Reply to each of the attached posts. Response must be at least 100 words each. Responses must be substantive written response

Key Term and Why You Are Interested in It

The key term I have selected for this post is fixed assets. I opted for this category due to the sometimes complex nature of how assets are recorded and accounted for in a business. The intricacy that is applied to correctly allocating financial aspects such as method of payment and depreciation of the asset can be complicated as it will have an affect on a company’s financial reports. In more recent years at my job, I have learned a fair amount regarding fixed assets and the recording of them so I was interested to see what more I could learn through this research.

Explanation of Key Term

Fixed assets refers to “tangible property used in the operation of a business” according to Satterlee (2018) and can consist of furniture, buildings, machinery, and equipment, to name a few (p. 227). Fixed assets, with the exception of real estate since it appreciates, are depreciated over an extended period of time based on the normal life expectancy of the given property which can be beneficial to companies in that it provides a break on taxes. The determination of how to obtain fixed assets, when looking to branch out on an international level, takes some time and research as there can be a variety of options that can aid in offsetting initial start-up expenses for those companies. A few aspects to look at would be the benefit of merging with another company or whether or not to use an existing facility or build a new one (Satterlee, 2018, p. 227).

Major Article Summary

Fixed assets should be accounted for, and depreciated, in a manner that best suits the function of the property. Depreciation can be achieved in ways such as the straight-line method or even a declining balance method. In their analysis of fixed asset accounting implementation in Indonesia, Kantun, et al (2019) discuss how tangible fixed assets are crucial for the success of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia (p. 1). In Indonesia, there are two sets of standards that are typically utilized to ensure proper recording of fixed assets. Those standards are the Financial Accounting Standards for Micro, Small, and Medium Enterprises (SAK EMKM) and the Indonesian Financial Accounting Standards (PSAK), both of which serve as guidelines for the decision making process (Kantun, et al., 2019, p. 2).

For the MSMEs in Indonesia, some of the aspects that need to be recorded appropriately are the acquisition price, method of acquisition, such as cash or credit, and determining which method of depreciation will be used. According to Kantun, et al (2019), the need to appropriately record fixed assets not only affects the reporting found in various financial records, the recording needs to be correct as it affects how the property will not only be used, but how it will be depreciated and eventually released once the timeline for use has expired (p. 2)  Just as it is important in the United States to follow the Generally Accepted Accounting Principles for various aspects of business, companies in Indonesia also have similar principles and standards they must follow in order to properly account for fixed assets.

Discussion

How the cited work relates to the explanation of key term

The cited work and the key term explanation are relatable in that fixed assets are a part of any established company and there is significant importance placed on the proper allocation of costs associated with any fixed assets. Part of the reporting process is to determine an appropriate depreciation schedule that suits the type of property being recorded as well as the method of depreciation. In the cited article, the author explains the importance of proper reporting of fixed assets as well as providing examples of the various methods that can be utilized. Another area the cited work relates to the explanation is that Kantun, et al (2019) makes a point to acknowledge several times that fixed assets are used for more than one accounting period (pp. 1-3). The length of time the asset will be used is based on the nature of the property and the length of time it is expected to be utilized within the company.

How cited work relates to remaining articles

The remaining articles relate to the cited work in several ways, generally referring to the allocation of fixed assets and how that affects financial information. According to Goldbach, et al (2019), net investment information can be unclear depending on depreciation rules or how fixed assets are composed (p. 62). The uncertainty of the net investments can cause financial reports to be incorrect, thus affecting budgeting for the future. Zhang, et al (2019) demonstrate how the construction of a high speed rail can drastically increase the total of fixed assets for China (p. 225).

According to An (2018), although fixed assets are capable of carrying a heavier debt load than intangible assets, fixed assets can be affected by corporate income tax creating a bias against them (p. 419). On the other hand, due to the higher level of initial capital requirements, entry barriers are created, making it difficult to trade or establish business internationally. (Wright and Zhu, 2018, p. 354). While there are similarities between the articles, there are also various viewpoints on how investments in fixed assets should be allocated for and the affect it can have on the financial reporting for the company.

References

An (2019) An, Z. On the Tax Bias Against Investments in Fixed Assets: Empirical Evidence from China. The World Economy; 42: pp. 419– 428. Retrieved from https://onlinelibrary-wiley-com.ezproxy.liberty.edu/doi/full/10.1111/twec.12671

Goldbach, S., Nagengast, A., Steinmuller, E., and Wamser, G. (2019). The Effect of Investing Abroad on Investment at Home: On the Role of Technology, Tax Savings, and Internal Capital Markets. Journal of International Economics, Volume 116, pp. 58-73. Retrieved from https://www-sciencedirect-com.ezproxy.liberty.edu/science/article/pii/S0022199618304069?via%3Dihub

Kantun, S., Djaja, S., & Kartini, T. (2019). Analysis of Fixed Assets Accounting Implementation in Micro, Small and Medium Enterprises (MSMEs) Units in Jember. IOP Conference Series. Earth and Environmental Science, 243(1) pp. 1-7. Retrieved from https://www.proquest.com/docview/2557604193?parentSessionId=z6%2ByAdR%2BljSC%2Fusi%2Fp9i962ZaAUjaTqMaDgf%2FbcPlUc%3D&pq-origsite=summon&accountid=12085

Satterlee, B.C. (2018). International Business with Biblical Worldview, (13th ed). McGraw-Hill.

