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c.m.m.

rao
Dept. of Mech. Engg.

Entrepreneurship PBRVITS

UNIT – 8
The Global Scenerio

Unit 8 1
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS
Advantages of going global

Unit 8 2
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Global Aspects of
Entrepreneurship

India is ninth in the Global Entrepreneurship


Monitor (GEM) survey of entrepreneurial
countries. It is highest among 28 countries in
‘necessity based’ entrepreneurship, while 5th from
the lowest in ‘opportunity based’ entrepreneurship.

Unit 8 3
Entrepreneurship c.m.m.rao
Dept. of Mech. Engg.
Features of modern business compared PBRVITS
to earlier times
Manufacturing
Earlier Business Today’s Business
Environment Environment
Basis of Economies of scale, Quality, functionality,
competition standardization customer satisfaction
Manufacturing High volume, long Low volume, short
Comparison
process of Prior
production runs, and Contemporary
significant Business
production runs, focus on
Environment
levels of in-process and reducing inventory levels
finished inventory and other non-value added
activities and costs
Required skills Machine-paced, low level Individually and team-paced,
skills high-level skills
Emphasis on Acceptance of a normal or Goal of zero defects
quality usual amount of waste
Unit 8 4
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Marketing
Earlier Business Today’s Business
Environment Environment
Contd..
Products Relatively few Large number of
variations, long variations, short product
products life cycles life cycles
Markets Largely Domestic Global

Unit 8 5
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Management Aspects
Earlier Business Today’sBusiness
Environment Environment
Focus of Financial measures of Non Financial Measures
business performance such as quality, customer
service, time to delivery
Organizationa Hierarchical, command Network based
l structure Contd
and control organization forms,
teamwork focus – employee
has more responsibility and
control, coaching rather
than command and control
Management Emphasis on the short Emphasis on the long term,
focus term, short term focus on critical success
performance measures and factors, commitment to the
Entrepreneurship c.m.m.rao
Factors Favorable to a Dept. of Mech. Engg.

Global Start-Up PBRVITS

Foreign
Financing
Human is Better Target
Resources Are Customers
Dispersed Among Require an International
Countries Presence
Global
Start-Up
Foreign Domestic
Competition Will Inertia Could Impede
Quickly Enter the Later Efforts to
Market Domestic Internationalize
Market is Too
Small to Support
Expenses
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c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Strategies for going global

Unit 8 8
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

9
Entrepreneurship c.m.m.rao
Dept. of Mech. Engg.

Barriers to International Trade PBRVITS

• Domestic barriers
• International barriers
– Tariff barriers
– Nontariff barriers
– Quotas
– Embargoes
– Dumping
• Political barriers
• Business barriers
• Cultural barriers
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c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Unit 8 11
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Unit 8 12
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Unit 8 13
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

PBRVITS

Unit 8 14
c.m.m.rao
Entrepreneurship Dept. of Mech. Engg.

Importance of Ethics PBRVITS

• Widespread publicity about many ethical violations began


with the Enron collapse in late 2001. Irregularities with
Satyam computers Ltd etc were because financial ethics
were not followed
• Society in general and the financial community in particular
are developing and enforcing ethical standards.
• Organizations like WTO want to enforce IPR (Intellectual
Property Rights) more rigorously. This will affect economies
like China & India where government regulations are not
enforced strictly.
• Ethical behavior is necessary in order to maximize
shareholder’s wealth. 15