Research Topics: Risk On Projects

How can risk present both opportunities and threats to projects?

Risk on projects can provide many outcomes. It s either positive or negative, that’s why risk management is implemented to create a better understanding about the unknown events that might usually come along the way. Defining risk and assuming that it will happen, can provide awareness to each and everyone in the group and that possible solution to it may be implemented on time. Risks are said to be a threat if it only suggests negativity to the project. Threats usually decline the growth of the project which is the common fear anticipated by any one. That’s why they provide more attention focusing more on handling threats. It is more likely that the “threats” are more dominant rather than “opportunities”. On the other hand, risks are considered opportunity if it provides a positive output. Sometimes opportunities in project are taken for granted because of considering the treats a more serious problem than it. However, there should be a proper identification of both to prevent a more complicated situation that might occur instead of lessening the problems that could possibly happen. Credit:ivythesis.typepad.com

How can risk present both opportunities and threats to projects?

Risk on projects can provide many outcomes. It s either positive or negative, that’s why risk management is implemented to create a better...

Motivating at Risk Students

Case Study: Motivating At Risk Students Introduction             Costello (1996) states that the definition of a student “at risk” is very controversial. Many educators, as well as parents, disagree about who or what to blame when children do not succeed in school. An at risk student is defined as “any student who is affected by environmental conditions that negatively impact the student’s educational performance or threaten a student’s likelihood of promotion or graduation” (2005 Montana Legislature). An at risk student is defined as having one or more of the following characteristics: (1) student not meeting the necessary requirements for promotion to the next grade level; (2) student whose educational attainment is below other students with regards to their age and grade level; (3) student who is a potential dropout; (4) student failing two or more courses of study; (5) student who has been retained; and (6) student not reading on grade level (Kansas State Department of Education).             It is reported that the personal, economic and social costs of academic underachievement are high and growing. Every year, there is an increasing number of students entering schools with conditions in their lives that schools are ill prepared to accommodate (Costello, 1996). Thus, there is a great need for stressing and focusing on students who are at risk.     Problem Description             As the researcher has assessed that there is a great need for focusing on students who are at risk, the challenge for teachers, therefore, is to facilitate and motivate these students to learn. The question now becomes: How can teachers facilitate and motivate at risk students to learn? The high number of at risk students – those in danger of dropping out in school due to academic failure or other problems – is currently a major concern in education (Reed & McMillan, 1994). On the bright side, according to statistics, the dropout rates for young people in the civilian, non-institutionalized population has steadily decreased between 1972 and 2004, from 15 percent to a low 10 percent in 2003, where the rate remained in 2004 (Child Trends Data Bank).              (1996) adds that most at risk students are not motivated to learn in classrooms. At risk students are usually characterized by inattentiveness, boredom and inability to see much connection between school learning and their outside lives which are often faced and challenged by poor health and nutrition, substance abuse, teen parenthood, poverty, racism, violence and low self-esteem. The boredom and preoccupation of students with personal problems often are the causes of a decrease of quality of their lives in school which not only affect the students but the teachers and school administrators as well.  Teachers become disturbed and frustrated as they continuously try different strategies to motivate at risk students and help them understand the value of learning. Consequently, the recognition for efficient motivational strategies for the student population is very crucial (1996). Possible Solutions             There are several researches and models that indicate different strategies to motivate and facilitate students at risk such as the RISE model (1996), examining the notion of “resilience” (Reed & McMillan, 1994), casual attribution theory (2002) and establishing student-teacher relationships (2002). Let us examine each of these models in the proceeding part of this paper.             RISE Model.  (1996) defines four major conditions that will influence students’ motivation to learn in the classroom. The Rise model includes strategies to establish Relevance of learning, to present Interesting instruction, to maximize students’ sense of Satisfaction and to assist students Expectations on success. (1996) has suggested two strategies teachers can use to make learning more relevant for students. First is to relate content to the needs, concerns, goals, interests and experiences of the students. The second technique is to encourage and motivate students themselves to become more involved in making content more relevant such that learning becomes more meaningful within the context of real and present problems. As for making instruction interesting for students, teachers can provide incongruous, conflict and paradoxical information. Student curiosity on subject matter can be deepened by offering them something new or different from what they already know. In addition, abstract content on subject matter may become interesting if made concrete and familiar by using examples, metaphors, anecdotes, stories and simulations (1996). In terms of satisfaction of students, researches reveal that rewards like praise, privileges or tangible rewards may have disadvantageous effects on student motivation. Thus it is important that at risk students believe that their efforts lead to rewards that they value (Firestone, 1989).  (1996) suggests that teachers provide rewards that have information value. Teachers may use rewards either to inform students about their competence or to control their behavior. Lastly, with regards to increasing students expectations, teachers can pass on confidence in them, assist students’ sense of control, motivate positive self-talk and highlight effort. Consequently, students will be willing to expend effort on an assignment or task when they expect to perform successfully at the same time believe they are responsible and accountable for their own performance (1996).             Notion of “Resilience”. Examining the notion of “resilience” among students is a rather interesting approach in helping at risk students. The term resilient students can be applied to those at risk students who somehow have developed characteristics and coping skills that enables them to succeed despite tremendous hardships and presence of at risk factors (Reed & McMillan, 1994). These students appear to have developed stable, healthy personas and are able to recover from and adjust to life’s stresses and problems (Winfield 1991). Factors that seem to be associated to resiliency are categorized into four aspects: individual attributes, positive use of time, family and school (Cited from Reed and McMillan, 1994). According to Reed and McMillan (1994), resilient at risk students characterized by personalities, dispositions and beliefs that promote their academic success regardless of their backgrounds and current circumstances. These characteristics have been developed due to a psychological support system which provides a safety net and encouragement. Resilient at risk students are known to have adults – a parent and someone from school – with whom they have developed trusting relationships. As the notion of “resiliency” is examined, there are some suggestions regarding how teachers and administrators can aid the academic success of at risk students. First, there must be development and enhancement of current instructional strategies, techniques and other dimensions of school environment in order to promote a sense of internal locus of control, self-efficacy, optimism and a sense of personal responsibility. Second, to provide a classroom environment that highlights academic achievement as well as fosters students’ self-esteem and self-confidence, teachers, administrators and counselors need to have the necessary training and motivation. Finally, teachers need to be provided with training and motivation in order to develop relationships that benefit at risk students (Reed & McMillan, 1994).             Casual Attribution Theory. The casual attribution theory states that in situations of success and failure, people have a tendency to analyze and assess the causes that led to their failure or success (Weiner, 1986). The analysis will reflect the perceptions and beliefs of an individual. Accordingly, these casual attributions will affect our perceptions of ourselves, expectations and sense of ability to influence such events and our motivation to learn. According to (2002), improving at risk students’ motivation to learn can be done by an attribution dialogue between teacher and student. The change in motivation happens when students learn to attribute their achievements to their own educational efforts as well as to the suitable application of learning strategies they practice (2002).             Establishing student-teacher/adviser relationships. It is believed that students are less likely to drop out of school if they are convinced that the school personnel are concerned about them. In addition, an adult in school showing an individualized concern for an at risk student will have a considerable positive effect on that specific student’s attendance. Furthermore, improving students’ views on the degree of concern that teachers feel for them would positively influence and affect the students’ attitudes about school, consequently, increasing their likelihood of staying on to graduate. On the other hand, poor student-teacher relationships have negative effects and influence in students’ self-concept (2002). Conclusions             The high number of at risk students is currently a major concern in education. At risk students have shown characteristics of low self-esteem, insecurity about their abilities and negative attitudes towards learning. These issues of at risk students have disturbed and frustrated teachers as they continuously try to facilitate and motivate at risk students and make them understand the value of learning. The challenge for teachers has been on implementing strategies that will facilitate and motivate students to learn. This paper has proposed strategies based on the RISE model, examining the notion of “resilience”, casual attribution theory and the establishment of student-teacher relationships. Teachers must offer the students genuine caring, respect and encouragement as preconditions to stimulate motivation to learn. Moreover, teachers may use strategies that will increase appeal of learning and challenge students to become more personally and actively involved in the whole learning process. Credit:ivythesis.typepad.com

Motivating at Risk Students

Case Study: Motivating At Risk Students Introduction Costello (1996) states that the definition of a student “at risk” is ve...

