It is apparent that globalization and the spread of e-commerce have caused a lot of ease in finding information, market research and the development and sale of products in untraditional ways. Startups are growing worldwide everyday and markets do not seem to be reaching saturation yet due to the differentiation, even the slightest, in the products or services provided. The number of startups each year has been on the high rise due to globalization of the internet and the huge opportunities this holds.
Surely, it is vital to have ideas, business-knowledgeable and charismatic entrepreneurs to drive the business forward. Nonetheless, heavy administrative work, previously requiring time, space and labor, currently require no more than a laptop and a couple of hours. This eases the role of an entrepreneur and gives incentives for people of creative skills to get their own startups up and running.
Software that is easy to run and is cost-effective has substantially reduced issues entrepreneurs would be typically burdened with, opening up the chance to engage in more meaningful aspects like creative idea development, recruitment of subordinates, etc. They will no longer need paperwork, equipment or storage for administration. With a fair knowledge of accounting software like Crunch, an entrepreneur(s) could manage their accounts in an insignificant amount of time, using minimal labor, working hours, desks and space.
The Global Entrepreneurship Monitor states that with venture capital activity declining, the real fuel for growth of startups is the globalization of the internet and e-commerce. This reinforces the argument that the knowledge-based approach to business execution is overtaking the resource-based view. Start-ups being the case, they rely mostly on people’s creativity and their ability to capitalize on their skills and expertise to implement their ideas, given the advanced technological tools to help them.
Information, advice and consultation on all areas of business are readily available on the internet and its various outlets. Market research, primary resource gathering, product design and even promotion and advertising could now be done extensively online. The surge of social media facilitates this further, creating a support network where u can search between millions of relevant articles, experiences and advice from ranging industry experts to those from fellow startups.
It is unquestionable that the modern entrepreneur is now not alone. He can engage with experts, markets and potential customers all in one arena. It is vital for entrepreneurs to embrace this change and make the most of it- trying to capture the opportunities at hand in the most creative and convergent of ways.
(Post the video in the sources at the end of the blog w 7otelak ay soora aw ay ebn metnaka)
Sources:
http://www.youtube.com/watch?v=yCdP4x02pI4
http://www.indiana.edu/~spea/pubs/undergrad-honors/volume-4/harris_brett.pdf
It is apparent that globalization and the spread of e-commerce have caused a lot of ease in finding information, market research and the development and sale of products in untraditional ways. Startups are growing worldwide everyday and markets do not seem to be reaching saturation yet due to the differentiation, even the slightest, in the products or services provided. The number of startups each year has been on the high rise due to globalization of the internet and the huge opportunities this holds.
Surely, it is vital to have ideas, business-knowledgeable and charismatic entrepreneurs to drive the business forward. Nonetheless, heavy administrative work, previously requiring time, space and labor, currently require no more than a laptop and a couple of hours. This eases the role of an entrepreneur and gives incentives for people of creative skills to get their own startups up and running.
Software that is easy to run and is cost-effective has substantially reduced issues entrepreneurs would be typically burdened with, opening up the chance to engage in more meaningful aspects like creative idea development, recruitment of subordinates, etc. They will no longer need paperwork, equipment or storage for administration. With a fair knowledge of accounting software like Crunch, an entrepreneur(s) could manage their accounts in an insignificant amount of time, using minimal labor, working hours, desks and space.
The Global Entrepreneurship Monitor states that with venture capital activity declining, the real fuel for growth of startups is the globalization of the internet and e-commerce. This reinforces the argument that the knowledge-based approach to business execution is overtaking the resource-based view. Start-ups being the case, they rely mostly on people’s creativity and their ability to capitalize on their skills and expertise to implement their ideas, given the advanced technological tools to help them.
Information, advice and consultation on all areas of business are readily available on the internet and its various outlets. Market research, primary resource gathering, product design and even promotion and advertising could now be done extensively online. The surge of social media facilitates this further, creating a support network where u can search between millions of relevant articles, experiences and advice from ranging industry experts to those from fellow startups.
It is unquestionable that the modern entrepreneur is now not alone. He can engage with experts, markets and potential customers all in one arena. It is vital for entrepreneurs to embrace this change and make the most of it- trying to capture the opportunities at hand in the most creative and convergent of ways.
(Post the video in the sources at the end of the blog w 7otelak ay soora aw ay ebn metnaka)
Sources:
http://www.youtube.com/watch?v=yCdP4x02pI4
http://www.indiana.edu/~spea/pubs/undergrad-honors/volume-4/harris_brett.pdf
Global MNCs have been striving to gain a competitive edge in the automotive market given the great competitiveness within the industry. For the German car manufacturer Bavarian Motor Works, commonly known as BMW, this means expanding their reach and market share in developing and emerging markets as a long-term strategy for increasing sales and market-share worldwide. However, there is a sticky point for BMW, in markets with growing demand for luxury cars and escalating incomes, demand is still not enough to compensate for the high costs of establishing full-manufacturing plants in each of these countries.
This raises the question what could be done meet this growing demand without facing unnecessary, huge sums of capital and bureaucracy constraints? In the answer to this question lie the organic growth strategies BMW implement for their foreign and emerging markets.
First, they export car parts to companies in these local emerging markets, hence penetrating these markets without having to establish their own foothold there.
