Benchawan Poomlamjiak A0123857

Final exam
International Business strategy
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Essay
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Center for global
Global business environment can be defined as the environment in different sovereign
countries, with factors exogenous to the home environment of the organization, influencing
decision making on resource use and capabilities. This includes the social, political,
economic, regulatory, tax, cultural, legal, and technological environments.

The political environment in a country influences the legislations and government

rules and regulations under which a foreign firm operates. The economic environment relates
to all the factors that contribute to a country's attractiveness for foreign businesses.

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Every country in the world follows its own system of law. A foreign company
operating in that particular country has to abide with its system of law as long as it is
operating in that country. The technological environment comprises factors related to the
materials and machines used in manufacturing goods and services. Receptivity of
organizations to new technology and adoption of new technology by consumers influence
decisions made in an organization.

As firms have no control over the external environment, their success depends upon
how well they adapt to the external environment. A firm's ability to design and adjust its
internal variables to take advantage of opportunities offered by the external environment, and
its ability to control threats posed by the same environment, determine its success.
local for local innovation processes Innovative capacity of firms has traditionally
been explained through intra-firm characteristics. much emphasis has been put on
determinants that are external to the firm. These external factors, called knowledge spillovers,
refer to the positive externalities that firms receive in terms of knowledge from the
environment in which they operate an important difference exists between the approach of
knowledge spillover and that of socialized processes of local knowledge creation developed
by regional economists; while in the former, the mere probability of contacts explains local
knowledge transfer, in the latter, the channels through which knowledge spills over a local
area are clearly identified in the relational capital of the area. Relational capital is defined as
all relationships - market relationships, power relationships and cooperation - established
between firms, institutions and people, which stem from a strong sense of belonging and a
highly developed capacity of cooperation typical of culturally similar people and institutions.
The contrast of center for global innovation and local for-local innovation is

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Center for local innovation : when headquarters found new innovation or new
technology or new management strategy headquarters will diffuse to subsidiaries but local for
local they wont diffuse innovation or new knowledge to headquarters they just share it
between local firm because some innovation or some strategy is limit it not suit for some
country or headquarters such as in local or some subsidiaries they have some source that can
produce or use for energy then because of this can decrease cost for company but for
headquarters or some country dont have this source or this energy so this strategy cant not
adjust .
How to make center for global innovation and local for-local innovation efficiency .
According information above we know that what is center for global and what is local
for local and the contrast between 2 model so we can adjust this knowledge for promote our
company more efficient
I believe that just about every organization, regardless of size, could do more in
maximizing efficiencies, eliminating waste, sharing best practices and providing better, safer
products and services to its customers and constituents. Indeed, given the worlds limited
resources and the relentless growth of the human family, I believe every organization is
obligated to maximize its resources every day
Company or organization need to carefully do research or study advantage and
disadvantage for 2 model , center for global and local for local then try to use and adjust to
strategy for their company then their company can make efficient and more profit .

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2 Acer case
Multinational Companies (MNCs)
It defines MNC as a corporation that has its facilities and other assets in at least one
country other than its home country, or that, which has offices and/or factories in different
countries and usually has a centralized head office where they coordinate global management.
Second, it defines MNCs as a business enterprise with manufacturing, sales, or service
subsidiaries in one or more foreign countries.
Nowadays Acer had many subsidiaries in many country around the world so they can
exploiting cross broader knowledge to adapt to the global expansion environment in many
way such as exchange new knowledge , management strategy , technology and so on when
some subsidiaries found good knowledge they can share this to headquarters or other
subsidiaries so if some subsidiary they have some environment is same or similar they can
use same strategy so company can make more efficient and more profit but before company
use this knowledge or adapt something in their company they need to do research carefully
and make sure that and adapt it. For example I show example case below then we can adapt
it in some country or some subsidiaries that similar India .
Acer in India
Adhering to their philosophy of caring through innovation, Acer has equipped the
range of products with a suite of customer friendly and intuitive interfaces called
Empowering Technology that give users fast and easy access to the cutting-edge hardware
and software solutions. Fulfilling Acers mission of breaking the barriers between people and
technology, the customer-centric Empowering Technology suite brings the latest
innovations in intuitive form, allowing customers to easily experience all the benefits of an
Acer system. The Empowering Technology streamlines access to frequently-used functions

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and settings, allowing the user to enhance their computing experience in an easy to use
format designed for the layman. With just the click of a button, the Empowering Key
launches an intuitive three step process that makes it simpler than ever to complete common
tasks and change configurations.
Acer has been one of the pioneers in this industry in terms of its work in the
government projects space. They have successfully executed a very large number of eGovernance projects in various states like Gujarat, Goa, Assam, Jharkhand, Punjab, Kerala to
name just a few. Most of these projects have involved execution across vast geographies
under tight deadlines and Acer has delivered on its promises each time. they have also
partnered with key System Integration (SI) partners to address this space in a big way which
has helped us as a brand to take technology to the remotest corners of this country.
This is backed by an extremely robust service support programmer for their
customers. They have enabled toll free Helpline for both consumer desktops and notebooks.
Currently they have Acer service providers located in over 175 cities in India and over 75
Acer Notebook Customer Service Centers. They also have a unique unmatched assurance
within the warranty period to provide complete peace of mind to the customer. In some cases
for specific government projects they have even supported it with dedicated call centers to
address customer issues. Apart from this, in the regular course of business if a customer needs
any additional help or information on how to obtain repair services, they could contact any
of our Professional Service Providers. Customers may also request information on how to
obtain repair service or the location of the nearest Acer Authorised Service Provider by
writing or calling. The warranty includes International Travellers Warranty within the first
year. These are just some of the initiatives which have propelled Acer as one of the top PC
brands in the country and a key player in the government projects space from an IT hardware
perspective.

