Study Question
1. What are the benefits of developing and writing an effective business plan?
* Business plans give the organization a sense of purpose. They identify the firm’s mission and goals. They create measurable standards and outline a strategy for reaching company objectives.
2. Why are so many small-business owners attracted to franchising? Under what circumstances might it be better to start an entirely new business instead of purchasing a franchise?
* Starting a small, independent company can be a risky, time-consuming endeavor, but franchising can reduce the amount of time and effort needed to expand. The parent company has already developed and tested the concept, and the brand is often familiar to prospective customers. * 3. Why are developing countries such as China and India becoming important international markets? * A nation can develop a comparative advantage if it can supply its products more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries. China is profiting from its comparative advantage in producing textiles. On the other hand, ensuring that its people are well educated is another way a nation can develop a comparative advantage in skilled human resources. India offers the services of its educated teach workers at a lower wage. 4. Identify several potential barriers to communication when a company attempts to conduct business in another country. How might these be overcome? * Potential barriers to communication when a company attempts to conduct business in another country can be divided to three parts. One is social and cultural differences. Second, Economic differences, Lastly, Political and Legal Differences. To overcome these barriers, understanding and respecting these differences are critical to pave the way for international business success. 5. Identify the major changes in the workforce that will affect the way managers build a world class
* Business plans give the organization a sense of purpose. They identify the firm’s mission and goals. They create measurable standards and outline a strategy for reaching company objectives.
2. Why are so many small-business owners attracted to franchising? Under what circumstances might it be better to start an entirely new business instead of purchasing a franchise?
* Starting a small, independent company can be a risky, time-consuming endeavor, but franchising can reduce the amount of time and effort needed to expand. The parent company has already developed and tested the concept, and the brand is often familiar to prospective customers. * 3. Why are developing countries such as China and India becoming important international markets? * A nation can develop a comparative advantage if it can supply its products more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries. China is profiting from its comparative advantage in producing textiles. On the other hand, ensuring that its people are well educated is another way a nation can develop a comparative advantage in skilled human resources. India offers the services of its educated teach workers at a lower wage. 4. Identify several potential barriers to communication when a company attempts to conduct business in another country. How might these be overcome? * Potential barriers to communication when a company attempts to conduct business in another country can be divided to three parts. One is social and cultural differences. Second, Economic differences, Lastly, Political and Legal Differences. To overcome these barriers, understanding and respecting these differences are critical to pave the way for international business success. 5. Identify the major changes in the workforce that will affect the way managers build a world class