Examine the four quadrants on the balanced scorecard, how they are related, and what their impact is on financial performance

For this Assignment, you will continue in your role of a consultant to provide information about using accounting information for decision making to a fictional organization so it can better prepare for the future. Last week, you submitted the first of two reports on financial information and budgeting. This week, you will submit the second report, which will focus on performance reports and balanced scorecards.

In addition to the requirements that follow, be sure to incorporate into your report references to appropriate academic sources, such as those found in this week’s Learning Resources or those in the Walden Library.

To prepare for this Assignment: (Use attached document and Templates)

  • Download the Week 2 Part 1 Assignment Template.
  • Download the Week 2 Part 2 Assignment Template.
  • Your Instructor will provide part of the data to complete the calculations for this week’s Assignment. To access that information, refer to Doc Sharing:

Submit your completed business report and accompanying Excel file. Your report should be 3–5 pages in length (excluding title page and references) and should address the following:

Analyzing the Performance Report—Preparing a Flexible Budget

For the first part of your report, you will examine a performance report based on the static budget about which the owners are very concerned. They feel that the unfavorable variances that are reflected in the report indicate an area that needs to be addressed, but they are looking to you for a better understanding and concurrence. To access this performance report, refer to the data that your Instructor provided in Doc Sharing for this week’s Assignment.

To complete this part, address the following:

  • Using the Week 2 Part 2 Assignment Template and the data provided by your Instructor in the Doc Sharing area, prepare a performance report that includes a flexible budget.
    • Note: In addition to submitting your work in Excel, you will insert your performance report into your main document.
  • In your report, analyze why the original report was incorrect and explain the conclusion you reached based on the performance report.
  • Then identify at least three questions regarding the performance report and include a rationale for why you asked each question.

The Balanced Scorecard

One of the owners read recently that the balanced scorecard is a strategic-based performance management system and is wondering if it would be beneficial to implement a balanced scorecard approach. For the second part of your report, you will provide an analysis of how using the balanced scorecard can benefit the company. To complete this part, address the following:

  • Explain how the balanced scorecard communicates strategy and provide examples.
  • Examine the four quadrants on the balanced scorecard, how they are related, and what their impact is on financial performance.

Place this order or similar order and get an amazing discount.

Simple Steps to get your Paper Done
For Quality Papers

In healthcare the terms balanced scorecard and a dashboard are used to describe performance measurement tools that are broad in scope but summarized in a few key

indicators. In this assignment, you will create a specific dashboard for an operating unit of a healthcare organization. Tasks: Select and describe a specific

healthcare operating unit. Examples are an emergency department, a surgical service, a specific nursing unit, and a physician’s office practice. Select a type of

healthcare service you are familiar with. Locate at least three recent (within the past four years) journal articles from professional and peer-reviewed journals that

discuss dashboard, balanced scorecard, or performance measurement. Write a brief review of the articles, giving complete citations. On the basis of the literature

review and your knowledge of the unit, create four categories of measurement. They must include both clinical and financial categories. Describe the categories and

write a justification for each. For each category, create at least three specific performance measures. For each measure, describe how it is calculated and where the

data can be found. Explain how the performance measures may change if the unit of analysis is the organization as a whole and not the specific operating unit.

Submission Details: Present your analysis as a 5-page report in a Microsoft Word document formatted in APA style. On a separate page, cite all sources using APA

format. Please use sources less than five years old.

Place this order or similar order and get an amazing discount.

Simple Steps to get your Paper Done
For Quality Papers

A Balanced Ecosystem – An Aquarium Essay

A Balanced Ecosystem – An Aquarium Essay.

The term ecosystem describes both the living and non-living components of an area that interact with one another. All the components are inter-dependant in some way with each other. An ecosystem may be aquatic or terrestrial. In an aquatic ecosystem rocks are needed for shelter and plants provide oxygen for fish. An ecosystem is balanced when the natural animals and plants and non-living components are in harmony- i.e. there is nothing to disturb the balance. With increasing pollution, change in migratory patterns, and rise of human population, many ecosystems are in danger of losing that harmony.

Advantages

It is difficult to find a perfectly balanced ecosystem but you can make a model at home and observe how the ecosystem functions. * You can observe how different species interact with each other * Study the natural cycle of each species

* Understand the relationship between different species- producer, predator, prey

How to create a balanced ecosystem model
Here is a suggestion for making an aquatic ecosystem- an aquarium.

