GLOBAL BUSINESS MANAGEMENT

UNIT - III
I. GLOBAL PORTFOLIO MANAGEMENT
Global portfolio management refers to the practice of creating and managing an
investment portfolio that includes a diverse range of assets from various countries and regions
around the world. Global Portfolio Management, also known as International Portfolio
Management or Foreign Portfolio Management. Key Aspects of GPM are: Diversification,
Risk Management, Market Research, Tax Implications etc.

Components of Global Portfolio

1. Equities (Stocks):
 Domestic Stocks: Stocks of companies listed in the investor's home country.
 International Stocks: Stocks of companies listed in foreign countries. These can be
developed or emerging markets.
 Sector-Specific Stocks: Investments in specific industry sectors such as technology,
healthcare, finance, etc.
2. Fixed-Income (Bonds):
 Government Bonds: Bonds issued by national governments, often considered
relatively safer investments.
 Corporate Bonds: Bonds issued by corporations to raise capital, offering varying
levels of risk and return.
 International Bonds: Bonds issued by foreign governments or corporations, often
denominated in different currencies.
3. Geographic Regions:
 Developed Markets: Mature economies with established financial systems (e.g., USA,
UK, Germany, Japan).
 Emerging Markets: Rapidly growing economies with higher potential for growth but
also higher risk (e.g., China, India, Brazil).
4. Market Capitalization
 Large-Cap Stocks: Stocks of well-established companies with high market
capitalization.
 Mid-Cap and Small-Cap Stocks: Stocks of smaller companies with potential for
higher growth but also higher risk.
III. GLOBAL ENTRY STRATEGIES

Global entry strategies refer to the methods and approaches that companies use to enter
and establish a presence in foreign markets. When a company decides to expand
internationally, it must carefully consider how it will navigate the challenges and opportunities
presented by a new market.

Different Forms of Global Business / Forms of Ownership In Foreign Operations

 Licencing
 Franchising
 Management contract
 Turnkey Projects
 Joint venture
 Equity Alliances
 Greenfield Investment
 Mergers and acquisitions
 Exporting.

A. LICENSING:
Licensing is a popular method of entering foreign markets. The cost of entering foreign
markets through this mode is less costly. The domestic company need not invest any capital as
it has already developed intellectual property i.e., technology, work methods, patents, copy
rights, band names, trade marks etc. As such, the domestic company earns revenue without
additional investment. Hence, most of the companies prefer this mode of foreign entry.
Here the manufacturer in the domestic country is called ‘Licensor” and the
manufacturer in the foreign country is called “Licensee’. The domestic company can choose
any international location and enjoy the advantages without incurring any obligations and
responsibilities of ownership, managerial, investment, etc.
Advantages:
 Obtain extra income for technical know-how and services
 Quickly expand without much risk and large capital investment
 Pave the way for future investments in the market
 Political risk is minimized as the licensee is usually 100% locally owned
 Is highly attractive for companies that are new in international business
  Licensing mode carries low financial risk to the licensor.
 Licensor can investigate the foreign market without much efforts on his part.
 Licensee gets benefits with less investment on research and development
 Licensee escapes himself from the risk of product failure.

Disadvantages:
 Lower income than in other entry modes
 Licensing agreements reduce the market opportunities for both the licensor and
licensee. Pepsi-cola cannot enter Netherlands and Heineken cannot sell Coca-cola.
 Both the parties have responsibilities to maintain the product quality and promoting the
product. Therefore, one part can affect the other through their improper acts.
 Costly and tedious litigation may crop up and hurt both the parties and the market.
 There is a problem of leakage of the trade secrets of the licensor.
 The licensee may develop his reputation.
 The licensee may sell the product outside the agreed territory and after the expiry of the
contract

