Large International Companies Research Articles

КОНКУРЕНЦІЯ І КОНКУРЕНТОСПРОМОЖНІСТЬ МІЖНАРОДНИХ КОМПАНІЙ

This article examines the issues of competition and competitiveness of international companies. Competition, both nationally and internationally, is a fundamental principle of a market economy. In a competitive environment, by optimizing production resources, companies improve existing goods and services and create new ones, helping to maximize the realization of their economic potential. Competitiveness is a general indicator that shows the level of stability of the company to the challenges of internal and external environment. It was determined that in the context of globalization and transnationalization of the world economy, there are more and more powerful international companies, including multinational corporations, which have a significant impact on the development of the world economy. We analyzed the activities and characteristics of some of the largest multinational companies in the world. This powerful group plays a special role in the economy of each country and the world as a whole. A significant part of the attracted investments and export-import operations of many countries depends mainly on the activities of large international companies. These companies in their activities effectively combine centralized management with a certain degree of independence of their subsidiaries. They grow incredibly fast, increasing investment in their production capacity, diversifying the scope of activities, and covering more and more countries. These companies integrate their production, capital within global and effective business strategies. Competition bolsters the productivity and international competitiveness of the business sector and promotes dynamic markets and economic growth. The competitiveness of an international company means an effective foreign direct investment strategy, productivity and organization of work of all subjects which are a part of its structure, cost optimization and high product quality, ability to adapt and react quickly to market changes, mobility, modern methods of management and marketing. Due to the intensification of international competition, each company implements a set of measures aimed at overcoming the negative effects of competition and achieving the required level of competitiveness in the international market.

Narrative Styles and Institutional Isomorphism in South African CEOs' Shareholder Letters

Among the most-read corporate documents are chief executive officers' (CEOs') shareholder letters. Using institutional isomorphism as lens, this study examines the extent to which the narrative styles used by South African CEOs in their shareholder letters are similar to the styles used by CEOs at leading international companies. The study also explores the degree to which impression management techniques are present in the South African CEOs' shareholder letters. The study uses DICTION software to conduct a narrative analysis of South African CEOs' shareholder letters for a single financial year, and compares the findings with those drawn from the Craig and Amernic (2018) study of the shareholder letters of CEOs from samples of international Fortune 500 and FTSE 100 companies. The study finds that optimism and realism are the two most-used narrative styles in South African CEOs' shareholder letters, and that these findings are markedly similar to those generated by the Craig and Amernic (2018) study of international companies. The study contributes to the understanding of normative institutional isomorphism in corporate reporting by providing empirical evidence that the narrative styles employed by CEOs of companies in a developing economy with high corporate governance standards conform to the same norms as those of CEOs of large international companies. The study also finds that the South African CEOs' dominant communication styles in the shareholder letters lend themselves to being tools of impression management.

CARTELS AND THEIR ROLE IN THE ORGANIZATION OF PRODUCTION AND INTERNATIONAL TRADE

In the modern world economy, an extremely important role is played by large international holding-type companies, often referred to as transnational corporations, financial, financial-industrial and other groups. The enterprises of such companies are located and operate in most countries of the world and have a significant impact on the main parameters of the functioning of a wide variety of markets for goods and services. With their economic potential, which often exceeds the corresponding potential of individual states, these companies are able to influence the development of market relations in both positive and negative directions. The so-called international cartel agreements, which generally mean mutual agreements between companies that often contradict the current legislation of countries, in order to establish a monopoly on certain goods (services) produced, control and capture markets, have a particularly acute negative impact on markets. In this regard, the article presents a brief history of the activities of international cartels and law enforcement practice to restrict their activities. The forms and key provisions of cartel collusion of enterprises of various industry orientations and spheres of activity are characterized. Some compensation schemes and forms of punishment for suppressing fraudulent actions of cartel participants are outlined. At the same time, there are shown situations when cartel agreements have a positive impact on the development of production, international trade and market relations. Despite strict antitrust laws, international cartels are created and operate in the markets, which should be taken into account by domestic companies when planning the results of work for them