You will need:

1. River silt or clean sand for the aquatic plants to grow. 2. An aquarium tank, at least 1 foot wide, 2 feet deep and 2.5 to 3 feet long. The top of the tank should be detachable and foldable so that you can reach into the aquarium to clean the glass sides and also feed the fish. 3. A light attached to the top lid to provide artificial light and for warming during cold winters. You can also place the aquarium at a sunny place.

4. Aquatic plants.
5. Small rocks for the bottom.
6. Fish.

First clean the soil and put it in the bottom of the tank. Arrange the rocks. Then pour a little water into the tank. Pouring the water directly will disturb the soil bed; so pour it over a plastic plate that floats over the surface of the water.

This way you will not disturb the bed or any other plants or fish when you pour water. When the water is at least 1 inch higher than the bed, put the plants into the soil. As the water level goes up the leaves of the plants will also rise up.

After the tank is full with about 4 inches left on top, stop pouring the water. Let the water settle for some time. Now introduce the fish one by one and close the top.

Observation

Observe whether some fish are destroying the plants or whether some fish are eating other fish. If the population of one species goes down dramatically, try and find the reason why this has happened. See what will bring back the balance- is it more fish of the same species, places for them to hide and be protected from predator fish, or more oxygen in the water?

For your project display, describe the abiotic (nonliving) factors present. Explain why the living and nonliving elements are needed in the aquarium. Give reasons for selecting the organisms or type of fish and the plants. Explain what relationship the fish have with each other and the plants- are they prey-predator? Show where they are in the food chain. Note their life cycle. Describe their adaptations and interactions with each other and the environment.

Resources

* Know your plants to make your aquarium a success

* How to make a saltwater aquarium

* FAQ’s on maintaining an aquarium

* Things to consider in the balanced environment

http://satoyama-initiative.org/en/case_studies-2/area_asia-2/working-for-the-living-in-harmony-with-nature-aichi%E2%80%99s-efforts-toward-ecosystem-networking/ ————————————————-

Google Map link to region
Summary:

Aichi has launched a new initiative aiming to create a society where humans and nature can live in harmony. To fulfill these aims, efforts have been in progress to combine “ecosystem networking” and “compensatory mitigation” Ecosystem Networking intends to reconnect divided and isolated natural environments by arranging greenery and aquatic areas to facilitate the movement of living creatures, in order to conserve and restore the unique ecosystem of the region. To promote the establishment of Ecosystem Networking, the Aichi prefectural government has made a map of potential habitats for the first time in Japan. Ecosystem Networks will be established by using this map.

Compensatory Mitigation is a system by which the persons/organizations responsible for development activities compensate for any loss in biodiversity in the area. Compensatory measures would be implemented on land meant for public use, such as schools, parks or green spaces of companies, which will help maintain ecosystems. We believe that efforts should focus on the three goals of “seeking harmony with nature”, “supporting the clustering of energy-efficient industries,” and “making greater use of recycled resources.” Industries, academic institutions, government and residents of Aichi would thus work together to develop integrated approaches toward the implementation of a sustainable society.

Keywords:

Biodiversity, Sustainable Use, Ecosystem Networking, Compensatory Mitigation, Potential Map

Introduction

The Aichi Targets of the Strategic Plan for Biodiversity 2011-2020 adopted at the tenth Conference of Parties to the Convention on Biological Diversity (COP10) in 2010, to achieve address the underlying causes of biodiversity loss by mainstreaming biodiversity across government and society, the vision of this Strategic Plan is a world of “Living in harmony with nature.” Aichi prefecture decided to host the Conference of the Parties to the Convention on Biological Diversity, and launched specific efforts based on the Aichi Natural Environment Conservation Strategy drawn up in 2009.The Aichi Natural Environment Conservation Strategy was developed to achieve harmony with nature and the sustainable development of this region. The underlying objective of the Aichi Natural Environment Conservation Strategy is to “seek reconciliation between ecosystem conservation and regional development”.

To fulfill this objective, new efforts have been made by combining “ecosystem networking” and “compensatory mitigation.” If a region-wide natural environment were to become divided and isolated by urban development, the ecosystem specific to the region, which provides habitats for living creatures, would be at risk. Ecosystem networking is intended to reconnect divided and isolated natural environments by properly arranging greenery and aquatic areas to facilitate the movement of living creatures, in order to conserve and restore the unique ecosystems of the region. Recently, efforts to build biotopes have been gaining momentum at schools, corporations, local communities, and other entities.

