netrashetty
Netra Shetty
Applied Materials, Inc. (NASDAQ: AMAT, SEHK: 4336) is a capital equipment producer serving the semiconductor, TFT LCD display, Glass, WEB and solar (crystalline and thin film) manufacturing industries.
The company is headquartered in Santa Clara, California in the Silicon Valley. Founded in 1967 by Michael A. McNeilly and others, Applied Materials went public in 1972.
In 1993, the Applied Materials' Precision 5000 was inducted into the Smithsonian Institution's permanent collection of Information Age technology.[3]
Applied Materials creates and commercializes nanomanufacturing technology used in the production of semiconductor (integrated circuit) chips for electronic gear, flat panel displays for computers and television, glass coatings for homes and buildings, web (flexible substrate) coatings for industry and photovoltaic solar cells and modules using both thin film and crystalline (aka wafer or bulk) photovoltaic technology.
Applied Materials is also participating in the lighting industry through the European OPAL 2008 (Organic Phosphorescent lights for Applications in the Lighting market 2008) Program with the aim to develop a production technology for organic light-emitting diodes.
Applied is organized into four major business sectors: Silicon Systems Group, Display, Energy and Environmental Solutions (EES) and Service.
In 2009, Applied Materials opened its Solar Technology Center—the world’s largest commercial solar energy research and development facility in Xi’an, China.
In a multinational market, the level of assimilation, and also the simplicity and rate of stream of supplies, are small, while public and local governments are influential and institutional investors are frail. Although for many products the world economy represents one market, saturation, together with a large number of competitors, cultural differences, and local government barriers and business practices, make competition around the globe rather complex.
The transformation of the world economy from a multinational to a global market has unleashed unprecedented competitive forces across national borders and local markets, dictating a new competitive paradigm and organizational structure for international businesses (Mourdoukoutas 1999).
Businesses are continuously developing. Multinational companies recognized the similarities between international markets and most of them tried it to integrate into the overall global strategy. Such changes actually affect the overall performance of a certain business. With this regard, this paper will be discussing the impact of global integration to a mobile phone service company. Global integration simply corresponds to the identification of similarities between international markets and integrates it to overall global strategy. Meaning to say, different variables in global perspective should carefully assessed by businesses who wanted to adopt global integration.
The primary drive of companies and firms to integrate globally is their intention or desire to expand and widen their target markets. The expansion and widening of the target markets of international firms indicates that the firm has enough resources to sustain and maintain its operations and production. Expansion of the company also indicates that the company has acquired enough knowledge in maintaining the operation of the company, thus, more learned and experienced in its own industry. This is a major factor to recognize, for with the desire to expand, the company aims for more profit and sales, which would enable to company to become more established in its industry. Second major factor to recognize and emphasize is the role of diversification, which is related to the presence of different cultures and races in the company. Several positive effects are attributed to diversification, and includes efficient resource allocation through internal capital markets, the increase in the ability of firms to internalize market failures, and increase in productivity (as cited in Li & Jin, 2006). In addition, diversification can also increase the generation of ideas, for more individuals become involved in the processes of the firm. Employees are also exposed to more cultures, practices and knowledge, thus, developing its organizational culture. Third major influence is the open opportunities for firms to engage in new business ventures, which would provide them with chances for more profit and prestige. New business ventures involve the production of new products or the innovation of a specific product or service. Fourth major influence or drive is the fact that firms may achieve fame or prestige if it globalize. The establishment of name, product/service, and reputation in specific countries and continents gives the business organization a chance to be regarded as one of the most successful business organizations in the whole world, thus, becoming more established in its own industry. Last major influence is the possibility of attracting new and more talents and skills in the company, which would give the organization the edge of performing well over other companies.