B. FRANCHISING:
Franchising is a form of licensing. The franchisor can exercise more control over the
franchised compared to that in licensing. International franchising is growing at a fast rate.
Under franchising, an independent organization called the franchisee operates the business
under the name of another company called the franchisor.
The Franchising system can be defined as: “A system in which semi-independent
business owners (franchisees) pay fees and royalties to a parent company (franchiser) in return
for the right to become identified with its trademark, to sell its products or services, and often
to use its business format and system.”
Under this agreement the franchisee pays a fee to the franchisor. The franchisor
provides the following services to the franchisee: Trade mark, Operating systems, Product
reputations & Continuous support systems like advertising, employee training, reservation
services, quality assurance programs etc.
Example: KFC (Kentucky Fried Chicken) operates globally through franchise
partnerships. Franchisees adhere to KFC's recipes and preparation methods to offer the
company's signature fried chicken products.
Advantages:
 Established Brand and System - One of the main advantages of franchising is that
franchisees get to operate their own business using the established brand and systems
of the franchisor. This includes access to the franchisor’s marketing, advertising,
product offerings, and support services, which can help franchisees get a head start and
avoid many of the challenges associated with starting a business from scratch.
 Support and Training - Franchisees also receive comprehensive support and training
from the franchisor, which can help them get started quickly and operate their business
effectively. This includes help with site selection, lease negotiation, and operational
setup, as well as ongoing training and support in marketing, customer service, and
employee management.
 Reduced Risk - Franchising can also help reduce the risk associated with starting a
business. This is because franchisees can benefit from the franchisor’s established
brand and systems and the franchisor’s experience and expertise in the industry. Also,
franchisees typically receive ongoing support and guidance from the franchisor, which
can help them overcome any challenges they may face.
 Access to Financing - Another advantage of franchising is that franchisees may have
greater access to financing than they would if starting a business from scratch. This is
because many franchisors have relationships with lenders and financial institutions that
can provide financing to franchisees and because franchisors often offer support to help
franchisees manage their finances effectively.
 Built-in Customer Base - The franchisor's brand has been highlighted before but is
still a potent asset. Compared to a new start-up, franchising with an established brand
allows you to generate business rapidly whether you live in a town of 500 or 50,000
people. At the beginning of operations, this also reduces marketing efforts.
 Increased Purchasing Power - Especially for an entrepreneur, the cost of inventory
and other products that must be bought daily, monthly, or annually can add up quickly.
Typically, this leads to discounts on large-batch purchases that other companies cannot
acquire. However, a franchisee will profit from the main company's enormous
purchasing power.
 Proven Business Model - The advantage of starting with a tested and proven model
can help franchisees achieve success more quickly than starting a business from scratch.
With a proven business model, franchisees benefit from the franchisor’s experience and
 expertise in the industry. For example, franchisees can benefit from the franchisor’s
techniques of marketing and advertising which can help them attract customers more
quickly and easily.

Disadvantages:
 Initial Costs - For many potential franchisees, the requirement to pay an upfront
franchise fee can be a significant financial burden. This expensive investment reduces
the amount of capital available for other important expenses and imposes financial
obligations and expectations on the franchisee. In addition, the total initial costs
required, including franchise and training fees, can be substantial and may not provide
the return on investment that franchisees seek.
 Ongoing Royalties and Fees - Franchisees are typically required to pay ongoing
royalties and fees to the franchisor, usually a percentage of their sales or profits. The
persistent nature of these royalties and fees can be challenging for franchisees, as they
can limit their ability to invest in their business and grow their profits. For example, if
the franchisor raises the royalties or fees, franchisees may find it challenging to keep
up and may have to reduce their spending on equipment, supplies, and other business
investments.
 Limited Control - Another disadvantage of franchising is that franchisees have limited
control over the day-to-day operations of their business. This is because they must abide
by the franchisor’s established systems, processes, and procedures and comply with its
guidelines and standards. This can limit a franchisee’s ability to make decisions and
implement changes that they believe would benefit their business.
 Dependence on the Franchisor - Franchisees also depend on the franchisor for
ongoing support, training, and guidance, which can limit their ability to operate
independently. This can be a disadvantage if the franchisor is not responsive and
supportive or changes the franchise agreement terms without sufficient notice.
 Competition from Other Franchisees - Another disadvantage of franchising is that
franchisees may face competition from other franchisees operating under the same
brand and using the same products, services, and systems. This can make it difficult to
differentiate your business and stand out in the market, impacting your profitability and
success.
 Limited Creative Vision - Franchising is not the greatest option if you are genuinely
passionate about operating your own company and putting your ideas into practice.
 People interested in beginning their own business frequently invest in franchising since
it saves them the time and money it would take to create their brand. Franchising is
different than owning and operating a firm, though. The franchisor determines all other
choices about the brand and products while you are managing that particular location.
There will be established operational standards that you must follow; failure to do so
may lead to contract termination.
 Limited Growth - When you own your own company, you can expand wherever you
see fit, whether that means enlarging your existing location or moving to a new city.
While the franchisor will support expansion, there are geographical restrictions to
prevent one franchisee from going up against another in the same system.

