Phase 4 Assignment: Proposal to the U.S. Commercial Services

Proposal to the U.S. Commercial Services
Improving Colombia’s Export
Khalid Aldabal - Colombia
College of Business
Executive Summary
The Republic of Colombia is considered the fourth largest economy within the Latin American region after Brazil, Argentina, and Mexico. I discovered that Columbia also has the largest population that approximates 48 million inhabitants, thus making this state prevalent to economic growth and sustainability. On the other hand, I discovered several environmental issues that are affecting Columbia and that need address to stabilize this economy. Columbia is considered as the only nation in South America that has two coasts (The Caribbean and Pacific).
My thoughts and opinion clearly recommends the need for a steady growth of the economy and security improvements, an aspect that would enable the economy to become a free market economy with major investments and commercial services that are directly tied with the United States of America, Asia, Europe, and the rest of the nations in Latin America.
My opinion as detailed in this proposal is aimed at establishing significant impacts in my country would be done through the adoption of latest technologies within the banking sector, and including the intensification of e-banking services among the banks to increase service quality and efficiency. This would be beneficial for Colombia in ensuring that efficient approaches harness technology in conducting their services and business functions, hence reaching a global market in addition to the locals.
A significant impact in this country would be in initiating collaborative efforts among various companies with the sole aim of addressing the nation’s environmental issues that includes global warming in Colombia. Finally, an impact in my country would be collaboration among various companies in addressing global warming in Colombia. For example, various companies come together under the umbrella Low Emission Development Strategies (LEDS) to devise and agree on production methods that reduce the emission of greenhouse gasses.
Table of Contents
Executive Summary1
Introduction3
Summary of the Three Phases3
Comprehensive Proposal5
Concluding Recommendations7
References9
Appendices10
A: Phase 1: Laying the Foundations10
B: Phase 2: Acquiring the Tools14
C: Phase 3: Managing Around the World17
Introduction
Ledgerwood (1998) establishes that since the United States implemented the Free Trade Agreement (FTA) with Columbia in May 15, 2012, most of the exports to Columbia from the United States have increased by approximately 15% in as much as the rate of slave slowed in 2015, due to the low prices in oil products that devaluated the Colombian peso.
Bancolombia came up with an inclusive concept that brings together all the aspects that make up human social dimension.
Under this concept, the Bank operates in various contexts and cultures through observing the cultures and behaviours.
Another significant impact in my country would be declining uncertainty avoidance by a significant population in Latin America, which has made people take loans from the banks more frequently. This has increased the customer base of the Bank.
With the FTA, Bancolombia has a significance in expandingits service market access with strong protection of the U.S investorsand increased transparency with their global partners.
For Colombia`s U.S exporters, companies like Bancolombia is relevant in participating in Columbia ‘a extensive planned infrastructure through servicing in project financing partnerships to significantly improve Columbia.
* Per Booth (2015), the significant impact on my country would be the emergence of diverse labour force that has a wide range of socio-cultural backgrounds.
* The Bank has benefited from this aspect by meeting the requirements of different cultures through the services of employees from those varying cultures.
Summary of the Three Phases
In 2008/09 Colombia’s primary exports were petroleum, coffee, coal, nickel, emeralds, bananas and apparel, and their primary imports were industrial/transportation equipment, consumer goods, chemicals, fuel and electricity.
In 2008/09 Colombia’s primary exports were to the United States, Venezuela and Ecuador, and top imports are from the United States, China, Mexico and Brazil.
* Currently top exports are to the United States, China, Panama, Spain and India, and top imports are from the United States, China, Mexico, Germany and Brazil.
* They has been facing challenges such as poverty, and diversifying its export base to reduce the dependence onoil.
* They prioritize materializing trade opportunities from free trade agreements, and are developing strong services in the export sector. They face development challenges such as reducing poverty and inequality, increasing productivity and competitiveness.
An example of change that would be required is ensuring that policies control both imports and exports.
* For example, the highly-priced U.S. sugar which is caused by restrictive import measures.
¯ The United States has maintained tight quotas on sugar imports so that the domestic sugar is priced three times the world price sugars.
¯ Sugar refiners have been reported to be the influencers of this policy alongside other politicians.
It was clearly established that in ensuring the stability of the Colombian market, change would be necessary in government regulations pertaining to the formation, registration and licensing of firms in Colombia.
Another example of change would be the technical innovation strategies that the businesses need to employ to produce superior products.
* For example, firms are becoming innovative and proactive and developing risk-seeking behaviours.
A final example of change would be in closely working with the Colombian government to get their support.
* Firms need to cooperate with the Colombian government to negotiate favourable policies regarding entrepreneurship. taxation.