One of the perceived impacts or effects of global integration are the establishment of international alliances or coalitions, which link firms of the same industry based in different countries (Agnihotri & Santhanam, 2003). With international alliances, international policies and agreements will be established and reinforced, thus, effecting an increase in the establishment of harmonious relationships among companies. In addition, international alliances strengthens the industry where specific companies belong to, thus, reinforcing their bond that would enable them to come up with strategies for further improvement and development. Second impact of globalization is the development and improvement of the whole organization in order to address challenges or problems, for in line with the participation in globalization is the increase in the number of problems to be encountered (Agnihotri and Santhanam, 2003). With this, it can be understood that along with global integration is the need to develop, improve, innovate, and adopt new strategies and methods in relation to systems modification to enable adjustment to the changes and challenges being encountered by the organization. Modification and restructuring in the organization is needed because along with the company’s intention to expand and widen its target market is the need for additional workforce and management processes and styles that would enable the company accommodate the increase in changes. Restructuring and remodeling of the company, thus, serves to be a good way of adjustment.
Third impact of global integration is the establishment of government dealings. In the globalized era, the choice of foreign marketplace to go in and the style of entrance will largely depend on the dialogue with the foreign governments concerned (Agnihotri & Santhanam, 2003). This is because the international business must be able to make negotiations and agreements with the government concerned, in order to comply with necessary requirements and encourage harmonious relationships. In addition, the ‘muscle power’ of a multinational firm can be very important in choosing the shift of power equilibrium, such that it must control its association with the foreign government to its improvement (Agnihotri & Santhanam, 2003). Establishing a good and manageable relationship with the government concerned ensures a lasting relationship with the firm, thus, extending its operations in the foreign country. Last major impact of globalization is the increase in competition among other firms in the same industry. A firm may be in a improved position to contend with its global competitor, as it can enhance its possessions globally (Agnihotri & Santhanam, 2003). Being able to participate in its foreign target market makes the global firm more advanced and more developed compared to its rivals in the same industry, for it is able to meet the standards and demands of its foreign customers. From this perception, major suppliers and stakeholders would prefer the global firm to other firms.
For this research paper, the focus on the integrated global industry environment from the subsidiary perspective of Mobile Phone Service Company is presented as research context for two reasons. First, the importance and relevance of this environment as the operational context of multinationals have greatly increased in recent years. Many global industries have recently become integrated in nature as the environmental pressures of both geographic dispersion and global integration mentioned above have intensified over the years (Makhija et al., 1997). Second, the incorporated global industry environment
The company is headquartered in Santa Clara, California in the Silicon Valley. Founded in 1967 by Michael A. McNeilly and others, Applied Materials went public in 1972.
In 1993, the Applied Materials' Precision 5000 was inducted into the Smithsonian Institution's permanent collection of Information Age technology.[3]
Applied Materials creates and commercializes nanomanufacturing technology used in the production of semiconductor (integrated circuit) chips for electronic gear, flat panel displays for computers and television, glass coatings for homes and buildings, web (flexible substrate) coatings for industry and photovoltaic solar cells and modules using both thin film and crystalline (aka wafer or bulk) photovoltaic technology.
Applied Materials is also participating in the lighting industry through the European OPAL 2008 (Organic Phosphorescent lights for Applications in the Lighting market 2008) Program with the aim to develop a production technology for organic light-emitting diodes.
Applied is organized into four major business sectors: Silicon Systems Group, Display, Energy and Environmental Solutions (EES) and Service.
In 2009, Applied Materials opened its Solar Technology Center—the world’s largest commercial solar energy research and development facility in Xi’an, China.
In a multinational market, the level of assimilation, and also the simplicity and rate of stream of supplies, are small, while public and local governments are influential and institutional investors are frail. Although for many products the world economy represents one market, saturation, together with a large number of competitors, cultural differences, and local government barriers and business practices, make competition around the globe rather complex.
The transformation of the world economy from a multinational to a global market has unleashed unprecedented competitive forces across national borders and local markets, dictating a new competitive paradigm and organizational structure for international businesses (Mourdoukoutas 1999).
Businesses are continuously developing. Multinational companies recognized the similarities between international markets and most of them tried it to integrate into the overall global strategy. Such changes actually affect the overall performance of a certain business. With this regard, this paper will be discussing the impact of global integration to a mobile phone service company. Global integration simply corresponds to the identification of similarities between international markets and integrates it to overall global strategy. Meaning to say, different variables in global perspective should carefully assessed by businesses who wanted to adopt global integration.