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Plans to expand your market further in India

From a government projects perspective, we are actively looking at participating in all
key projects that are coming up. It is our intention to successfully partner with various
governments and government agencies to bring technology closer to the common man. From
that perspective we will focus on customising our offerings to suit key project needs, align
ourselves with strategic partner organisations who also address this space to offer robust and
cost effective solutions in response to project needs and last but not the least keep working
on providing the highest levels of customer service on these projects.

From a technology point of view in the coming year, Acer will continue to focus on
innovations in technology across all the product categories. Looking at the notebooks
segment, Acer will continue to focus on leading the market in terms of product technology,
screens, Optical Disk Drives (ODDs), Hard Disk Drives (HDDs) and others. In the consumer
line it will focus on a lot of multi-media oriented innovations; and in the commercial line on
productivity, ruggedness and security; fully equipped with features like one touch
manageability keys, magnesium alloy casing and finger print
recognition.
Some of our key plans for the coming year can be summarised as under:
3

Offer superior design products with unmatched functionality

Focus on industry leading price performance.
Best channel arrangement to reach all targeted segments
Building appropriate brand associations/ promotions to increase brand equity

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I selected joint Venture because I believe the best and appropriate strategic alliance
format from the perspective of :
Technology for joint venture they can share technology and every knowledge that can
make company more efficient such as company A know some technology that is very good
but company B doesnt know so they can exchange and do it together for make their
company more efficient because some company had a lot money but lack good technology so
they can fulfill each other .
Competition : If in case we do joint venture difference country so we dont much
about competition in new country so is better we do joint venture because the company in
that country they know well about competition so we can learn from them so we will know
the other competitor more .
Risk : according this format is invest more than 1 firm so we can share risk to the
other firm so in case if out company lost profit our company not get hurt much .
Cost : In some project we need a huge money for invest but our company dont have money
enough so is better if we do joint venture we will have more money to invest new project.
For the other reason why I selected joint venture can see information and advantage below.
Joint Venture
A joint venture is a strategic alliance where two or more parties, usually
businesses, form a partnership to share markets, intellectual property, assets, knowledge, and,
of course, profits. A joint venture differs from a merger in the sense that there is no transfer of
ownership in the deal.
There are many good business and accounting reasons to participate in a Joint Venture (often
shortened JV). Partnering with a business that has complementary abilities and resources,
such as finance, distribution channels, or technology, makes good sense. These are just some
of the reasons partnerships formed by joint venture are becoming increasingly popular.
A joint venture is a strategic alliance between two or more individuals or entities to engage
in a specific project or undertaking. Partnerships and joint ventures can be similar but in fact
can have significantly different implications for those involved. A partnership usually

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involves a continuing, long-term business relationship, whereas a joint venture is based on a

single business project.
Parties enter Joint Ventures to gain individual benefits, usually a share of the project
objective. This may be to develop a product or intellectual property rather than joint or
collective profits, as is the case with a general or limited partnership.
A joint venture, like a general partnership is not a separate legal entity. Revenues,
expenses and asset ownership usually flow through the joint venture to the participants,
since the joint venture itself has no legal status. Once the Joint venture has met its goals the
entity ceases to exist.
What are the Advantages of forming a Joint Venture?
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Provide companies with the opportunity to gain new capacity and expertise
Allow companies to enter related businesses or new geographic markets or gain new
technological knowledge
access to greater resources, including specialised staff and technology
sharing of risks with a venture partner
Joint ventures can be flexible. For example, a joint venture can have a limited life
span and only cover part of what you do, thus limiting both your commitment and the

business' exposure.
In the era of divestiture and consolidation, JVs offer a creative way for companies to

exit from non-core businesses.

Companies can gradually separate a business from the rest of the organisation, and
eventually, sell it to the other parent company. Roughly 80% of all joint ventures end in a sale
by one partner to the other.
How to Get a Joint Venture Started
The first step to creating a joint venture is to set your goals and decide what you want
your joint venture to do. If you need help getting started with this, look at the four things a
joint venture can do that I've listed at the beginning of this article, pick one, and then
develop a goal that is as specific as possible.

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Then it's time to look for the like-minded - people or firms that might be interested in
the same goal or goals you want to pursue. Look in the business groups you already belong
to, both in person and virtually. Use your social networking connections. Study business
listings in the phone book or on Web sites to find those that might share your goals.
And be open to being asked. Once you start talking to other people about what you might do
together, a joint venture idea you havent even thought of might pop up - one with a lot of
potential.
Once you've found the people to share in a joint venture, be sure to have it all put into
writing in a joint venture agreement. I strongly recommend hiring a legal professional to do
this.
So instead of dismissing an opportunity as out of your reach, start thinking instead
about how you could participate with a joint venture. Properly planned and executed, joint
ventures can help your small business go where it's never been able to go before.