The biotopes need to be arranged so that they serve as part of a region-wide network, while taking into consideration the unique ecosystem and the current situation of the surrounding areas. The objective is not to simply bring back living creatures to the environment. It is necessary to conserve and restore the unique natural environment. We believe that ecosystem networking enables us to rediscover the traditional landscape and culture of the region. We consider it is necessary to promote collaboration, while holding discussions among various stakeholders in the region to design ecosystem networking and reflect it in community building at the regional level. Aichi’s Efforts toward Ecosystem Networking

(1)The Preparation of Aichi Biodiversity Potential Maps

We prepared Aichi Biodiversity Potential Maps to be used in discussions on ecosystem networking. “Potential maps” refer to maps of potential habitats. These maps are the first of their kind to be produced in Japan, and indicate not just the actual habitats of living creatures but also the potential habitats where living creatures are likely to live. These maps are based on data encompassing waterside environments and forests that are essential for living creatures to survive, taking into account the characteristics of target living creatures. Potential maps have been prepared based on 16 species of animals and vegetation maps. The potential maps are intended to raise public awareness. Specifically, residents of Aichi are expected to learn about the potential habitats of living creatures in their communities. Meanwhile, business operators and local government staff should realize that civil engineering works can be adjusted to increase living creatures. This is a potential map for the damselfly.

Figure 1

Damselflies inhabit still-water bodies such as ponds and lakes. It is known that damselflies can fly up to one kilometer between ponds and lakes. On this map, areas where damselflies can easily reach are marked in light blue. Potential maps are produced on a scale of 1 to 100,000. The blue patches show ponds and lakes. The blue lines mark a radius of 500 meters around ponds and lakes. Thus, if a circle overlaps another, the distance between ponds is less than one kilometer. The areas in light blue represent green spaces where damselflies can travel. To promote ecosystem networking for damselflies, the zones that are not in light blue need to be connected. However, buying land is a tough choice, and it is important to consider how to use public land effectively. The patches shown in pink represent public land including schools and parks. It is assumed that a biotope made up of waterside environments and greenery is built here; a route can be established for damselflies. Public land is not necessarily limited to land for public use. Networking can be promoted by utilizing such spaces as university campuses, green belts on the sites of factories and business establishments, roadside trees, river banks, and household gardens.

(2) Using the Potential Maps for The Formation of Ecosystem Networks We have a project to promote ecosystem networking by using the Potential Maps. Specifically, these maps of potential habitats for living creatures are used to develop a prefecture-wide biodiversity master plan, and then efforts will be made to carry out the plan. To do this, we need to develop pilot projects and gain expertise based on results and analyses. Three areas in the prefecture have been chosen for model projects. The first area is Nagoya’s eastern hills, which are characterized by the traditional landscape of typical Tokai hill land elements. This urban area model is intended to restore the ecosystem in the developed area. The second area is Chita Peninsula, which is one of Japan’s three major areas with reservoirs and still has more than 1,000 reservoirs.

This Satochi model is intended to attain harmony between people and living creatures, as symbolized in “Gongitsune,” the name of a fox, the main character of a work written by Nankichi Niimi, who was born in Chita Peninsula and wrote children’s stories. The third area is man-made coniferous forest in the Yahagi River Watershed. Man-made coniferous forests will deteriorate if they are abandoned or not properly maintained by thinning and other activities. This Satoyama model is intended to strike a balance between maintenance and neglect. Efforts are also under way to turn the coniferous forests into broad-leaved forests to help conserve the ecosystem without maintenance. These are some activities in Nagoya’s hills, as an example. This area spans about 20 kilometers in the east-west direction, from the Higashiyama Forest located in the eastern end of Nagoya City to the Kaisho Forest located on the edge of Toyota City. The former Expo 2005 venue, now called Moricoro Park in commemoration of the expo, is located here. Figure2 shows that the 20 kilometer area in the east-west direction is dotted with 22 campuses of
18 universities.

These campuses serve as “time capsules” to conserve forests, marshlands, and reservoirs retaining the traditional landscape of this region. The project is intended to promote ecosystem networking by connecting the natural environment remaining on these campuses with the natural environment in the vicinity such as the Higashiyama Forest and the Kaisho Forest, to help restore the traditional landscape comprising Tokai hill land elements. In addition to networking the natural environment, the project aims to encourage networking of volunteer activities by students of the l8 universities, as well as the academic activities of the university faculty involved in research and education.

