Risks in International Business

Just as there are reasons to get into global markets, and benefits from global markets, there are also risks involved in locating companies in certain countries. Each country may have its potentials; it also has its woes that are associated with doing business with major companies. Some of the rogue countries may have all the natural minerals but the risks involved in doing business in those countries exceed the benefits. Some of the risks in international business are:

(1) Strategic Risk
(2) Operational Risk
(3) Political Risk
(4) Country Risk
(5) Technological Risk
(6) Environmental Risk
(7) Economic Risk
(8) Financial Risk
(9) Terrorism Risk

Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competitiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers.

Risks in International Business

Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization.

Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable country's political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets.

Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments' policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk.

Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena.

Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area.

Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business.

Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firm's ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms' assets are confiscated and that contributes to financial losses.

Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries.

Although the benefits in international business exceed the risks, firms should take a risk assessment of each country and to also include intellectual property, red tape and corruption, human resource restrictions, and ownership restrictions in the analysis, in order to consider all risks involved before venturing into any of the countries.

Risks in International Business
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Dr. Sidney Okolo is a professor, consultant, strategist, and Africa expert. He is affiliated to several universities, the Managing Director of International Business Associates, a management consulting firm, and also the CEO of Global Education Support, an education assistance program.

Among other things, he engages in all aspects of learning, knowledge, organization and human change. His focus is on leadership, management, entrepreneurship, profit engineering, human potential, excellence, achievement, business strategy, research and development. Product management, change management, conflict management, athlete management, marketing, business development and operations. He works with clients to adapt to change due to change in factors of production, technology, goods and services. He engages clients in training, retraining, development, skills enhancement, association, behavior modification, ways of thinking, and attitude adjustment. In addition to his work in the United States, his focus is also on developing countries in the continent of Africa, their leadership, culture, economic and market structure, community planning and development, and his created four letter word, "PIES", which stands for: poverty, instability, ethnicity, and sectarianism.

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How Reliable Are Online Background Checks?

When something looks too good to be true it usually is. Are online background checks all they are cracked-up to be? Are they really Instant and Nationwide?

SURPRISING TRUTH # 1: It is perfectly legal to do a background check on anyone at any time. Now I know that I've lost some of you who now think that I am off my rocker because you know that there are all sorts of forms that you have to sign with all kinds of legal warnings with criminal penalties and such, but I'll say it again. "ANYBODY CAN DO A BACKGROUND CHECK ON ANYONE, ANY TIME THEY FEEL LIKE IT." Because I want you to read this whole article, I am not going to explain those statements until further into the article.

SURPRISING TRUTH # 2: There is no instant national database of all criminal records that you can access. Right now you are probably sure that I am crazy. "Why just last night on Law & Order they got the bad guy's record . . ." There, you are talking about NCIC, the National Crime Information Center or otherwise known as the FBI files. While the FBI maintains the best and most accurate records, unfortunately, you can't get them, unless of course you are a federally insured bank, a defense department contractor, a nuclear power plant, a branch of the government itself or some other such entity. A surprising amount of otherwise intelligent people think that there are giant government databases with information on everyone including their criminal history, job history, credit files an even what books they check out of the library and what videos they rent. If that were true, why does it take the government itself four months and 00 to conduct its own background checks? Don't believe me? Send me an e-mail and I will send you the link to the Office of Personnel Management website that shows the fee and time schedule.

How Reliable Are Online Background Checks?

SURPRISING TRUTH # 3: There is a big, big difference between everywhere and anywhere. The companies that sell database information advertise that they search everywhere, or at least that's what they want you to believe. Using the word Nationwide is designed to make you think that they check everywhere. The question then becomes, "If you don't check everywhere, what do you check?" The answer is that we check anywhere a person has lived or worked. It is much better to check ANYWHERE and get real records than to check EVERYWHERE and get inaccurate database records?

So if there's no such thing as an instant nationwide database what are these companies selling? First let me tell you what these databases are good for and then I'll tell you why they are dangerous. In some states of the USA their REAL criminal records are available in some kind of publicly accessible form. It may be on the internet and it may require a subscription or acknowledgment of permissible purpose for its use, but it is available. Texas is a good example of this. For a small fee you can go online and access the REAL criminal records of the state of Texas. Florida, Minnesota and Virginia are other examples of where you can get via these database services what I call "REAL" records. The problem is that these database companies don't tell the consumer (you) that is most cases and in most areas of the country you are getting either nothing or marginal information at best.

Here's why. The companies that collect and sell these database records, and the hundreds of companies that re-sell this information do not emphasize the weakness of their systems. This is why they emphasize the words "instant" and "nationwide" in their promotions. Everyone wants cheap and instant as opposed to slow and expensive, don't they? Can you imagine a website that advertises "Slow And Expensive Limited Area Background Checks." In fact to get really accurate records in most of the country it still requires in person searching at each county courthouse.

These companies get records where they can get them for free; usually from a state's Department of Corrections, which means you are only getting info on a person if he/she has been convicted of a felony and sentenced to prison. When most people think of a criminal history background check they think of all arrests and convictions; both misdemeanors and felonies and the court disposition, guilty or not guilty and the sentence. As you can see, if you are getting only felony convictions, you are getting only a small piece of the pie. For example; a person could be arrested a couple of times for having drug paraphernalia or a small amount of drugs in his or her possession. If the records you are getting only include felony convictions, you would have no record of that person's drug abuse.

The other problem that these Instant Nationwide background checks have is that in many areas of the country they get nothing at all because the states or the county superior courts or district courts don't furnish them with free records. Here is another example: Suppose you are a parent in San Francisco, Las Vegas, Salt Lake City, Boston, Atlanta or New Orleans (just to name a few) and you want to do a criminal background check. You go online and type in "background check" in Yahoo or Google and right away you see the ads for the "Instant Nationwide" background checks. You choose one of the websites that offers instant records, you pay your .95 or .95 and you put in the information on the person you want checked. Instantly the website tells you that there is no record found based on the info that you have provided. You feel great! You go ahead and tell the nanny that she can start tomorrow because she has passed the background check. Here comes the big kick in the gut. . . What the website didn't tell you is that their database records don't search any of those areas at all. You just paid .95 or .95 and got NOTHING, ZERO, ZIP, NADA. Disclosure: Actually the proceeding sentence is not 100% true. In Nevada and Louisiana the databases do search currently incarcerated prisoners in their respective prison systems. So if your potential nanny is in prison right now then it would tell you that he/she is in prison, but I guess you would already know that.