The primary drive of companies and firms to integrate globally is their intention or desire to expand and widen their target markets. The expansion and widening of the target markets of international firms indicates that the firm has enough resources to sustain and maintain its operations and production. Expansion of the company also indicates that the company has acquired enough knowledge in maintaining the operation of the company, thus, more learned and experienced in its own industry. This is a major factor to recognize, for with the desire to expand, the company aims for more profit and sales, which would enable to company to become more established in its industry. Second major factor to recognize and emphasize is the role of diversification, which is related to the presence of different cultures and races in the company. Several positive effects are attributed to diversification, and includes efficient resource allocation through internal capital markets, the increase in the ability of firms to internalize market failures, and increase in productivity (as cited in Li & Jin, 2006). In addition, diversification can also increase the generation of ideas, for more individuals become involved in the processes of the firm. Employees are also exposed to more cultures, practices and knowledge, thus, developing its organizational culture. Third major influence is the open opportunities for firms to engage in new business ventures, which would provide them with chances for more profit and prestige. New business ventures involve the production of new products or the innovation of a specific product or service. Fourth major influence or drive is the fact that firms may achieve fame or prestige if it globalize. The establishment of name, product/service, and reputation in specific countries and continents gives the business organization a chance to be regarded as one of the most successful business organizations in the whole world, thus, becoming more established in its own industry. Last major influence is the possibility of attracting new and more talents and skills in the company, which would give the organization the edge of performing well over other companies.
One of the perceived impacts or effects of global integration are the establishment of international alliances or coalitions, which link firms of the same industry based in different countries (Agnihotri & Santhanam, 2003). With international alliances, international policies and agreements will be established and reinforced, thus, effecting an increase in the establishment of harmonious relationships among companies. In addition, international alliances strengthens the industry where specific companies belong to, thus, reinforcing their bond that would enable them to come up with strategies for further improvement and development. Second impact of globalization is the development and improvement of the whole organization in order to address challenges or problems, for in line with the participation in globalization is the increase in the number of problems to be encountered (Agnihotri and Santhanam, 2003). With this, it can be understood that along with global integration is the need to develop, improve, innovate, and adopt new strategies and methods in relation to systems modification to enable adjustment to the changes and challenges being encountered by the organization. Modification and restructuring in the organization is needed because along with the company’s intention to expand and widen its target market is the need for additional workforce and management processes and styles that would enable the company accommodate the increase in changes. Restructuring and remodeling of the company, thus, serves to be a good way of adjustment.
Third impact of global integration is the establishment of government dealings. In the globalized era, the choice of foreign marketplace to go in and the style of entrance will largely depend on the dialogue with the foreign governments concerned (Agnihotri & Santhanam, 2003). This is because the international business must be able to make negotiations and agreements with the government concerned, in order to comply with necessary requirements and encourage harmonious relationships. In addition, the ‘muscle power’ of a multinational firm can be very important in choosing the shift of power equilibrium, such that it must control its association with the foreign government to its improvement (Agnihotri & Santhanam, 2003). Establishing a good and manageable relationship with the government concerned ensures a lasting relationship with the firm, thus, extending its operations in the foreign country. Last major impact of globalization is the increase in competition among other firms in the same industry. A firm may be in a improved position to contend with its global competitor, as it can enhance its possessions globally (Agnihotri & Santhanam, 2003). Being able to participate in its foreign target market makes the global firm more advanced and more developed compared to its rivals in the same industry, for it is able to meet the standards and demands of its foreign customers. From this perception, major suppliers and stakeholders would prefer the global firm to other firms.
For this research paper, the focus on the integrated global industry environment from the subsidiary perspective of Mobile Phone Service Company is presented as research context for two reasons. First, the importance and relevance of this environment as the operational context of multinationals have greatly increased in recent years. Many global industries have recently become integrated in nature as the environmental pressures of both geographic dispersion and global integration mentioned above have intensified over the years (Makhija et al., 1997). Second, the incorporated global industry environment
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