Wright, J. and Zhu, B. (2018). Monopoly Rents and Foreign Direct Investment in Fixed Assets, International Studies Quarterly, Volume 62, Issue 2, pp. 341–356, Retrieved from https://academic-oup-com.ezproxy.liberty.edu/isq/article/62/2/341/5049186

Zhang, F., Wang, F., Ou, J., and Yao, S. (2019). Role of High-speed Rail on Social Fixed Assets Investments in China, Journal of Chinese Economic and Business Studies, 17:3, pp. 221-244. Retrieved from  https://www-tandfonline-com.ezproxy.liberty.edu/doi/full/10.1080/14765284.2019.1663697

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Market Entry Motivation

Key Term and Why You Are Interested in It (100 words minimum)

            The key term I have selected from this week’s reading is Market Entry Motivation. As I was reading through this week’s chapters on world entry, I began asking myself the question “what makes global market entry so beneficial if it involves a lot more planning as opposed to just sticking to a domestic market” and “what are the factors involved in making the decision to take a product or service to the global market”. As I was asking myself these questions, I came across the motivations and wanted to further my application knowledge of companies actually putting this information and motivation to practice.

2. Explanation of the Key Term (100 words minimum)

            Market Entry Motivation is all about the motivation a company sees in entering a market. It involves the physical act of sizing up a market and product and assessing whether or not their global entry motivations are proactive or reactive. A company with proactive motivations for going global is doing it to grow and because they see great value in it. A company approaching global entry with a reactive approach is doing so because they are reacting to a situation outside of their control and have no other option. These are the two greatest motivators of global market entry, and each breaks down into individual focuses to determine the greatest influence to going global. For a proactive company, it may involve making more money, being more competitive, opportunities in the market, benefits to the taxes of the company, or other economies. A reactive motivation might reveal competitive pressure for a company to perform, extra capacity that must be filled, overproduction, or an over-saturated home market.

3. Major Article Summary (200 words minimum)

            The article I have chosen for my major article is, “Foreign market entry and expansion – Directions for strategic organizational growth based on a global system perspective” (Kumar & Waheed, 2007). In this article, Sameer Kumar and Usman Waheed study the true motivations for global expansion and the pitfalls that may come with it. They begin their study with a substantial literature review portion, where they look at the general motivators for global expansion, and then narrow those down to some different industries. The general motivators being an imperfection in a given market or the factor/given market, preserving a customer base, entering a growing/high growth market, economies of the operation, or a desire to control a given raw material recourse. The motivators by industries identified commoditized industries are driven by client searching and client gap locations.

            After the literature review, they discussed the process of global market entry and the things to do in order to prepare a company. The first was a geographic SWOT analysis to identify all the strengths, weaknesses, opportunities, and threats in a given geographic location. After the SWOT, a company then would apply a multi-linear regression model to establish further macroeconomic variables. Lastly, they use game theory to identify the optimal way to gain market share in the countries of choice.

4. Discussion.

a. This article places a heavy focus on the motivators for specific industries to look to go global with their business. Motivators, as mentioned above, are the specific reasons a company will enter a new market in a global context. Whether a proactive company, or a reactive company, the motivators will vary depending on the company, industry, and competitors located in the area. This relates to a lot of what the book was talking about in terms of motivators for a given company going global. This article goes a step further and takes those motivators in application settings of seeking new investment/expansion opportunities for companies looking to grow.

b. After seeing a lot of the motivations in this article and the textbook for global market entry, I decided to focus the expounding research on different strategies involved in global market entry and the motivation for some of those strategies. The first two articles I found on this, both discussed different aspects of group global market entry. The first was an article about how Chinese companies have started to used “group entry” as a new model for global market entry as it helps them enter with an established presence through collaboration (Masiero et al., 2017). The next article was about partnerships in going global and how each company should identify the right partners when going global in order to maximize their success (Negoro & Matsubayashi, 2021). The next article was about global branding and using a model to identify the best branding techniques to keep company reputation when entering a global market (Omar et al., 2009). Lastly, I read an interesting article talking about the motivators of going global and how those motivators often cause competition amongst competitors for a new market in a country. It looked at the impacts of bribery on the process of global market entry and how countries fail to prevent bribery in such a profitable expedition for many companies (Weismann et al., 2014).

Reference

Kumar, S., & Waheed, U. (2007). Foreign market entry and expansion – Directions for strategic organizational growth based on a global system perspective. Information Knowledge Systems Management, 6(3), 177–196.