Now to explain the # 1 Surprising Truth: I'll say it again: Anyone can check anyone, anytime. If you are so inclined, you can check the criminal or civil record (or lack thereof) of your daughter's boyfriend (I do that on a regular basis) your crazy neighbor next door, your business partner, your doctor, your ex-husband, your mayor or even your priest. In fact, you don't even have to be a citizen of the USA to get these records. You can walk into the Superior Court (District Court in some states) clerk's office, in the jurisdiction where that person lives/lived, go up to the counter, fill out a slip of paper, hand it to the clerk and wait for the results. Remember that you will only get the records from that county, i.e., if a person lived in multiple counties you would have to check each of them. The subject of your search could be an axe murderer from the next county over, but your county court clerk would not have a record of it.

OK, now you've got the information, what do you do with it? This is the area where the law is concerned; what you do with the information! If you use this information to discriminate against a person, deny them employment, housing or entrance to a school, etc. then you are violating the law and opening yourself to big time liabilities and possible lawsuits. This is what all of the consent forms with warnings are all about. It's not the getting of the information that the laws are concerned with but the use of it.

In summary, read the fine print and ask questions or go to the courthouse and do it yourself.

How Reliable Are Online Background Checks?
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Kit Fremin is the owner and founder of Background Check International. Since 1994 BCI has served clients a varied as: the LA Times, Department of Defense, Mars, Inc., the UN, the NTSB and Calvary Chapels nationwide. His website is: http://www.bcint.com and he can be e-mailed at kit@bcint.com

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What is Networking and Why is it Important in Business?

When I began my networking journey, I attended any and all networking events as time permitted. Every event was fair game! Today I am much more strategic in my networking endeavors. I discovered which events and organizations gave me the best return on my investment of time as well as how to be an effective, caring networker.

In order to know where to begin you must first understand what networking is and why it is important to grow your business. Networking in its purest form is simply talking to people, making connections and developing rapport to grow our circle of influence. Business networking is essentially the same except that our primary objective in business networking is to help us grow our businesses. For most of us, building a network means meeting people we can do business with or who will do business with us, or refer people who will do business with us, are our ultimate goals.

In fact, some of the best networks are those created by people who own and run their own businesses. When you create valuable networking relationships, you build them on a foundation of mutual trust, sharing knowledge, experiences and resources to help one another grow your businesses by either referring one another or doing business directly with one another.

What is Networking and Why is it Important in Business?

It works like this: If you do a good job, one customer might tell three to five of her colleagues, family and friends about you. Whereas, when you build a network of say 10 to 20 strong advocates, they may each tell only one person about your, however your "exposure" is now more than doubled - With the right network, the ultimate in "word of mouth" marketing takes place. You promote your network, and your network promotes you.

Have you ever attended a BNI or Le Tip or other form of structured networking groups? Perhaps you are already a member of a similar group. If not, you might consider becoming involved in one to the fastest growing business networking concepts around. These groups invite business professionals to join on an exclusive basis. That means, that if you are a chiropractor and become a member of one of these groups, no other chiropractor will be invited or allowed to join.

These groups have regularly scheduled meetings (anywhere from monthly to weekly) with a list of rules and objectives to which you must abide. In some cases, a minimum number of referrals is required to participate. In others, simply doing business with one or more in the network is all that is asked of he members. However, keep in mind that for this type of networking to be worthwhile for all parties, each must make every effort to do business with other members of the group.

If this form of structured networking isn't for you, there are other options for finding potential networking venues and partners. Here are some ideas to help you on your way to networking success.

a. Develop a joiners mentality. By that I mean, don't just sign up to get our name on a roster. REALLY JOIN. Get involved. Participate in discussions, events and BE VISIBLE. The saying "out of sight, is out of mind," holds true when it comes to networking. I have been involved in groups and decided to take a hiatus from attending for 2 to 3 months (and sometimes more) only to have people come up to me and tell me they forgot the name of my business so they had to find someone else either through a friend or through the local phone book. BUMMER!

b. Attend networking functions. These can include Chambers of Commerce meetings, after hours socials, ad hoc committees and special events task forces.

c. Get involved in a community service group such as Kiwanis, Lions, Jaycees, etc.

d. Volunteer with a non-profit organization, whose mission you are passionate about and believe in. People who have similar passions will want to do business with you.

e. Host events - I started an event called Goddess Gatherings more than 2 years ago in my home. It is an intimate gathering of women (8 max.) who share a common interest and/or wish to expand their own circles. I invite women who do not yet know one another although they may be familiar with their names. These women are women in my circle of influence either directly or indirectly (they are either members of the 22 groups I belong to and attend regularly or they are part of a circle within these groups). I might invite a "surprise" guest who can entertain the women - such as a masseuse or tarot card reader- or feature a business such as a jeweler or make-up artist. This helps make for a memorable evening and the women either start their own Gathering or look forward to being invited to another gathering hosted by either myself of one of the women in attendance.

f. Look for ways to cross-promote with businesses that complement yours. For instance, a spa might join with a health food store or restaurant and promote their products and services for staying healthy. A salon might join a florist to promote weddings or proms and a realtor might join with a mortgage broker to promote a "one-stop" experience for home buyers.

g. Interview others. A great way for me to network is to interview women for projects I am working on. Since most people are flattered when you ask their opinion about something or experiences in life, this has been a great means of increasing my own circle for various reasons. I might interview a woman (or even a man) about an article or book I am writing, or a seminar I am developing. People love to share their stories. I tape the interview (with their permission, of course) and give them a copy afterwards. It helps to have a list of questions ready prior to the interview, however, unless they insist, I don't give them the questions ahead of time. I have done these interviews via phone, email as well as in person. Many of the women have since.

h. Join an online business or social networking community such as MeetUp, Ryze, Max-in-Common, Linkd In, Open BC, to name a few,. These groups have subgroups made up of people with a specific focus and similar interests. Or you can join a non-specific group to gain more knowledge, exposure and contacts.

