EDITORIAL
Volume 11, Issue 6, 2016
Preface
- K C Chan
This colloquium covers eight aspects of the same topic - "Globalisation and its impact on the New Economy" - a vast area to cover. There is a theme of wholistic thinking running through. With globalisation and the ever-growing size of enterprises, there has never been a greater need to take everything into account, or greater difficulty in achieving this. Wholistic thinking amalgamates three other types of thinking, critical, systems and holistic. Critical thinking analyses, assesses, reconstructs, and is a necessary background for creativity and innovation. Systems thinking looks at systems within systems and how various parts of an organisation affect other parts. Holistic thinking looks at patterns and how everything fits together. Wholistic thinking integrates all those, using the whole brain, left and right, to do this. Roughly speaking, the right-brain gives us practicality and the left-brain gives us creativity, but both need to work in tandem for overall success. In this global age, wholistic thinking is becoming even more important.
International Operations Management
- Alvin Wibowo, Florencia Irena, Kathleen Gabriella Tandjung, Kevin Wijaya, Michele Edlyn Sampoerno & Stanley Sastro Prajitno
When things keep changing all around the companies that are highly efficient but stationary are quickly left behind. It is essential to try to move with future times, which is difficult as it means constantly dealing with the unknown. One example of operations management is the use of machines, which increase productivity and make for consistent quality, but raise other issues. The upsurge of mechanisation in the Industrial Revolution brought protest from the workers, who feared for their livelihoods, and from the Arts and Crafts Movement, as whatever the functional quality of churned-out objects, the quality of craftsmanship disappears. Machines have been necessary to keep pace with productivity and demand, and their use keeps increasing exponentially. Computers and robots have moved this automation to new levels, but now it may be coming full circle. Machines reliably produce identical results, but identical results do not help the forward march of change. We now need creative brains to help unleash the possibilities born of technology.
International Wealth Management
- Dr Christopher Goh (Supervisor for this article), Felix Christiyanto, Vincent Febrianto, Dave Drew, Azel Lisapaly, Julio Binartha, Kevin Sinarjo, & Frederick Christianto
Globalisation brings financial opportunities, and has led to more development in more nations, but also brings considerable risks. The normal risks of rising costs of raw materials, customer default on payment, and inflation, are greater as the size of the marketplace increases. The VUCA (volatile, uncertain, complex, and ambiguous) world means we have to identify, measure, monitor and control and mitigate the risks. The volatility, uncertainty, complexity and ambiguity make this very difficult to do. Risks can be identified by looking for patterns in the past and assessing whether these patterns are likely to continue. Measuring means using analysing statistics, including areas and amount of likely error. Monitoring requires a team whose specific task is to manage risk. Control comes from assessing where income comes from, and which assets contribute most and which least. Mitigation can come from a diversified portfolio, and to categorise types of assets and devise strategies accordingly. As extra protection, insurance and indemnity policies will transfer risk to the provider.
International Marketing Management
- Redemptus Alvin Hapsianto, Billy Ong, Vincentius, Nathan Gondo Hartono, & Yosua Nangin
Going back 150 years and more, marketing had far less relevance as people aimed to produce little more than for their own needs. Mechanisation and industrialisation brought more goods, and entrepreneurs sought more customers. When the Great Depression came people could afford less, so branding became important to persuade customers to choose particular goods. After World War II, with little money and fewer goods, it was realised that satisfying customers was important to win customer loyalty, and marketing became a separate area of business. Now this extends across the globe, which means taking into consideration diverse cultures, expectations, regulations, and more. Setting up business in another country means making decisions about how far to treat local markets as unique, and how far to carry on the home country approach. Another aspect is presenting the product to potential customers, creating distinctiveness in a diverse market. This paper uses the example of Coca-Cola to look at marketing more deeply.
International Technology Management
- Erwin Santhio Pratama, Angela Irena, Sherly Tanoyo, James Korompis, Shierly Wibowo & Tommy Haryant
Technology, perhaps more than anything else, has opened up the world, especially in the area of electronic communication and the instant sharing of information with a variety of devices, many hand-held. This affects the entire process, from sourcing raw materials to after-sales service. The soft skills should not be lost in the process of delivering vast amounts of complex information. People may feel lost and neglected if communication becomes a mere technological exercise. This shows quickly in the case of customer relationships. It may be easy in technical terms to process orders and arrange delivery online, with no face-to-face contact or actually speaking, but it is equally easy for discontented customers to get their message across to thousands of other customers. And being quick and easy, they may do so at the peak of their discontent. The same applies to all stakeholders, and it needs to be remembered that where there are people, the need for soft skills has not diminished.
