Read Case Study “Finding the Best Buy – Corporate governance has become a hot issue in the U.S. over the past two decades. From your analysis of the case study, 1.determine two possible corporate governance challenges that might be f by Best Buy as a result of its rapid growth and why they could become corporate governance issues.
2. Make recommendations for how Best Buy can overcome these challenges. Provide specific examples to support your response
PART A – PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY: As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response. Use current readings and lecture material to support your response.
The biggest advantage of internationalizing is having the opportunity to have your product and services reach people across the world. If you have more chances to reach people around the world, you have a chance have your business receive revenue from multiple areas. Also labor is cheaper in other companies. Look at companies like Coca-Cola and Nike and Apple. The companies can reach out to other countries to produce services not only because they have a broader reach but also because labor is cheaper. Thats how you hear about sweatshops. Now if you are operating a sweatshop, you are treating people like crap and arent giving them their worth.
Part B – PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY: When it comes to international business and operations within other countries, companies need to focus on choosing locations where business regulations laws are lax with fewer regulations to allow for a more profitable situation, alleviating less legal and regulatory restrictions to open the lead way for an opportunity (favorable regulations) then those that are required in the United States. Some of the advantages of going international include low cost, a company would be able to have a competitive advantage to seize the market due to new exposure; advantages to integrate international operations and extend the life span of a product.
The potential risks of going international are financial risks that include in fluctuation with the currency values, investment loss which also includes pollical risks. Letâ€s not forget about government instability, different regulations within the country, conflict or war (global crisis). Cultural differences can create problems. An example would be exchange rates separating currencies that may lead to an unfavorable return on oneâ€s investment. This would prevent a company from being able to purchase supplies and products needed.
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