Make a point of attending one new networking event a month just to "check it out." Make a list of the people you know, the organizations you have heard and read about and the companies who currently do business with you. These are all great resources to tap into to find new venues to network. Get the local newspaper and look at the organizations and businesses hosting events to which the public is invited. Attend them.

The best networking begins with planning and taking action. Being strategic in your planning is important to your ultimate success as an effective, caring networker.

If you are interested in sharing your networking success stories, drop me a note to heidi@speakingwithspirit.com. It would be an honor to interview you. Who knows, your story could be the subject of one of my articles, or you could even write your own.. Looking forward to hearing from you. Here's to your success in building your network.

What is Networking and Why is it Important in Business?
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©Heidi Richards is the author of The PMS Principles, Powerful Marketing Strategies to Grow Your Business and 7 other books. She is also the Founder & CEO of the Women's ECommerce Association, International http://www.WECAI.org (pronounced wee-kÄ«) - an Internet organization that "Helps Women Do Business on the WEB." Basic Membership is FREE. Ms. Richards can be reached at Heidi@speakingwithspirit.com or heidi@wecai.org.

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Benefits of International Business - Even Small Businesses Can Profit

What are the benefits of international business? All you have to do to find the answer to this question is to see what smart investors do on Wall Street. They develop a portfolio that includes international stocks in order to hedge their losses if prices go down in the U.S., and to bolster their chances of gaining lucrative returns from a variety of sources. If you are a small business owner and have a product or a service that has relevancy outside of the United States you may be able to expand your reach into other markets where the shipping costs and taxes are not exorbitantly high. The question is how does someone living, for example, in Great Britain or Germany find out about you? Here are some tips that you should consider following.

In the first place, you will need to have a website that contains what are called "keywords" or "keyword phrases" that people use when searching for certain items. Having a website online without any of these phrases in your text or domain name will serve you poorly when it comes to driving traffic to your site. You can learn how to use online marketing techniques, however, to greatly enhance your visibility factor online, and to use social media to create a promotional campaign that can eventually garner you untold thousands of dollars in profit.

The benefits of international business are yours for the taking, but only if you create a plan for it. Take some time to learn online marketing and social media techniques, and not only can you expand your reach oversees but you can increase your profits at home.

Benefits of International Business - Even Small Businesses Can Profit

Benefits of International Business - Even Small Businesses Can Profit
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Steve Boston is an author, television producer, boxing trainer and marketing entrepreneur. He helps people start online businesses with little or no investment-no paper, no inventory, no employees, no bosses, and best of all-potential income that can far exceed professional salaries anywhere on the planet in an industry that is unlimited in growth. Visit this site: [http://www.nocontractcellphones.biz]

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A List of Companies Going Out of Business and How to Overcome the Recession and Unemployment Rate

Due to the continued decline of our current economy, many businesses are being forced to either go out of business, claim bankruptcy, or scale back in production and store sales.  This is of course adding to the current rate of unemployment and stress for millions of people around the world.  Many people are searching the internet, desperately scouring for a list of companies going out of business to see if their jobs are also at risk.  I have done some research and here is some of what I've found as well as some options for what to do if this has affected you.

List of Companies Going Out of Business:

-Circuit City (filed Chapter 11)
-Linens N' Things
-Wickes Furniture Store
-Levitz Furniture Store
-J.Jill
-Cache

A List of Companies Going Out of Business and How to Overcome the Recession and Unemployment Rate

Companies Scaling Back and with extensive Store Closings:

-Dillard's
-KB Toys
-Home Depot
-The Sharper Image
-Ethan Allen Interiors
-J.C. Penney
-Lowe's
-Office Depot
-Sprint Nextel
-Macy's
-Foot Locker
-GAP
-Talbots
-Eddie Bauer
-Ann Taylor

Unfortunately, the longer this article stays in circulation, the higher the likelihood that by the time you read this, the list will have grown.

What To Do if this List of Companies Going Out of Business, or Store Closings has Affected You and Your Job:

According to business and finance tycoon, Robert Kiyosaki, one of the most effective ways to work towards true financial security during this economic recession is to own your own business.  As a matter of fact, with the rising rates of unemployment, the prospect of owning a home business and being your own boss has never been as appealing and popular as it is right now.  If you really think about it, when you consider the recession that we are experiencing right now and the changing job markets, it is more important than ever that the general public is educated, made aware and able to change their approach to personal finance and business.

Another important point is that the world is thrusting further and further ahead into the Information Age and as such, owning an online business to take advantage of this progress is the best tactic for keeping up and staying ahead of the game.

If this list of companies going out of business and the current unemployment rate has had a personal affect on you, then I would absolutely recommend looking into and taking advantage of the benefits of owning a business in the Internet and Online Marketing Industry.  There could be no better time than now to take control of your financial future.  Don't just leave your personal financial success in the hands of the economy.  Take this opportunity now to explore your best options for starting a business and making money at home.  Start working now towards financial freedom and massive success.  I am personal proof that it can be done!

A List of Companies Going Out of Business and How to Overcome the Recession and Unemployment Rate
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For more information on how you can earn your Best Income At Home and the Top Online Marketing Techniques that you can use NOW to make sure money online, go to http://www.make1kaday.com

Shawn Stoik is an accomplished Entrepreneur, Top Internet Marketer and International Team Mentor who trains both Total Beginners and Seasoned Pros to achieve Financial Freedom by creating wealth and prosperity online! For more information on the Top Internet Marketing Tactics that you can use Now to build the most successful online business, please visit http://www.make1kaday.com

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Culture in the Business Environment

Management Challenge

Organizations are judged on their financial performance and therefore, by default so are their management teams. The key for managers is understanding how financial success is measured, impacts on operational performance and options available to make positive sustainable change.

