Globalization and the Growth in International Markets

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Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc20639354” 1.0 Introduction3

HYPERLINK l “_Toc20639355” 1.1 Globalization and the Growth in International Markets3

HYPERLINK l “_Toc20639356” 2.0 Literature Review4

HYPERLINK l “_Toc20639357” 2.1 Environment Management and issues relating to legal requirements4

HYPERLINK l “_Toc20639358” 2.2 Social, or Ethical Responsibilities in their Operations5

HYPERLINK l “_Toc20639359” 2.3 Technology such as Information Technology in the operations decision areas7

HYPERLINK l “_Toc20639360” 2.4 Knowledge Management and its roll in Operations8

HYPERLINK l “_Toc20639361” 2.5 Quality, Cost efficiency and competitiveness in Operations PAGEREF _Toc20639361 h 10

HYPERLINK l “_Toc20639362” 2.6 Performance measurement to satisfy various stakeholder groups PAGEREF _Toc20639362 h 11

HYPERLINK l “_Toc20639363” 2.7 Increasing productivity and measuring customer service PAGEREF _Toc20639363 h 12

HYPERLINK l “_Toc20639364” 2.8 Increasing the service value concept and understanding what customers value PAGEREF _Toc20639364 h 14

HYPERLINK l “_Toc20639365” 2.9 Performance and productivity measures and the need for a performance measurement framework that will include all staff and all activities PAGEREF _Toc20639365 h 14

HYPERLINK l “_Toc20639366” 3.0 The Case of Newell /Rubbermaid PAGEREF _Toc20639366 h 16

HYPERLINK l “_Toc20639367” 3.1 Brand Development and Strategic Expansion PAGEREF _Toc20639367 h 17

HYPERLINK l “_Toc20639368” 3.2 Other Notable Attributes PAGEREF _Toc20639368 h 18

HYPERLINK l “_Toc20639369” 3.3 Shortcomings in Strategy PAGEREF _Toc20639369 h 20

HYPERLINK l “_Toc20639370” 4.0 Conclusion PAGEREF _Toc20639370 h 20

HYPERLINK l “_Toc20639371” 4.1 Comparison of theory PAGEREF _Toc20639371 h 20

HYPERLINK l “_Toc20639372” 4.2 Recommendations PAGEREF _Toc20639372 h 21

HYPERLINK l “_Toc20639373” 4.3 Learning points summary and short personal reflection PAGEREF _Toc20639373 h 21

HYPERLINK l “_Toc20639375” 5.0 Bibliography PAGEREF _Toc20639375 h 22

1.0 IntroductionGlobalization refers to the process through which the people of the world are put together within a single society and work collectively. In most cases, globalization is used to refer to economic globalization which basically involves the incorporation of the national economies such as Newell Rubbermaid into international economy through foreign direct investment, the flow of capital, trade and the spread of technology. Newell Rubbermaid is a multinational corporation which is based in countries such as U.S. and UK. This kind of process is usually driven by the grouping of technological, economic, political and biological aspects (Fowler & Pryke 2003, pp. 254-283). The expression can also refer to transnational diffusion of ideas, languages and some of the popular cultures.

1.1 Globalization and the Growth in International MarketsGlobalization of markets can easily benefit both the rich and the poor alike. However, the amalgamation of the world economy is outpacing the growth and development of a healthy global policy. To be able to recognize the values as well as rules that are essential to a secure and just world, and to be able to make full benefits of global market available to a company like Newell Rubbermaid, operation managers need to enhance global politics. Markets of International level offer a varied range of opportunities for the firms that have products together with services which are in high demand. The newness, the nature of attractiveness, cultural adaptation as well as the suitable marketing strategies that are being put into practice by Newell Rubbermaid can assist a great deal. To be able to assess the potentiality of the market, a firm will seek to identify the summative demand for a given product and be able to relate it with the introduction of the product and its distribution (Geisler 2003, pp. 89-92). The growth in terms of population provides a coarse estimate of the anticipated future market potentials. This also applies to consumption patterns