Risks for Multinational Firms in International Ventures

Risks for Multinational Firms in International Ventures   Introduction As for many multinational firms doing business in new and unfamiliar countries, it made sense to create joint ventures with local firms.  After all, that local knowledge of customs, suppliers, and markets could save the newcomer months—maybe even years—of riding a painful learning curve. However, new research on more than 3,000 American transnationals suggests that joint ventures are falling out of favor.  What’s the reason behind these findings? Increasing forces of globalization such as increasingly fragmented production processes make the decision not to collaborate pay off. For a multinational firm to do business in other country, there are methods and approaches available to enter the desired market.  One of the most common and effective means of conducting business internationally is through joint venture or what is commonly called International Joint Venture.              In such mode of entry is the portrayal of relationship between two or more firms in a partnership.  There will be documents and agreements that will serve as provisions as to the particulars of the business for both parties.  The documents and agreements of the joint venture are critical to the success of the venture.  The joint venture agreement forms the basis of the understanding between and among the parties.  It is relied upon to ensure that all parties understand their roles, rights, responsibilities, and remedies in the conduct of the venture.  Organizations enter into joint ventures in good faith but closely scrutinize the joint venture documents if anything goes wrong.             The importance of the documents is to cover, step by step, the critical elements to consider and include in the joint venture agreements.  Time is spent on what should be included in the agreements and why they should be included.  Equity participation, for example, may or may not be as important as operational control.  Technical participation in the venture may or may not be as important as the intellectual property rights that may result from the venture.    However, by the time multinational firms decided to engage in the International Joint Venture, risks should also be anticipated since it is inevitable in such international partnerships.  Moreover, central propositions in a behavioral theory of the firm applied to creating and managing International Joint Ventures have shaped up some potential pitfalls to such mode of entry ( 1963).   Why do most International Joint Ventures Breakdown? Risks for Multinational Firms   Multi-national enterprises (MNEs) are more likely to use International Joint Ventures in centrally planned or hybrid economies when the local government prefers such cooperation, even if wholly-owned subsidiaries (WOS) are permitted (Tallman and Shenkar 1994).  National governments often create incentives for MNEs to create International Joint Ventures with domestic partners; centrally-planned government interference is believed to be greater for WOS than International Joint Ventures. Most created and operating International Joint Ventures that include an MNE and a small domestic partner have life spans of less than five years.  The success and failure of such International Joint Ventures should not be judged by the length of their lives; the ability of the International Joint Venture in achieving multiple performance objectives should be the focus in valuing an ongoing International Joint Venture (1987).   Split Management between Multinational Firms and Domestic Partners               The division of management control between joint venture partners has been a long-standing matter of contention among scholars studying Joint Venture entry into emerging markets.  Some Joint Venture scholars have suggested that Multinational Enterprises (MNEs) should secure dominant control of the Joint Venture’s management when engaging in Joint Venture with local emerging market partners ( 1984;  1997; 1997; 2001).  These scholars argue that it is best for one of the partners (especially MNE partners) to dominantly manage the JV.  In the contrary, other JV scholars argue that management should be shared by both MNE and local partners if the JV is to be successful.  These scholars have advised MNEs to share control with local emerging market partners as much as possible (1985, 1993;  1994, 1996).             Most of the discussion about JV control has not explicitly considered another way of partitioning control: split control JVs. A small number of JV researchers (1983;1985, 1993;  1988;1989;  2001; 2002) have reported the phenomenon of split control JVs, sometimes even considering it from different perspectives or with slightly different terminology.  Split control JVs are ventures in which the two partners agree to control distinct functional activities. This division of labor between the partners is not emphasized in shared management ventures. Rather, control over almost all value-creation activities is shared between the partners. The phenomenon of split control management is important because JV partners’ choice concerning who should control which particular activities influences the way value is created in the JV and eventually its performance. Control is defined as influence exercised by the parents over the management of the venture (1983;  1983;1985;  1989).  The control that is partitioned between the parents thus represents the relative influence of each parent on the management of the JV.  Control is further conceptualized as a conduit through which parents’ firm-specific advantages are transferred to the venture.  