We accept

The great things about Globalisation and International Trade

Every gold coin has two factors, something similar to that in globalisation. We are able to see two edges; one is about the opportunities and second is the risks. Opportunities will be the advantage for our organisation, but threats are not good for our organisation, that's why we need to knows the hazards and devise strategies resistant to the threats.

In my project I will discuss and explain here hazards and organisation's strategy in globalisation.

Benefits of Globalisation

Increase in Opportunities

The opportunities for individuals increase by a big amount as the there is availability of large numbers of industries and resources. Globalisation makes more job opportunities for peoples this also opens the way for many individuals to moving in another country. Altimetry immigration rates increase as well. Thus it can say that is the chance for many individuals to grow their cost-effective and communal life.

For example, increase development in BPO sector in India there is certainly more opportunity is currently designed for Indian public.

competitive advantages for coca-cola company:

An advantage of company has over its competitors, allowing it to create increased sales or margins and/or hold on to more customers than its competition. There might be various kinds of competitive advantages including the firm's cost composition, product offerings, distribution network and customer support.

For example, Pepsi is regularly trying to maximize profits, minimize loss, and getting more market show. Competitive benefits makes coca-cola stand out from its strong competitors such as Coca-Cola.

Economies of Size:

If countries can specialise in certain goods they can reap the benefits of economies of level and lower average costs, this is especially true in establishments with high set costs or that require high levels of investment. The great things about economies of scale will eventually lead to lessen charges for consumers.

For example, in UK the 10, 000 mobile is manufactured by 100 people and the expense of production is came 100, 000 while in China same people make 50, 000 mobile with same development cost.

Challenges of Globalisation

POLITICAL: Within the overseas country you want to examine political policy for the company, which is via outside of their country because if the plan is rood rather than in favour of good business environment, we can't extend our business in that country. We want also know the politics stability of this country. Because if the government is dealing with other political people, means in times of hung parliament they cannot taking decisions easily because of different thinking and various opinion. In this situation we want to change our strategies and change the united states for our business.

EXAMPLE: In India Enron job of UK established in western world Bengal. It was a very big project. But because of interior politics task was stuck-down and company has got very big damage in very small amount of time. After that they have gone the project. That's why we need to examine political balance and their behaviour for business environment.

CULTURE: Culture is a main thing for every organization on the planet. Like, dislike, different thinking, different dialects, different food, different environment and different body structure Organization has to established their business in various condition. So they need train their worker, or select the employee of that country who are used to from it.

EXAMPLE: In Pakistan their religious did not allow their women to wear stylish cloths therefore the make of fashion cloths are suffer for running their business efficiently in Pakistan.

DIFFERENT Federal SYSTEM: It's a subject of low. Low about the duty, low about the income, and low about the government policy should be permanently. If we established our organization and from then on they will change the low, we will damaged by that and we'll getting loss or our company will collapse. Second thing is the fact before the business expands in other country you want to know the lows perfectly.

EXAMPLE: If wine beverages company founded their organization in abroad country. But because of some reason federal makes a new low against the wine. From then on company or group will collapsed.

Question 2

Organisational Structure

In a business of any size or complexity, employees' obligations typically are described by what they are doing, who they report to, and for managers, who records to them. As time passes these definitions are given to positions in the organization alternatively than to specific individuals. The connections among these positions were created graphically within an organizational chart. The best organizational structure for any organization depends on many factors like the work it does; its size in terms of employees, income, and the geographic dispersion of its facilities; and the range of its businesses.

As per globalisation there are mainly two structures can be found. This structure is as:

Divisional structure

Matrix structure

Network structure

Mainly global company is use divisional structure for the organisation. A couple of two types of divisional framework means that the department is done by two different methods as, product division structure and geographical division framework. In product framework the division is performed be product sensible while in geographical structure the division is done by global region smart. But on the whole all structure has chairman, CEO, president, managers, etc. are in an effective manner which help company or company to attain their goals.

Based on net earnings, PepsiCo is the second major food & drink business on the planet which uses geographical structure. Within North America, PepsiCo is rated (by net income) as the major food and beverage business.

