Global business Essay Example | Topics and Well Written Essays - 2500 words

Global business - Essay Example But the issue is: Is it good strategic planning to use the per capita income and consumption data vis-a-vis population size as a basis of forecasting the size of a countrys market? This paper attempts to explore this proposition and to determine whether indeed it is or whether there are other better approaches that can help the international marketer make better decisions in entering a foreign market. Per capita income is derived from the concept of gross domestic product, which is the standard measure of an economys total output (Baumol and Blinder 2001). But such output only make sense if producers can sell them; therefore the concept of aggregate demand is relevant. Aggregate demand is the total amount that all consumers, business firms, government agencies, and foreigners wish to spend on all of a countrys goods and services. It also depends on consumer incomes, government decisions, and events or developments abroad. Aggregate demand can be broken down into the following: b. Investment spending. This is the total amount that firms expend on physical assets such as land, factories, machinery and equipment, and inventories. . These assets add to productive capacity, leading to additional demand for goods and services. By adding up all these components, we are able to obtain the aggregate demand and we can summarize it as the sum of all consumption, investment, government purchases, and net balance of exports and imports. Sommers (1993) and other economists take the view that the total output of an economic system is exactly equal to the total demand in the system, and that the GDP can also be referred to as gross domestic expenditure. From this aggregate is derived the concept of national income - which is the total income of all individuals in the economy. It is defined as the sum of the incomes that individuals in the economy earn in the form of wages, interest, rents, and profits. It

Critically assess the strengths and weaknesses of the different models Essay

Critically assess the strengths and weaknesses of the different models of Strategic Human Resource Management - Essay Example Personnel Management involved hiring the best employees, keeping employees productive, monitoring employees in their operations, payment, motivation and development of employees (Biz Bite Consulting Group, 2011). Personnel management was mainly focusebd on ensuring that workers made to provide the best results and this was done in a very isolated manner that was independent of central organizational goals and objectives (Becker and Gerhart, 1996: Thomson, 1999). This meant that employee matters were simply grouped under this aspect of the business and it enabled the business to remain in control of affairs in organisations. Also, personnel management involved a unit that ensured that employee matters were dealt with and employee challenges were revolved. It existed as a necessary unit but not a vital component that was manipulated by management to meet the overall goal of the organisation. Strategic human resource management, on the other hand, evolved to blend personnel management w ith the goals of the organisation (Thomson, 1999). In other words, the personnel management unit is designed and ran in such a way that it contributes directly to the long-term organisational plan and goals (Galbraith and Nathanson, 1978). This integration meant that the strategy of the organisation was integrated into the personnel department and this department was ran to meet organisational strategic goals. In linking the old personnel management unit of a business to the strategic units and levels of businesses, there are four main methods and approaches that are used to link the two systems. They are: 1. Universalistic Approach 2. Contingency Approach 3. Resource-based Approach and 4. Institutionalist Approach Each of these four approaches to strategic human resource management comes with various strengths and weaknesses. This paper examines each of the approaches and undertakes a critical analysis of all of them. This will involve an examination of the main theory that underli nes the approach and an assessment of the merits and demerits of each approach. Universalistic Approach to Strategic Human Resource Management. The universalistic approach assumes that there is one best way of carrying carrying out the human resource management function strategically (Pfeffer, 1998). In other words, the management spend time to crystallize a system of managing people that they consider to be foolproof and appropriate to the organisation in all circumstances. The best way of doing human resource management becomes a universal set of rules that are used to run the human resource management unit as a strategic business unit that works to meet strategic goals of the organisation. There are three yardsticks that are used in defining the 'best way'. These yardsticks come up as a result of the need to define what is best and what will eventually become the universally accepted human resource management system. The first yardstick is a commitment based system which involves the choice of a strategic human resource management system that helps employees to become more committed (Guest, 1987). This way, the basis for choosing a system of implementation is to find out what best enhances employee commitment. The second yardstick is the concern for employee motivated system (Wood, 1999). I doing this, what is defined as the best human resource management system is judged by how sensitive it is to the needs of employees. The third model is quite opposite to the second model. This is a concern for work model. In other words, the universalistic approach is based on the ability of an HRM model to make employees provide the highest level of outcome and results for the