Business Venture: Level 2 by Roger Barnard

By Roger Barnard

A conversing and listening direction for company scholars studying the English language. It offers with the common difficulties that enterprise humans face after they need to do company in a international language.

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Stock prices. Not all companies have been touched by the intensification of competition. In fact, a number of high-technology companies have managed to escape price destruction and even raise prices. Network equipment makers, such as Lucent Technologies and Cisco Systems, have been enjoying hefty profit margins. Software makers such as Microsoft and SAP, Internet providers such as America Online, and direct computer sellers such as Dell Computer, have also fared well. To this list, one can add home building supplier Home Depot and the Starbucks coffee shop chain.

How did these companies escape price destruction? What business strategies did they follow? Page 31 IMPLICATIONS FOR BUSINESS STRATEGY To say that the resumption of globalization and the spread of the information technology that supports and reinforces it have revolutionized the ways companies organize and compete with each other is an understatement. As discussed briefly in Chapter 1, in the 1970s and 1980s, the first period of today’s globalization, under a set of strategies known as TQC, TQM, and reengineering companies have undergone a managerial revolution that shifted the focus of business enterprise away from organizing their businesses by the principles of the division of labor by task to the division of labor by process.

As globalization and the spread of information technology gained momentum in the 1990s, their impact extended beyond the elimination of market monopolies to the constructive destruction of businesses. ”9 In some industries, such as investing and retailing, globalization and information technology allow buyers and suppliers to communicate directly and momentarily with each other, eliminating the information vacuum that often gave advantage to one supplier over another. A computer and a modem are all buyers need to visit virtual markets around the globe and execute transactions just with a simple keyboard stroke.

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