Best Practice Companies in International Business

By: Craig W. Roggow

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Introduction

Best Practice Companies in International Business

In international businesses, some companies are highly respectable while others have a more or less tainted reputation. Best practice companies in international business are associated with exemplar frameworks for corporate social responsibility. Additionally, the best practice companies in international business are strongly associated with excellent platforms for business ethics. These are integral aspects for business sustenance and credibility at the international level. The relatively new multinationals can learn a lot from the well-established best practice companies in international business. For instance, the emerging multinationals can borrow heavily from these companies about the development of sustainable technologies in order to benefit the entire humanity. Microsoft and Proctor & Gamble are characterized by exceptional initiatives that are not only aimed at enhancing business growth but also the enhancement of humanity. This analysis narrows down on both multinationals as best practice companies in international business.

Objectives of the post

  • Identify and explain what these best practice companies do within International Business.
  • Define the similarities between the Proctor & Gamble and Microsoft.
  • Describe major differences between Proctor & Gamble and Microsoft.
  • Critique Proctor & Gamble and Microsoft best practices.
  • Implementing best practices.

 

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Analysis

Procter & Gamble

This multinational is a pertinent example of a best practice company in international business. With an extensive range of consumer products, this multinational is an influential player in the global economy. Across the United States, thousands of people have been employed by the company. This trend also applies in the global economic front. The significance of this entity in this study can be exemplified by different attributes. Firstly, Proctor & Gamble has exceptional blueprints for corporate social responsibility.

The company’s hierarchy is committed towards the enhancement of human welfare through different initiatives (Martin, 2011). These initiatives are not based on revenue generation but promotion of people’s well being. The company is also recognized for its unique approach to cultural diversity. This is because it hires employees from all walks of life without discriminating on some races or backgrounds. This distinguishes the company as a best practice company in international business.

Microsoft

This is a highly profitable entity with extensive investments in different countries around the globe. Specializing in the computer technology sector, the company has made tremendous contributions to the global economy. For instance, Microsoft is an employer of thousands around the world. The company’s relevance to this study as a best practice company in international business can be depicted in numerous ways. The company’s founder has established the world’s largest charitable organization using funds accrued from Microsoft. The foundation has been massively influential in terms of impacting the lives of needy adults and children in different parts of the world. Thousands of needy students benefit every year from the excellent scholarship initiative of the Bill & Melinda Gates Foundation. As a best practice company in international business, Microsoft runs numerous programs for promoting innovative thinking and creativity among the youth (Wood, 2011). This is a positive contribution to the society by the multinational and thus qualifies it as a best practice company in international business.

Similarities

Both Microsoft and Proctor and Gamble are characterized by some similarities as best-practice companies in the field of international business. A notable similarity in these companies is that they are both associated with excellent platforms for cultural integration within their respective workforces. This is because of the excellent degree of cultural diversity in both multinationals. Another similarity pertains to the excellent standards of business ethics. The companies aim to offer safe products that are not harmful to the consumers in any way. This is an essential aspect of business ethics employed by both entities. The companies are characterized by excellent code of conduct for their respective employees. In essence, the code sets out the guidelines regarding employee behavior and interaction with customers (Knight, 2013). The code is strictly followed in both multinationals. While the companies have extensive market shares in their respective industries, they do not seek to suppress the small-scale competitors in different host countries. Both companies have strongly emphasized on the developing economies. This forms another aspect of similarity between them as best practice multinationals in international business.

Differences

Proctor & Gamble has a more elaborate blueprint for environmental sustainability than Microsoft. The former multinational sets aside millions of dollars towards environmental conservation efforts. This is not only notable in the United States but also in numerous host countries for Proctor and Gamble. Such a high level of dedication towards environmental sustainability lacks at Microsoft (Martin, 2011). In recent years, Microsoft has come under fire for the high levels of emissions coming from its manufacturing plants. The massive dedication of Microsoft towards charitable activities is another aspect that distinguishes from Proctor & Gamble as best practice companies in international business. Consequently, the Bill Gates Foundation is a distinctive feature of Microsoft as a best practice company in international business.