C. MANAGEMENT CONTRACTS:
A management contract is an agreement between two companies whereby one company
provides managerial and technical assistance for which proper monetary compensation is
given, either as a flat lump sum fee or a percentage on the sales or a share in the profits.

Types of Management Contract

 Hotel Management: One company manages a hotel owned by another in a foreign location.
 Franchise Management: Oversees and ensures consistency among multiple franchise
locations in a specific area
 Asset Management: Manages foreign investments or properties for their owners.
 Joint Venture Management: Defines roles and responsibilities when two or more
companies team up in a foreign market.
 Infrastructure Management: Oversees critical facilities like airports or ports on behalf of
governments.
 Production Management: Manages manufacturing processes in foreign facilities.
 Turnkey Management: Delivers a ready-to-use project or facility, from design to
operation.
 Export Management: Handles product exports to foreign markets
 Consulting Management: Provides expertise in areas like market entry and business
improvement.
 Technology/IP Management: Oversees the use and management of technology or
intellectual property in foreign markets.
D. TURNKEY PROJECTS:
A turnkey project refers to a project in which clients pay contractors to design and
construct new facilities and train personnel. A turnkey project is way for a foreign company to
export its process and technology to other countries by building a plant in that country.
Industrial companies that specialize in complex production technologies normally use turnkey
projects as an entry strategy

Advantages of Turnkey Projects:

 Time and Cost Predictability: Turnkey projects typically come with fixed schedules
and budgets, providing clients with clear expectations for project completion and costs.
 Single Point of Contact: Clients have a single point of contact throughout the project,
simplifying communication and reducing the need to coordinate with multiple parties.
 Reduced Client Involvement: Clients can focus on their core business operations
while the contractor handles the project's technical and operational aspects.
 Risk Transfer: Contractors assume various risks related to design errors, construction
delays, and equipment malfunction, reducing the client's exposure to these risks.
 Efficiency: Contractors often have experience and expertise in executing similar
projects, leading to efficient project execution and optimized use of resources.

Disadvantages of a turnkey project:

 Limited Customization: Clients might have limited input into the project's design,
which could lead to a solution that doesn't perfectly align with their specific needs.
 Dependency on Contractor: The success of the project heavily relies on the
capabilities, performance, and reliability of the contractor. If the contractor fails to
deliver as promised, the client can face significant challenges.
 Less Flexibility: Changes or modifications to the project's scope, design, or features
during the execution phase can be challenging to implement and might lead to delays
or additional costs.
 Communication Challenges: Relying on a single point of contact can lead to
communication breakdowns if the contractor is not effectively managing client
expectations or relaying important information.
 Lack of In-House Expertise: Clients might miss out on opportunities to develop in-
house expertise by relying solely on external contractors
E. JOINT VENTURE:
A joint venture abbreviated as JV is a type of business arrangement in which more than
two or two parties agree to pool their resources for the purpose of fulfilling a specific task
which can be a new project or any business activity. All the participants in this venture are
responsible for the profits and losses. Joint ventures, which actually run on a partnership basis
can take the form of any legal structure.
American Motor Corporation entered into a joint venture with Beijing Automotive
Works called Beijing Jeep to enter Chinese market by producing jeeps and other vehicles. Joint
ventures involve shared ownership. Joint ventures are common in international business.
Various environmental factors like social, technological, economic and political encourage the
formations of joint ventures.