The project is also designed to contribute to regional development by sharing the richness of the natural environment via collaboration among local corporations, residents of Aichi, and regional governments. The project is an interdisciplinary effort involving the collaboration of experts in biology, eco-business, civil engineering, as well as experts in landscape designing from among the faculty of art universities. We believe that harmony between people and nature does not simply mean to increase the number of living creatures, but to create a culture that fully values living with, and working and learning with nature. (3) Using Compensatory Mitigation to Support Ecosystem Networking (Aichi Method)

In this ecosystem networking model project, we plan to demonstrate compensatory mitigation. Basically, during a development project, destruction of the natural environment should be minimized. If destruction cannot be avoided, the impact on the natural environment should be minimized. Any loss of biodiversity due to development activities should be compensated by the developer. Compensation by the developer for any loss of biodiversity due to development activities is referred to as “compensatory mitigation.” This framework was legislated decades ago in Europe and the US, but efforts to build a system have not made headway in Japan. We plan to employ the Aichi Method in which compensatory mitigation is used to support ecosystem networking. This is a divided ecosystem.

A natural environment, as shown in the red square, is located near the forests. The area shown in the red square is subject to development activities. Basically, compensation is ensured within the development area. If the compensation is not enough, loss of nature is compensated by using the space that connects the divided ecosystems. This method employs spaces that are available free of charge, including schools, parks, and green spaces on the premises of corporations. Under this framework, development activities paradoxically promote ecosystem networking, which helps increase the mass of biodiversity. In addition, compensation is facilitated by using spaces that are available free of charge.

We believe that a challenging spirit is required to reconcile conservation and sustainable use. Making guidelines for each sector and developing them to Prefecture-wide Along with the ecosystem networking model project, Aichi Prefectural Government launched a three-year project in 2010 to develop compensatory mitigation. This project will establish guidelines for residents of Aichi, corporations, and regional governments based on the results of the model project. We would like to spread prefecture-wide ecosystem networking and compensatory mitigation, and embody the concept of harmony with nature.

Conclusions

The residents of Aichi, industry, academia, and government started to take action with greater environmental awareness, which encouraged collaboration among these sectors on an equal footing. We also believe that this manufacturing region can address global biodiversity issues. For example, global warming is a major threat to biodiversity. In the manufacturing industry, energy conservation and commitment to a low-carbon society help to conserve biodiversity. Another major threat to biodiversity is changes to the natural environment due to the collection of natural resources. In this context, the promotion of recycling and commitment to a recycling society help to conserve biodiversity.

Energy conservation in production processes reduces the input of natural resources, as does recycling. Production in Japan is highly energy- and resource-efficient compared with other major countries. Aichi is the manufacturing center of Japan, and boasts one of the highest levels of resource productivity in the world. This means that Aichi’s industries are a model for contributing to harmony with nature by taking advantage of the world’s leading environmental technologies. We believe that efforts should focus on the three goals of “seeking harmony with nature,” “supporting the clustering of energy-efficient industries,” and “making greater use of recycled resources.” These efforts will help build a “Sustainable Aichi.”

Aichi will work hard to achieve a sustainable society and set an example for the global community through the collaboration of industry, academia, government, and residents of Aichi. The approach of Ecosystem Networking establishment restores greenery at schools, parks and business establishments, green belts on the roadsides, and river banks to the local environment used to be there. If Satoyama areas and farmlands which have been conserved by human beings for long time are now left untouched, this gradually leads to ruin in the ecosystem. We aim to restore and maintain these areas and regenerate the ecosystem. In addition, this approach contributes to the achievement of the Aichi Biodiversity Targets which is one of the outcomes of COP10. We will send this to the world as the approach for the co-existence with nature.

A Balanced Ecosystem – An Aquarium Essay

Place this order or similar order and get an amazing discount.

Simple Steps to get your Paper Done
For Quality Papers

Treatment Of Culture Towards More Balanced

Treatment Of Culture Towards More Balanced.

Question:

Discuss About The Treatment Of Culture Towards More Balanced?

 

Answer:

Introduction

International trade, in recent decades has seen an unprecedented growth and Globalization has played a major role in this. Owing to the phenomenon called globalization, the exchange is business has been visible in almost all the countries of the world. The trend has largely contributed to the economic growth of many developing nations by operations the gates of employment to millions of unemployed youth. With great opportunities however, international business brought with it, many impending risks as well. As defined by Kot and Dragon (2015), international business risks refer to the possibility of unfavorable occurrences that a company might encounter while expanding internationally. While international business provides immense profit to a certain company, it also comes with endless risks. Many risks are encountered by multinational companies in operating their business in regions other than their native place. The rise in competition has further escalated the risks and an issue faced by the MNCs. Pharmaceutical companies in particular is affected by the risks associated with international business. One of the most prominent effects in recent times, on international business has been the exit of Britain from European Union.

