Running Head: GLOBAL BUSINESS MANAGEMENT

Global Business Management

Student’s Name

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Global Business Management

QUESTION 1

1. McDonald’s

Operating models that promote the business agility for large and small companies like

Nestle and McDonalds. These operating models are Diversification, unification, coordination,

and replication. For McDonald’s, the operating model that keeps the fast food business going is

replication, which refers to a state of standardized operating procedure. Here, the success of

McDonald’s does not rely on shared consumer values; instead, success is dependent on recurrent

business procedures i.e., where every burger recipe follows the same operation. Replication does

not depend on the buyer’s or the seller’s data or transactions. Business agility for businesses like

McDonald’s comes about when their managers act accordingly to ensure there is limited

discretion over the design of the business’s process. This discretion is beside the fact that such a

business operates independently of other businesses.

2. Advantages and disadvantages of business operating models

i. Replication

Replication is advantageous as an operating model as it results in close to 31%

higher operational efficiency for a company that opts to adopt it. This efficiency

comes about because of independent transactions with high levels of aggregation.

Moreover, replication allows for centralized business process design, which in

turn promotes efficiency. The downside with replication is that if one does not

pay close attention, he may miss what needs replication and what does not.

Moreover, once a business adopts replication as an operating model, it is hard to

switch to other replication models in the future when need be.

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ii. Diversification

Diversification is highly beneficial for companies that handle fewer customers

allowing them to offer these customers quality products and services.

Additionally, through diversification, a company is able to create balance when

consumer behavior changes unexpectedly. One of the disadvantages of

diversification is that business miss profit because of limited investments.

Furthermore, a lack of experience when venturing into a new field is a major

setback for a business that adopts this operating model.

iii. Unification

A business that adopts unification as an operating model is set to benefit from

maximized efficiency and customer services. Furthermore, unification allows for

variability through the presentation of integrated data throughout the business

processes. On the downside, unification results in the overlapping of operation

that may be the cause of confusion for a company. Moreover, it is hard to switch

to another operating model when customer preferences change unexpectedly.

iv. Coordination

Coordination as an operating model results in higher efficiency and economy

by doing away with overlapping and duplication of work. Additionally,

coordination promotes good human relations besides growing employee

morale and job satisfaction. The disadvantages of coordination include

information overload and loss of time resulting from the need for data

classification.
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3. Operating Models for Companies

a) Globacom Nigeria

The best operating model for this company is coordination since this is a

business with shared customers, products, and suppliers. Additionally,

Globacom Nigeria is a telecommunication company; therefore, it requires

coordination for processes involved in designing IT infrastructure.

b) ITWORX in Egypt

The relevant operating model for ITWORX in Egypt is unification, as it

requires centrally placed decision making in terms of IT. Additionally,

such a business can only operate successfully when the databases are

centrally mandated.

c) Zhenya in the Philippines

The best operating model for this company is replication due to its

characteristics of having few, if any, shared customers. Furthermore,

moreover, such a business operates well with federal control over the

business process design.

QUESTION 2

 Is the predictability the only factor to take into account for job automation?

With the rise in machine learning and robotics, experts remain guessing which job machines

will replace and which ones will not. According to Chuo, Manyika, and Miremadi, there are jobs
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that are easily predictable with reference to being replaced by machines, while they are others

that are hard to predict with reference to the same. However, predictability is not the only factor

to consider in terms of job automation as experts state that there were occupations that were hard

to predict a decade ago, yet now, the same experts have come to an agreement over their

predictability over automation. Job automation in the future depends on the innovations that will

take place now and in the future.

 How will automation affect the job market in India, China, and the United States,

respectively?

Since experts suggest that about 60% of all manufacturing work will possibly be automated,

a large part of the workforce in a number of countries will be affected. For countries such as the

United States, China, and India, the job market will reduce significantly since the majority of the

workforce in these countries are in manufacturing, which is a predictable line of work in terms of

automation.

 How can one prepare so that he does not become a victim of job automation?

The best way for a person to ensure that he does not become a victim of automation is to

assume the role of the employer instead of the employee as soon as possible. This way, the

individual will lessen the risk of his position being assumed by a machine or a robot; instead, he

will be in charge of maintaining human labor or replacing human labor with a machine or a

robot. If this is not possible, then one should identify the industries with the highest potential of

job automation to be on the safe side, for instance, the food industry and the manufacturing

industry.

QUESTION 3
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According to the economist, the use of drones should be promoted as it is highly

beneficial for several areas and concerns of life, including healthcare. However, according to the

publisher, the life of human beings should receive no compromise at all when dealing with

drones as they have the potential to endanger existing life. The need for human life protection is

the reason why the relevant authorities, for instance, FAA, have put in place rules and

regulations to deal with rogue drones. Additionally, the Economist states that the technology to

deal with such drones is getting better. One of the companies that have dealt with the FAA

regulatory concerning drone use is Amazon.com. Below is an assessment of the global landscape

for Drone Delivery using Porter’s 5 Force analysis with Amazon.com as a case in point.

Rivalry

Drone delivery by Amazon.com is not prone to intense competition since the majority of

delivery companies are not willing to deal with the FAA regulatory quagmire, yet this is an

obstacle that the company has already dealt with.

Bargaining Power of Buyers

In terms of drone delivery by Amzon.com, the bargaining power of buyers is not a threat

since they are on the receiving end. However, in the future, drone delivery will most likely be a

common thing, and this might give consumers some sort of bargaining power.

Bargaining Power of Suppliers

The bargaining power of suppliers continues to reduce as technology grows smaller and

cheaper. The technology used to make drones is more easily available now and have cause

suppliers to begin supplying materials at much lower prices.

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The Threat of New Entry

The threat of new entry is more real than ever for Amazon.com in terms of drone

delivery. This threat is attributed to the ease of access to technology in place and low costs entry.

Availability of substitutes

Drones are only making their way into multiple industries now; therefore, there is little

threat of substitute in the present. The availability of substitutes for Delivery Drones is low as

there is likely no new technology better than they are

QUESTION 4

Strategic Audits for Tesla

With the recent growing trend in the production of electric vehicles, Tesla seems to be

falling behind and losing its consumer-base. Tesla needs to revisit its consumer audit to find out

what it can do regarding the changing consumer preference. A consumer audit for Tesla involves

an analysis of the customers in two different markets, the US, and China. The consumer’s in the

US rely on big automobile firms for the manufacture and sale of electric cars. On the other hand,

the consumers in China have taken matters into their own hands by producing local hybrid cars.

Tesla needs to analyze these two markets separately to understand the measures that can be taken

to promote sales. For the China market, Tesla needs to develop quality hybrids but at low prices.

On the other hand, for the US market, Tesla needs to manufacture quality and high-end cars to fit

into the market.

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