Comprehensive Proposal
Change in Bancolombiawould be the shift of focusing on current customer needs to creating a long-lasting customer relationship.
Firms no longer concentrate on profit, butrather give discounts and incentives to customers to create a strong bond with them.
Empowering relations between the two nations will be positive for each side.
For Colombia, diversity in the export commodities is an opportunity that will attract global partnership and investors in participating in the global market import and export trade.
* It will be essential to produce quality markets which are on demand on the market while at the same time raising more revenue.
* According to Bond & Byme (2014), Americans will also raise income and at the same time Americans will receive quality goods from the country.
* It would be advisable to change from investing in oil explorations and start investing in agricultural products in the country.
* One reason for this is that the oil prices are reducing each day hence endangering the future of the industry.
* SinceColumbia has a rich natural resources, diverse climate and favourable topography, this will suits agriculture production.
Other market needs in infrastructure, tourism and travel, and medicine are invested in tapping revenue through banking partnerships with Bancolombia that will enable such projects to flourish through investments and financial loans.
Columbia is also a country that exercises democracy, and this goes hand in hand with the vision of America.
Columbia’s labour force is harnessed in creating a healthy Columbian economy.
* With the existence of labour unions for their workforce and laws that guide on workers safety, health and economic stability, the United States can tap on this opportunity to create businesses and projects in Columbia.
* U.S. investors can collaborate with individual entrepreneurs and firms like Bancolombia.
* In turn, the labour force will have a collaborative union with Bancolombiathat supports them in loans, investment and entrepreneurship opportunities for the local people and global investors.
* This will create an impeccable global partnership and increase revenue in the country.
As earlier stated most companies in Columbia are private hence its economy is private sector led.
This is an opportunity for other companies to grab and start investing.
Instead of investing in oil exploration investors should consider the agricultural sector
This would be a concrete reason for global U.S partnership Columbia in creating a stable economy.
This is because Columbia has a strong tradition of practicing agriculture, and also people have to eat, so food will always be on demand.
Despite these potential advantages, there is also a concern on the issue of illegal drugs.
Many researchers argue that it is a highway for drugs into the United States.
For CSR, companies will be required to offer jobs to locals to prevent them from the drug trade (Colombia n.d.a).
Local law enforcement should also receive funding either from companies or the U.S government to help fight the drug epidemic.
A global partnership is effective in combating drug traffickingand ensuring for the safety of both the Columbians and the United States residents.
Concluding Recommendation
Significant impacts in my country would be the adoption of latest technologies in banking, and intensification of e-banking services among the banks to increase service quality and efficiency.
This would be beneficial for Bancolombia in harnessing technology to conduct its services and reaching a global market in addition to the locals.
Another impact on my country would be intensified marketing strategies employed by businesses to communicate their services to the customers.
* For Bancolombia, it would be ideal for them to have an effective marketing strategy to tap the market in Columbiathroughthe various diverse industries that thrivesColumbia’s economy.
* In so doing, global partners would also be able to work with Bancolombia in bringing investment opportunitiesand facilitating income and export services in the country.
According to Fay, et al. (2015), another impact would be the customization of services by the banks, where each customer’s needis addressed at a personal level.
* Customer satisfaction would bring in a great company performance and it will attract a huge market of clients both locally and globally, that would be interested in partnering with the bank, hence improving the economy of Columbia.
Finally, an impact in my country would be collaboration among various companies in addressing global warming in Colombia.
This would add up in managing social corporate responsibilities globally. When countries have a global agenda and form a global partnership in environmental management, there will be changes seen as each country will thrive to achieve the various principles that are set globally.
For example, various companies come together under the umbrella of Low Emission Development Strategies (LEDS), to devise and agree on production methods that reduce the emission of greenhouse gasses.
References
APPENDICES
Appendix A: Phase 1: Laying the Foundations
Chapter 1: Globalizing Business
The Most Important Learning Objective Outlined in This Chapter
The most important learning objective outlined in this chapter is LO 3, articulating the fundamental question that the study of global business seeks to answer and two perspectives from which to answer this question.
I chose this LO because this is a main theme throughout, and to which other topics are linked in the chapters.
Further, this LO3 encompasses globalization by highlighting two perspectives; resource-based and institutional based views.
* Peng (2013), emphasized the importance of learning globalization in a business management course as it will address various issues that determine the success of a business unit in any part of the world.
Facets That Have Changed from the Time of Peng’s writing To Present
I believe the most crucial facets that have changed are the institutional framework of both the formal (formal rules of the game) and informal (informal rules of the game) institutions.
* According to Barth, Lin, Ma, Seade and Song (2013), an example of change would be moving away from regulation of business into supervision.
¯ Various countries have been engaging in policy discussions that majorly focus on establishing and maintaining proper supervision of the banking sectors.