International Finance Management
- Ailin Winoto, Audry Budiharjo, Dion Natanael K, Felicia Afanti, Syeni Melina & Veronica Amelia
Finance pervades every part of business, and there needs negotiation for the best deals, as well as finding the cheapest ways to satisfy all stakeholders. This has to fit in with world economic events, which are volatile. Changes in interest rate, exchange rates, or commodity prices could be advantageous or disastrous. Globalisation exposes companies to more political variation, and this can change quickly. And now we have cyber-crime. There is more pressure for high standards for green issues. Any unethical, or even slightly dubious behaviour can go viral on the internet, and reputations lost are hard to rebuild. Added to this is the steady need for innovation, which may cut cost, or may be expensive, but it could even more expensive to let the innovation of other companies overtake. There is risk at every stage. This paper looks at how three companies from different nations and how they approach financial management. These companies are Michelin (France) Heidelberg Cement) and Rio Tinto (Australia).
International Human Capital Management
- Aurellia Feliciana Wanamulia, Feliana Tanuraharjo, Jessica Yamin Suwito, Michelle Wangsaputra, Sally Wisana & Vincent Nattaniel
There has always been a need to attract talent to help organisations to prosper, and to accommodate differences of outlook, even when everyone involved lived within a few miles. Globalisation has extended this need to cover vastly different backgrounds, expectations, and cultures. Hofstede has outlined six dimensions of organisational culture, and a further six dimensions of national culture. For example, the organisation may focus on what work is done (goal-oriented) or how it is done (means-oriented). At national level, those lower in social status may expect equality of treatment, or may accept authority as binding (power distance). In addition, Ulrich has developed a leadership capital index, which covers culture capability, talent management, performance accountability, information flow, and work practices. In all cases, human capital needs education to enable them to conceptualise, training to acquire necessary competence, and experience so they can make connections, solve problems, and make decisions. This paper looks at three IT companies, Hewlett Packard, Dell, and Lenovo, in relation to these and other factors.
Global Strategic Management
- Cynthia Ang, Kevin Jonathan, Monica Oktabiany, Samuel Claudio Santoso, Sean Budianto & Vincent Effendi
Barriers to international trade have been falling, bringing more companies into business and making expansion more attractive. Competition has become global, which necessitates global strategy. This paper looks at three mobile phone companies – Apple, Xiaomi, and Samsung, using the 6As model. The first A is Awareness. Obvious though it seems, for all the talk about strategy it is often unclear what it actually is. Next the people involved need to be show Alignment with that strategy, for example, Apple has a policy of continuous innovation, Xiaomi keeps prices low, and Samsung aims to provide for all market segments. The third A is Action to make the strategy happen. Then comes Adoption, which looks at performance in financial terms. Assurance comes next, which is looking at ways to improve and assure the future. This covers areas such as market share, owning patents, and innovation. Having gone through that process, there is information for new development, which requires Anticipation, and the whole process begins again.
Multinational Enterprise Management
- Hans Kristanto Danuatmadja, Michael Nathanael, Timotius Stanley Hariono, Kevin Jaya Prabhowo, Hardianto Rumui & Stevanus Sumarga
Ghemawat says we are now living in Word 3.00, where big businesses can include not just more than one country, but other international agencies and even governments. At the same time, the internet has made it possible for small organisations to compete, sometimes with high success, and emerging countries have more opportunities. Not surprisingly, a multitude of theories have grown up about multinational enterprises (MNEs). Broadly, these are macroeconomic (focusing on international economics and trade) or microeconomic (focusing on organisations). Macroeconomic theories look at such things as international capital flow, the effect of dealing in different currencies, the impact of government control in different political climates, and the changes in trade barriers. Microeconomic theories look at how organisations grow, acquire or create markets, make choices about location and whether to employ people from the home or the host country, how they gain advantage, and the factors that influence their decisions. This paper describes several of these theories, as well as brief summaries of the work of ten researches of multinational enterprise and government management.