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1.1 International Business
The economy is dependent on the activities that are based on the extraction, processing, and manufacturing of the resources. This is because the value of the resources needs to be extracted from the transformation of the resources from their natural state to the most useful state which can fulfill the demand of the people. This is made possible by the intuition and creating of businesses which concentrate on the satisfaction of the wants of the people, therefore, will mean all activities that are taken in around production, distribution, and consumption of resources. These resources could be goods or services but are of importance for the survival of the individuals.
1.1.1 Business institutions
The businesses can be from the local, regional, national and international. International trade refers to the business activities that are undertaken beyond the country borders and involves two or more countries. The extent may be to the coverage of the globe which will constitute the global market involving the whole world. The businesses, therefore, have the basic ways under which they operate and are specific to easing the activities involved in them. The organization of these businesses forms the setup of their institutions that aid in the recognition and these form their characteristics which may be formal or informal.
1.1.2 Formal characteristics of business institutions
126.96.36.199 Has the basis on Rules and Procedures
For the achievement of the set objectives and goals of the organization, some rules and regulations are put in place to give direction to the expected target. It directs set purpose for any institution since it acts as the pointer to all institutions since it serves as the pointer to the destiny of the organization. All institutions formally set their own rules which will be in line with their goals. The employees are put in front by these rules. It forms the basis of correction and evaluation of the institution and hence in the analysis of the institutional performance it is critical to evaluate its adherence to the rules and the regulations.
188.8.131.52 Division of Work
The institutions' departments are interconnected through the division of labor. This involves each department and the people to undertake the activities in the areas in which they are best fitted for effectiveness. Each institution has several events done at the same time by the different people which are at last consolidated to make up the overall performance of the organization.
184.108.40.206 Deliberate creation
The deliberate creation of an institution is aimed at ensuring that the objectives of the firm are met in a straightforward manner which does not consume much of the resources. The intention of the business institutions is the maximization of the available resources and to generate the best of the profit margins.
220.127.116.11 Loss of initiative
Due to the overemphasis of abiding by the organizations' norms and regulations, it has been difficult for workers to explore their creative skills and innovative ability to be fully efficient in carrying out their daily tasks. Workers end up lacking personal initiative since they are unable to explore their potential by being conformed to strict rules fully.
18.104.22.168 Defined Interrelationship
The business institutions have a definite interrelationship among its departments and persons involved in its operation as a toolkit which drives the activities taking place in it. The arrangements based on this are made with clear definitions of how each of them relates to one another. Everybody that is involved in the institution knows well, their authority, responsibility and the boundary within which they act and manipulate. The offices and the departments inclusive of those who work in them have a strict hierarchy and stipulates well who is supposed to report to who and the terms which guard them.
In every institution, there is no room for the personal feelings to be applied preferably the highest level of discipline is observed. The critical thing to deal with is the work to be done and not the feelings and the interests of the individual. The intention is what brings solution and success to the institution and not to an individual.
1.1.2 Informal characteristics of business institution
In this, the people involved in the institution have casual relationships which lead to the generation and development of the informal organization. The institutions are aimed at creating good understanding amongst the workers which are evaluated to have a more significant impact on the performance of the personnel in respective departments.
22.214.171.124 It lacks written rules and regulations
The informal characteristic of intuition as well include the state of having the rules and the procedures that govern the institution which is put down in writing in any form. The institution instead has the norms to be observed for instance in a case where the employees are involved with duties in an organization that is informally owned by a particular group. With time some of the norms usually come up which aid in giving help to the members in solving problems that relate to the job or even themselves and also help themselves against the exploitation of the organization.
126.96.36.199 Non-dependent communication channels
In such a case, there is no specification and definition in the direction of the communication line. The person at the lowest rank can have direct communication with the one in the highest level with no restrictions. This is so because there is no definitions of the relationships among the persons within the institution.
188.8.131.52 Lacks deliberate creation
The organization comes into existence as a result of the tastes and mutual relationships of the individuals involved. There is no sense of creating the organization deliberately.
184.108.40.206 It is personal
In such institutions, the personal feelings and thoughts account and there is not an imposition that is pegged to them. The impact of an individual's decisions is much felt in the entire institution and by all the other employees in the place.
Blau, Peter Michael, and W. Richard Scott. Formal organizations: A comparative approach. Stanford University Press, 2003.
Dib, Claudio Zaki. "Formal, nonformal and informal education: concepts/applicability." In AIP conference proceedings, vol. 173, no. 1, pp. 300-315. AIP, 1988.
Steel, William F., Ernest Aryeetey, Hemamala Hettige, and Machiko Nissanke. "Informal financial markets under liberalization in four African countries." World Development 25, no. 5 (1997): 817-830.
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