It is thus argued that if IV control is not properly partitioned between the partners, then JV performance is likely to suffer because of ineffective transfer of the parents’ firm-specific advantages to the venture.  By proper partitioning of the JV’s management control, it means a fit between the parent’s firm-specific advantages transferred to the venture and the parent’s control over the corresponding value-creation activities of JV management.   Risks in National & Organizational Culture Differences               Growth in global markets and technologies has led to a dramatic rise in cross-national joint ventures even though joint ventures are considered to be risky (1992:1989; 1993). An estimated 37-70% of international joint ventures (IJVs) are reported to suffer from performance problems leading to costly failures (1989; 1995;1985). Culture differences between joint venture partners have usually been considered a major factor that might influence venture failure or unsatisfactory performance (1993;  1985).             Despite different definitions of culture, there is a general consensus among organizational researchers that culture refers to patterns of beliefs and values that are manifested in practices, behaviors, and various artifacts shared by members of an organization or a nation (1980; 1993). Because organizations are, in many ways, embedded in the larger society in which they exist, research on culture differences of cross-national businesses should examine both national and organizational cultures.  But with few exceptions (1990; 1996;1996) past studies have not been concerned with culture distance at both levels.  Nowadays, such unattended concerns have caused risks to international mergers especially to Multinational Firms.   (1990) found that, whereas organizations from different nations differ in fundamental values, organizations from the same nation differ only in organizational practices. The authors therefore concluded that when both national and organizational cultures are examined, the former should be operationalized in terms of values, and the latter in terms of core organizational practices.  (1996) also found that in international and domestic mergers and acquisitions, national and organizational cultures are separate constructs with variable attitudinal and behavioral correlates.  As such, although national and organizational cultures have been regarded as separate constructs, it is also widely accepted that organizational culture is nested in national culture.   (1996) reported that work units perform better when their management practices are compatible with the national culture.  They advocate that management practices should be adapted to national culture for high performance. In the context of both mergers and joint ventures, scholars have generally argued that alliances between culturally similar partners are more likely to be successful than alliances between culturally dissimilar partners.  Consequently, this has been in only fewer instances since most participating mergers in the international joint ventures are literally different in each other’s culture.  This becomes a difficulty that eventually brings about risks.  Unfortunately, the affected ones are those multinational firms trying to make partnership with the domestic market. (1993) define culture as “social glue,” which serves to bind individuals and creates organizational cohesiveness.  They state that in alliances “selection decisions are generally driven by financial and strategic considerations, yet many organizational alliances fail to meet expectations because the cultures of partners are incompatible” (1993). Indeed, cultural incompatibility may cost more than strategic incompatibility in organizational alliances.  Different culture types create different psychological environments for the joint venture or the merged company, and differences in practices have a negative influence on performance (1993).  Thus, “the degree of culture fit that exists between combining organizations is likely to be directly correlated to the success of the combination” (1993). Furthermore, cross-national joint ventures have been reported to suffer from communication, cooperation, commitment, and conflict resolution problems caused by partners’ value and behavior differences, which in turn cause interaction problems that adversely influence joint venture performance (1988;1994; 1991; 1994). Values and behavioral differences between culturally distant partners influence interpretation and responses to strategic and managerial issues, compounding transactional difficulties in international joint ventures ( 1997).   Instability of Joint Ventures Resulting into Risks                         In the greater part of previous studies, instability has been treated as a dependent variable to indicate the IJV’s ultimate destination.  As a result, various factors contributing to instability have been identified, including conflicts in shared management, cross-cultural differences, ownership structures, characteristics of the sponsors, and external environmental forces.  These factors straightforwardly generate risks for both participating firms in the IJV with more threats on transnational mergers or the Multinational Firms than the domestic player.   Interpartner conflict in co-management A key feature of IJVs is shared management between partners from different countries.  Partners could disagree on just about every aspect of an IJV’s management.  Therefore, interpartner conflict in co-management is often a driving force for instability (1983;  1989).  (1988) found that differences between the partners in founding goals, strategic resources, and corporate cultures were responsible for shorter JV duration.  