STATISTICAL ANALYSIS AND PREDICTIVE MODELING OF EXTERNAL AND INTERNAL REINSURANCE MARKET STRUCTURES

In the article the authors examine the reinsurance market of the Russian Federation; consider reinsurance premiums for incoming and outgoing external and internal reinsurance; based on statistical data, the authors made a conclusion about the externally oriented ceding market in the period 20132019. The authors present the structure of the reinsurance market by major companies and identify the main players in the market of incoming and outgoing reinsurance; consider the ratio of external and internal premiums for incoming and outgoing reinsurance. The authors complied time series models of reinsurance premiums for incoming and outgoing external and internal reinsurance based on retrospective data for 20162019. All functions are increasing, which indicates the positive dynamics of the studied market and the possibilities for further expansion and development. Based on the models, forecast values are calculated that allow to draw conclusions about the development and structure of the Russian reinsurance market. The reasons for the dominance of external reinsurance over internal in relation to outgoing contracts, consisting in the retroceding of risks to large international reinsurance companies, are identified, that occupy the most advantageous position in this market in comparison with domestic reinsurers.

Comparative analysis of the PR specialists functions theoretical model and the present cut of the modern companies’ practical expectations

The article examines the functional responsibilities and competencies of modern specialists who work in the advertising field, public communications, and marketing communications. Those specialists have to be ready for constant changes and the use of current technologies because the communication sphere is very mobile, also depends on the use of new technologies, and is associated with the development of the infosphere. And because of that, the employers’ requirements for candidates are constantly updated. To compare presented in the scholarly literature theoretical models and the modern employers’ requirements, the author studied the traditional specialists’ functions and competencies, which are described in scientific works, higher education programs, and state educational standards. Also, was made a cut of the employers’ practical expectations who post job openings on the Headhunter website, which is one of the most popular jobs search and recruiting services. Also were analyzed requirements for a large Russian and international companies stated in the openings posted in January–June 2020. Based on the analysis, the author concludes the ratio of traditional and new functions in the communicative field workers’ job, about the requirements for their knowledge and skills, which are divided into the categories of hard skills and soft skills. As a result, it was concluded that modern employers are in demand for specialists who can perform traditional functions that have proven their effectiveness, as well as use all relevant modern technologies in their job. The equally important right combination of hard skills and soft skills as the basis of the professional activity of a modern specialist.

Analysis of the 2020 crisis and its consequences in the Kaluga region

The end of 2019 will be remembered for the discovery of the new coronavirus infection COVID-19, which has become a major challenge for all of humanity. The ongoing pandemic has provoked a crisis in all spheres of life and is continuously changing the global economic, political, social and other processes, forcing us to adapt to the introduced precautions. Using a logical and systematic approach to research, applying methods of synthesis and content analysis of the press, electronic media and communication, as well as scientific articles, the authors analyzed the impact of the COVID-19 coronavirus infection pandemic on the economic state of the Kaluga Region. The main socio-economic indicators are considered in dynamics and the most important spheres of the region's economy are analyzed in more detail. Assumptions have been made about how the restrictive measures designed to reduce the growth of cases affected the life-supporting processes of the region. The migration processes of the population were considered, and the change in the standard of living was assessed. How the coronavirus has affected the health sector is reflected. It has been analyzed whether the forecast of industrial production can be realized taking into account the current conditions. Taking into account the fact that a cluster model of development is being implemented in the region, the current indicators of the two leading directions: pharmaceutical and automotive, and their possibilities for the restoration of the regional economy with their help are reviewed. It was revealed that in the local Kaluga production of a large international pharmaceutical company, it is possible to implement part of the research to create a vaccine against coronavirus infection COVID-19. Based on the data processed in this article, it can be concluded that the diversification of the regional economy, which the regional administration adheres to, is bearing fruit in the current force majeure conditions. And the clustering of industry and preferential terms of permission for investors in such times have become especially relevant.