These local companies, with their teams of skilled engineers and technicians, then assemble and put together these spare parts under the assembly line that BMW dictates in order to maintain their quality measures. Taking the Egyptian market as an example for reference, the Bavarian Auto Group was founded by BMW in Egypt to compete with other local assemblers like that of Mercedes Benz. BAG has in fact tailored their production to suit the needs of the Egyptian market. To elaborate:
• They have focused their marketing on models that are more affordable for the Egyptian middle and upper class by stressing on models like the 316i, 320i, 116i as well as the X3 and X1 four-wheel drive models.
• The cars assembled contain engines that are typically smaller than what you would get buying the same car, for example the 3 series class, in Europe. In Europe you would typically find these cars holding engines that are much bigger like the 328i and 330i, whereas in Egypt, due to high licensing costs for cars with big engines, BMW have found that assembling cars of the same class yet smaller engines would be more attractive to the local market.
• These local manufacturers are then responsible for the maintenance and repair of BMW cars, under their international standards, which also adds to the cost-effectiveness of this operation.
In these ways, outsourcing these operations to local manufacturers in these markets is much cost-effective and ensures production in these markets to be tailored to its needs.
In Egypt and the Arab World in general, self-interest is a main component of conducting business. Moreover, familial role is pivotal, as many businesses are passed on from generation to generation. Conducting business in the arab world involves a factor foreign to the western protocols. So called “wasta”, or “pulling strings” – to get a clearer understanding – is a recognized business tool for the Arab entrepreneur. I am not going to explain the roots of why such a “malpractice” is socially acceptable, nor will I try to rectify the concept in the arab vantage point. This blog will attempt to underline the importance and reliance of nepotism when conducting business in Egypt. My father once told me that we live in a world where my cellphone contacts are more valuable than all my degrees put together. At first it made no sense to me, but now that I have had a deeper understanding of how businesses are run in Egypt, the “I know who” factor is an immeasurable asset.
However, I must add a point regarding the level of “closeness” when considering nepotism. Even though the word means “grandchild” in latin, which implies I direct link within the same family tree, nepotism in Egypt consists of a much wider variety of non family members. Favors are made as gestures of nobility, gratitude, personal interest, or even revenge in some cases. My close friend is the grandson of Gamal Abdul Nasser. Now can you imagine walking the streets of Egypt being known as the grandson of the most respected man (disputable) in the history of that country? Let’s just say that he is the contemporary Cleopatra! Further to the point mentioned above, when my friend was once pulled over for speeding, I had the “luck” to experience the power of his name put into practice. Now, let us look at the situation from a general point of view. Here we have a young lad, speeding and putting others’ lives at danger – definitely broken some laws! But now let us put Egypt as the background, and Gamal Abdul Nasser’s grandson in that car. We have a whole new recipe. Now you may believe what happens next is a pile of bu****t, but I have nothing to lose. The police officer, once having read the name on the driver’s license, saluted us in the military fashion, apologized for “wasting our time”, and cleared the way ahead of us till we reached our destination. This is only a small scale example to explain how favors are carried out within the nation (On a much larger scale). On a larger scale, an example of corruption, is how Ahmed Ezz, one of the richest people in Egypt (currently jailed) and formerly known as a drummer in a band, has achieved new heights in Egypt’s steel industry. Ezz known to be an intimate friend of former president Mubarak’s son Gamal, has proved, how befriending the son of the president can reverse your life in an instant. With help from his friend he managed not only to monopolize the steel industry in Egypt, but also reaching unprecedented roles in the Egyptian parliament. After the revolution however, Ezz’s involvement in politics was the main reason for his indictment, along with other counts of squandering public funds. The Egyptian people fear being ruled by a corrupt, deceitful government once again.
.
http://www.lingo24.com/international_business_intelligence/egypt.html
http://www.egyptindependent.com/news/ahmed-ezz-money-laundering-trial-adjourned-5-february
The knowledge economy is not only a description of new technology markets. It contains new heights of sources of competitive advantage. Investment in innovation, research and development, and education, in other words investing in great minds proves to be more effective than resource investment. Ideas are widely traded instead of tangibles in this economy. A company with about a quarter assets in the knowledge economy can outweigh a Multinational energy company almost twice as much. Apple’s market value of 460$ billion respectively outweighs Google’s, Goldman Sachs’, General Motors’, Ford’s, Starbucks’, and Boeing’s market value combined (Sam Gustin, 2012)
What makes Apple so valuable ? The introduction of new innovative products helped boost the company’s sales by more than double during the past few years (with the introduction of the patented iPad)
Aside from their exceptional growth in sales, Apple’s core value is underlined within the firm itself with their outstanding research and development they have set forth in challenging any technological innovation in their respected field. Apple is now estimated to be worth more than Greece.
After researching and reading about complexities businesses face, I came across the cultural differences that have to be put in consideration when dealing with an international firm. When a firm expands in foreign soil, it is vital to adjust the business standards with the demographic location of the spread. It has come to my knowledge that culture and business protocols are interrelated. To better understand this relationship, we can compare the differences in business procedures between the West (mainly USA) and the East (mainly China). Firstly, a point that I found worthy to be mentioned is the difference in interpretation of gifts, or bribes. In China, it is a silent rule to buy gifts for a party/firm of whom you would like to start working alongside with. This gesture would be considered as bribery in the western world, and would most likely jeopardize any chances of doing business with them. Another point that falls under the complexity of cultural barriers would be the understanding of leadership. In the western world, managers practice a more democratic form of leadership where there is a close interpersonal relation between the firm’s hierarchy titles. However, in the east, this relation is hardly present, and it is somewhat ethically accepted to have a strict or sometimes non-existent relation with the leaders.
To conclude, cultural barriers are one of the most complex factors that should be considered by a business when it is expanding internationally.
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