On the other hand, joint ventures between direct competitors were found more likely to fail because potential interpartner competition and conflict undermined the partnerships (1996; 1997). Cross-cultural differences Cultural differences often influence the way in which the partners in an IJV make strategic decisions and solve problems.  For example, Japanese and American managers tend to see interfirm alliances very differently: the former treat them as primarily interpersonal relationships whereas the latter see them as enduring by design, irrespective of the specific managers involved (1987).  (1993) point out that in IJVs in Japan, cross-cultural differences “lead to endless, energy-and-time consuming debates – futile talk that produces a lot of heat and prevents the company making the decisions it has to.” The positive effect of cultural differences on IJV instability has also been evidenced in empirical studies with larger samples (1991; 1992; 1994; 1997). However, the findings of several recent studies demonstrate that the relationship between partner cultural differences and IJV stability may be more complex than previous research has suggested.   Control/ownership structures The structure of parent control has been found to influence IJV instability, although the direction of this effect remains ambiguous.   (1993) found that a dominant management structure can minimize coordination costs and hence outperform shared control IJVs.  However, an unequal division of ownership may give the majority holder greater power which may be used to the detriment of the minority owner.  Therefore, a balanced ownership structure in which partners’ bargaining power is evenly matched is more likely to produce mutual accommodations (1988).   Characteristics of parents Franko (1971) concluded that policy changes in the multinational enterprise (MNE) partner were responsible for IJV instability. When an MNE decides to tighten control over its foreign subsidiaries, it is likely to turn some IJVs into wholly-owned subsidiaries. Other partner characteristics, such as a parent firm’s financial problems (1999) and the partners’ prior IJV experience (1988; 1996; 1996) were also found to influence IJV instability.   External environments Changes in external environments, such as local government policies and industry structures, may also influence IJV instability. It has been widely documented that unanticipated major changes in local political environments (e.g., changes in government policies regarding foreign direct investment in general and equity IJVs in particular) affect international business operations and contribute to IJV instability (1977; 1992;1992; 1994). The past several decades have witnessed such drastic changes in many countries (1990; 1995;  1994). Industrial dynamics may also influence the evolution of joint ventures. For example, IJVs are found to be less stable in industries that experience intensive consolidation or volatile growth (1989, 1991;  1997).   Impact of Risks on Performance               Out of all the previous studies,  (1988) was the only study that linked perceived risks to its performance in the IJV.   (1988) study included duration and sponsor-perceived success as well as stability as indicators of performance.  In her sample, 66.7% of the “unstable” ventures were judged as unsuccessful by one or more sponsors, echoing a high correlation between instability and partners’ assessment of performance.             While most researchers conceptually agree that the linkage of instability to performance is more than complex, many used the former as a proxy for the latter. Little research has been done to investigate the relationship and possible interactions between the two variables.   Conclusion and Recommendation                         Multinational Firms desired to do business with foreign and unfamiliar countries must consider the risks stated above.  Notwithstanding the fact that International Joint Venture is evidently a risky deal, there are still many transnational firms taking the chances of IJVs growing popularity and importance.  Additionally, researches have shown that IJVs averaged only five years yet several companies still take the risks.              For managers considering a joint venture, there are some things to keep in mind before taking the step.  First and foremost, separate and segregate the reasons for considering a joint venture.  Additionally, make sure that you can’t buy those services or that knowledge through an arms-length contract that doesn’t require sharing ownership.  Most of what managers want from joint ventures is likely to be available through such arrangements.  Given the notion on how costly giving up equity is, view joint ventures as a last resort.              Another important thing to consider is the expectations.  As a manager, clearly and openly lay out expectations for the partners in legal and informal documents prior to the creation of the entity for the reason that it would be clear as to what each party is providing.  With this pace, it would create security and precautions right before the business is about to commence.             Then, try out partners without setting up a joint venture by conducting business with them in some way.  This would test how the partners actually do business in the anticipation of the outcome.  Bear this in mind – there’s no substitute for real contract with the whole organization.  Lastly, specify simple exit provisions at the onset and then don’t be afraid to walk and go it alone.              In general, multinationals often create incentives to have joint ventures by penalizing the risk-taking involved in going it alone.  The overall multinational body should have another look at its attitude toward joint ventures and make sure that managers on the ground don’t feel pressured having local partners.  Credit:ivythesis.typepad.com