The asset-light strategies and the dividend puzzle: International evidence from the hospitality industry

This study investigates the impact of the asset-light strategy on dividend policy using a sample of large international publicly-listed companies (399 firm-year observations) operating in the hotel and restaurant industry over the 2006–2018 period. Taking the perspective of agency theory, we posit that the asset-light strategy in conjunction with significant growth is a context in which high agency conflicts arise. Using Tobit and OLS models, our results indicate that adopting an asset-light strategy only impacts dividend policy for firms with high growth. More interestingly, the positive impact of the asset-light strategy on dividend payouts occurs for firms with substantial growth if institutional ownership is low. In such situations, significant potential agency conflicts (due to high free cash flows) coupled with the lack of monitoring from institutional investors lead firms to use dividends as a monitoring tool. Finally, a change analysis supports our main findings.

Узгодження інтересів аграрних підприємств і держави

This paper analyzes the business-interests of agrarian companies, and studies the condition of the agricultural sector of Ukraine as a country. The paper shows the importance and significance of agrarian sector of economy, and also the necessity of harmonizing corporate interests with national interests. This study raises concerns over the conflict of interests between the state and large corporations that do business on their territory. The fundamental national priorities of the state were grouped to better understand the objectives of state governance. The research data that was used in this study shows the dynamics of development of Ukraine’s agrarian output and the degree of accumulation of land and means of production in private ownership. This shows that large Ukrainian agricultural companies can function as agents of economic force of the state on foreign markets through their exports. Ukrainian state therefore, has its own strengths and specialization in global economy. The power and might of the state on international arena depends on proper understanding and feasible use of its own resources. The prestige of Ukraine in the world has always been linked with a tremendous potential in the food industry and the production of agrarian goods. Hence, the Ukrainian state must assist in creation and functioning of Ukrainian transnational companies on both the local market and the foreign market, because the presence of large international companies promotes the economic strength and prestige of the host country. Therefore, it is hard to overestimate the importance of this research topic. The scientific and practical relevance of this study is proven, among other things, by the lack of sufficient research in the area of harmonization of national goals of the state and the transnational business-interests. It is oftentimes omitted or even avoided in science, academia and industry. On another note, this topic is not very pleasing to the governing authorities and business altogether, because society demands truth about the utilization of economic and natural resources of the state, as those resources are considered the property of society at large. Big business tends to minimize and whenever possible to avoid paying taxes, while maximizing the access to and use of the resources of the host countries. Finally, the paper ends with some suggestions on how to approach the problem of conflicting interests and how to improve the existing methods of dealing with it.

Державно-приватне партнерство як механізм розвитку транспортної інфраструктури Херсонської області

The development of the transport infrastructure of the region remains an important task, which today is solved by means of the mechanism of public-private partnership (PPP). At present, both a sufficient institutional environment and the regulatory support for the implementation of public-private partnership projects have already been created. Kherson region, having an average level of development of transport infrastructure, de facto occupies the near-border position. Therefore, the level of development of infrastructure of the region (in particular, road economy) is of significant strategic importance for the security of the State. The main tasks for the development of transport infrastructure of Kherson region and possible directions of implementation of infrastructure projects are defined. The study showed that only two projects that are not infrastructural are implemented on the basis of PPP in Kherson region. However, the concession of Kherson seaport has been launched – this project is pilot not only in the region, but also in Ukraine. Concluding a concession agreement in seaports is a complex and long-term procedure. Important in the agreement is the determination of the amount of concession payments and the distribution of risks between the project participants. Typically, concessionaires are large international companies (cargo owners or shipowners) or domestic industrial and financial groups that dictate the terms of the contract, so, accordingly, there may be a conflict of interest. This publication defines the essential conditions of this concession project. PPP projects in the road sphere are promising, which should solve a number of problems of the region. The airport «Kherson» is described as a concession object, the scheme of the PPP mechanism concerning it is proposed. It is determined that public-private partnership in the sphere of railway infrastructure is in the process of formation and determination of forms of cooperation.

МЕЖДУНАРОДНЫЕ КОРПОРАЦИИ И МОДЕРНИЗАЦИЯ НАЦИОНАЛЬНЫХ ЭКОНОМИК: ОТ ПРОТИВОДЕЙСТВИЯ НЕЭКВИВАЛЕНТНОМУ ОБМЕНУ К ГИБКИМ СТРАТЕГИЯМ

The article deals with the impact of globalization-oriented modernization strategies implemented in developing countries on the activities of large international corporations and multinational companies. An assessment of the theoretical positions in the theory of dependent development of countries in terms of the concept of non-equivalent exchange is given. The risks and benefits of the functioning of international companies in developing countries with different levels of focus on economic modernization are analyzed and recommendations for the development of flexible operational strategies are proposed.