Geographical department Structure

Organizations that are spread over a broad area could find advantages in arranging along geographic lines so that all the actions performed in an area are managed jointly. In a sizable organization, simple physical parting makes centralized coordination more challenging. Also, important characteristics of a region may make it beneficial to promote a local focus. For instance, marketing a product in Western Europe may have different requirements than marketing the same product in Southeast Asia. Companies that market products internationally sometimes adopt a geographic framework. In addition, experience gained in a local section is often excellent training for management at higher levels.

From above structure of PepsiCo, inc. we can see that division is done in geographical region. At the top of the composition the chairman, leader and CEO is president. And at the bottom of structure there's a different office like HRM, Fund, Making and Marketing. The person of bottom line has to record at the top persons.

PepsiCo, Incorporated is a Fortune 500, North american global organization headquartered in Purchase, Harrison, New York, with passions in the making, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since extended from its namesake product Pepsi to a broader selection of food and drink brands, the most significant of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 - which added the Gatorade brand to its profile as well.

As of 2009, 19 of PepsiCo's product lines made retail sales greater than $1 billion each and the company's products were sent out across more than 200 countries, resulting in annual net earnings of $43. 3 billion.

This framework has been developed with as few tiers between manufacturer, the supplier and the client. By removing tiers and giving leaders increased accountability, PepsiCo, inc. allow them to go faster and concentrate on what needs to be done.

Section B

Question 2: Business Ethics

Ethics and compliance play a tremendous factor in the overall success of an organization. They are excellent techniques for building organizational trust and transparency. Ethics and compliance empowers the business to reduce risk and increase your culture of integrity.

Role of Ethics and Conformity in Pepsi-Cola

The Pepsi-Cola company is strongly committed to providing sustained expansion through empowered people behaving responsibly and building trust, (PepsiCo Inc. , 2010). Pepsi-Cola aspires to be a environmentally and socially in charge company and upholds their dedication with six guiding principles: Look after the customers and consumers; sell high quality products; always speak the truth; similarly balance both short-term and long-term goals; win with both addition and variety, and always respect others and be successful as a team.

The conformity committee is in charge of managing Pepsi-Cola's compliance program, using issue resolution strategies and making recommendations to support them. The Chief Compliance Standard and Vice Leader, lead the Pepsi-Cola conformity program, and seats Pepsi-Cola's conformity committee. The conformity is broken down into four sub-committees. These subcommittees include:

"Anti-trust"- which focuses on the organization's sales;

"Basic safety and Environment"- which focuses on operations, fleet, plant life, and the employees that staffs them;

"Human Resources"- which generally pertains to labour issues and work;

"Fund"- which encompasses all financial integrity, recent overlay of Sarbanes-Oxley, and the requirements that is placed on the business.

PepsiCo - Methods Ensuring Ethical Behaviour

PepsiCo is focused on strict corporate criteria to ensure accountability for the company actions. That is evident by the countless corporate governance requirements set up. The functions and procedures that are in place are the Amended and Restated Articles of Incorporation, Audit Committee Charter, By-Laws, Payment Committee Charter, Corporate Governance Guidelines, Disclosure Committee Charter, Nominating and Corporate Governance Committee Charter, and the Insurance plan for Audit, Audit-Related and Non-Audit Services.

The Amended and Restated Articles of Incorporation state governments the guidelines of the incorporation process regarding PepsiCo Inc. This includes the proper name of the business; that the company is to acquire perpetual existence; the official address; and the purpose of the organization being incorporated along with the product information as mentioned by North Carolina legislation (PepsiCo Inc. , 2010). The Audit Committee charter is the charter that handles the financial governance. It is composed of independent directors which have know-how in financial literacy, which guide and screen the financial reporting and accounting insurance policies of the business (PepsiCo Inc. , 2010). The next part of governance is the business by-laws. The by-laws will be the rules and techniques the company uses to run the business. These by-laws also file the targets of the shareholders, officers, and directors of the company and the rights and power of each position (PepsiCo inc. , 2010). Along with arranging the rights and power of the executive branch of the business is the necessity for monitoring and placing policies on settlement; therefore, the reimbursement committee charter was placed into place. This committee comprises of entirely 3rd party directors (PepsiCo Inc. , 2010).

It is important to use successful ethics and conformity guidelines in any group. PepsiCo utilizes conformity committees and suggestions which help to adopt the guesswork out of creating risk lowering and setting forth criteria of the best ethical specifications to ensure that the business is running at optimal effectiveness comprehensively. These committees helps the organization to also meet unique ethics and conformity requirements that delivers sustained development through empowered people operating responsibly and building trust.