Traditional Approach

Culture in the Business Environment

Typically managers tend to think in two dimensions when trying to address the problem. What do I need to change in my operations to achieve the desired financial results? Timescales may be tight and sometimes the short term needs may outweigh the long term aspirations. Sometimes short term measures can damage the long term capabilities of an organization. This can become a vicious circle where the law of diminishing returns is compounded by the diminishing options available. If you look at the diagram link below you will see a dotted line defined as the Minor Loop where the financial demands of revenue, profit, cash flow and equity are served by changes in operations of the business. This can be successful but it is a path littered with hazards.

Minor Loop Evidence

This is not simply an opinion it is backed by research conducted by Cameron and Quinn who stated that the three most typical change initiatives conducted by organizations in what could be described as Minor Loop were:

Restructuring Quality Initiatives Process Initiatives

Of these at least 75% failed, stalled or did not achieve the desired benefits. A summary of their findings is below.

Only 20% of TQM initiatives met their quality objectives and 40% were a complete flop A survey of senior managers who had been involved in downsizing found that 74% indicated that productivity, morale and trust had since deteriorated A survey across 1742 companies in the USA and Europe found that 85% found little or no gain from their effort in re-engineering processes.
Alternative Approach

So if this problem exists you may wonder if there is an answer to it. The answer is yes and it hides in plain sight.

The third dimension is the organization itself and its culture. The reason it hides in plain sight is that people are generally aware of it but it is difficult to really define, let alone do anything about it. We now have instruments and methodologies that bring culture into focus and allow organizations to do something about it.

An organization's effectiveness will impact on its operational capability and consequently its financial performance. In bringing in the organization dimension it adds a multitude of options and can provide a shot in the arm to the minor loop challenge described above.

The organization is generally the origin of the business performance but is often overlooked as the area where true transformation can take place. The Major Loop described on the diagram link below shows how it can take place. It even provides benefits against the external issues that can plague operations and finance.

Major Loop Evidence

If you are still not convinced a ten year study by Kotter and Heskett found that organizations who actively managed their culture significantly outperformed those who did not. We would ask you to look at the main findings below and consider what those findings might mean for your organization.

Revenue growth of 682% versus 166% Net income growth of 756% versus 1% Stock price increase of 901% versus 74% Job growth of 282% versus 36% Companies listed on the Fortune 100 Best Companies to Work For significantly outperform the S&P 500

Culture in the Business Environment
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Peter Hendley-Hall is the CEO of DCI an organization that specializes in helping firm improve bottom line performance through corporate culture management. To find out more visit http://www.dudleyconsulting-inc.com or e-mail info@dudleyconsulting-inc.com

Major Loop /Minor Loop Diagram link
http://www.dudleyconsulting-inc.com/CultureinBusinessEnvironment.jpg

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Consider The 2012 International ProStar For Your Next Semi Truck

The 2012 International Prostar Truck is a fitting continuation to the most popular class 8 truck in North America. It was created after consulting owners and drivers about the features they wanted to keep and the innovations they needed, and the results are clear: the 2012 International Prostar is perhaps the best truck released by International trucks yet.

Driving the Prostar is driving in comfort. The steering wheel is more ergonomic than in previous years and it includes a number of built in controls that make it easier to access the features you need most without taking your eyes off the road. Both on- and off-center steering are present by default, allowing for better maneuverability up those steep mountain passes and better control on the straights and corners. Handling is one of those areas where all trucks show room for improvement, but the Prostar takes things a step in the right direction with its four point suspension that counters sway and the automotive style controls in the cockpit. This combines to make a smooth and steady ride that lets the miles pile on without wearing the drivers down.

Built for heavy duty work, the 2012 International Prostar comes ready to tackle the hardest of jobs. As a class 8 truck, it's more than capable of handling 33,000 pounds or more, but not all class 8 trucks are built equally. With a total gross vehicle weight rating of 52,350 pounds, the Prostar is a truck that won't leave your cargo behind. The body is the standard hi-rise sleeper configuration, the wheelbase comes in at 209 inches, and the front bumper to back of cab dimension is within typical ranges at 113 inches. However, perhaps the most enjoyable part of the truck is the new expanded sleeper. At 56 inches, the size is not particularly large, but the bedding is comfortable enough to catch deep sleep on a cross country haul.

Consider The 2012 International ProStar For Your Next Semi Truck

The MaxxForce 13 engine that powers the 2012 International Prostar is strong enough to get the truck moving no matter how much one is hauling when paired with the Fuller 10 speed transmission. With 1700 foot pounds of torque at 1000 RPM, there is plenty of low end power on hand to take off from a standstill, and the inclusion of a number of small but welcome comforts like keyless entry, added storage space, and even a paper towel holder to help drivers deal with coffee spills in the cabin combine to make the Prostar a welcome addition to the International trucks family.

The truth of the matter is that no matter how impressive a truck looks on paper, it is the comfort, durability, and handling that drivers will either sing or swear about when pulling 12 hour shifts through the great highways of this country. This is why little things like increased foot room in the cabin and attention to the give of the clutch pedal make such a difference. The easier it is to shift, the less fatigue a driver's feet get. The more room there is to stretch while on the road, the easier it is to keep one's eyes on the road where they belong. The 2012 International Prostar was built with these creature comforts, and it shows.

Consider The 2012 International ProStar For Your Next Semi Truck
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Jim McCormack is the managing editor for Trucker To Trucker which offers International ProStar Trucks and a full line of International Trucks across the USA.

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Forces and Trends in Business

The corporate environment is characterized by a number of variables: competition, dynamism, turbulence, complexity and change. All organizations must develop ability to continuously and consciously transform themselves and their contexts. Such contexts include restructuring for optimum effectiveness, reengineering key processes and streamlining functions that are able to provide a source of competitive advantage. The aim is to adapt, regenerate and most important, survive. (McLean, 2006).