Types of joint venture

 Project-based joint venture - Under the Project-Based Joint Venture, the partners come
together to accomplish a fixed task. Since these collaborations are usually done for an
exclusive purpose, they stand cancelled once the project is accomplished. These joint
ventures exist for a particular task, project, or time span
 Vertical Joint Venture - In this type of joint ventures, the transaction is between the buyers
and the suppliers. Not an economically viable option, it is termed bilateral trading. In such
a joint ventures, different manufacturing stages of a single product are integrated to create
economies of scale that reduce the per-unit cost of the finished product. Usually, this
category of joint venture proves to be very successful. The relationship between the buyer
and supplier also remains good. The business prospers, and quality products reach
consumers at a reasonable price.
 Horizontal Joint Venture - In this venture, companies dealing in/ selling similar products
and direct competitors in the market join hands to create an output that can be reached to
customers of either party. In this JV, disputes often arise because both companies are dealing
in identical/ similar businesses. The parties also face opportunistic behavior from each other.
The gains from this alliance are shared according to the agreement by the parties.
 Functional-based Joint Venture - In the function-based joint venture, the parties form an
agreement to mutually benefit from the arrangement. This agreement is in order that they
gain from each other’s expertise in different areas. This enables them to work efficiently
and effectively. Before entering an agreement, the would-be partner companies ascertain
whether they will be able to function and perform efficiently together or not
Advantageous of joint venture
1. Joint investment – Depending on the terms of the partnership agreement, each party
in the venture contributes a certain amount of initial capital to the project, alleviating
some of the financial burden placed on each company.
2. Technical knowledge and expertise – Each business partner frequently brings
specialized expertise and knowledge, which helps the joint venture be strong enough to
move aggressively in a specific direction.
3. New market penetration – A joint venture may allow companies to enter a new market
quickly because the local player handles all relevant regulations and logistics.
4. New revenue sources – Small businesses frequently face limited resources and capital
for expansion projects. Small businesses can expand more quickly by forming a joint
venture with a larger company that has more financial resources.
5. Gains from intellectual property– It is often difficult for businesses to develop
advanced technology in-house. As a result, companies frequently form joint ventures
with technology-rich firms to gain access to such assets without having to spend the
time and money developing the assets in-house.
6. Synergy Benefits – Joint ventures can provide the same types of synergy benefits that
companies seek in mergers and acquisitions – either financial synergy, which lowers
the cost of capital, or operational synergy, which increases operational efficiency when
two companies work together.

Disadvantageous of joint venture

1. Culture Clash – When two companies collaborate, many joint ventures fail due to a clash
of cultures, processes, and approaches. Joint ventures can struggle to mesh due to disparities
in management skills and abilities, conflicting HR processes, and workplace cultures.
2. Decision-Making – Trust is essential in any joint venture, which can make decision-making
more difficult if both parties are required to sign off on decisions when there is a lack of
trust. Failure can be caused by poor decision-making and second-guessing the other party
3. Privacy and information sharing – A joint venture invariably involves some degree of
knowledge sharing, which can result in a loss of control over your intellectual property.
Non-disclosure agreements should be in place from the start to prevent trade secrets or other
sensitive corporate information from becoming public.
4. Inequitable commitment – Ideally, a joint venture should be a win-win situation. An
unbalanced joint venture can result from one of the partners' lack of commitment.
F. EQUITY ALLIANCES:
Equity strategic alliance is when a business shares and equity of the other business.
Two businesses purchase shares and equity of each other firm. For Example., The relationship
between Panasonic and Tesla is a very good example of an equity alliance. Panasonic invested
30 million dollars in battery technology for electric vehicles. It resulted in the form of
establishment of a lithium-ion battery plant in Nevada.

Types of Equity Alliances

 Joint Ventures: Two or more companies create a new entity in which they each hold a
significant equity stake. This entity operates as a separate business and shares profits and
losses.
 Cross-Ownership: Companies acquire equity stakes in each other, often without forming
a separate entity. This can result in mutual ownership and influence.
 Strategic Investments: A company makes a significant equity investment in another
company to strengthen a strategic partnership or gain access to certain assets or markets

Advantageous of Equity Alliances

 Risk Sharing: Companies in equity alliances share the financial risks and burdens of
investments, reducing the individual company's exposure.
 Access to Resources: Equity alliances provide access to the partner's resources, including
technology, distribution channels, expertise, and capital.
 Market Expansion: Entering new markets can be easier and more cost-effective when
partnering with a local company through an equity alliance.
 Cost Reduction: Collaborative efforts can lead to cost savings in areas like research and
development, production, and marketing.
 Synergies: Companies can leverage each other's strengths and capabilities to create
synergistic effects, leading to improved performance and competitiveness.
 Diversification: Equity alliances enable diversification of business interests and portfolios,
reducing dependency on a single market or product.

