Case Study IVb Example | Topics and Well Written Essays - 250 words

IVb - Case Study Example Unlike consumption, investments are not made from the disposable income and, therefore they are better indicators of economic growth. Indeed, consumption does not have a direct correlation with people’s earnings. This is because people will tend to maintain a stable consumption despite income fluctuations. â€Å"Consumption varies less than GDP because consumption depends on disposable income† (Bade, & Michael, 2002). This indicates that consumption cannot be a better measure for economic growth. Moreover, an extreme economic situation such as booms and recession depends in investment trends (Bade, & Michael, 2002). For instance, the 2001 recession resulted from a decline in investment and not consumption. On the conference Board’s index of leading economic indicators, consumer confidence might affect investment. This is because consumers are fundamentals drivers of the economy. Ideally, consumer confidence affects consumer’s decisions, which in turn determines investment trends and capacity. Consumer confidence also indicates a sustainable investment rate. This is because consumer confidence only occurs in a stable economy (McEachern, 2012). For instance, consumers in the banking sector will be confidence with if the industry has a sustainable investment rate. In such an economy, entry and exit of businesses from a particular economy is minimal. Consequently, the leading economy index would give or gives minimal information on the country’s investment and, therefore not a sufficient

Internationalisation Strategies Taken by Xerox, Ricoh and Canon Dissertation

Internationalisation Strategies Taken by Xerox, Ricoh and Canon - Dissertation Example The case analysis highlights the approaches and strategies that these organisations had taken in the Chinese office electronics market to overcome the challenges that it poses for companies bent on internationalisation in this setting with highly peculiar characteristics. Contents Internationalisation Strategies Taken by Xerox, 1 Ricoh and Canon to Respond to Challenges 1 Posed By China's Emerging Market 1 Abstract 2 Contents 3 Chapter One 5 Introduction 5 Chapter Two 8 Literature Review 8 2.1 Internationalisation Challenges 8 2.3.1 Local Market Disadvantages 8 2.3.2 Disproportionate Operating Costs and Denial of Benefits Accorded to Domestic Firms 9 2.3.3 Cultural Distance and Market Entry Modes 10 2.3.4 Political Bargaining and Positioning 12 2.3.5 Institutional Differences and Corruption 13 2.3.6 Local Density and WFOE Performance 13 2.3.7 Organizational Capabilities 14 2.3.3 Administrative Heritage 15 2.3.4 Organisational Structure 17 2.2 Internationalisation Strategies 17 2.2.1 Exporting 19 2.2.2 International Licensing Agreements 19 2.2.3 International Joint Ventures and Strategic Alliances 20 2.2.4 Wholly-Owned Foreign Enterprise 21 2.4 Doing Business in China 22 2.5 The Global Office Electronics Industry 23 Chapter Three 25 Research Design 25 3.1 Case Study Approach 25 3.2 Data Collection 26 3.3 Framework for Analysis 26 Chapter Four 28 Case Studies 28 4.1 Short-Term Challenges 28 4.1.1 Cultural Distance and Organisational Capabilities 29 4.1.2 Political Bargaining and Positioning 32 4.2 Long-Term Challenges 34 4.2.1 Administrative Heritage 35 4.2.2 Organisational Structure 37 4.3 China Strategies of Office Electronics Firms 39 4.4 Discussion 41 4.4.1 Short-Term Challenges 43 4.4.2 Long-Term Challenges 43 4.4.3...The technology for office electronics is closely associated with communications, which was perfected in the US in the 1920s. Thenceforth until the 1970s, the US was the logical world leader in this industry, after which industry leadership shifted to Western Europe. Going into the 1990s, Japan broke into the world economic elite and established dominance over this industry, including all manufacturing activities related to electronics. Now the future of this industry is in China, the world’s most populous nation with 1.3 billion people and the axis of Asia, which in turn comprises 60 per cent of the world population. Office electronics is an $88.8 billion industry worldwide as of 2004 and still growing, with Xerox, Canon and Ricoh as the global big three. The three are just part of over 600,000 multinational enterprises, represented by about 800,000 subsidiaries, that push internationalisation in the global market (Lou, 2002). Altogether, Xerox, Canon and Ricoh account for some 28 percent of the global market through operations in mostly developed countries. Such market share, large though it may be, is proving less and less secure as the office electronics industry in developed markets becomes saturated and overcrowded (Datamonitor, 2005). For continued viability and long-term growth, the companies involved have to turn their sights towards emerging markets like China where future growth opportunities lie. China is a particularly attractive market, not only for its sheer size and cheap labour advantage.