For a company to thrive today, strategists must find ways to increase the organization's ability to read and react to industry and market changes. They must know their goal to boost the company's strategic flexibility by recognizing disruptions earlier and responding faster.
Strategic flexibility or adaptability can be defined as the organization’s capacity to identify major changes in its external environments, quickly commit resources to new courses of action in response to such changes, and to recognize and act promptly when it is time to halt or reverse existing resource commitments. Being adaptable means leaders must not get stuck in a too-rigid way of looking at the world. The organization must view change as an inevitable and essential part of an organization's growth, in order to achieve this adaptability.

When there is uncertainty or unpredictability in the environment, managers tend to focus almost all their energy on successfully executing the current strategy. What they also should be doing is preparing for an unknown future. Flexibility stems from the ability to learn; managers tend to overlook the negative and emphasize the positive. They need to understand not only what led to the positive outcomes but also what led to the negative ones. This will optimize their learning experience. According to Ford (2004) four points to foster and maintain adaptability include challenging complacency, giving all employees a voice, encouraging participative work and driving fear out of your group.

Forces and Trends in Business

The companies chosen for this task vary by industry: a famous automobile manufacturer (Ford) a bank going through a merger (Compass) and a start-up software company (DawningStreams). Ford and Compass have been in business for a long time; it is likely they have changed their strategic plan based on changing forces and trends. DawningStreams is new (established in 2005 and incorporated in 2007). Even though they have not had their first sale and have no staff, the owners have devised several iterations of their strategy.

There is a diversity of stakeholders all that are interested in the activity of business organizations. Emphasis must be placed on their adaptability in strategic analysis and their adaptability in strategic management of business organizations. The organization must have a strategic management model.

Each company might scan the same areas, but for different reasons. Considering technological advances, Ford would prepare itself to lead the market by having various electronic equipment in their vehicles, as well as robotic equipment with which to build them and the supply chain technology to keep all in check. Compass Bank is going through a merge and expanding globally; therefore they will need to keep abreast of communication technology. DawningStreams is a software company; they will need to monitor those companies who would be their competition to ensure their product offers better functionality. All three companies would make sure potential customers would be able to get good information from internet websites and advertisement, which encompasses yet another area of technology the organizations may need/want to scan. In this instance, many members of the organization must be enrolled: upper management and finance, who will determine budgetary factors; the IT department, who will be responsible for the implementation and maintenance of some of the technology; the staff who must be trained to use the technology; a sales force who will sell the technology.

To the outside observer, it may seem unnecessary for any but Ford to scan the (actual) environment when it comes to issues such as emission control, fuel efficiency and hybrid cars. That is true however; Compass Bank and DawningStreams can plan a strategy to be friendlier to the environment (and their pocketbooks) by practicing paper reduction (through the aforementioned technology). Lastly, DawningStreams’ product may be useful as a file sharing service to environmental groups.

With regard to the legal environment, all three must be acutely aware of laws, which affect their respective industry among others. To Ford, legal applies, among other areas, to environmental protection laws and department of transportation safety laws. To Compass Bank, they would abide by the rules of the Federal Reserve (www.federalreserve.gov) and the Federal Insurance and Deposit Corporation (www.fdic.gov). DawningStreams must follow laws as they pertain to the transfer of files, which have intellectual property and also the export of products, which have algorithms. All three companies are global and will need to monitor those laws in other countries, which could effect the strategic planning.

At one company after another--from Sears to IBM to Hewlett-Packard to Searle, strategy is again a major focus in the quest for higher revenues and profits. With help from a new generation of business strategists, companies are pursuing novel ways to hatch new products, expand existing businesses, and create the markets of tomorrow. Some companies are even recreating full-fledged strategic-planning groups. United Parcel Service expects to spin out a new strategy group from its marketing department, where strategic plans are now hatched. Explains Chairman Kent C. Nelson: ``Because we're making bigger bets on investments in technology, we can't afford to spend a whole lot of money in one direction and then find out five years later it was the wrong direction.''

In such a world we need a planning model that allows us to anticipate the future and to use this anticipation in conjunction with an analysis of our organization--its culture, mission, strengths and weaknesses--to define strategic issues, to chart our direction by developing strategic vision and plans, to define how we will implement these plans and to specify how we will evaluate how well we are implementing these plans. The fact that the world is changing as we move forward in the future demands that the process be an iterative one.

Ford Motor Company – Socio-cultural

Ford Motor Company embraces the socio-cultural changes taking place to allow the company to move in the right direction with respect to attitudes in the society. Two areas that stand out in terms of socio-cultural attitudes would be that of fuel economy and smaller cars. The growing concern by the public for better fuel economy has influenced the company’s introduction of the Ford Escape Hybrid and Mercury Mariner Hybrid. The organization is committed to the hybrid to improve fuel economy as a global strategy to meet customer demands. The increased demand in society for such environmentalism has assisted in the decision for Ford Motor Company to look forward to adding the hybrid feature to the Ford Fusion and Mercury Milan and continue in such a strategic planning direction.

The customers that use these vehicles get a substantial break on their insurance in many states and a tax credit as well while enjoying the increased mileage of a vehicle that runs on gasoline and capabilities for 100 percent electric power. The environmental scanning by Ford Motor Company has allowed the company to be knowledgeable of the fact that the people in the United States are buying more small cars today than any other type of vehicle segment. The lifestyles changes have been monitored and there is good data that shows that such a trend will continue in this direction and the expected growth in this segment will continue. The company has redesigned the inside and outside of the Ford Focus to set the car apart from the competitors in the small car segment while increasing upgrades and features to experience positive outcomes. The direction that the company is taking is based on a competitive advantage and being a leader in the industry. The vehicle line has both a sedan and a coupe to attract targeted markets including younger buyers at an entry level to build upon brand loyalty and customer retention. Ford Motor Company will continue to use the socio-cultural factors to drive the business and enjoy future success.