Disadvantageous of Equity Alliances

 Loss of Control: Partnering companies may have different objectives or management
styles, leading to potential conflicts and a loss of control over certain decisions.
 Cultural Differences: Differences in corporate culture, values, and practices can hinder
effective collaboration.
 Complex Governance: Managing equity alliances can be complex and require careful
governance to address issues like decision-making and profit-sharing.
 Financial Risks: If one partner faces financial difficulties or makes poor strategic decisions,
it can negatively impact the other partner.
 Exit Challenges: Exiting an equity alliance can be challenging, with potential disputes over
valuations and asset division.
 Competitive Concerns: Sharing proprietary information with a partner may risk
intellectual property leaks or even unintentional competition between partners

G. GREENFIELD INVESTMENT:
A Greenfield Investment (GI) is a form of foreign direct investment (FDI) in which a
business begins operations in a foreign market. It is a FDI when a parent business establishes
a subsidiary in another nation and starts up its activities there from scratch. When a business
wishes to exert the greatest amount of influence over its international operations, this type of
market entrance is adopted.

Advantageous of Greenfield Investment

 Customization and Control: Companies have complete control over the design,
layout, and operations of the new facility. This allows them to tailor the investment to
their specific needs, strategies, and operational practices.
 Technology Transfer: Greenfield investments often involve the transfer of advanced
technologies, skills, and know-how to the host country. This can contribute to local skill
development and enhance the technological capabilities of the workforce.
 Long-Term Growth and Commitment: By building from the ground up, companies
demonstrate a long-term commitment to the foreign market. This commitment can
strengthen relationships with local stakeholders, including governments, suppliers,
customers, and communities.
 Local Job Creation: Greenfield investments lead to the creation of new jobs in the host
country, contributing to economic growth, reducing unemployment, and improving
living standards in the region.
 Avoidance of Legacy Issues: Unlike acquisitions, greenfield investments allow
companies to avoid inheriting potential operational or cultural issues associated with
existing businesses. This provides a fresh start and the ability to implement best
practices from the outset.
Disadvantageous of Greenfield Investment
 Higher Costs: Greenfield investments typically involve significant upfront costs for
acquiring land, constructing facilities, and purchasing equipment. These expenses can strain
a company's financial resources, especially in the early stages of the investment.
 Time-Consuming: Building new facilities and establishing operations from scratch can be
time-consuming. This delay in generating revenue can impact the return on investment and
overall profitability.
 Market Risk: Greenfield investments involve entering unfamiliar markets, which come
with inherent risks such as uncertain demand, changing consumer preferences, and potential
competition.
 Regulatory Challenges: Navigating complex regulatory environments, including obtaining
permits and complying with local laws, can be time-consuming and costly.
 Political and Economic Risks: Political instability, changes in government policies, and
economic downturns in the host country can disrupt operations and impact profitability

H. MERGERS AND ACQUISITIONS:

Domestic companies enter international business through mergers and acquisitions.

MERGERS
A Merger refers to the combination of two or more companies into a single entity,
where the merging companies cease to exist as separate legal entities, and their assets,
liabilities, operations, and ownership interests are consolidated. A Merger is one way, where
your business combines with the other to create a new entity.

Example: Vijaya Bank and Dena Bank (Merged with) Bank of Baroda in 2019

ACQUISITIONS
An Acquisition, also known as a takeover, is a corporate action in which one company
(the acquiring company) purchases another company (the target company) to gain control over
its operations, assets, liabilities, and often its management.

Example: Zomato (Acquiring Company) - Uber Eats (Acquired Company) in 2020

Disney (Acquiring Company) - 21st Century Fox (Acquired Company) in 2019
IV. ORGANIZATIONAL STRUCTURE
This structure is built to handle all international operations by a division created for
control. It is often adopted by firms that are still in the development stages of international
business operations.

A. INTERNATIONAL DIVISION STRUCTURE

This structure is built to handle all international operations by a division created for
control. It is often adopted by firms that are still in the development stages of international
business operations.

B. GEOGRAPHIC AREA STRUCTURE:

Global area division structure is used for operations that are controlled on a geographic
rather than a product basis. Firms in mature businesses with select product lines use it.
C. GLOBAL PRODUCT DIVISION STRUCTURE:
Global product divisions include domestic divisions that are allowed to take global
responsibility for product groups. These divisions operate as profit centers.

D. GLOBAL MATRIX STRUCTURE:

This structure combines global product, area, and functional arrangements and it has a
cross-cutting committee structure.
V. CONTROLLING OF GLOBAL BUSINESS:
Controlling of global business involved planning, implementation, evaluation and
correction of performance to ensure the global organization meets its objective.

