Asia Pacific Business assignment analysing multinational cooperation’s operations
Question
Task: Write a reflective journal on computer architecture assignment analysing the theoretical concepts captured from the weekly material.
Answer
Introduction
This Asia Pacific Business assignment will analyse multinational organisation operations. Organizations working in various market conditions often get influenced by different factors that negatively affect their performances. These firms are constantly facing high and unacceptable products or services, unprotected commodity shortages, intense competition, possible imitation and other factors determining their success or failure. Here, the internal situation of the organizations also plays significant role in optimal utilization of financial and material resources (Dzemyda, 2014). This might affect the organizational status and the people working there. Thus, these organizations can only succeed when the owner, managers and employees work together for evaluating these external and internal factors, making future predictions, shaping their actions and constantly monitoring the situation. In this regard, strategic analysis can be undertaken for undertaking various subjective decisions based on the collected objective information. Strategic analysis has often been considered as an essential part of strategic management involving new tools and techniques being continuously improved (Teryimaand Angahar, 2014). This Asia Pacific Business assignmentanalysis is mainly performed at two levels, namely, corporate and business levels. It helps in identifying the unique position of a firm by analysing its external and internal business environment and factors being recognized as both opportunities and threats. Thus, strategic analysis helps in determining a firm’s current position and formulating suitable strategies based on it. The purpose of this research study is to analyse four case study organizations, namely, Mitsubishi Corporation, Hitachi Technologies, Huawei Technologies and Samsung Electronics. Here, the Asia Pacific Business assignmentreport has focused on four areas of strategy, corporate organization, core capabilities and role of home government.
Mitsubishi Corporation
i. Strategy
Strategy refers to a clear set of goals, plans and actions undertaken for enabling a business to compete in the market and industry in which it operates (Grant, 2021). Mitsubishi Corporation has formulated a midterm corporate strategy for working towards its aim of triple-value growth through its current business management model. This Asia Pacific Business assignmentstrategy has been beneficial for responding to geopolitical dynamics, rapid developments and digital transition occurring across the business environment (Mitsubishi Corporation, 2018). This midterm strategy covers four fundamental sections, namely, business portfolio, growth mechanisms, HR system reforms and financial targets and capital policy. This shows that the company has developed various strategies based on the core business areas that it needs to focus on. Such classification of strategies depending on specific requirements of the business functions has been helpful in focusing on improvement areas. Thus, the presence of this strategy can help the organization in working towards its growth and development.
ii. Corporate Organization
Mitsubishi Corporation consists of a global workforce with 90,000 professionals. The ongoing difficulties in the business environment and diversification of the group’s operations make it challenging to empower and develop this workforce (Mitsubishi Corporation, 2022a). Despite such challenges, the company always focuses on fostering inclusive and flexible workplace environments so that the employees can grow and flourish irrespective of their gender, values, cultural and national differences. These employees operating across various locations of the group constitute its corporate organization. In this regard, the company also focuses on training and career development, diversity management, supporting women’s career, positive work environment, union and other initiatives (Mitsubishi Corporation, 2022a). Thus, these have been contributing towards the growth and development of the corporate organization by improving the workforce.
iii. Asia Pacific Business assignment - Core Capabilities
Mitsubishi Corporation has various core capabilities that have enabled it to emerge as a global integrated business enterprise operating in around 90 countries and regions across the world. It has a global network of about 1700 group companies with 10 business groups operating in different industries (Mitsubishi Corporation, 2022b). One of the significant capabilities of the company identified on this Asia Pacific Business assignmentis adopting a holistic view across all these numerous industries where it has its operations. Furthermore, the group has an efficient foresight for identifying new opportunities for growth (Mitsubishi Corporation, 2021). Lastly, the third core capability is execution skills of the workforce for achieving this growth.
iv. Role of Home Government
Mitsubishi Corporation has been contributing towards various business solutions, which majorly include consultancy, technology acquisition and development, merchant banking, logistics and chain management and market analysis since the 1990s. The group has been able to expand and grow itself in different industrial sectors because of the harmonious political environment in Japan alongside the growing economic development through foreign direct investment. Having significant locational advantages has also contributed towards developing the organization in the domestic ground as well as across various international markets. In addition on this Asia Pacific Business assignment, the internationalization advantages of the corporation along with its ownership and location factors have been identified as being advantageous for its growth.