Ford Motor Company – Legal –

Ford Motor Company with regard to the Environmental Protection Agency adheres to the legal aspect of environmental scanning. Ford Motor Company accepted an award in March 2007 from the Environmental Protection Agency called the Energy Star 2007 Partner of the Year Award in Energy Management. The company is the first automaker to have ever been awarded the award two years in a row. The award has come to be presented due to the commitment made by the company to increase energy efficiency and to reduce the greenhouse gas emissions from all of the facilities in the company.

The organization is committed to the responsible use of resources and energy efficiency. The leadership realizes that the environmental protection laws are of great importance and use the environmental scanning to move in the right direction to obtain future success in the company. In 2006 alone the company has improved the energy efficiency in the United States operations by five percent and saving approximately million with enough energy saved to equal 220,000 homes. The effective energy management protects the environment and reduces the greenhouse emissions. Some of the actions taken by the company include replacing lighting fixtures that use 40 percent less energy and using different low-energy, long-lasting compact fluorescent lamps in the properties to include the plants, corporate offices, distribution centers, and research and development campuses. Due to the environmental scanning that takes place at Ford Motor Company the company will use the information that is collected and continue in this direction. New projects for the company include Fumes-to-Fuel that is a system that converts paint fumes into electricity that is being performed with Detroit Edison along with attempting to consolidate the application of primer, base and clearcoat paint applications into a single application to eliminate the need for separate applications and ovens. In addition to the paint booth emissions Ford Motor Company will continue to rely on alternative energy sources such as landfill gas and wind and solar technologies to power their manufacturing facilities.

Ford Motor Company – Technology –

Another environmental scanning tool that Ford Motor Company monitors and uses would be the technological portion. The company has invested billion in the latest technology for flexible manufacturing. The technology that is involved is in many forms to include wireless technology that is installed on the delivery trucks with supplies to the plant as a monitoring status and improved efficiency to reduce inventory. The flexibility of products in the same plant allows the organization to use the same machinery and process for all areas from body assembly, paint facility, and final assembly. The improved efficiency at the manufacturing facility allows for several vehicle platforms to be built on the same line to produce multiple models and quickly change the vehicle mix, the volume, and options based on customer demand.

The technological changes that are being embraced by Ford Motor Company through environmental scanning enables the company to experience huge cost savings through new product launches and 50 percent reductions in cycle changeovers along with waste reduction. Robots are among the technological changes that are being experienced within the organization to include the 400 from the project that are used to weld and assemble the metal body of the vehicle for stamping and assembly. Artificial intelligence in the form of advanced visions systems and laser tracking systems are used to ensure quality through accuracy and dimension abilities. A multi-million dollar training facility is used to ensure that the workforce has the knowledge, skills, and ability to reap the benefits from the new technology that is being used by the company. The training that is administered includes the new servo-electric weld gun system that identifies the perfect center for welding that has replaced the older and loud air-powered system that used a less sophisticated spring system. The environmental scanning of technology that is performed by Ford Motor Company has allowed the company to have positive outcomes in efficiency while remaining a competitive company in the industry through cost savings and continuous improvement.

Compass Bank- Political -

On February 16, 2007, Compass Bancshares, Inc., the parent company of Compass Bank, announced the signing of a definitive agreement under which Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBV Madrid: BBVA) ("BBVA") will acquire Compass for a combination of cash and stock. Compass will become a wholly owned U.S. subsidiary of BBVA and will continue to operate under the Compass name. The transaction is expected to close during the second half of 2007, pending customary closing conditions, including necessary bank regulatory approvals in the U.S. and Spain and the approval of the stockholders of both Compass and BBVA.

BBVA, which operates in 35 countries, is based in Spain and has substantial banking interests in the Americas. The transaction will facilitate BBVA’s continued growth in Texas and will create the largest regional bank across the Sunbelt. Upon completion of the transaction, Compass will rank among the top 25 banks in the United States with approximately billion in total assets, billion in total loans and billion in total deposits. In addition, the combined company will rank fourth in deposit market share in Texas with .6 billion in total deposits and 326 full-service banking offices.

Compass is a billion Southwestern financial holding company that operates 415 full-service banking centers in Alabama, Arizona, Colorado, Florida, New Mexico and Texas. Compass provides a broad array of products and services through three primary lines of business – Corporate Banking, Retail Banking and Wealth Management. Compass is among the top 30 U.S. bank holding companies by asset size and ranks among the top earners of its size based on return on equity.

Under the terms of the definitive agreement, which has been approved by the board of directors of Compass and the relevant bodies of BBVA, Compass will become a wholly owned subsidiary of BBVA. After closing, BBVA intends to merge its U.S. based banking affiliates – including the former operations of Texas Regional Bancshares, State National Bancshares and Laredo National Bancshares – with Compass.

The aggregate consideration is composed of a fixed number of approximately 196 million shares of BBVA common stock and approximately .6 billion in cash. The merger is subject to customary closing conditions, including necessary bank regulatory approvals in the U.S. and Spain and the approval of the stockholders of both Compass and BBVA. The transaction is expected to close in the second half of 2007.

The merger between both companies will be determined by the political factors ranging from implications of laws and regulations to the state of world politics including the consideration of wars which may be going on in different parts of the world. New laws, regulations, tax programs and public policy create forces and trends, which may provide challenges and barriers or opportunities for any company or organization.

Compass Bank – Technology –

Ford is in the process of implementing a laser marking system on its production line to ensure the highest standard on each transmission assembled. The system will be checking for quality on different points on the assembly line. Ford is teaming up with a company called MECCO to implement this process and a trial run of the new system will last for 3 months. MECCO is a leader in its industry when it comes to laser technology. The decision to implement this new laser marking system came because it is more cost- effective and safer than previous ways of marking checkpoints for quality.

