Business Report on Multinational organizations

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Business Report on Multinational organizations, At the end of my education luckily I have been given an executive position in a multinational organization which has been indulged in construction work.
Organization
Tesco is one of the leading Multinational General Merchandise retailers. Over the period of time the business grows and currently Tesco is operating in 12 countries worldwide. We aimed to provide better customers services and value added products to our valuable customers And therefore the organization has completed the work of improving 8000 core products, Business Report on Multinational organizations The private label of Tesco are high in demand and it constitutes of 50% of its total sales. (Tesco staff keep hands on the wheel, 2009).Recently, the organization has identified vital business opportunities for high-quality ground coffee coming from exotic locations including African and South American countries. This should be an own-label Tesco Finest product. The organization need to analyze the global industry of coffee, location of Source and supply chain model. As a first assignment of my practical life I have given an opportunity to submit a business report of the job. I have concentrated my mind towards my all previous studies during education and have prepared this report for submission to the Headquarters for favor of approval
Globalization
Globalization means the process of integration internationally arising from the interchanging the ideas products and other cultural aspects (Reese, 2010). Advancement in telecommunication infrastructure and in the field of transportation as well as in the world of internet is the main factors of globalization which is creating further interdependence of cultural and economical activities.

1. SWOT ANALYSIS OF GLOBAL COFFEE INDUSTRY
Strengths
1. Second biggest commodity
It is well know that coffee is one of the biggest and most important commodities in the world.

2. Demand all around the Globe
Coffee is one of the products that is demanded and used by people all around the world. Recent research shows that the usage of coffee is 2.25 billion cups per dayin the world. (Eastman, 2005)

3. Provide foreign Exchange to developing countries
As the matter of fact that coffee is harvested in developing or under developed countries and exported to developed countries, it is one of the main exports of under developed countries.

4. Coffee is imperishable.
Coffee doesn’t lose its true essences therefore preserving and storing the raw material doesn’t require temperature controlled environment

Weaknesses
1. Effect of weather
The major problem of the industry is that fields of coffee beans are greatly influenced by the weather conditions of the producing countries. When the temperature is very high in South America from where 49% of coffee is produced, the supply of raw material decreases. (COFFEE: Uganda, 2012)

2. Effect of financial instability of world
Instability of Economic conditions of is the most severe dilemma these days and of course somehow it has a great impact on the coffee industry as well

3. Price volatility;
Because of the instability of financial conditions of world, the price of coffee isn’t stable.

4. Poor farmer financing
Most of the coffee beans are harvested by small and majority of these farmers live below poverty line. Due to above mentioned reason, many farmers choose to abandon their farms, or start growing other crops. (Chiputwa, Spielman and Qaim, 2015)
Opportunities
1. Coffee Development Projects;
International coffee organization has initiated the project of Coffee Development which is the most important point in the work of International Coffee Organization. These projects are aimed to raise the living standards of farmers.

2. Specialty Coffee;
The demand for specialty coffee is increasing. Demand of different kinds of beans, roasting, brewing and types of making coffees becoming more it will benefit the industry and will give huge opportunity for the development

3. Fair Trade;
Many companies are trying to take part in fair trade with their products. It will help them to gain better revenues. This method will also help framers financially.
Threats
1. Threats from other crops
Many farmers are forced to change the crop they are growing because of hard economic conditions to in order to get more money. In many cases these substitute crops include drugs like cocaine in South America.

2. Depending on a political and economical stability;
Political and economic conditions of the world greatly influence the coffee industry. Because of instable economic conditions and price volatility, it becomes harder for companies to earn high revenues.

3. Lack of the training capacity development;
Most of the farmers are not trained and lack the basic knowledge about new technologies which can result in higher production.

4. Lack of credit;
Farmers are unable to get enough financial help in the times of crises because of the large portion of fertile land gets abandoned and left out.

2. PEST ANALYSIS OF PERU(country of origin)

Table 1: PEST Peru – Political factors

Table 2: PEST Peru – Economic factors1

Table 3: PEST Peru – Social factors1

Table 4: PEST Peru – Technological factors1

Organizational Behavior
Organizational behavior means a study and sense of applying the knowledge regarding the action of people as individual or in groups in some organization and it is implicated by adopting some system approach (Zhu, Li and Luo, 2010).
Elements of organizational behavior
The base of an organization rests upon the vision, values goals and philosophy of the management. This all much in its turn provides a culture in an organization that may be composed of the social culture in formal or informal organizations .Business Report on Multinational organizations  In an organization the type of leadership, mode of communication and group dynamic are being determined from the culture of an organization (Paarlberg and Perry, 2007). The workers have to perceive it as a quality of work life that can direct the degree of their motivation. Finally the result of outcome depends upon personal growth, Business Report on Multinational organizations personal development, individual satisfaction and performance. When these all elements are combined then a model framework for operation of an organization is built.
METHODOLOGY, FOR THE LEADER.
Models of Organizational Behavior to be Followed
There are four main frameworks or models which can be operated by an organization; they are Autocratic, collegial, custodial and supportive (Edwards, 2001). Out of them we need to follow supportive mode of action
Supportive:
The basis of the model supportive is based upon leader ship with a support of a managerial orientation. In return the employees remain oriented with participation and job performance. The need of employees is recognition and status. Awakened drives are the performance result in this case .
Although there are four different models but no organization can operate exclusively only in one. Usually there is overlapping of one by one of more areas of the other model.
I would prefer to adopt the model Autocratic because it is acceptable by the local workers where I have to start the project, the local workers should be dependent on boss and be obedient too

Employment of local workers
I am of the view that the African subsidiaries are to be managed by the host population just as European subsidiary should be managed by Europeans. For functioning smoothly and properly there is a necessity of some strong regional headquarter to which the full authority and power be vested to manage and carry out its operations in particular areas. These regional headquarters should be integrated to collaboratively manage the subsidiary within the region. The sole objection to this that there would usually be a limited flow between global headquarter and the region. It is very important to observe that due to contextual requirements of the developing states, such a model is to be chosen which must keep a balance between maximizing the huge labor potential of the state and to provide an opportunity for transfer of technology. A critical view at the various models will clearly show a wide trade-off the two goals of transfer of technology and maximum potential of labor of the host state.
International operation Strategy:
Justifying the country of origin

Peru is currently the 8th largest producer of coffee in the world and the single largest exporter of organic certified coffee. (Ruben and Fort, 2012) Due to the rise in world commodity prices, market policies beneficial to investors and aggressive free trade strategies Peru is one of the world’s fastest growing economies with a dynamic GDP growth rate, stable currency exchange rates and low inflation in recent years. Peru’s GDP tripled in the past 10 years as a result of its economic growth and rapid expansions.
If we compare the strategic location of Peru and Uganda, Peru stands at 52 positions among the best countries to start business while Uganda is at 122 (Forbes)
Table 9: (Anon, 2015)
Country GDP Growth (%) GDP/Capita ($) Trade Balance as % of GDP Population(mil)
Peru 5.1 11,100 -4.9 30.1
Uganda 5.6 1,500 -8.4 35.9

Trade Agreements

To consolidate Peruvian foreign trade in goods and services, Peru has negotiated several Trade Agreements with large and medium-sized markets in recent years. Peru’s market openness in combination with these trade agreements have permitted an increase in the number of exported products and exporting companies. Additionally they are a valuable instrument for attracting direct foreign investment, boosting productivity, transferring technology and improving management and logistic practices in Peru.

Developmental plans
Supply chain efficiency

The marketing should be done through stockers providing them more attractive incentive. The supply chain can often be improved by locating facilities in…