Застосування засобів моделювання для аналізу гендерної нерівності у сфері інформаційних технологій в Україні та світі

Nowadays, the information-technology industry is one of the most masculine and asymmetrical in the world labor market. The fact of having male workers in more prestigious and highly paid positions is proved, while female workers are more represented in low-profitable sectors of the economy (healthcare, education, social services, etc.). The article is aimed at researching the status of gender inequality in the IT sphere in the labor market of both Ukraine and the world by means of modeling tools. The publication analyzes the current status of gender segregation of labor in the sphere of information technology worldwide and in Ukraine. The relevance of the research on the process of functioning of companies engaged in foreign economic activity is substantiated. Using statistics of the most technological companies in the world (Amazon, Microsoft, etc.) it is proved that the average share of women in the companies comprises 30-40% of all employees. Gender inequality, as it has been proven, harms the business of companies around the world. Replacing female employees who resigned from a job because of the inability to build a career increases business costs and slows down the activities of individual projects and/or companies in general. At present, most large international companies deliberately perceive the need to achieve gender equilibrium among their employees. Despite numerous measures that have a positive impact on the involvement of women in the IT market, there are factors in the global labor market that increase gender discrimination, as emphasized in the article. Economic-mathematical models of the process are built up using multiple regression with panel data. With the help of the appropriate criteria, the quality of the built up models has been proven. Economic interpretation of the results is provided. Prospects for further research in this direction are described.

Digitalisation and (De)Centralisation in Germany - a Comparative Study of Retail Banking and the Energy Sector

The paper in hand compares retail banking and the electric energy sector to investigate how digitalisation influences (de)centralisation. Structural similarities of both industries like the direct competition of large international companies (Deutsche Bank and RWE) with locale providers such as savings banks and municipal utilities (Stadtwerke) motivate this comparison. Our findings suggest that digitalisation affects (de)centralisation differently. Despite scale economies inherent to processes of digitalisation, small entities must not be on the losing side. Cooperation tends to play a key role for regional companies to profit from digitalisation. Interestingly, digitalisation of the first and second transformation affects (de)centralisation of both industries diametrically (though, it is too early for final conclusions about the second digital transformation). The geographical properties of the businesses in question (i.e. the distance dependence of soft information respectively the physical properties of electricity transmission) and (regulatory) context factors tend to influence the relationship between digitalisation and (de)centralisation. More research is needed to enhance our understanding of digitalisation on (de)centralisation of the economy. As this discussion paper indicates, sector comparisons tend to be useful to contribute to such an understanding.

Participation of Russia in the International Cooperation for Reducing Greenhouse Gas Emissions by Energy Companies

The article analyzes the participation of the Russian Federation in international cooperation on the climate change prevention. Global climate change in terms of its impact on world economy is presented as a catalyst for multidirectional shifts in many sectors of economy. The adoption of international documents such as the United Nations Framework Convention on Climate Change (1992), the Kyoto Protocol (1997), the Paris Agreement (2015), and the 2030 Agenda for Sustainable Development (2015) are viewed as vital steps for regulating international cooperation in this sphere. Analyzing the provisions of the 2020 Climate Doctrine of the Russian Federation (2009), the authors emphasize the aspiration for international political and economic integration and deep economic interest in modernization as main factors, affecting Russian climate policy strategy. One of the mechanisms of implementing state policy in the field of environmental safety is the adoption of state regulation of greenhouse gas emissions and the consideration of these measures in the development of longterm strategies for socio-economic development. The authors urge for creating regional strategies for climate change prevention with necessary adjustment and adaptation to a specific region or constituent entity of the Russian Federation. In presenting the research results, the concept of “global warming potential” and the role of managing this potential in achieving sustainable development goals are disclosed. The authors argue that a significant contribution to the increase in greenhouse gas emissions is made by the production activities of the energy sector. Based on the data of the largest international companies (Chevron, ExxonMobil, ConocoPhillips, BP, PetroChina, Shell, Gazprom, LUKOIL, Rosneft), directions for reducing their negative environmental impact were determined, including the classification of tools for reducing greenhouse gas emissions. International practice analysis forms the necessary ground to elaborate the most promising modern tools for reducing greenhouse gas emissions by Russian oil and gas companies.