Although this process at Ford has not officially been implemented yet, Compass Bank can learn a few different things. It may be a good idea for Compass Bank to do a short trial of online cell phone banking to see how popular it becomes and if it worth all the time and effort, being spent to get it launched. Compass Bank should also consider investing into a company who is the best at what they do, is in the same time zone, and can meet their demands in a timely manner, not simply because they may be cheaper. Finally, Compass Bank can learn that they need to consider what will be most cost-effective and in the best interest of the company over time. Organizing a time line and a list of costs and potential risks would also be beneficial to Compass Bank so they know what to expect and when with the implementation of online cell phone banking.

When completing the global scan one looks for emerging new technologies which may impact any business in any industry. At one time the emergence of the Internet was a technology that was becoming an emerging trend across all industries. Today very new technologies are used to develop information systems at a fraction of the cost and time of processes that were used five years ago. Wireless is a telecommunications technology that may have moved from a trend to a force in revolutionizing the way information is stored, accessed and used across all industries around the world. Some, if leveraged by a company within an industry before competitors use it, may even provide a competitive advantage.

Compass Bank – Competition –

Although mergers may be costly and rather difficult, the value it creates in the end is the desired outcome companies seek. The eagerness to merge is based on several beliefs, those beliefs are, that the performance gains are greater, expenses are reduced, market power is increased, and shareholder’s wealth is also greater than before. The value of a merger is enhanced when the overall benefit is more valuable than the aggregate of two separate pre-merger companies.
In the end, both John and Bernard should consider this before finalizing a decision. When Zion’s purchased Stockmans, there overall value increased by 43 branches. These branches will help performance and brings much more power to the financial market. In the Journal of Money article, Pilloff states “Companies are more willing to acquire others to avoid being acquired themselves.” Keeping this in mind, companies must figure out a cross border strategy.

As part of the broad environmental scan, it is important to identify the internal capabilities of the organization. There are various models for defining capabilities. Most focus on the broad set of intangible assets such as brand, human capital, organizational capital and even relationship capital. Others include the more concrete assets such as available capital, the organization structure, current technologies and information technology infrastructure. In addition to doing a broad environmental trend, Compass Bank needs to do a more detailed capability assessment using any of the models available.

DawningStreams - Competitors –

Business activities are becoming more and more complex to manage, because of distance, time zones, number of parties involved in projects, number of tasks to achieve, multiple prioritizations, lack of general synchronization, insufficient secure and confidential communication channels and growing complexity of IT infrastructures. The use of task list managers has become very common. It is becoming more difficult to keep teams synchronized, to follow and to implement new business processes and to exchange sensitive information confidentially. The DawningStreams software application is aiming at increasing the practicality of daily executive activities. The types of business, which will most probably be interested in our product, are construction (size of network), consulting (need for synchronization), pharmaceutical research (secure exchange of information) and the software industry (complexity of manufacturing).

Many companies have already developed software applications that enable secured communications and file sharing. However, most, if not all, are relying on Microsoft technologies, which prevent them from expanding to Mac or Unix users. DawningStreams is developed in Java, which can be used on any platform, including Mac and Unix. Microsoft has acquired the Groove Company and has released a new version of the product, which can perform many of the functionalities of DawningStreams, but not generic activities (http://office.microsoft.com/en-us/groove/default.aspx). This is our closest competitor by far. More recently, we found, merely by accident, a company called Shinkuro (www.shinkuro.com), which offers the file sharing aspects of DawningStreams but lacks other capacities.

Although DawningStreams will face competition from many existing players, the fact that it will combine a super-set of functionalities in one application, for a very reasonable price, will give it some leading edge over other competitors. If the US patent is granted, the position of DawningStreams will become a niche. Even if the patent were not granted, it would take a profound architectural redesign of Groove (or other competitors) to include generic activities and match the offer of DawningStreams. As a strategy we will monitor the activities of those companies’ websites and understand what they offer in terms of similar functionality and try to ensure we match or best those functionalities to the best of our ability and resources

DawningStreams – Political -

Maintaining the secrecy of information is the fundamental function of encryption items. Persons abroad may use such items to harm US law enforcement efforts, as well as US foreign policy and national security interests. The US Government has a critical interest in ensuring that persons opposed to the United States are not able to conceal hostile or criminal activities, and that the legitimate needs for protecting important and sensitive information of the public and private sectors are met. Since 2000, US encryption export policy has been directed by three fundamental practices: technical review of encryption products prior to sale, streamlined post-export reporting, and license reviews of proposed transactions involving strong encryption to certain foreign government end-users and countries of concern. US encryption policy also seeks to ensure that American companies are not disadvantaged by the European Union’s “license-free zone.” (Bureau of Industry and Security, 2007).

DawningStreams will contain cryptographic functions. Any reliable and efficient cryptographic system requires a central authority to avoid identity theft. Cryptography is a key functionality of DawningStreams. All specialists insist on designing systems using well-studied algorithms and fully tested protocols; novelty is considered a source of risk. The cryptographic layer of DawningStreams will rely on a dual public-private key system. The private key encryption system will implement Rijndael, the Advanced Encryption Standard (http://csrc.nist.gov/CryptoToolkit/aes/rijndael/), the public key system will implement RSA (www.rsa.com) and the hashing function will implement the 256 bits version of the Secure Hash Algorithm (http://secure-hash-algorithm-md5-sha-1.co.uk/ ).

Encryption products can be used to conceal the communications of terrorists, drug smugglers, and others intent on harming U.S. interests. Cryptographic products and software also have military and intelligence applications that, in the hands of hostile nations, could pose a threat to U.S. national security. The national security, foreign policy, and law enforcement interests of the United States are protected by encryption export controls. These controls are consistent with Executive Order (E.O.) 13026, which was issued on November 15, 1996, and the Presidential Memorandum of the same date. (Bureau of Industry and Security, 2007).

