transport the product to store all over the world. Therefore Logistics will help the organization know how to improving intra-company communications and help identify the potential areas of weakness. Also help company researches untapped sources of competitive advantage such as cooperative supply chain, initiative that could be maintaining future cost competitiveness and solid client relationship. Even if make company understand problems in the supply chain, which can be improved in future operations. 2.4 Topic 4: Marketing Communication Twenty-first Centuries is a social society. In the life each day we will communicate with others. Communication with us whenever and wherever possible, communication is the lubricating oil in our work, life. Communication is to eliminate the gap, to reach a common vision, the bridge and the link towards a common goal. Communication is the process of learning, sharing, the exchange can learn from each others strengths and skills, improve personal accomplishment, and constantly improve themselves. And communication not only have affect for individual, but it also have influence for sale of goods.In sale of goods, clear communication is important, because clear communication will make company know what product and services is the customer need, clear communication also develop the motion of two sides, increase the possible of success sale of good. Clear communication will help the two sides know what require and demand for each other. So clear communication in the global market place will aides to successful marketing of products. 3 Outcome 33.1 Topic 1: International Recruitment PoliciesThe organizations policy for recruitment to senior positions on a global basis are different in different countries, it main including competence, knowledge skills, language skills, ability to adapt to change, education, experience, self reliance, health, family, motivational and leadership potential. In the Microsoft ware company have their own recruitment policies.Competence, this means that the company should decide whether the candidate is suitable for the one for overseas assignments or business. This is almost the most important part in a firm to decide and pick up the right staff for overseas negotiations or other activities.Knowledge skills, if the candidate has board knowledge on different aspects of business, not just focus on the work itself and then he would have a fantastic opportunity to go aboard for company. But the basic knowledge skills related to the jobs are definitely necessary.Language skills, going aboard also needs advanced language levels. So the company should of course take the candidates language levels into considerations. And of course the different countries have different language requirements. Ability to adapt to change, that means the person representing the company in foreign countries should be flexible to face different sorts of difficulties. Experience, experience like overseas working experiences should also be a factor to select right person for foreign business. If the candidate has overseas experiences, he may be more qualified than other candidates.Self-reliance, the company should also consider candidates ability to survive with little assistance. The employees should live independently and alone.Age, age is another essential factors in deciding an appropriate person for overseas work.Education, if the person is well-educated, then he should know the criteria or overseas living, and he definitely would have professional skills in overseas living. Health, the candidate should have a good physical condition. Otherwise, the overseas work well is risky for him.Family status, the company also should asses his or her marriage condition Motivational potential, the company should guarantee that the targeted employee only for their company when going aboard rather than looking for a job in overseas.Leadership potential, this kind of quality is needed in teamwork. 3.2 Topic 2: Global Salaries The Global salaries included many sides, such as basic salary, allowance, taxation, additional benefits and holiday allowance. Now, I will introduction them clearly in follow. Basic salary means the minimum wage given to workers in a company. Usually various corporations have different wages criteria for the employee.Allowances means some authority support the workers using a subsidy like covering up the cost of living or relocation.Taxation means the process whereby charges are imposed on individuals or property by the legislative branch of the federal government and by many state governments to raise funds for public purposes. Almost everyone has to be charged on income as well as company. So this is also a factor that contributes to the compensation packages.Additional benefit includes health insurance, pension, housing, travel, bonuses. Health insurance is the fundamental needs for every employee which means the sick employees can get some support from the company and cover some expenses. Pension means that when the employee retires from the company and he also can get fixed payment.The last is holiday allowance. Holiday is the basis rights for employee, the worker will work well after get a good holiday rest.(A. Bennett, Remembering Woodstock (Aldershot: Ashgate, 20
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