Presenters are :

MAYANK GUPTA SAURABH JINDAL PRIYANKA KANSAL RAHUL VERMA ANURAG CHABRA HIMANSHU YADAV SHRUTI CHAWLA

Key Topics :
y International marketing y International Human resource Management y International Accounting y Supply Chain and operations Management y International Financial Management

Learning points
y To provide an overview of the functional

dimensions which shape the organization within the international business environment y To address the specific aspects of the different areas of management in the international context y To develop an awareness of the impacts of the way in which organizations respond to challenges within each functional area upon a variety of stakeholders

International marketing
y Multi-national

y No matter where you go in

y Copyright: mkeky, stock.xchng

the world, certain businesses will always have a presence.

or trans-national corporations (MNCs or TNCs) businesses with a headquarters in one country but with business operations in a number of others

y International marketing (IM) or global marketing

refers to marketing carried out by companies overseas or across national borderlines y According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

y A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others y International marketing research is aimed at finding out about consumer attitudes that are shaped by the language, religion, values and the norms of social behaviour of different cultures. These attitudes can also reflect underlying economic conditions. y Marketing also constrained by the legal and political environment. Regulation can be found either at the national level or through international agreement.

y These factors affect decisions regarding the extent

to which the elements of the marketing mix (product, price, promotion and distribution) will be standardized across markets or adapted to suit local conditions

International Human resource Management

y International HRM (IHRM) is

the process of: y procuring, allocating, and effectively utilizing human resources in a multinational corporation, while balancing the integration and -differentiation of HR activities in -foreign locations

Objectives of (IHRM)
y To reduce the risk of international human resource y To avoid cultural risks y To avoid regional y disparities y To manage diversifies y human capita

y Effective talent

management

y Identification and segmentation of employees on the

basis of performance y Focus on top talent y Creation of opportunities for top talent to excel y Creation of a high-performance work culture y Focus on business development and growth y Think Global, Act Local approach in most Circumstances Planning of mentoring Activity and to face several challenges relating HRM

International Accounting

International Accounting
y INTERNATIONAL ACCOUNTING is y the international aspects of accounting, including such matters as y y y y y y y y

accounting principles and reporting practices in different countries and their classification; patterns of accounting development; international and regional harmonization, foreign currency translation; foreign exchange risk; international comparisons of consolidation accounting and inflation accounting; accounting in developing countries; accounting in communist countries; performance evaluation of foreign subsidiaries.

Objectives of International Accounting

y IASB has 15 Board members, International Accounting Standards Board (IASB) is an independent, privatelyfunded accounting standard-setter based in London, England. y They are selected as a group of experts with a mix of experience of standard-setting, preparing and using accounts, and academic work. y With the activities and interests of investors, lenders and companies becoming increasingly global, the Commission is increasing its involvement in a number of forums to develop a globally accepted, high quality financial reporting framework which has lead to the importance of International Accounting.

1)High Quality Accounting Standards 2)High Quality Auditing Standards 3)Audit Firms with Effective Quality Controls : y independence, integrity and objectivity; y personnel management, including proper training and supervision; y acceptance and continuance of clients and engagements; y engagement performance; and y monitoring. 4)Profession-Wide Quality Assurance
providing continuing education and training on recent developments; y providing an effective monitoring system to ensure that:
y firms comply with applicable professional standards; y firms have reasonable systems of quality control; y there is an in-depth, substantive and timely study of firms' quality controls, including

reviews of selected engagements; y deficiencies and/or opportunities for improvements in quality controls are identified; and y results of monitoring are communicated adequately to the appropriate parties.

y providing an effective and timely disciplinary process when individuals or firms have not complied with applicable firm or professional standards.

5)Active Regulatory Oversight : such as registrants' financial reporting, private sector standardsetting processes and self-regulatory activities undertaken by the accounting profession. Each of these elements is essential to the success of a high quality financial reporting framework. 6) Foreign Private Issuers -- The Current Requirements y use of International Accounting Standard (IAS) 7, Cash Flow Statements (as amended in 1992) for the preparation of a statement of cash flows; y acceptance of portions of IAS 22, Business Combinations (as amended in 1993), regarding the method of accounting for a business combination and the determination of the amortization period for goodwill and negative goodwill; and y acceptance of portions of IAS 21, The Effects of Changes in Foreign Exchange Rates (as amended in 1993), regarding translation of amounts stated in a currency of an entity in a hyperinflationary economy. 7)Companies can take advantage of the international environment to minimise their financial costs. This is particularly true in the area of taxation. y E.g. tax havens and transfer pricing as means of avoiding higher rates of tax.

Operational and Supply chain management

Operational and Supply chain management

y organizations aim to configure the

supply chain in such a way that it enables them to reduce the costs of production and to improve efficiency y outsourcing some of the value-adding activities is seen as allowing greater flexibility and the ability to concentrate key resources on what the firm considers as its core competence y Companies are able to switch suppliers and obtain the most advantageous cost structures for materials and components y Reduction in the cost of resources such as labour, raw materials, energy (e.g. oil) and finance (e.g. global credit) can all be achieved. This does mean that the operations function becomes increasingly dependent on global factors (e.g. in the market for credit, or in rising oil prices).

y Advances in transportation in the last

half century, e.g. containerization, bulk sea transportation and the growth of mass air transportation, have had a great impact upon the international business environment y Information Communication Technologies (ICTs) help to facilitate the flow of materials, services and information y In the contemporary world, networks of suppliers of materials, components and knowledge providing input to products and services are geographically dispersed y E.g. Big Mac as a global product

y Relationships within supply

y y

chains are not necessarily formed by equally independent economic agents E.g. MNEs vs. local suppliers The freedom to choose the most economically efficient way of configuring the supply chain at a global level enables companies to transfer value-adding activities rapidly from one country to another Companies do not need to take into account the economic and social consequences their strategic moves have on the affected countries E.g. sweat shop labour, race to the bottom, and ethical issues concerning EPZs

International finance Management

1) The foreign exchange market y Corporate governance y Parity conditions in international finance y Foreign exchange derivative contracts 2) International corporate finance issues y Transactions exposure to exchange rates y Translation exposure to exchange rates y Operating exposure to exchange rates

3) International investment analysis Cost of capital International bond markets International equity markets Capital structure 4) Corporate strategy and foreign investment analysis y Offshoring/Outsourcing y Project Finance y Cross-border Joint Ventures y Cross-border Mergers

International Financial Management

Foreign Exchange Markets Sourcing Capital in Global Markets

y International y Financial y Management

Synthesis

Managing FOREX Exposure

Foreign Investment Decisions

Special about International Financial Management :

y Foreign exchange risk y E.g., an unexpected devaluation adversely affects your export market y Political risk y E.g., an unexpected overturn of the government that jeopardizes existing negotiated contracts y Market imperfections y E.g., trade barriers and tax incentives may affect location of production y Expanded opportunity sets y E.g., raise funds in global markets, gains from economies of scale

Wrap Up
y The foreign exchange market is by y y

y y

far the largest financial market in the world. Currency traders trade currencies for spot and forward delivery. Exchange rates are by convention quoted against the U.S. dollar, but cross-rates can easily be calculated from bilateral rates. Triangular arbitrage forces the cross-rates to be internally consistent. The euro has enhanced trade within Europe, and the currency has the potential of becoming a major world currency

Thank you.