netrashetty
Netra Shetty
Armstrong World Industries, Inc. (NYSE: AWI) is an international designer and manufacturer of floors, ceilings and cabinets. Based in Lancaster, Pennsylvania, Armstrong operates 40 plants in 10 countries and has approximately 12,300 employees worldwide. In 2006, Armstrong’s net sales were $3.42 billion, with operating income of $210.8 million.
Armstrong World Industries, Inc. emerged from Chapter 11 reorganization on October 2, 2006. Its stock began trading on the New York Stock Exchange October 18, 2006 under the ticker symbol AWI. The Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust, holds approximately 66% of AWI’s outstanding common shares. Armstrong's “Fourth Amended Plan of Reorganization, as Modified,” dated February 21, 2006, and confirmed by U.S. District Court Judge Eduardo Robreno in August 2006, become effective Oct. 2, 2006. The Plan includes a comprehensive settlement resolving AWI’s asbestos liability by establishing and funding a trust to compensate all current and future asbestos personal injury claimants. The company had filed for reorganization December 6, 2000, with the federal bankruptcy court in Delaware for reorganization under Chapter 11 because pending asbestos injury claims appeared to exceed the value of the company, and were growing.
“In addition to resolving AWI’s asbestos liability, we used the time in Chapter 11 to restructure our flooring business to make it more competitive,” Mr. Lockhart said. “We made substantial improvements in our cost structure by closing several plants and streamlining our workforce in the U.S. We have also expanded capacity to manufacture wood flooring, broadened our product lines and improved product quality and customer service.”
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 gives a suitable research framework for this study, which examines the feat repercussions of global integration of business tasks that are disseminated geographically. Thus, this paper will respond to the next queries:
With reference to business management, do business performance appraisal and management development of Mobile Phone Service Company significantly affect its progress?
What are the variables that significantly affect the perception of the respondents regarding global integration of Mobile Phone Service Company?
Does global integration significantly affect the progress of Mobile Phone Service Company?
What are the recommended solutions to the problems of Mobile Phone Service Company in accordance to global integration?
Hypothesis
With respect to the research questions, this project works out on the following hypotheses:
Ø Global integration has no significant effect to the marketing process of Mobile Phone Service Company.
Marketing involves activities related to notifying current and potential customers of the product and services and inducing them to purchase it. Such activities include promotion, advertising, branding, market research, pricing, and channel selection.
With the pressure of integration, Jain (1989) justified that the activities of marketing need to be connected across borders through information flows and communications to enhance global marketing innovation and learning. Basically, information systems can satisfy this need (Carpano & Rahman, 1998). Information technology can efficiently transport information on market trends, pricing, competitor behaviour, sales trends, and changes of regulations and local laws, and can be a significant means of impersonal communications. Nevertheless, without mutual understanding and trust, managers are less willing to accept and/or less able to attach meaning to the information transferred from other units. Hence, as in R&D and manufacturing, shared strategic objectives, shared values and norms, and trust-building among members through socialization are desirable for effective integration of marketing worldwide.
Armstrong World Industries, Inc. emerged from Chapter 11 reorganization on October 2, 2006. Its stock began trading on the New York Stock Exchange October 18, 2006 under the ticker symbol AWI. The Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust, holds approximately 66% of AWI’s outstanding common shares. Armstrong's “Fourth Amended Plan of Reorganization, as Modified,” dated February 21, 2006, and confirmed by U.S. District Court Judge Eduardo Robreno in August 2006, become effective Oct. 2, 2006. The Plan includes a comprehensive settlement resolving AWI’s asbestos liability by establishing and funding a trust to compensate all current and future asbestos personal injury claimants. The company had filed for reorganization December 6, 2000, with the federal bankruptcy court in Delaware for reorganization under Chapter 11 because pending asbestos injury claims appeared to exceed the value of the company, and were growing.
“In addition to resolving AWI’s asbestos liability, we used the time in Chapter 11 to restructure our flooring business to make it more competitive,” Mr. Lockhart said. “We made substantial improvements in our cost structure by closing several plants and streamlining our workforce in the U.S. We have also expanded capacity to manufacture wood flooring, broadened our product lines and improved product quality and customer service.”
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 gives a suitable research framework for this study, which examines the feat repercussions of global integration of business tasks that are disseminated geographically. Thus, this paper will respond to the next queries:
With reference to business management, do business performance appraisal and management development of Mobile Phone Service Company significantly affect its progress?
What are the variables that significantly affect the perception of the respondents regarding global integration of Mobile Phone Service Company?
Does global integration significantly affect the progress of Mobile Phone Service Company?
What are the recommended solutions to the problems of Mobile Phone Service Company in accordance to global integration?
Hypothesis
With respect to the research questions, this project works out on the following hypotheses:
Ø Global integration has no significant effect to the marketing process of Mobile Phone Service Company.
Marketing involves activities related to notifying current and potential customers of the product and services and inducing them to purchase it. Such activities include promotion, advertising, branding, market research, pricing, and channel selection.
With the pressure of integration, Jain (1989) justified that the activities of marketing need to be connected across borders through information flows and communications to enhance global marketing innovation and learning. Basically, information systems can satisfy this need (Carpano & Rahman, 1998). Information technology can efficiently transport information on market trends, pricing, competitor behaviour, sales trends, and changes of regulations and local laws, and can be a significant means of impersonal communications. Nevertheless, without mutual understanding and trust, managers are less willing to accept and/or less able to attach meaning to the information transferred from other units. Hence, as in R&D and manufacturing, shared strategic objectives, shared values and norms, and trust-building among members through socialization are desirable for effective integration of marketing worldwide.