Information On Conducting Business

Companies that want to take advantage of growth opportunities, economies of scale, resource access and cost savings, incentives, trade barriers, regulations and restrictions, customer demand, and globalization of competitors can always use the Web to support negotiations.

This Negotiation Support Systems (NSS) enhances

• the chances of reaching acceptable agreement between both parties
• reduces or eliminates the direct and indirect costs involved in negotiations, such as costs incurred by unproductive time and legal services
• Maximizes the chances of maximum production

Most domestic companies are using e-business, e-commerce, e-negotiation, and e-market places to act global and at the same time stay local.

-Dr. Sidney Okolo

Performing Companies 

In the business domain, goals are set depending on the organizational culture of the companies involved. Few companies go global outright by expanding to other countries. Examples of such typical companies are Oil companies, Halliburton, Avon, Mc Donald, AT&T, and MCI. These companies make huge revenue from globalization. Some companies, such as Wal-Mart, toy companies, and Auto Industries, use a different approach. They outsource part of their department to developing countries through horizontal integrated process.

Which one represents the best strategic approach for growth potential? The answer lies on the companies’ culture, products, and tolerance in risk taking. Most companies assume aggressive approach in order to take comparative advantage over other companies. The companies that assume the greater risks are the ones that usually come out better off. Halliburton and MCI have their major office outside the United States, which helps them save some operating costs (taxes, wages, and resources). Companies like Wal-Mart, and toy companies prefer to head-quarter in the United States, while outsourcing part of their division. Lastly, some companies choose to stay in the United States and do the buying and selling globally. This is typical of service oriented industries.

Hence, most companies decide how big they want to grow, and that leads to the kind of strategic approach to their business and economic success.

-Dr. Sidney Okolo    

Global Opportunities

Almost everyone can take advantage of trade-lead Web sites or can go to global conferences or trade shows. The small businesses of today are the multinationals of tomorrow.

Global companies are becoming less tied to specific locations, and their operations and allies are spread around the world, as they source and coordinate resources and activities in the most suitable areas and as technology allows faster and more flexible interactions and greater efficiencies. This phenomenon is not limited to large companies.

Global management is the process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage. Management functions are shaped by the prevailing conditions and ongoing developments in the world. As mangers expose their companies in certain countries, they need to investigate the implications of political risk, terrorism risk, economic risk, contract laws, and how to manage them in order to minimize the risks.

-Dr. Helen Deresky.