2.0 Literature Review

Globalization and localization

Newell Rubbermaid delivers a strong sales growth coupled with margin expansion and at the same time embraces its revised strategy of coming up with brands that are unique in their own way. This leads to the creation of scale advantage through horizontal integration, creation of a strong structure of business globalization and commercialization of innovations. Making a balance between globalization as well as localization is one of the key challenges in the international market. In general terms, the closer the definition of the market segment, the less essential are the national stereotypes. Within the national market, there exists a trend towards higher levels of greater similarities on the specifications of the product, the price and the packaging. Conversely, cultural as well as national differences exist and need high level of flexibility in terms of communication with the clients.

2.1 Environment Management and issues relating to legal requirementsInternational specifications provide requirements for an environmental management system to permit an organization to come up with the development as well as the implementation of the policies and the objectives which put into consideration the legal requirements together with other necessities that the organization subscribes to. Information concerning the significant environmental aspects is also highlighted. It involves the environmental aspects which the organization categorizes as those that it has the capability of putting under control together with those that it can influence.

Among the EMS elements, Legal and other forms of requirements need facilities for identification as well as the evaluation of all the appropriate lawful requirements upon which the organization subscribes which applies to the aspects of the environment that entail any form of activity, operation and the services or the processes of the available facilities. To add on that, each facility need to make sure that the appropriate environmental lawful as well as other firms of requirements are put into consideration during development, implementation and maintenance of the whole EMS.

2.2 Social, or Ethical Responsibilities in their OperationsSocial responsibility has a significant contribution in the corporate management. Hill, (1991) defines social responsibility in terms of the obligations to be protected by the organization while enhancing them for the best interest of the society that the organization is entitled to offer service. Social responsibility is composed of a few components and it is the duty of the various business organizations to attend to the responsibilities demanded by the customers. Paramount of all is the provision of the of the highest possible product quality that should also be safe for use. This rule is not followed by all the companies such as is the case with cigarette industry that manipulates nicotine level in cigarettes in a deliberate manner. This is against the social and ethical responsibility of the organization. (Hill 1991, pp. 722-750). The actual implication of ethics is the processes involved in the evaluation of actions based on moral value principals (Gertler 2003, pp. 77).

The effectiveness of the operation management of the organizations depends on their potential for interaction with the external environment. The environment incorporates the general, the specific task as well as the mega environments. Operation management should attend to the firm’s obligation for the purpose of enhancement of the societal conditions together with the interests of the management. The operation management should appreciate the their accountability to the six most significant groups of stakeholders namely; the shareholders, the customers, employees, the suppliers as well as creditors, the government and the entire society.

Operation managers should respond to the social responsiveness in an attempt of implementation of policies while participating in the activities that are beneficial to the society and the firm alike. In the measurement of the social responsiveness in the firm, the operation managers should consider the following. Contributions, diversity policies, fund-raising, volunteerism, recycling, direct investment, work life quality, consumer’s attention, as well as pollution control. The importance of the measurement of responsiveness is the key to social audits although they are not mandatory in a legal sense (Gu, 2004, pp.176). However they make a contribution in the demonstration of social responsibility in major firms.The ethical standards of the managers of organizations play a great contribution to the enhancement of the organizational ethical conduct. This has led to the identification of three distinctive management approaches based on ethical and the moral nature in as far as their decisions is concerned. They are the moral, the amoral as well as the immoral management. The best of these types is the moral management which is at the best interest of long term organizational goals. Majority of the organizations however prefer the implementation of the amoral management. The operation managers should be open to the factors impacting the ethical behavior. The in calculation of the ethical behaviors is achieved through the participation in management commitment, ethics committees, ethic audits, ethics hotlines, ethics training and the codes of ethics.