The given report provides a thorough analysis of the impacts of international business risks on pharmaceutical companies. The report would specifically analyze the impact on one aspect of the company’s global operations, which is its cross-cultural management. The multinational company chosen for the purpose is GlaxoSmithKline. The company is based in Britain and has operations in countries spreading across Asia, America and Europe. The report tries to present elaborately, the importance of cross-cultural management in international business mainly pharmaceutical. The major risks concerning international business include political risk, exchange risk, credit risk, market risk and cultural risk and transport risk. Dinu (2015) has however identified four major risks that MNCs face in business operations. These are commercial risk, financial risk, country risk and cross-cultural risk. In the report, four major risks shall be explained – political, commercial, exchange and cross-cultural.

Risks associated with international business

International business, as already mentioned is abound with risks that confront all transnational or multinational companies. In the pharmaceutical industry in particular, these risks exert an added influence. Jaberidoost et al., (2013), mention that pharmaceutical companies, since they deal with products that are deemed sensitive and cautionary, have to pay extra care while doing international business. However, the focus of this report is to analyze the impact of the risks in the global operations of the company. The major risks as already mentioned include,

Political risk – Political risks surface due to the unpredictable political incidents. Unstable political environment arising from dangerous political actions; result in increased difficulties for MNCs to operate smoothly. Uncertainties also loom large on the stability of the government that rules a certain country. It thus becomes extremely difficult for a firm to operate smoothly and generate revenues. According to Musacchio, Lazzarini and Aguilera (2015), strict regulations and unprecedented government influence deters the quality of business and leads to increased cases of corruption. Corruption and malpractices especially in the said industry has severe consequences as it concerns human lives as well. One prominent example of political instability affecting international business is Brexit (Pharma.elsevier.com, 2018). Pharmaceutical companies in particular have significantly faced the wrath of Brexit as they are forced to end their operations in Britain since European business is no longer allowed to continue.

Exchange risk – While doing business in a foreign country, the company has to exchange its currency since each country has its own system of currency. The currency of one country is exchanged in another country at certain rate. This rate of exchange fluctuates at regular interval thus causing loss in business. The case is similar for pharmaceutical companies as well. Often the pharmaceutical companies are faced with the problem of higher expenditure and lower profit owing to exchange risks. Kim and Park (2014), argue that the fluctuating rates of currency exchange hamper a company largely because it disturbs their business planning which they have to redesign in order to meet financial requirements.

Commercial risk – It refers to the risks associated with fluctuations in the market of a country where the company has its operations. These risks arise when the multinational company makes wrong decisions in choosing partners and executing strategies. MNCs must realize the differences in doing business in alien lands with distinct rules and regulations. The severe competition in the global market demands frequent transformations in business strategies. In case of pharmaceutical companies, as pointed out by DiMasi, Grabowski and Hansen (2016), these commercial risks negatively affect the reputation and thus result in reduced revenues.

Cross-cultural risks – It is one of the most common risks that affect international business. Operating in a foreign land with a diverse workforce requires exceptional knowledge of multiculturalism. Culture is an aspect that holds great value to any nation and any violation of this result in huge loss for the company. It is one of the reasons most companies nowadays have dedicated a separate department to monitor these issues. Pharmaceutical companies have also employed similar strategies to tackle cross-cultural issues. In views of Ahammad et al., (2016), cross-cultural management is very important in case of pharmaceutical MNCs because any negligence in the timely management might result in conflicts. These conflicts in turn may cause heavy loss to the company.

Impacts on pharmaceutical company

The previous section briefly highlighted the impact of international business risks on pharmaceutical companies by pointing out certain concerns that confront this industry. In this section, those impacts shall be further explained with evidences from credible sources.

Pharmaceutical companies are responsible for manufacturing and selling medicines and other related items to patients and prescribers across the globe. Political instability causes these companies to abandon or abort their operations that not only cause loss to the company but also to the receiver. The company has to be extremely cautious while dealing with medicine and vaccines and possess deep knowledge regarding those as many vaccines and medicines are banned in some countries. According to Dadfar et al., (2013) however, pharmaceutical companies also have the opportunity to benefit from the political conditions prevailing in a country by exerting their influence through lobbying and such tactics. It needs to be mentioned that companies that have the capability to turn risks into advantages have the best chance to sustain in extremely risky environments and profit.