DawningStreams also plans to be an international company, as offices now exist in the Netherlands and the US. As part of the strategy, we will ensure we remain compliant by registering our product with any necessary agency and allowing those agencies access to the processes if they feel there is a threat. We will be responsible to monitor (as best as we can) our client base and to put the proper verbiage in our contracts that illegal activities will not be tolerated. We will continue to monitor the BIS site mentioned in previous paragraphs and also sites in the European Union such as the Crypto Law website of legal expert Bert-Jaap Koops (http://rechten.uvt.nl/koops/)

DawningStreams - Technology/Intellectual Property –

The management of organizational strategy requires a comprehensive assessment of the macro environment of the business. Intellectual Property (IP) refers to the original ideas and innovations evolved by an organization in order to haul up its systems and processes. Creation of ideas requires large investments. This necessitates the protection of IP. Benchmarking is the continuous process of measuring products, processes, and systems of an organization against those that are rated best in the industry. It helps in uncovering weaknesses and flaws in the organizational systems, processes, and products. (Watson, 2003)

The study of the global research conducted by McAfee Inc. and MessageLabs Ltd. on security threat in small businesses in the U.S. reveals that 80 percent of small-and-medium-sized businesses (SMB) believe that an information technology (IT) security failure would be damaging in attaining their business priorities. Yet, only few are courageously making steps to fight against infringements due to resource limitations from other business related priorities. The research implies that company size plays an essential part in the way senior management views security. Among the challenges that SMBs face include keeping up-to-date with security solutions and keeping costs low. Small-to-medium businesses’ behavior towards security is very tactical and meets only immediate requirements. (unknown, 2007)

DawningStreams’ relevance to these forces is two-fold. We are a software company—there is an opportunity for us to lose the intellectual property by those who would download and attempt to modify the code. We have competitors who offer functionality similar to ours, however we offer an additional functionality the others do not. It is this ‘specialty functionality’ for which we applied for a patent the United States Patent and Trademark Office. If the patent is granted, there is less likelihood of software piracy or the loss of our IP. Environmental scans should show us if there are other companies trying to do this.

The functionality, which most resembles our competitors’, is the ability to share files. That brings in a different concern with intellectual property- the possibility someone else’s IP could be sent from one of our users to another, as this could seriously damage our reputation, as what happened with Napster. (www.napster.com).

Conclusion

At one company after another--from Sears to IBM to Hewlett-Packard to Searle, strategy is again a major focus in the quest for higher revenues and profits. With help from a new generation of business strategists, companies are pursuing novel ways to hatch new products, expand existing businesses, and create the markets of tomorrow. Some companies are even recreating full-fledged strategic-planning groups. United Parcel Service expects to spin out a new strategy group from its marketing department, where strategic plans are now hatched. Explains Chairman Kent C. Nelson: ``Because we're making bigger bets on investments in technology, we can't afford to spend a whole lot of money in one direction and then find out five years later it was the wrong direction.''

In such a world we need a planning model that allows us to anticipate the future and to use this anticipation in conjunction with an analysis of our organization--its culture, mission, strengths and weaknesses--to define strategic issues, to chart our direction by developing strategic vision and plans, to define how we will implement these plans and to specify how we will evaluate how well we are implementing these plans. The fact that the world is changing as we move forward in the future demands that the process be an iterative one.

References

Bilek, E. (n.d.) Compass Bankshares to be Acquired by Banco Bilbao Vizcaya Argentaria, S.A.,

Investor Relations. Retrieved from the Internet on March 31, 2007 at

http://media.corporate-ir.net/media_files/irol/77/77589/bbvarelease.pdf

Cole, Jim. Zions makes small deal, cites growing Arizona market. American Banker, 171(175), 1-1. Retrieved March 31, 2007 from Proquest Database.
Ford Motor Company (2006). Ford Motor Company. Retrieved March 2007,

from the World Wide Web, Web Site: [https://ford.com]
Ford, S. (2004) Adapted from 13 Skills Managers Need to Succeed, Harvard Business School

Press. Retrieved March 31, 2007 from EBSCOHost Database.

Hockenberry, Todd. (2006). Ford implements advanced laser marking. Industrial Laser Solutions, 21(4), 6-7. Retrieved March 31, 2007, from EBSCOhost database
Jacobs, P. (2005) Five Steps to Thriving in times of Uncertainty. Negotiation (p.3) Retrieved

April 1, 2007 from EBSCOHost Database.

McLean, J. (2006) We’re going through changes! British Journal of Administrative Management

54. Retrieved March 30, 2007 from EBSCOHost Database.

Pearce, J. & Robinson, R, (2004). Strategic Management: Formulation, Implementation, and Control. [University of Phoenix Custom Edition e-text]. The McGraw-Hill Companies. Retrieved March 2007, from the University of Phoenix, Resource, MBA 580-Strategies for Competitive Advantage Course Web Site: https://ecampus.phoenix.edu/secure/resource/resource.asp
Author Unknown, Strategic Planning, After a decade of gritty downsizing, Big Thinkers are back in corporate vogue. (2006) Retrieved from the Internet at http://www.businessweek.com/1996/35/b34901.htm

Unknown (2007) 80% of Small-to-Medium Sized Firms Fear a Security Threat. Computer Security Update 8 (4). Retrieved March 30, 2007 from EBSCOHost Database.
Unknown (2006) Strategic Planning, After a decade of gritty downsizing, Big Thinkers are back
in corporate vogue. Retrieved from the Internet at
http://www.businessweek.com/1996/35/b34901.htm
US Department of Commerce (2007), Encryption (ch.10, section 742.15). Retrieved March 27, 2007 from the Bureau of Industry and Security Website at http://www.bis.doc.gov/news/2007/foreignpolicyreport/fprchap10_encryption.html
Watson, G. (2003) Business Environmental Scans for Intellectual Property Strategy (PowerPoint Presentation). Retrieved March 28, 2007 from the Oklahoma State University website at http://www.okstate.edu/ceat/msetm/courses/etm5111/CourseMaterials/ETM5111Session3Part2.ppt#260,1,Business Environmental Scans for Intellectual Property Strategy

Forces and Trends in Business
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Steven Brown, MBA is a loving husband and father of two boys. He enjoys his time with his family by providing a strong family foundation of Christian Faith. After completing his Bachelors degree, Steven wanted to further his ability to teach and share to others his mindset that they can do anything if they would believe in themselves.

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