Masiero, G., Ogasavara, M. H., & Risso, M. L. (2017). Going global in groups: A relevant market entry strategy? Review of International Business & Strategy, 27(1), 93–111. https://doi.org/10.1108/RIBS-11-2016-0067

Negoro, K., & Matsubayashi, N. (2021). Game-theoretic analysis of partner selection strategies for market entry in global supply chains. Transportation Research: Part E, 151, N.PAG-N.PAG. https://doi.org/10.1016/j.tre.2021.102362

Omar, M., Williams Jr., R. L., & Lingelbach, D. (2009). Global brand market-entry strategy to manage corporate reputation. Journal of Product & Brand Management, 18(3), 177–187. https://doi.org/10.1108/10610420910957807

Weismann, M., Buscaglia, C., & Peterson, J. (2014). The Foreign Corrupt Practices Act: Why It Fails to Deter Bribery as a Global Market Entry Strategy. Journal of Business Ethics, 123(4), 591–619. https://doi.org/10.1007/s10551-013-2012-8

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1. Key Term and Why You Are Interested in It

As I sit here reading and focusing on my future, I decided to choose managerial commitment (MC) for the topic I am interested in.  Due to the degree of study that I am working towards, this topic falls within my wheelhouse.  To become successful as a business manager I need to be able to broaden my thoughts and vision on other ways to become successful.  Giving the tools and being informed of areas that tend to be overlooked will set me up for a better career.  Additionally, gaining a better understanding of what managers needs to do and the commitment that they need to apply for the job can make a company successful.  This holds true especially for those who look to take their business overseas and thrive.

2. Explanation of the Key Term

The term managerial commitment is used by company executives that participate directly in the aspects of a business’s operations or organizational level tasks.  The level to which commitment is executed or accepted often depends on how much trust and authority the managers have been entrusted with from senior leadership.  “The nature of managerial commitment to an intervention shapes its character: it is not the intervention itself that is key, but the meaning given to it by participants” (Greasley & Edwards, 2015).  A commitment from an employee, manager, or even CEO depends on the level of success and reward that is associated with it. 

3. Major Article Summary

Due to the reduction of the operating costs within organizations, there are other ways to save money and still produce the same quality of customer service.  This has to do with an increase of employee interaction while implementing a more proactive approach for customer interaction.  “Quality improvement involves the transformation of the entire organization toward customer orientation through employee involvement” (Lämsä & Savolainen, 2000, p. 297).  When it comes to downsizing, senior leadership must retain the managers and workers who produce a higher quality return and takes the lead on company improvement methods.  These improvements are not limited to just the work within the physical company walls, but this also goes for the external representation as well.

4. Discussion a. How the cited work relates to your above explanation.

MC is always significant for the overall success and without the proper engagement, there could potentially be a decline in productivity which would lead to a decrease in revenue.  Aside from revenue, the initial path for which a company travels down is typically a direct reflection of those managers that are involved with during initial meetings.  Many organizations may not have a lack of enthusiastic individuals looking to promote within, however, choosing the right individual(s) to lead and represent will take proper vectoring and honest selection to fulfill those positions.  “Management is also responsible for the mode, direction, and speed with which the company advances along the export development path” (Leonidou, Katsikeas, & Piercy, 1998, p. 80)

      b. How the cited work relates to the other 4 works you researched.

A bunch of research has been conducted on MC.  The results have produced different points of view while highlighting the different perspectives from the researchers.  The overall goal of MC, whether it is in healthcare, overseas business dealings, or the operations within the US military is to place the best individual in a position that would produce the best results.  While the idea is centered around success, there are times that personal bias may come into play, leading to the appointment of the less than qualified.  This bias can lead to the reduction in performance, potentially hostile/toxic environment or even reduce return on investment.

References

Bai, T., & Liesch, P. (2022). Organizational goals and resource allocation to overseas foreign direct investment. Journal of World Business, 57(3), 1-14.

Bartczak, S. E., Boulton, W. R., Rainer, R. K., Oswald, S. L., & O’Malley, K. (2011). INVESTIGATING BARRIERS TO KNOWLEDGE MANAGEMENT IIMPLEMENTATION IN THE U.S. MILITARY: A FOCUS ON MANAGERIAL INFLUENCES. Southern (SAIS) at AIS Electronic Library.

Greasley, K., & Edwards, P. (2015). When do health and well-being interventions work? Managerial commitment and context. Economic and Industrial Democracy, 36(2), 355–377.

Lämsä, A.‐M., & Savolainen, T. (2000). The nature of managerial commitment to strategic change. Leadership & Organization Development Journal, 21(6), 297-306.

Leonidou, L. C., Katsikeas, C. S., & Piercy, N. F. (1998). Identifying Managerial Influences on Exporting: Past Research and Future D. Journal of International Marketing, 6(2), 74-102.

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