Exchange rates determine the economic position of a country and each country makes increased effort to strengthen its exchange rate in order to yield benefits. Constant fluctuations in exchange rates are the result of the growing competition between countries to move ahead in the race.  The pharmaceutical industry often fall prey to this fluctuating tendency and faces great loss. Hutson and Laing (2014), point out three particular impacts on pharmaceutical companies that may arise from risks in exchange rates. These are transaction exposure, translation exposure and economic exposure. Transaction exposure comes from the fluctuation effects of exchange rates that compel a company to change its strategies regarding making and receiving payments in foreign currencies in future. Translation exposure refers to the effects exchange rate fluctuations have on the combined financial statements of both original business and foreign subsidiaries. Lastly, economic exposure has an influence on the company’s market value.

The rapidly expanding market poses great number of opportunities for pharmaceutical companies in addition to all the risks. As per the views of Giuliani et al., (2014), commercial risks faced by pharmaceutical companies arise mostly from the emergence of local markets that present stiff competition to the global brands. The emergence of local markets poses threats in the form of local advantages enjoyed, no pressure of exchange rates, and exemption from taxes and so on. These advantages allow the local brands to gain at a better rate than MNCs. Chandra, Holmes and Skinner (2013) however argue that the most glaring impact of commercial risks on pharmaceutical industry is the significant cuts in healthcare investments in several countries. These reductions in healthcare spending result from slow economic growth and uncertainty.

Pharmaceutical is one such industry that has, in one roof, a team of scientists, researchers, developers, system analysts, lawyers, managers and others (Forbes.com, 2018). Therefore, it becomes extremely complex for the management team to organize and manage the vivid workforce. Training in cross-cultural management has become an integral part of an organization because it ensures profit through effective cross-cultural communication. With such a variety of individuals working together in pharmaceutical industry, the effect of cross-cultural risks becomes more evident. Contractor (2013), states that the industry demands competence in cultural management because of the diverse group of people that work in it. In particular, the pharmaceutical MNCs are the most affected when it comes to handling cross-cultural workforce. The MNC culture demands constant interactions with people from various cultures and this often leads to miscommunication and poor results in turn.

Overview of GlaxoSmithKline

GlaxoSmithKline is a pharmaceutical company based in Britain. The company’s headquarters is situated in Brentford, London. The company was established in the year 2000 when Glaxo merged with SmithKline. However, this company is considered one of the largest pharmaceutical companies ranking sixth in the world. The company has been improved after Emma Walmsley became its CEO in March 2017. She is the first female CEO of GlaxoSmithKline. According to the data published in the annual report of the company, its vaccines and drugs have earned more than 1.5 billion pounds in the global markets (Annualreport.gsk.com, 2018). On the other hand, the consumer products of the GSK such as Aquafresh, Horlicks, nicotine replacements and Sensodyne have earned more than 5.2 billion.

The company mainly aims to introduce distinguished, high quality as well as needed healthcare products to more people throng their global business. First, the company has a wide portfolio of advanced and established medicinal products. The company recently focused on the development of new medicines to support respiratory and infectious diseases, immune-inflammation and oncology. It has conducted diverse research to explore these areas. The vaccine business of the company has an extensive portfolio through which the company reaches a considerable number of people through its innovative pipeline of vaccines. These vaccines aim to protect people of all age groups. It delivers more than two million doses of its vaccine each day to the patients living in approximately 150 countries. The third section of its business focuses on the healthcare business for the average consumers that develops as well as markets numerous brands possessed by the company. The brands are recommended by the experts that categorizes in the areas of oral health, respiratory, pain relief, skin health and nutrition.

The company has proved to be one of the most innovative and best performing healthcare companies, which the patients trust. The company has three basic priorities such as innovation, performance and trust. The company invests in technical as well as scientific excellence to develop a more advanced supply of new products. This will meet all the requirements of the patients, consumers and payers. The company aims to achieve an industry leading growth by means of effective investment in its core business. In addition to this, the company aims to develop the people associated with the company and deliver the service flawlessly (Gsk.com, 2018). Including these, GlaxoSmithKline commits to ensure quality, reliability and safety in all sections of the process and products. The company is a modern employer that focuses to build trust through its approach for engagement in progressing global health.

The company believes that the governance structure that the company follows, underpins its ability for delivering the Group strategy that can easily grow in a diversified business like its own business. This enables the company to deliver more products of value. Including this, this particular governance structures amplifies the operating model that the company currently follows. GlaxoSmithKline is transparent in its business methods. The company publishes details on its Board Committees along with non-Board Committees, its shareholder information, ethical conduct as well as services it provides, global compliance and the contact details for its UK or US offices. Despite these facts, the company has numerous issues in its organizational culture that has led to business risks.