2.3 Technology such as Information Technology in the operations decision areasMajority of organizations are exposed to key challenges due to the acceleration of the global business dynamics in majority of the markets. Mr. Gordon Steele is credited for leading and managing the entire Global Information Technology policies together with activities for Newell Rubbermaid, with efforts aimed at overseeing a smooth changeover from legacy systems to SAP. This is due to the requirement of the maximum awareness as well as the flexibility required for the organization for the purpose of a quick adaptation of the approaches of the business in relation to the dynamic environment as well as requirements. To achieve success in addressing the challenges and achieve victory in the global that is currently competitive, there is a need for the operation managers to be more adaptive. This has the implication of the business processes, supporting technologies of information and the structures of the organization must be flexible as well as responsive to the changes for the purpose of assurance of sustained competitiveness (Abbott 2004, pp. 98)

The digital economy is especially important due to the preference of the real-time information and shorter cycles of business which are the driving forces of the improvement of the processes of business. The process of streamlining and optimizing of the processes of the business are based on process re-engineering of business organizations. It sometimes becomes efficient for outsourcing of the business processes in the organizations for the purpose of concentration on the most important business processes.

The operations in business organization have been so dynamic due to evolution that is anticipated to terminate at Information Technology. IT has been the backbone of the modern operation management and it has been a source of revolution to an extent of making it inevitably amalgamated in to the process. The cost of the installation of the systems of IT has dramatically fallen. Their application in running the operations of a business organization has therefore been enabled and their investment is not demanding. There is a projection of further growth in IT in the future. Public sector based organizations are continuously adopting information technology to achieve compliance with central governments responsible for the modernization of the government agenda (Aidemark 2003, pp. 212-32).

2.4 Knowledge Management and its roll in OperationsFedor, Ghosh, Caldwell, Maurer & Singhal, 2003 have defined Knowledge Management is a composite of a diverse range of practices of important application in an organization such as Newell Rubbermaid for the purpose of identification, creation, representation, distribution as well as facilitation of the adoption of experiences as well as skills. The insights a swell as experiences cover the range of knowledge inherent in individuals or knowledge embedded in the practices as well as processes of the organization. (Fedor, Ghosh, Caldwell, Maurer & Singhal 2003, pp. 513-539).

The major effort of knowledge management is a focus on the objectives of the organization like the performance improvement, innovation, competitive advantage, continuous organizational improvements and sharing of the already learned lessons. There is an elaborate overlap between the efforts of knowledge management to the organizational learning. The distinguishing characteristic between the two is taking a greater focus on knowledge management as being a strategic asset hand in hand to a focus in the encouragement of knowledge sharing. The efforts of knowledge management are important in the facilitation of the individuals as well as groups in the sharing of the valuable insights of the organization for the purpose of the reduction of the redundant chores (Choi & Lee 2003, pp. 137-56). This avoids a situation of the wheel re-invention per se and the reduction of the time required for the training of the new employees. The intellectual capital is therefore retained leading to the reduction of the turnover of the employees in the organization and a proper adaptation to the ever dynamic environment as well as market.

Knowledge is a very important tool of manipulation by the company’s operation management for the purpose the sustenance of a competitive edge. Information Technology has recently been applicable in the facilitation of the sharing of the knowledge in the prescripts of the organization. This has resulted to efficiency in the management of the organizational knowledge for the purpose of the improvement of performance in the business (Chua 2004, 254-65). Companies offer a presentation of a model that facilitates the understanding of the creation of the intellectual value and the contribution of knowledge management with regard to the leveraging of the intellectual capital. Operation managers should be in a position of addressing the challenges posed to the organizations related to the establishment of the environment whereby knowledge sharing among workers is encouraged in as similar manner as their use as well as expansion based on existing knowledge. The production of innovations is responsible for the increment in the intellectual value. This does not lie entirely on the systems of technology but more on the management of human resources, the systems of knowledge management together with leadership.