Risks for Multinational Firms in International Ventures

Risks for Multinational Firms in International Ventures Introduction As for many multinational firms doing business in new and unfam...

The formation and evolution of Sony Ericsson alliance

Introduction Communication is the process of sharing ideas, information, and messages with others in a particular time and place. Communication includes writing and talking, as well as nonverbal communication such as facial expressions, body language, or gestures, visual communication the use of images or pictures, such as painting, photography, video, or film, and electronic communication such as telephone calls, electronic mail, cable television, or satellite broadcasts. Communication is a vital part of personal life and is also important in business, education, and any other situation where people encounter each other. Businesses are concerned with communication in several special ways. Some businesses build and install communication equipment, such as fax or facsimile machines, video cameras, CD players, printing presses, personal computers, and telephones. Other companies create some of the messages or content that those technologies carry, such as movies, books, and software. These companies are part of the media or telecommunications industries (1989).  Communication is vital for the improvement of businesses and people.   Organizational communication is important in every business. People in organizations need to communicate to coordinate their work and to inform others outside the business about their products and services. These kinds of communication are called advertising or public relations. Societies have attempted to regulate communication through customs and laws since ancient times. Today many societies regard freedom of communication as a basic human right and have enacted laws to protect this right. As new communication media have developed, such as television and cellular telephony, US’ Federal Communications (FCC) and its counterparts in other countries has grown to supervise and regulate those industries as well in an attempt to keep pace with advances made in communications technology and changes in the industry (1989). Most observers agree that communication media and technologies have contributed to a society that is changing very rapidly. Three key issues have arisen in the tide of this rapid change: individual privacy, coverage of politics in the media, and the availability of information. New communication and information technologies have enabled many organizations and people to collect, organize, and sell information about other people and organizations, both quickly and cheaply.   The easy availability of personal information makes banking, education, health care, and sales much more convenient for both consumers and sellers. Credit card and automated teller machine (ATM) systems would be impossible without large databases of information available on demand. Scanners in the supermarket rapidly and accurately record every item that passes over them, making grocery checkouts faster and error free. Companies maintain huge mailing lists of customers that record not only their names, addresses, and phone numbers, but also major recent purchases, credit ratings, and demographic information that helps the companies identify target markets for specific products (1989). The paper will discuss about telecommunications and its industry, two companies in it Sony and Ericsson, and company mergers. The paper will discuss responses to the different questions on what motivated the two companies to forge the alliance? Were there any alternative ways better than forming a joint venture has encountered since the formation? Do the strategies Sony Ericsson has used to address these problems will lead to the long term success of the alliance? The information acquired will be used to create a conclusion.   Telecommunications Telecommunications are devices and systems that transmit electronic or optical signals across long distances. Telecommunications enables people around the world to contact one another, to access information instantly, and to communicate from remote areas. Telecommunications usually involves a sender of information and one or more recipients linked by a technology, such as a telephone system, that transmits information from one place to another. Telecommunications enables people to send and receive personal messages across town, between countries, and to and from outer space. It also provides the key medium for delivering news, data, information, and entertainment. Telecommunications devices convert different types of information, such as sound and video, into electronic or optical signals. Electronic signals typically travel along a medium such as copper wire or are carried over the air as radio waves. Optical signals typically travel along a medium such as strands of glass fibers. When a signal reaches its destination, the device on the receiving end converts the signal back into an understandable message, such as sound over a telephone, moving images on a television, or words and pictures on a computer screen (1993).   Telecommunications messages can be sent in a variety of ways and by a wide range of devices. The messages can be sent from one sender to a single receiver or from one sender to many receivers. Personal communications, such as a telephone conversation between two people usually involve point-to-point transmission. Point-to-multipoint telecommunications, often called broadcasts, provide the basis for commercial radio and television programming. Telecommunications begin with messages that are converted into electronic or optical signals. Some signals, such as those that carry voice or music, are created in an analog or wave format, but may be converted into a digital or mathematical format for faster and more efficient transmission. The signals are then sent over a medium to a receiver, where they are decoded back into a form that the person receiving the message can understand. There are a variety of ways to create and decode signals, and many different ways to transmit signals (1993).   