The marketing plans or strategies used by these companies are strongly distinct. For instance, Microsoft’s marketing plans are largely based on internet-based platforms. This is different from the advertising strategy employed by Proctor and Gamble (Johnson & Turner, 2010). This is because of the latter company’s emphasis on print and electronic media for marketing. In essence, this difference can be attributed to the distinctive target groups for these multinationals.

Critique

While the two best practice companies in international business have excellent frame-works for corporate social responsibility, there are several areas that require strengthening. For Microsoft, it has to devote adequate resources towards environmental initiatives. The company’s base in Thailand is characterized by high rates of pollution to the environment. This includes the emission of greenhouse gases and other toxic substances. This is a significant contributor to the deterioration of environmental standards. Apart from environmental sustainability, it is also essential for this multinational to diversify its strategic blueprint for corporate social responsibility (Wood, 2011).

While the Gates’ Foundation is widely acclaimed around the globe, the multinational must set aside more scholarships for needy students in the third world. This is because the company’s main focus for scholarships is the United States. On the part of Proctor and Gamble, there is the need to focus on the alleviation of suffering around the world. For instance, the company has the capacity to produce unique products for breastfeeding mothers. Such an initiative would contribute massively towards the enhancement of health standards around the world. Both companies must also shun from using corporate social responsibility as a strategy for marketing their products and services. Based on such stipulations, both multinationals can greatly enhance their standing as best practice companies in international business.

Implementation

The successful implementation of best practices in international business must be based on a comprehensive strategic plan. The maintenance of high standards of business ethics is a pertinent aspect of international business. This can be achieved through the use of an elaborate code of ethics. It is fundamentally essential for all employees of the international corporation to work in accordance with the stipulations of the code (Griffin & Pustay, 2013). This would help in preventing the employees fro participating in unethical practice such as corruption or nepotism. Apart from the ethics code, another crucial aspect of consideration in the implementation of best practices is social welfare.

The best practice companies in international business have excellent plans fort enhancement of welfare. Consequently, it is essential for the company to help in the advancement of humanity through welfare programs such as poverty alleviation, hunger eradication, and fighting illiteracy among others. This is an essential platform for making a positive difference in the lives of the less fortunate persons in the society. These kinds of initiatives do not benefit the company but are vital in the promotion of living standards across the globe.

Conclusion

Microsoft and Proctor & Gamble are characterized by exceptional initiatives that are not only aimed at enhancing business growth but also the enhancement of humanity. Proctor & Gamble has exceptional blueprints for corporate social responsibility. The company’s hierarchy is committed towards the enhancement of human welfare through different initiatives. These initiatives are not based on revenue generation but promotion of people’s well being. The company is also recognized for its unique approach to cultural diversity. Microsoft is an employer of thou-sands around the world. The company’s relevance to this study as a best practice company in international business can be depicted in numerous ways. The company’s founder has established the world’s largest charitable organization using funds accrued from Microsoft. A notable similarity in these companies is that they are both associated with excellent platforms for cultural integration within their respective workforces. This is because of the excellent degree of cultural diversity in both multinationals.

 

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References

  • Griffin, R. W. and Pustay, M. W. (2013). International business (7th Edition), Prentice Fall: New York, NY.
  • Johnson, D. and Turner, C. (2010). International business: Themes and issues in the modern global economy, Taylor & Francis: New York, NY.
  • Knight, G. A. (2013). International business: New realities, Pearson Publications: New York, NY.
  • Martin, R. L. (2011). Playing to win: How Strategy really works, Harvard Business School Publishing: Boston, MA.
  • Roggow, C. (2013). Best Practice Companies in International Business. Retrieved from: http://mergerandacquisitionstrategies.org/best-practice-companies-in-international-business/
  • Wood, J. (2011). Leaving Microsoft to change the world, Penguin Books Limited.
  • Yuki, G. (2013). Leadership in organizations, Prentice Hall.