Cross-cultural management

It can be seen from the annual reports of most pharmaceutical giants that no company is safe from the risks of international business. GSK, one of the giants of the pharmaceutical industry, too suffers from the risks of international business. Managing global operations is a daunting task for any company including GSK (Tarasanski, 2017). Many facets of global operations are there that include – other than cross-cultural management – diversity in workforce, examining changing rules and regulations in other countries, updating global business information and so on. Stahl and Tung (2015), comments that the cultural dimension is the most significant part that gives an extra edge to any organization. The cultural management that determines the international business relations can be better understood by two of Hofstede’s cultural dimensions that include power distance index and uncertainty avoidance. Power distance index refers to the culture of acceptance of superiority of others without questioning it. The country that scores high on this index demonstrates this quality. Uncertainty avoidance refers to the rejection of anything new and innovative. Countries that score high on this index are considered culturally closed that is they do not welcome change or anything new (Bondy and Starkey, 2014).

GlaxoSmithKline is based in London where the culture is quite open innovations are welcomed and appreciated. However, in majority of countries where it operates, there is minimum acceptance of new ideas. Risks related to international business have huge impact on the cross-cultural management of GSK. Managing over one million employees in more than forty countries is evidently an operation that requires extreme skill, energy and time. According to Gollnhofer and Turkina (2015), political risks also contribute towards cultural imbalance in a company that is evident form GSK’s case. The author put forth the case of Brexit, which were a political decision and its glaring impact on pharmaceutical companies in the UK. With the announcement of Britain’s exit from the EU, GSK is estimated to lose a good portion of its employees who hail from other European countries. However, Brexit is less likely to affect the revenues generated by GSK as the pound sterling’s fall in link to the dollar is probably going to benefit the company, believed GSK officials.

Focusing on cross-cultural aspect of GSK’s global operations, although Brexit has affected its employee figures, it has certainly not hampered cross-cultural management in countries outside Europe. The company has directed its attention towards Asia, one of world’s fastest emerging markets of pharmaceutical that has the potential to yield unmatched profit. In order to rule the market however, GSK has to consider the risks related to government and industry regulations, societal regulations and most importantly, cultural regulations. Wang and Chung (2013), believes that the perfect strategy to win in Asia is to develop a workforce and an organizational culture that has the closest affinity to the region’s culture.

Cross-cultural aspect of global operations managed in GSK is further affected by the market risks faced by the pharmaceutical industry in the global market (Bremmer, 2014). Multinational companies have to go through lengthy processes to have access to an international market and then they have to adjust with the culture of that region. After going through all these, they have to focus on expenditure and revenue. With the emergence of local markets, these MNCs have to be always on their toes.

Recommendations

Although every firm faces business risks common to all, but multinational companies face risks that are unique and challenging, as already mentioned. In case of pharmaceutical MNCs like GlaxoSmithKline, the risks are further escalated by the industry’s complex operations. In order to survive in the competitive global market, the company has to consider all the implications of the risks mentioned above. Cavusgil and Knight (2015), is of the view that the global economy is ever growing and multinational companies have abundant scope to develop given they mitigate the risks with proper strategies. Several ways are there to tackle risks while doing business globally. Some recommendations are given below that can be followed by GSK to manage business risks:

It is recommended that the company should possess a legal base as an alternative if business processes are disturbed, by doing advance negotiation for compensation. Apart from that, the company can also opt for acquiring political risk insurance.

It is recommended that the company should choose a production site that is low-cost so that wages could be managed easily in order to tackle financial risks. Currency risks can be managed by utilizing certain strategies such as option contracts and forwards and currency swaps.

In order to tackle cross-cultural risks, GSK should develop advanced training for its employees to communicate properly with people from differing cultures. Managing operations in country that has a totally opposite culture is complicated and complex at the same time. Hence, the company must train its native employees.

It is further recommended that GSK should adopt an alternative plan to retain its multicultural staff in case any political decision forces the company to sack them as it was seen in case of Brexit (Lavery, 2017).

Conclusion

It is thus evident from the above discussion that managing and maintaining international business in the face of such risks is very difficult. The report mentions one aspect of global operations for the pharmaceutical giant GlaxoSmithKline, which is cross-cultural management. It is a well-known fact that international business involves cross-cultural management and it is the most complex part of the company to manage. GSK boasts of more than a million employees working in over forty countries possessing different nationalities. In addition, the company disseminates medicines and vaccines to more than 150 million patients worldwide. Hence, it is evident from the facts that GSK deals with people from different cultures in its daily operations. The report elaborates the impact of international business risks that include political, commercial, exchange and cultural risks on GSK, which is a multinational pharmaceutical company. A brief description of the risks is provided in the report followed by the types of international risks and their affect. The report further provides an overview of the company and its issues relating to cross-cultural management. The different risks and their influence on GSK have also been provided in the report. The report further mentions various recommendations that the company should follow in order to deal with these risks.

