Phase 5 Individual Project Assignment Example | Topics and Well Written Essays - 2250 words

Phase 5 Individual Project - Assignment Example Analyzed from a business perspective, globalization refers to the process in which domestic companies seek international markets to expand their operations (Intriligator, 2003). According to Michael (2003), globalization of a company is a powerful trend in the current global competitive market and is one of the major factors that influence the future growth of a company. Globalization of the world economy has made the world become a global village where anyone can get whatever he wants from any part of the world. Today a company’s employees, competitors and customers can come from any part of the globe. In addition to increasing the market, globalization has led to the development of many companies both local and multinationals and invention of new products, this has made the market to be very competitive and a number of companies find it hard to survive (Collier & Dollar, 2002). The following discussion will present the importance of globalization, expected challenges and exp lain why the company should go global. 2.0 Globalization of company’s operations Globalization of the world economy has increased both bilateral and international trade thereby opening up many countries for companies to venture into. Many companies such as our competitors have expanded their operations to overseas markets and have reported significant success in those markets. Before venturing into new markets especially foreign, it is important to have a perfect strategy that will help the company take over the market with ease. With our global market strategy in place, the company can adopt both cost leadership and product differentiation in order to properly position its products well in the market. Cost leadership strategy is the one being applied by our competitors and they have reported good performance with it (Britt, 2007). Over the last two decades, companies all over the world have gone global a move that is threatening the survival of the local companies. This has made it hard for these companies (local) to expand their operations and even some lose their market share. This is clearly evidenced in the company’s analysis report that reported a decrease in the company’s sales volume as a result of the move taken by competitors who have already ventured into foreign markets. In order to compete fiercely and regain its market share, the company has to outdo its competitors which mean engaging in aggressive expansion and marketing programs which will lead to the growth of the company. According to Mike Myatt, Chief Strategy Officer of N2growth, he states that the ability to do business in international market is an important necessity if one is to remain competitive in the current market. Operating a business in the international market is both a defensive and offensive play. Comparing the international market and the domestic market, it is with no doubt that international market is wide and majority of potential customers are living abroad (Myatt, 2009). Considering the move taken by our competitors and the success they have recorded in foreign markets and the dwindling sales in the local market, it is paramount for the organization to go global. 3.0 Rationale for globalization Globalizing a company’s operations in the current competitive environment is one of

Changes in the Banking Industry Essay Example | Topics and Well Written Essays - 500 words - 1

Changes in the Banking Industry - Essay Example The capital ratio stands at 11.39% in 2010 when compared to 8% in 2006. The number of institutions reporting to the FDIC has decreased from 8833 institutions in the year 2005 to 7760 institutions in 2010. The number of problem institutions has increased drastically on a year on year basis from 552 in 2009 to 860 in 2010. The number of failed institutions has also increased to 127 institutions in 2010 from just 3 institutions in the year 2007. Bank’s return on assets which refers to net income as a percentage of total assets, increased which suggests that the banking industry is able to garner more interest income with the rising in demand for loans with reducing the cost of funds, therefore sustaining revenues and improving asset quality. In relation to the core capital ratio, Tier 1 capital can absorb losses without a bank being required to cease its functioning. Therefore increase in core capital ratio indicates the health of the banking industry is improving considerably. T he banking industry is giving prime importance to strengthening the Tier 1 level of capital. Credit growth has been strong due to which the net interest margin is indicating an upward trend with a 291.33% increase in net operating income of banks. Despite this relatively good news, the number of problem institutions has increased primarily because of financial, operational or managerial weaknesses that might lead to increased number of failed institutions in the last quarter of 2010. The trend of the number of institutions reporting to FDIC reducing is largely explained by the acquisition of smaller institutions by bigger institutions to prevent banks from failing and also because of increasing number of failed institutions. The number of problem institutions continues to increase but the aggregate assets of these problem institutions continued to decline suggests that this are smaller institutions in nature.