Methods of Controlling Global Business:

There are three main levels at which control can be implemented and managed in an
international business. These three key levels of control are as follows:
 Strategic
 Organizational
 Operational

A. Strategic Control:

Strategic control in intended both how well an international business formulates

strategy and how well it goes about implementing it. Thus strategic control focuses on how
well the firm defines and maintains its desired strategic alignment with its environment and
how effectively it is setting and achieving its strategic goals.

Strategic control also play a major role in the decisions firms make about foreign-
market entry and expansion and most critical aspect of strategic control is control of an
international firm’s financial resources.

B. Organizational Control:

Organizational control focuses on the design of the organization itself. There are many
different forms of organizational design an international firm can use. But selecting and
implementing a particular design does not necessarily end the organization design process.
International firm generally use one or more of three types of organizational control systems:

 Responsibility Centre Control: The most common type of organizational control

system is a decentralized one called responsibility centre control. Using this system, a
firm first identifies fundamentals responsibility centers within the organization.
Strategic business units are frequently defined as responsibility centers, as are
geographical regions or product groups.
 Generic Organizational Control: A firm may prefer to use generic organizational
across its entire organization; that is, the control systems used are the same for each
unit or operation, and the locus of authority generally resides at the firm’s headquarters.
  Planning Process Control: A third type of organizational control, which could be used
in combination with either responsibility center control or generic organizational
control, focuses on the strategic planning process itself rather than on outcomes.
Planning process control calls for a firm to concentrate its organizational control system
on the actual mechanics and processes its uses to develop strategic plans.

C. Operations Control:

The third level of control in an international firm is operations control. Operations

control focuses specifically on operating processes and systems within both the firm and its
subsidiaries and operating units. Thus a firm needs an operation control system within each
business unit and within each country or market in which it operates.

Establishing International Control Systems

Control systems in international business are established through four basic steps:

 Set Control standards for performance

 Measure actual performance
 Compare performance against standards
 Respond to deviations

VI. PERFORMANCE EVALUATION SYSTEM

A performance evaluation system in international business is crucial for assessing and

managing the performance of employees, departments, and the organization as a whole in the`
context of global operations. It helps ensure that the company's objectives are met, resources
are utilized efficiently, and that the organization is adapting to the unique challenges of
international markets.

Techniques of Performance Evaluation

 Key Performance Indicators (KPIs): Define and track specific KPIs that align with
the goals of the global business. These may include financial metrics (e.g., revenue,
profitability, ROI), market share, customer satisfaction, employee turnover, and
compliance with international regulations.
 Balanced Scorecard: Use the balanced scorecard framework to assess performance
from multiple perspectives, including financial, customer, internal processes, and
 learning and growth. This approach provides a more holistic view of global business
performance.
 Benchmarking: Compare the performance of your global business units with industry
peers or competitors. Benchmarking helps identify areas where your business is
excelling and where improvements are needed.
 Market Expansion Metrics: If your goal is to expand into new international markets,
evaluate performance based on market entry success, market penetration, and market
share growth.
 Cross-Cultural Competency Assessment: Assess the cultural competence of
employees working in global markets. This can include their ability to adapt to different
cultures, build relationships with international partners, and navigate cultural nuances
effectively.
 Customer Feedback: Use customer feedback surveys and Net Promoter Scores (NPS)
to gauge customer satisfaction and loyalty in international markets. Analyze feedback
to identify areas for improvement.
 Employee Engagement Surveys: Measure employee engagement and satisfaction in
global teams. High levels of employee engagement are often linked to better
performance.
 Cost-Benefit Analysis: Assess the cost-effectiveness of global business activities.
Compare costs with revenue generated and analyze whether investments in
international expansion are providing a positive return.
 Supplier and Partner Evaluation: Evaluate the performance of international
suppliers, distributors, and business partners. Consider factors like delivery reliability,
quality control, and the strength of the partner relationship.
 Strategic Alignment Assessment: Ensure that global business activities align with the
overall corporate strategy. Assess whether global expansion efforts are contributing to
the achievement of the organization's long-term goals.
 Regular Performance Reviews: Schedule regular performance reviews with global
teams and employees. These reviews can be conducted annually or more frequently,
depending on the nature of the business and market dynamics.
 Ethical Audits: Conduct ethical audits to ensure that global operations adhere to the
organization's ethical standards and corporate social responsibility commitments.