References

Ahammad, M. F., Tarba, S. Y., Liu, Y., & Glaister, K. W. (2016). Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention. International Business Review, 25(1), 66-75.

Annualreport.gsk.com. (2018). GSK Annual Report 2016. Annualreport.gsk.com. Retrieved 1 February 2018, from https://annualreport.gsk.com/

Bondy, K., & Starkey, K. (2014). The dilemmas of internationalization: Corporate social responsibility in the multinational corporation. British Journal of Management, 25(1), 4-22.

Bremmer, I. (2014). The new rules of globalization. Harvard Business Review, 92(1), 103-107.

Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), 3-16.

Chandra, A., Holmes, J., & Skinner, J. (2013). Is this time different? The slowdown in healthcare spending (No. w19700). National Bureau of Economic Research.

Dadfar, H., Dahlgaard, J. J., Brege, S., & Alamirhoor, A. (2013). Linkage between organisational innovation capability, product platform development and performance: The case of pharmaceutical small and medium enterprises in Iran. Total Quality Management & Business Excellence, 24(7-8), 819-834.

DiMasi, J. A., Grabowski, H. G., & Hansen, R. W. (2016). Innovation in the pharmaceutical industry: new estimates of R&D costs. Journal of health economics, 47, 20-33.

Dinu, A. M. (2015). Risk Types in International Trade. Knowledge Horizons. Economics, 7(1), 92.

Forbes.com. (2018). Forbes Welcome. Forbes.com. Retrieved 1 February 2018, from https://www.forbes.com/2010/05/18/pfizer-corporate-culture-david-simmons-leadership-managing-innovation.html#5452583875ae

Giuliani, E., Gorgoni, S., Günther, C., & Rabellotti, R. (2014). Emerging versus advanced country MNEs investing in Europe: A typology of subsidiary global–local connections. International Business Review, 23(4), 680-691.

Gollnhofer, J. F., & Turkina, E. (2015). Cultural distance and entry modes: implications for global expansion strategy. Cross cultural management, 22(1), 21-41.

Gsk.com. (2018). Governance | GSK. Gsk.com. Retrieved 1 February 2018, from https://www.gsk.com/en-gb/about-us/governance/

Hutson, E., & Laing, E. (2014). Foreign exchange exposure and multinationality. Journal of Banking & Finance, 43, 97-113.

Contractor, F. (2013). “Punching above their weight” The sources of competitive advantage for emerging market multinationals. International Journal of Emerging Markets, 8(4), 304-328.

Jaberidoost, M., Nikfar, S., Abdollahiasl, A., & Dinarvand, R. (2013). Pharmaceutical supply chain risks: a systematic review. DARU Journal of Pharmaceutical Sciences, 21(1), 69.

Kim, K. K., & Park, K. S. (2014). Transferring and sharing exchange-rate risk in a risk-averse supply chain of a multinational firm. European Journal of Operational Research, 237(2), 634-648.

Kot, S., & Dragon, P. (2015). Business risk management in international corporations. Procedia Economics and Finance, 27, 102-108.

Lavery, S. (2017). ‘Defend and extend’: British business strategy, EU employment policy and the emerging politics of Brexit. The British Journal of Politics and International Relations, 19(4), 696-714.

Musacchio, A., Lazzarini, S. G., & Aguilera, R. V. (2015). New varieties of state capitalism: Strategic and governance implications. The Academy of Management Perspectives, 29(1), 115-131.

Pharma.elsevier.com. (2018). How will Brexit effect Multinationals and Pharmaceutical Companies?. Pharma.elsevier.com. Retrieved 1 February 2018, from https://pharma.elsevier.com/pharma-rd/how-will-brexit-effect-multinationals-and-pharmaceutical-companies/

Stahl, G. K., & Tung, R. L. (2015). Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship. Journal of International Business Studies, 46(4), 391-414.

Tarasanski, P. (2017). Brexit: Changing Dynamics of Corporate Financial Risks, Return, and Performance: Case Companies: BP, Royal Bank of Scotland, Marks & Spencer, GlaxoSmithKline, EasyJet.

Wang, C. L., & Chung, H. F. (2013). The moderating role of managerial ties in market orientation and innovation: An Asian perspective. Journal of Business Research, 66(12), 2431-2437.

Treatment Of Culture Towards More Balanced

Place this order or similar order and get an amazing discount.

Simple Steps to get your Paper Done
For Quality Papers