Innovations play a vital contribution to the markets of today and they have the potential for dramatic transformation of the competitive position of the company. However, there are chances of risks associated with innovation management as a result of the high uncertainties in the adventures of the companies. This therefore implies that information and knowledge management in the organization re key parameters in the business that can aid in the reduction of innovation uncertainties. This consequently leads to the improvement of the possibility of new products implementation in a successful manner (Andrade, Ares, Garcia, Rodriguez, Silva & Suarez 2003, pp. 152-64).

For the purpose of offering support to innovation management, there is a need for the development of a procedure that is properly thought and also structured that is based on the entire process of management. The methods as well as tools that are responsible for offering the support to the planning as well as decision make important contributions to the clear as well as efficient management processes. Although there has been a rapidly growing awareness in as far as corporate environment is concerned knowledge is of the same level to the intellectual capital that is necessary for the capturing, storage as well as sharing of the corporate knowledge. The issue of concepts implementation, the approaches as well as the tools with regard the knowledge management section of organizations is a common occurrence (Argote, McEvily & Reagans 2003, pp. 86-89).

2.5 Quality, Cost efficiency and competitiveness in OperationsThe concept of customer satisfaction in relation to the quality of goods and the rendered services is an important issue in today’s business world.This is one of the factors that has highly been emphasized at Newell Rubbermaid. This incorporates the product and the service quality that is responsible for the total satisfaction of the needs of the customer in all possible respects based on continuity. More important to this is the quality of the processes, the information, the objectives of the system and the people. The business environment is surrounded by pressures such as globalization, new technology and deregulation among others. These pressures are responsible for business requirements for reorganization as well as restructuring for the sake of their survival and competitiveness in the market. Companies therefore need to develop and also adopt new models of performing their business aimed at the achievement of the capabilities of matching to the changing environment of manufacturing. This is a very important issue in the organization for the purpose of the achievement of success in the manufacturing business (Akgun, Lynn & Byrne 2003, pp. 87 and Al-Hawamdeh 2002 167).

There is a requirement of the manufacturer to posses all the abilities for the production of multiple as well as diversified products and at the same time upgrading together with redesigning their products to comply with shorter life-cycles while executing the changeovers of efficient production in a simultaneous way. The potentials to face globalization pressures especially the shorter life cycle of the product and the manufacturing environments of over-supply, there is a need for the provision of services that are more value-added by the manufacturers in as far as their customers are concerned.

2.6 Performance measurement to satisfy various stakeholder groupsThe existent of organizations is exposed to high levels of uncertainties, dynamic environment, dynamic environment and new challenges together with problems that are continually confronting the organizations. Operation managers are therefore liable to identify solutions to the imminent challenges together with the problems, for the sake of the survival, prosperity and effective performance of the organizations (Jones 2003, pp.736). For the purpose of the achievement of the objectives, an investigation of the function of the organization becomes a necessity together with their effect to the environment.

There is a diversity of stakeholder groups in the organizations. A diversity of a multitude of people who work together with the intention of the achievement of a purpose in common is a fact of the existing organizations. All these people depend on the organization for the sake of coordination of their actions with the aim of achieving a desired and valued interest. The creation of value within the organization is a process undergoing three stages namely the input, the conversion and the output. Each of the stakeholders is in the process of identification of the best approaches meant at serving all of the constituencies at the same time.

The organization is duty bound to commit itself to the highest purposes for the purpose of meeting its duties as required by the stakeholders. The role of the organization is the provision of the much needed goods as well as services to the society that it is duty bound to render services to. The other responsibility is the provision of employment, the creation of wealth and the generation of profits in the organization (Bate, & Robert 2002, pp. 146-53).

2.7 Increasing productivity and measuring customer serviceCustomers today are exposed to a situation whereby they are in a position of acquiring the products from diverse outlets. The level of competition in the current market is very high. Due to the high level of competitiveness in the market, the services offered to the customers become a very critical differentiator of completion that faces business organizations.