Hitachi Technologies
i. Strategy
Hitachi follows a Mid-Term Management Plan for encompassing all of its business strategies. This plan is revised every three years based on the outcomes achieved and areas of improvement that the company should focus on. The group is currently following the 2021 Plan for improving its business operations and strategies (Hitachi, 2019). This mid-term management plan focuses on creating social, economic and environmental values through its five-sector business and technology solutions. Alongside this, the group further emphasizes on offering its digital and green solutions for growing in the business. It plans to make further investments in these sectors for ensuring its future growth and development across the world (Hitachi, 2021). Furthermore, the company has also been strengthening its business structures for undergoing transformation as a global leader in the social innovation business. In this regard, it has been leveraging its strengths present in operational technology, informational technology and products (IT Brief, 2019). Thus, this has made it possible to bring social reforms in its infrastructures through various digital technologies.
ii. Corporate Organization
this Asia Pacific Business assignment observed that Hitachi is a multinational conglomerate corporation located in Japan. It consists of various business sectors, including, digital systems and services, green energy and mobility, connective industries and automotive systems business (Hitachi, 2022). The employees are spread across various locations worldwide and are responsible for carrying out job responsibilities based on their company requirements. The number increased to around 368.25 thousand people as of 31st March, 2022 (Gorka, 2022). While the group resides as a corporate conglomerate, the subsidiaries operate in various fields of information technologies, smart appliances, energy, mobility, industry and others. Thus, the employees work in these subsidiaries across these different sectors.
iii. Core Capabilities
Hitachi consists of different core capabilities that have enabled it to emerge as a successful conglomerate business. These mainly include diverse capabilities, extensive experience in global market and outstanding teamwork. The manufacturing capabilities have been improved through significant investment in IT businesses (Hitachi, 2019). The group also consists of advanced technological capabilities alongside extensive knowledge in its energy businesses. Furthermore, it has also been capable of expanding and enhancing its solution and service businesses because of its maintenance and on-site capabilities.Besides, the group has also strengthened its digital capabilities through its acquisition of Pentaho. Thus, these core capabilities have been beneficial in improving the efficiency of business and solutions.
iv. Role of Home Government
Japan’s government has a stronger control and influence over businesses despite its direct state participation in various economic activities. It constantly engages in consultation with businesses and direct involvement in banking. Despite such control, the government undertakes various initiatives for establishing low interest rates, reducing costs of investment and promoting industrial expansion (Britannica, 2022). This enables businesses to not only function efficiently in the home country but also expand their operations beyond the domestic boundaries. Hitachi has also been beneficial from such government initiatives in the initial years that have resulted in its successful operations across the world.
Huawei Technologies
i. Strategy
The fundamental strategy of Huawei Technologies identified on this Asia Pacific Business assignment is to build a fully connected and intelligent world by bringing the digital technology advantages to individuals, homes and organizations. In this regard, the company focuses extensively on its four strategies of ubiquitous connectivity, pervasive intelligence, personalized experience and digital platform (Huawei, 2022a). Furthermore, Huawei follows a strategy of open hardware, partner enablement, open-source software and talent cultivation. This has been helping the company to develop a diversified computing ecosystem. Besides it emphasizes on its strategy of maintaining a globalized and diversified supply chain for ensuring smooth operations of its businesses (Huawei, 2022a). This is done by engaging with suppliers and partners for creating a secure, competitive, reliable and healthy value chain. However, the group has been receiving pressure on its traditional business model that has been helping to diversify its business portfolio through development of digital ecosystems and software applications (Noyan, 2021). This has encouraged the group to expand in various sectors including e-mobility, facial recognition and artificial intelligence.
ii. Corporate Organization
Huawei has emerged as a leading global corporate organization of information and communications technology (ICT) infrastructure and smart devices. With the help of 195,000 employees, the group operates in more than 170 countries and regions for serving around 3 billion people across the world (Huawei, 2022b). This has been enabling the group to operate in consumer products, business products, partners and developers. As per the Asia Pacific Business assignment findings, the products and services of the corporate organization are spread across various sectors like fixed network, data communications, mobile network, software and services, optical network, mobile terminals, cloud and computing technology, connectivity and smart industry solutions.
iii. Core Capabilities
Huawei has various core capabilities that have enabled it to become a worldwide success. It has a strong research and development centres that enables it to make investment in various innovation and exploring endless frontiers of both science and technology. The group further focuses on openness, collaboration and shared success by working with various industries (Huawei, 2022b). the Asia Pacific Business assignment research findings show it has more than 30,000 partners across the world offering services and solutions to government and enterprise market. Another core capability of the group is being customer-centric and closely working with customers for providing customized technologies to them. Its worldwide operations show how different strong brands working under the group drive innovation for the company (Martin Roll, 2018). In addition, its effective leadership strategy has enabled it to become a globally successful business.
iv. Role of Home Government
Huawei Group has emerged as a global leader in various sectors like smart phones, mobiles, telecommunications, infrastructure and services. Despite this, the company has been stated owned in its domestic market, thus, experiencing a significant level of control and influence of the Chinese government on its operations. Operating successfully in the Chinese large domestic market has enabled it to expand across various global operations despite having strict government regulations. However, ongoing political and trade difficulties between China and US have blocked various commercial developments in the foreign market. Nevertheless, the group has always been dominant in developing countries targeting the consumer electronics market.
