Answer

Identification and Application of Key Learning Points and Theories to Onward Technologies Limited

Chapter One: Key Learning Outcome Three

This section will focus on accomplishing learning outcome three from chapter one, which focuses on the articulation of the fundamental question that the global business study seeks to address and two perspectives that can be employed in answering it.

OTL’s Practices and Operations with Respect to that Particular Learning Point

Institutional framework refers to the informal and informal institutions that regulate firm and individual behavior. Institutional frameworks holds that govern the behavior of firms across the world play a vital role in determining the performance of firms. In India’s Engineering Services Outsourcing (ESO) sector, the Engineering Export Promotion Council is the apex body in charge of promoting engineering services, products, and goods. Resource-based view focuses on the internal capabilities and resources of firm. OTL boasts of resources such as computer aided manufacturing and computer aided engineering software and young and skilled personnel. The firm also boasts of a competent professional staffing team with considerable functional and technical expertise to permanent staffing, contract staffing, as well as contract to hire services targeted at fitting skilled professionals in roles or duties where they could contribute to success.

Recommendations in Relation the Learning Point Three

The firm’s management should invest in training and development to continue gaining more competitive advantage in terms of skilled personnel. The company’s management should also invest in its professional staffing team so that more young talents can be recruited at a constant basis. Third, the firm should invest in key resources such as software to continue providing quality services to its clients.

Chapter Two: Key Learning Points Two and Six

This section focuses on learning points two and six from chapter two. Key learning point two focuses on the explanation of how institutions minimize uncertainty. Key learning point six focuses on the articulation of the significance of intellectual and property rights.

OTL’s Practices and Operations with Respect to the Key Learning Points

In relation to key learning point two, it can be noted that institutions influence the process of decision-making of firms and individuals by constraining the range of authorized or acceptable actions. For instance, in India, changes in visa and immigration policies negatively affected the country’s ESO sector. In relation to key learning point six, property rights entail legal rights to employ an economic resource or property and derive benefits and income from it. Intellectual property right (IPR) involves the right associated with the intellectual property’s ownership. Intellectual property refers to intangible property or asset that arises from intellectual activity. In 2003, OTL acquired the intellectual property rights as well as marketing and support rights for Kale Consultants Limited.

Recommendations in Relation the Key Learning Points

In relation to learning point two, OTL should focus on addressing future uncertainty associated with tough immigration and visa policies by recruiting employees from the Indian market. When it comes to key learning point six, OTL should focus reducing uncertainty associated with ownership of property and resource capabilities by focusing on the acquisition of property and intellectual property rights for all its assets, resource capabilities, and acquisitions.

                                  Chapter Four: Key Learning Points One and Three

Key learning point one focuses on the definition of resources and capabilities for firms involved in international trade. Key learning point three focuses on the articulation of the difference between outsourcing an activity and keeping it in-house.

OTL’s Practices and Operations with Respect to the Key Learning Points

Resource or capabilities refer to intangible and tangible assets employed by a firm in choosing and implementing its strategies. Tangible capabilities and resources involve observable and easily quantifiable assets. Intangible capabilities and resources refer to asserts that are difficult to quantify and hard to observe. OTL’s tangible resources and capabilities include the firm’s young and talented employees, competent professional staffing team, and robust software. The company’s intangible resources include its strategic location close to an international airport, ability to solve complex engineering issues, and specialization in IT consulting services and mechanical engineering design, as well as its property and intellectual property rights.

In relation to key learning point three, outsourcing involves turning over a process or activity to external supplier who executes it on the focal firm’s behalf, whereas in-house operations entail the execution of an activity by the focal company. OTL is involved in an outsourcing arrangement, particularly offshoring, with various companies including firms belonging to the fortune 500 category. The US automobile firm also intends to engage in an outsourcing arrange with OTL. 

Recommendations in Relation the Key Learning Points

In relation to key learning point one, OTL’s management should continue investing in its existing tangible and intangible resources and capabilities with the aim of strengthening them. When it comes to key learning three, OTL should engage in more offshoring arrangements and pursue other outsourcing options such as captive sourcing and onshoring so that it can increase its client base and generate extra profits and growth.

Chapter Five: Key Learning Points One and Two

Key learning point one in chapter five focuses on the employment of the institution-based and resource-based views in explaining why nations trade. Key learning two involves the identification and definition of the modern and classical theories of international trade.

OTL’s Practices and Operations with Respect to the Key Learning Points

The resource-based view holds that firms within one nation produce exports that are hard to imitate, valuable, and unique. OTL produces engineering and information technology services to many companies in Europe and North America including some fortune 500 companies. In relation to institution-based view, various rules governing trade are developed to establish how the sharing or not sharing of gains occurs. In 2016, the implementation of protectionism by Indian government negatively impacted the ESO sector. In relation to key learning point two, mercantilism, which is classical theory associated with international trade, argues that the world’s wealth is fixed. This theory is considered the intellectual ancestor of protectionism, which was embraced by the Indian government to safeguard domestic firms such as OTL against competitions from foreign multinationals.

Recommendations in Relation the Key Learning Points

In relation to key learning point one, OTL should intensify its investment in its engineering and IT consultation services to make them harder to imitate, more unique, and more valuable. When it comes to key learning point two, the company should expand its operations in India to continue benefiting from protectionism

Chapter Seven: Key Learning Points One

Key learning point one in chapter seven focuses on the identification of the strategic responses companies can embrace to address foreign exchange movements

OTL’s Practices and Operations with Respect to the Key Learning Points

Firms in international trade often cope with risks associated with currency by focusing on currency hedging and invoicing in their own currencies. Companies can also engage in strategic hedging by spreading out activities or operations across various zones of currency with the aim of offsetting losses within one region via gains within other regions. Currently, OTL is facing the problem of addressing fluctuations in the rates of foreign exchange.

Recommendations in Relation the Key Learning Points

OTL should address the problem of fluctuations in the currency exchange rates by embracing measures such as strategic hedging and currency hedging, as well as invoicing in India’s currency.

Chapter Eleven: Key Learning Six and Seven

Key learning point six focuses on the explanation why companies make acquisitions and key learning point seven is associated with the description of performance issues companies tend to experience with acquisitions.

OTL’s Practices and Operations with Respect to the Key Learning Points

In relation to key learning point six, firms make acquisitions for reasons such as expanding customer base, growth, attaining synergies, eliminating competition, and increasing supply-chain pricing power. In 2003, OTL acquired Kale Consultants Limited as means of expanding its base of customers. In relation to key learning point seven, acquisitions may lead to problems such as overpayment of the integration shortfalls and mismatch between core offerings. By acquiring Kale Consultants Limited OTL experienced problems such as movement away from its core offerings of engineering services, different customer tastes, and software integration problems or mismatch.

Recommendations

OTL should focus on acquiring firms in the same or slightly different line of business to eliminate issues of integration and differences in customer needs.

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