Telecommunications systems deliver messages using a number of different transmission media, including copper wires, fiber-optic cables, communication satellites, and microwave radio. Wire-based telecommunications provide the initial link between most telephones and the telephone network and are a reliable means for transmitting messages. Telecommunications without wires, commonly referred to as wireless communications, use technologies such as cordless telephones, cellular radio telephones, pagers, and satellites. Wireless communications offer increased mobility and flexibility. In the future some experts believe that wireless devices will also offer high-speed Internet access. Individual people, businesses, and governments use many different types of telecommunications systems. Some systems, such as the telephone system, use a network of cables, wires, and switching stations for point-to-point communication. Other systems, such as radio and television, broadcast radio signals over the air that can be received by anyone who has a device to receive them. Some systems make use of several types of media to complete a transmission. All telecommunications systems are constantly evolving as telecommunications technology improves. Many recent improvements, for example, offer high-speed broadband connections that are needed to send multimedia information over the Internet (1993).   Background of the company Sony Corporation is a Japanese electronics manufacturer, with headquarters in Tokyo. Sony designs, manufactures, and sells electronic equipment. It is a leader in the development of consumer electronics goods, such as videocassette recorders, cellular and cordless telephones, compact disc equipment, and television systems. Sony also manufactures computers and related devices (2003). Sony actively encourages innovation by its employees. Design engineers are given budgets and time for innovation and experimentation. The company holds an annual contest in which engineers show off their prototypes; bonuses are awarded to those whose prototypes are selected for eventual manufacture and marketing. Sony continually makes and offers new products, most of which are tested in the Japanese market. Sony has been particularly successful in the United States market; however, it is outsold in Japan and elsewhere by Matsushita, another Japanese electronics giant (2003).   Sony started with twenty people in 1946, and has grown to 8,000 people in twenty years. In keeping up with such a rapid growth, the company could not depend on the usual yearly hiring of freshmen. Sony gathered a wide variety of personnel by such methods as personal acquaintance, and public announcement. As a result, school history and seniority are never considered by Sony’s management. Only the ability and qualifications of a person are considered basic factors for personnel assignments. However, as the company started to grow, Sony’s management began to face pressure from the traditional Japanese social influences. To maintain its freedom to act, management thereupon decided to delete a man’s school history from his personnel record. It was a bold step to take in Japan. But it resulted in greatly boosting morale, among Sony employees. This decision created a sensation and was highly appreciated by the people who are trying to introduce modern management in Japan (1969).   On the other hand, Sony management became aware that it was a mistake to disappoint the men and their families by completely abolishing the seniority promotion system. For the seniority concept is a firmly established business and social practice in Japan. Still, to keep active and adjustable to keen international competition, and to the fast-developing electronics technology, Sony must have flexibility in personnel management. A compromise has therefore been developed. Sony gives such titles as assistant manager, manager, and general manager to people on the traditional seniority basis. But the functions and the range of responsibility of a section or department are set according to the capacity of the person who assumes the management of that section or department. To carry this idea out, Sony, being flexible, changes its organization as frequently as necessary (1969).   Sony Corporation, considered the most progressive in the Nikkei Corporate Reform Survey, has a very high foreign ownership of 45.3 per cent. This exceeds the total ownership of Japanese financial institutions which run at only 14.9 per cent. This unique characteristic may well be the main stimulus for Sony’s pioneering position in quasi-US corporate reform (2001). In a transnational corporation, strategic decision making is either centralized, decentralized, or a combination of both. The level of autonomy granted to a foreign subsidiary depends on a number of factors, including the type of product or service being sold, capital and resource requirements, and the financial impact that the affiliate’s performance has on the company’s overall operations. In a centralized management approach, foreign subsidiaries have limited decision-making authority and most important matters are made by senior-level managers. The Sony Corporation, for example, is very much a centralized company. The company’s board of directors is mostly Japanese and strategic decision making occurs principally in the Tokyo headquarters (2001).  In October of 2001, the consumer electronic giant Sony Corporation pooled resources with the Swedish phone maker, Ericsson, to launch a joint venture named Sony Ericsson Mobile Communications SEMC. As of 2003, Sony Ericsson was still making losses. Yet both sides had pledged more resources into the venture.   Motivation to form the alliance To compete in an international business environment, firms are forming joint ventures as a mechanism for the enhancement of global competitiveness. In recent years, an explosion of International Joint Venture (IJV) activity signifies this form of alliance as a popular vehicle for augmenting strategic capability.  International joint ventures are formed for a variety of reasons. International companies create venture partnerships to gain foreign market access, for the acquisition of new technology, to fund capital requirements beyond the capability of a single firm, or in order to share risks. Joint ventures are also a vehicle through which companies can gain broader scale sourcing of materials required for their operations. The possibility exists for both the joint venture and parent firms to learn new skills from one another, and to share technology or information as a result of the venture. Many of these elements are essential ingredients for companies that aim to compete in an international arena where competition is fierce, and where requirements for quality, innovation, and meeting customer requirements are critical (1995).   