¯ The removal of bank regulation created a more favorable environment for banks to invest in other countries since the rules of the game were now flexible.
* Another example would be the change in degree of disclosure requirements for banking sectors that have been reduced.
Significant Impacts of These Changes on Bancolombia in Colombia
According to Peng (2013), laws that govern practices of banks in foreign countries have changed from being too restrictive to lenient which has seen Bancombia expand its investments in Panama and Brazil.
As indicated above, another significant impact on my country is the integration of supervisory practices of banks and other financial institutions which has improved management of financial services and institutions.
* Another would be assigning bank supervision to the central bank.
¯ This has improved efficiency in supervising the operations of the bank and quick feedbacks from the central bank.
Finally, as indicated above, a significant impact on my country is the change in degree of disclosure requirements that will impact my country and this has boosted business integrity in terms of accountability and transparency within the country.
Chapter 2: Understanding Politics, Laws and Economics
The Most Important Learning Objective Outlined In This Chapter
The most important learning objective outlined in this chapter is LO6, the articulation of the importance of both property rights and intellectual property rights.
I chose this LO because I believe these two aspects are the crucial components of legal systems that constitute the institutional framework.
* They form the regulatory pillar that supports institutions, and
* Deemed important in stimulating economic growth in every country.
Facets That Have Changed since the Time of Peng’s writing to Present
I concur with Peng (2013), that intellectual property rights have changed, and today we have a wider classification such as the patent rights, industrial design rights, trade secrets, trade dress and trademarks.
* Property rights have also intensified, are given priority in the current world, and their use in securing credit, and have increased drastically.
* Government incentives have increased, and property rights are enforced by the judiciary.
* Property rights have also taken the form of transfers and regulatory and regulatory controls such as occupational licensing.
Significant Impact of These Changes on Bancolombia Bank in Colombia
According to Ledgerwood (2008), Colombia has implemented several regulatory investment rights that have opened the country to investors.
* This has improved the investment climate for the organizations such as banks to intensify their operations and realize significant growth.
As an example, according to Peng (2013), Bancolombia has benefited from a trade secret which has enabled keep its success secrets from leaking to the competitors.
The bank has also benefited from financial incentives from the government.
* Another significant impact in my country would be the implementation of strategies that encourages formalization of rural property and building the capacity of institutions in charge of land issues.
* Finally, significant impact on my country would be the assessment of property rights that have enabled the institutions access credit from financial institutions using the proof of ownership documents such as title deeds.
Chapter 3: Emphasizing Cultures, Ethics and Norms
The Most Important Learning Objectives Outlined In This Chapter
I believe that important learning outcome in this chapter is LO4 elaborating reasons why understanding cultural differences is important for global businesses.
According to Peng (2013), different communities within a country have different cultures that influence the products or services they choose to consume.
* Also, different countries have different cultures.
* This LO is therefore very important for a business manager trainee like me because it emphasizes the importance of understanding such differences when designing products or services for different cultures, and also affects the choice of labor.
Facets That Have Changed from the Peng’s writing to Present
According to Peng (2013), civilizations have emerged from urban populations which present different cultures and unique consumption characteristics.
* Their standards of living and way of life pose a challenge to managers to discover customized services and products
* Both masculinity and femininity have declined as the world has moved towards gender equity.
* Uncertainty avoidance among the populations has also declined. People’s investment and saving cultures have also changed.
Significant Impacts of These Changes on Bancolombia Bank of Colombia
According to Peng (2013), Bancolombia came up with an inclusive concept that brings together all the aspects that make up human social dimension.
* Under this concept the bank operates in various contexts and cultures by observing the people’s cultures and behaviors.
Another significant impact in my country would be declining uncertainty avoidance by a significant population in Latin America which has made people take loans from the banks more frequently.
* This has increased the customer base of the bank.
Finally, significant impact on my country would be the emergence of diverse labor force that has a wide range of socio-cultural backgrounds.
* The bank has benefited from this aspect by meeting the requirements of different cultures through the services of employees from those varying cultures.
Chapter 4: Leverage Resources and Capabilities
The Most Important Learning Objective Outlined In the Chapter
The most important learning objective in this chapter is LO2, explaining how an organization can utilize its resources and capabilities to derive value.
According to Peng (2013), this is because the knowledge is geared towards the sensitive and core function of a firm which is transforming inputs into outputs.
* It represents an important knowledge to future managers of analyzing the resources and capabilities of a firm so as to determine whether the firm can compete with the competitors in the field.
What Facets Have changed from the Peng’s Time of Writing to Present?
According to Peng (2013), Value Chain practices have changed occasioned by changes in levels of technology.
* Firms can add more value to their products and services at the expense of improved technol...