Question 2

Recommendation and Regulation of Corporate Governance

Corporate governance is a couple of relationship between a company's management, its mother board, its shareholders and other stakeholders. Corporate and business governance offers a structure in favour of organisational goal, means they can establish the framework with objectives and they can monitor the performance as well. Good corporate governance should provide proper bonuses for the plank and management to follow goals that are in the interest of the business and shareholders and should accomplish effective monitoring, in doing so encouraging businesses or companies to work with resources more efficiently.

Corporate governance means "The system where companies is aimed and handled" (Cadbury survey, 1992)

Implement the right recommendations and regulations in an organisation for the organisational targets. The Cadbury committee has four recommendations for good corporate and business governance.

The duties of directors:

The primary targets of the Directors of the Mother board of Directors (the "Board") of Standard Motors Company ("GM" or the "Company") are to: 1) identify individuals qualified to serve as associates of the Table and, where appropriate, recommend individuals to be nominated by the Panel for election by the stockholders or even to be appointed by the Table to load vacancies constant with the requirements approved by the Board; (2) develop and occasionally review and evaluate a set of corporate governance recommendations applicable to the Company and make appropriate suggestions to the Plank for adoption and, where appropriate, changes of such key points; (3) oversee an gross annual analysis of the performance of the Plank; (4) recommend to the Plank the payment of directors; and (5) perform a leadership role in shaping the business's corporate governance routines and provide oversight regarding its commercial governance do.

The circumstance for building audit committee:

The reason for the audit committee is to assist the overall Motors panel of directors in its oversight of the integrity of GM's financial claims, GM's compliance with legal and regulatory requirements, the skills and independence of the exterior auditors and the performance of GM's inner audit personnel and exterior auditors. The committee shall:

Independently and objectively monitor the potency of GM's financial reporting process and systems of disclosure adjustments and internal adjustments;

Review and appraise the audit procedure for GM's exterior auditors and interior audit personnel;

Provide for open, ongoing marketing communications regarding GM's budget and affairs between your Board and the external auditors, GM's financial and senior management, and GM's interior audit personnel;

Review GM's procedures and compliance steps regarding ethics and legal risk;

Oversee the planning of the Audit Committee Statement for the total annual proxy statement (to the amount relevant); and

Provide periodic status reviews to the Panel.

The principal responsibilities of auditors:

Discuss with management and the exterior auditors the total annual audited financial assertions and quarterly financial statements (to the degree applicable) preceding to processing. This will include Management's Conversation and Research of Financial Condition and Results of Procedures and GM's income announcements, like the use of "pro forma" or "adjusted" non GAAP information, as well as financial information and income information provided to experts and rating companies, and the results of the exterior auditors' reviews. These conversations may be standard, covering the type of information to be disclosed and demonstration to be produced, and do not need to take place in advance. The Committee may be symbolized by the Chair or a subcommittee to review income announcements.

Companies Act 2006: This regulation was reviewed in 2002 and it was applying in later 2006. The main purpose was improvement of corporate and business governance in UK. They then add new provisions which impact to shareholders, directors, auditors and company Secretaries. The act draws on the studies of the company rules review proposal. The main point is as follow.

. Good communication with shareholders through electronic communication system by company.

. Service address of directors can be on open public record rather than their house address.

. Shareholders are not fully responsible for director's responsibility.

. . Articles of association is carrying simple for private company.

. Company secretary is not essential in private company.

. AGM of private company hold in a few situation.

. Shareholders are certain to get all information more regular.

. Institutional buyers to disclose that they may use their vote

Financial Services Power: This legislation was researched in September 2006 by Financial Service Specialist. Area of discussed was- commercial governance, continuing obligations and the financial information. The Turner review was shared in 2009 2009. The tips were risk free remuneration policy, boost the independence of risk management functions and nothing professional directors required an art and time commitment to effectively perform their role.


In the global business world the strategy and resources are not enough to fulfil organisational targets. Along with the advantage globalisation has some downside as well. Business needs good corporate governance effective business ethics and appropriate organisational composition. All these factors push organisation objectives towards success.

More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
Check the price
for your assignment