The extent of the retention of the customers is based on the on the level of productivity of the organization coupled with the overall experience of the in-store attendants. This is an important contribution to the higher levels of sales in as far as the organization is concerned (Becerra-Posada & Berwick 2004, pp. 68-74). The improvement in the productivity aimed at the measurement of the services to the customer should be supported by the improvement of the service levels of the customers. It is also important to trim the cost of labor as well as the operating costs in the organization. This would be influential in its contribution to the day to day knowledge of value price that are the expectations of the customer. The involvement with personal interaction to the store associates is an important process that bears some influential impact on the loyalty of the customer alongside the bottom-line of the organization.

The liability of the organization with regard to the offering of quick and helpful response the merchandise related questions of the customers such as the pricing, location, availability, among others is a preliquisite duty of the operation management of the organization (Jones, Watson, Gardner & Gallois 2004, pp. 712). The failure of the achievement of this objective is consequential to the frustrations of the customers, loss of sales at the current and in future and an erosion of the reputation of the organization. The skills, experience and the levels of education of the staff of the organization should be high enough to facilitate the provision of the solutions that are instrument to the perfection of the level of services to the customers (Ayas 1996, pp. 213-32). There is an argument among the majority of a one-to-one relationship.

The application of technology is in a position of bringing closer of the customer. The dilemma confronting the organizations is the adoption of a technique to attract the customers and influence them to buy the goods being offered by the organizations. The understanding of the valued things by the customers is the determinant of the course that the organization should take in their productivity. This incorporates the knowledge related to the brands, specific products and the services so that the organization can provide what is valued by the customers. This also facilitates the organizations to serve their customers in a better way.

2.8 Increasing the service value concept and understanding what customers valueThe application of information involving the involving customer knowledge is an important tool to the organization to serve the purpose of addressing the preferences of the customers and their needs. The application of technology in organizations is a facilitator of bridging the gap between the customers and the organization. This is the basis of the creation of a lasting relationship with the profitable customer. The process of acquiring of a new customer is associated with a great deal of difficulty in relation to the process of the retention of the already existing customer. It is therefore necessary for the reputable organizations to devise and implement decisive mechanisms for the increase in the concept of the service value in an attempt to understand what is more valued by the customers (Kaplan & Norton 2004, 259).

2.9 Performance and productivity measures and the need for a performance measurement framework that will include all staff and all activitiesThere are various calls to actions that are faced by decision makers in the current companies. The experience and skills of the employees influence the quality of the product development as well as the capability to meet the changing market requirements. They also determine the quality of the customer service and the level of customer maintenance. Some of the actions that need to put into consideration include;

Tightening up of the operations

Improving the performance and productivity

Regulating the critical skills

Getting on board with new forms of technologies

The company will need to seek for adequate ways of enhancing important professional skills and make a continuous improvement. The process of measuring some of the variables which influence business outcomes can be traced back to the origins of commerce. And the very same principals that are used in measuring inventory, profits, sales and product output are also applicable in the measuring of skills. This therefore, can provide a basis for effectual skills inventory management.

IBM involves the use of skills to establish change management (Lemon & Sahota 2004, pp. 483-498). Efficient online skills and performance measurement practices can provide the company with actionable information that is required. Execution of practical as well as hand on initiative for the improvement of quality and efficiency can be assured. It is attained through the combination of established tactics which underlie success strategies by use of proven tools like Brainbench skills measurement system. This kind of system helps in gaining actionable business data and is capable of tracking improvement results (Lugger & Kraus 2001, pp. 488-497).