Although there are clearly potential economic and technological benefits that result from firms venturing together, the failure rate of joint ventures is high. For example, in a study of 880 joint ventures and cooperative alliances, only 45 percent of the companies were judged successful by all sponsors. Some factors that lead to JV failure include: significantly different goals of parent firms; perceptions of unequal costs and benefits; and conflicts over decision-making, managerial processes, and corporate values. Misunderstanding is most likely when international joint ventures span diverse national cultures, and when attitudinal and value differences exist between different groups in the venture. Problems often arise when executives in the parent companies attempt to impose their standards and policies for operation on the joint venture firm (1995).   International joint ventures represent a unique form of the globally oriented corporation, with the greatest incidence of collaborative agreements between two partners. The management of joint ventures is a complex process. If parent firms decide that a joint venture is required to accomplish desired strategic goals, then the partners must be prepared to deal with difficult issues related to joint ownership and joint decision-making in the venture. In successful joint ventures, much advance planning is required, and the venture is likely to be championed by senior executives in the parent firms (1995). Sony and Ericsson opted to indulge in joint venture so that they can acquire complimentary with significant synergy effects. The companies believed that by engaging in joint venture both can acquire benefits from each other. Both believed that the different weaknesses they have can be covered or solved by each other. The two companies also taught that by engaging in joint venture they can withstand competition not only in the local setting but in the international setting as well.     Alternative ways The 1980s produced approximately 55,000 mergers and acquisitions in the United States alone. The value of the acquisitions during this decade was approximately .3 trillion. As impressive as these numbers are, they are small in comparison to the merger wave that began in the earlier 1990s, approximately in 1993. The number and value of mergers and acquisitions have grown each year since 1993. For example, in 1997, there were approximately 22,000 mergers and acquisitions, roughly 40 percent of the total during the whole decade of the 1980s. Perhaps more important, the value of mergers and acquisitions in 1997 was .6 trillion. In other words, the acquisitions completed in 1997 were valued at 0 billion more than all acquisitions during the 1980s. Interestingly, the 1980s were often referred to as a decade of merger mania. The year 1998 was no different, as noted by the huge M&A transactions listed earlier; it was predicted to be another record year (2001). Interestingly, the 6,311 domestic mergers and acquisitions in 1993 had a total value of 4.5 billion for an average of .2 million, whereas the mergers and acquisitions announced in 1998 had an average value of 8.2 million for an increase of 352 percent over those of 1993.    Approximately .5 trillion in mergers and acquisitions were announced in 1999, continuing the upward trend. The mergers and acquisitions in the 1990s represent the fifth merger wave of the twentieth century and their size and number suggest that the decade of the 1990s might be remembered for mega merger mania. With five merger waves throughout the twentieth century, we must conclude that mergers and acquisitions are an important, if not dominant, strategy for twenty-first century organizations (2001). One alternative for the companies is merger. Through merging the companies can share 100% of its resources and the different culture and tradition of the companies is erased to bring up one new and improved culture.  Merger can lessen instances of having to deal with different intentions. Merger also changes the goal of the company. Before merger the company has a separate goal. The goal it has satisfies their basic needs. By having a merger the company shifts its focus on one common goal. Sony Ericsson and strategies to solve its problems The joint venture did not help in solving the problems of the company. The company used different strategies to make sure that the venture will prove to be a good choice for the company and make sure that the venture will last for longer periods of time. The company’s strategies paved the way for showing how important the venture is to the companies involved. The company was not initially successful with the venture because it was not prepared with the different problems it might face. The strategies helped in improving the fate of the company and it changed the way the venture was operated.   Conclusion Communication is a vital part of personal life and is also important in business, education, and any other situation where people encounter each other. Businesses are concerned with communication in several special ways. . Telecommunications enables people around the world to contact one another, to access information instantly, and to communicate from remote areas. Telecommunications usually involves a sender of information and one or more recipients linked by a technology.  Sony and Ericsson opted to indulge in joint venture so that they can acquire complimentary with significant synergy effects. The companies believed that by engaging in joint venture both acquire benefits from the other. One alternative for the companies is merger. Through merging the companies can share 100% of its resources and the different culture and tradition of the companies is erased to bring up one new and improved culture. Credit:ivythesis.typepad.com

The formation and evolution of Sony Ericsson alliance

Introduction Communication is the process of sharing ideas, information, and messages with others in a particular time and place. Commun...

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