Samsung Electronics
i. Strategy
Samsung is a South Korean electronics company offering high technology consumer products including mobile devices, computers and laptops, televisions, household appliances and others.The Asia Pacific Business assignment research shows, it applies three fundamental business strategies of effective market researcher, recognizing and utilizing opportunities in the market and focusing on new product development (Lee, 2019). Being a market researcher, Samsung Electronics closely observes the market for understanding consumer preferences, competitors’ offerings and industry trends. This helps it to introduce new features in its existing products for modifying them. Furthermore, it constantly searches for gaps in the market for exploiting market opportunities in satisfying the customers (Lee, 2019). It further emphasizes on developing various new products and extending its product range for gaining competitive advantage. Thus, these business strategies are continuously applied for enhancing its performance in the market.
ii. Corporate Organization
Samsung Electronics has become successful as a corporate organization because of its employees and strong culture. The company fosters a culture of innovation, thereby encouraging employees to possess identical perception of the entire business. Furthermore, it also includes suppliers and partners in the business culture for driving innovation and producing products in different sizes, models, specifications and prices (Samsung, 2022). Besides, its core values of people, change, excellence, integrity and co-prosperity have also been helpful in driving its growth as a corporate organization. Thus, its talent, employees and technology are constantly contributing towards developing superior products and services in the global market.
iii. Core Capabilities
Various core capabilities present in different areas of the firm identified on this Asia Pacific Business assignment have enabled it to become a successful global corporation in the consumer electronics industry.Samsung’s fast follower strategy of design and production has been one of the core capabilities for responding quickly to changes in market demands(Haizar, et al., 2020). It creates barriers to competitors by constantly introducing new products and at low prices. Furthermore, the New Concept Development (NCD) strategy is another core capability that enables the firm to create new and innovative ideas of products and services. Besides, the company has its own competitive supply chain, 70% of in-house production and strong relationship with around 500 carriers in the market (Haizar, et al., 2020). Moreover, it has been using Japanese business system along with Western best practices for its operations. This unique hybrid management system is another core capability contributing towards the company’s success (Jung, 2014). Recruiting talented employees from both inside and outside sources for initiating change is another capability that enables the company to ensure constant innovation. In addition, its quality-based management has also been helpful in contributing towards its worldwide success.
iv. Role of Home Government
the Asia Pacific Business assignment research shows that Samsung has always resided as a large, family-controlled conglomerate in its home country South Korea dominating the country’s economy for many decades. The group’s operations in various sectors across the country have been possible because of political support from the very beginning (Borowiec and Dave, 2016). The governmental initiatives, policies and regulations alongside a nearabout harmonious environment have been beneficial for the company’s growth. However, in the recent years, the close ties of this powerful corporation with the political elite in South Korea have been receiving unprecedented scrutiny. This has increased because of allegations of bribery and other illegal charges, thereby putting the company into massive political scandal (Ullah, 2017). Thus, despite the government’s support towards the corporation’s success and growth, the relationships have been receiving criticisms from various groups.
Conclusion
The purpose of the report was to conduct a case study analysis of four corporations of Asia Pacific Business by focusing on areas of strategy, corporate organization, core capabilities and role of home government. In this regard, the four corporations undertaken for the study were Mitsubishi Corporation, Hitachi Technologies, Huawei Technologies and Samsung Electronics. Mitsubishi and Hitachi operate in the Japanese market, Huawei in the Chinese market and Samsung in the South Korean market as their originating countries. These corporations have expanded across various regions in the world because of their effective business strategies, core capabilities, strong corporate organization and significant role played by the home government. The business strategies were identified for various focus areas like growth, sustainability, innovation, digital technologies and others. The core capabilities of the firms were identified as contributing towards sustainable competitive advantage in the market, thereby enhancing the overall performance. The corporate organization comprising of core values, principles, business model, employees and partners were also beneficial for the companies. In addition to this the significance of control and influence of the home government were also identified as key factors in their success on this Asia Pacific Business assignment.
Reference List
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