Organizations have in mast cases measured performance through finance, that is, depending on the amount of profit gained through liquidation. Nevertheless, traditional performance measures that are based on cost accounting information give little support to the companies on a desirable quality journey. This is because they do not have the capability of mapping the process performance as well as improvement. The procedure of establishing the limitations to the initiative of skills inventory management is important and reasonably simple. A thriving initiative usually starts by recognizing the business issues, for instance the need to improve productivity by about 10 percent, improvement of problem resolution rate by about 15 percent (Mahdjoubi & Harmon 2001, p. 342). It may also involve cutting of the next phase of development by about 60 days. In the above goals, the common aspect is the exact business and the operational need, a requirement that is directly influenced by the performance of the restricted number of employees. An efficient method for success involves skills measurement initiative through clearly defining the departments as well as the groups that are supposed to be incorporated (Majchrzak, Cooper & Neece 2004, 174-188).

Various companies have discovered that “build it and they will use it” policy of providing skills assessment to all employees can be greatly enhanced through focusing on target group and identification of the skills. The moment the group is chosen, the skills measurement initiative can then be lengthened to various other groups within the enterprise by the use of an established as well as repeatable process that is based on the success of the preliminary project. For and individual, measurement of skills provide a positive tool for personal as well as professional development. Unluckily, provision of employees with the required tools for measuring crucial skills does not warrant that the apparatus will be put into use. Communication amongst employees is essential in introducing the initiative, establishment of incentives, prevailing over objections, nurturing competition and most essentially, delivering expected outcome.

3.0 The Case of Newell /RubbermaidNewell Rubbermaid is a highly reputable global company with its operations based mostly in Canada, Europe, the United States, South and Central America. It specializes in the products intended for institutions and commercial markets all over the world, focusing on commercial products, hardware and tools. These are spread out in its four main operational units namely hardware, commercial products, construction equipment and tools and industrial services and products. Newell Rubbermaid is also a leader in the production of writing instruments and equipment. It is a reputed manufacturer of office products and these are also divided into four units; day to day coloring and writing products, highlighters, Art, office Organization and markers for office use and accessories for luxury and fine writing.

The company’s development may be traced to the year 1902. In this year, its founder, named Edger Newell acquired a number of initial assets from a curtain rod manufacturing firm which was on the brink of collapse. At the time, a majority of American people were in the process of shifting to suburbs. As a result, there happened to be the rise in demand for such rods to be used in the construction of the new homes which tended to have broad windows. Since then, the company has been involved in a number of acquisitions and mergers, which have had the effect of causing a gradual but impressive growth in company operations. At the moment, it is the employer of more than 23, 500 employees and seems to be on a rising trend as far as growth is concerned. These are attributed to the successful acquisition and revival of failing companies.

3.1 Brand Development and Strategic ExpansionNewell Rubbermaid is famed for its rapid development of new product lines and brands, which are in line with the changing needs of its customers. In addition to this, it has throughout time been committed to the creation of business alliances and adoption of ambitious strategies aimed at the expansion of its markets. As a measure aimed at ensuring the operational effectiveness of the company, there has been an emphasis on strategic acquisitions, which have had the effect of raising the company’s standing as a market player. For instance in 1998, the came up with a strategic acquisition measure that involved the acquisition of Calphalon and Rubbermaid, both of which ended up being recognizable and popular brand names within their markets. The implementation of such measures has been an effective way through which shareholders value has been rapidly expanded within the company.

The company policy of has always sought to adjust the operations of newly-acquired firms to the level of those of the mother company. In addition to this, there has been the development of a productive organizational culture and structure. This is characterized by high levels of discipline and need to expand. The targets of the expansionary acquisition of companies are in most those manufacturing low level technology and unimpressive products which are then turned around through processes of streamlining towards profitability (Montgomery 2003, p. 4). There has also been an impressive process of organizational transformation which has led to a shift from centralization to the rearrangement into various different divisions. These have greatly boosted productivity for the company.

3.2 Other Notable AttributesThe company’s wide variety of products has been highly instrumental in promoting its level of market dominance and generally boosting the level of company sales. The categorization of the product range is clear, essentially into four segments. These are office products, tools and hardware, home and Fa