Building Design-led Ambidexterity in Big Companies

Organisational ambidexterity is considered a crucial capability for long term firm survival and development. However, adopting and successfully implementing it presents multiple challenges. Furthermore, despite being increasingly popular in the last two decades, the role design can play in achieving it is notably missing from the discussion. This paper analyses the attempts to accelerate the innovation pace of two large international companies in the consumer electronics and healthcare and airline industries. Both attempt to combine design and agile elements in fast-paced environments, while working in multidisciplinary teams early in the NPD process. However, one is guided by designers, the other by people with a background in operational functions. As such, they provide a good foundation to study design’s role and its implications in achieving ambidexterity in two large international companies. The collected insights helped us to define a new form of ambidexterity and devise a model for building ambidextrous organisations through design.

A fuzzy-stochastic optimization model for the intermodal fleet management problem of an international transportation company

ABSTRACTIn this paper, a fuzzy-stochastic optimization model is developed for an intermodal fleet management system of a large international transportation company. The proposed model integrates various strategic, tactical and operational level decisions simultaneously. Since real-life fleet planning problems may involve different types of uncertainty jointly such as randomness and fuzziness, a hybrid chance-constrained programming and fuzzy interactive resolution-based approach is employed. Therefore, stochastic import/export freight demand and fuzzy transit times, truck/trailer availabilities, the transport capacity of Ro-Ro vessels, bounds on block train services, etc. can also be taken into account concurrently. In addition to minimize overall transportation costs, optimization of total transit times and CO2 emission values are also incorporated in order to provide sustainable fleet plans by maximizing customer satisfaction and environmental considerations. Computational results show that effective and efficient fleet plans can be produced by making use of the proposed optimization model.

Technology Focus: Field Development (September 2019)

Technology Focus Field developers are making bold step changes to form their optimization strategies on the crests of digital transformation, using massive data analytics, machine learning, cloud computing, and data-sharing strategies for oil and gas fields in all stages of development. This trend will only grow, following the imperative to ensure the sustainability of new assets and extend the life of brownfields of any size.• Current trends in field development are to study, model, and understand the time-lapse effects in those fields where optimization of costs, environmental challenges, and sustainability are key differentiators. In onshore or offshore heavy-oil developments, as well as in shale oil and gas, massive data analytics and optimization techniques revolutionize work flows in field development with great force and speed. Digital oilfield frameworks, fast-track modeling, genetic algorithms, particle-swarm optimization, ensemble-based optimization, and closed-loop reservoir management are the leading best-decision loops. Operating companies of all sizes and profiles—national oil companies, large international oil companies, and small private investments—are migrating from structured, linear, and conventional approaches in field development toward more-efficient and data-driven work flows, with activities executed in parallel to benefit all fronts, and fit-for-purpose and temporary working teams. The investments of time and effort are focused to better understand and predict how to reduce or avoid the interference among child and parent wells in shale oil or to ensure the sustainable production from offshore heavy-oil developments. Field development and field-operation optimization become joint efforts as the loops of production are shorter and the data are shared among several disciplines, interconnecting and integrating their goals. The three selected papers provide an opportunity to catch up with the thrilling step-change evolution in field development. The industry continues its digital transformation, and field development is leading the•wave. Recommended additional reading at OnePetro: www.onepetro.org. SPE 191799 Time-Dependent Depletion of Parent Well and Effect on Well Spacing in the Wolfcamp Delaware Basin by•Cyrille•Defeu, Schlumberger, et al. SPE 193914 A Comprehensive Adaptive Forecasting Framework for Optimum Field-Development Planning by Amir Salehi, Quantum Reservoir Impact International, et al. IPTC 19468 Modeling Interwell Interference Caused by Complex Fracture Hits in Eagle Ford Using an Embedded Discrete Fracture Model by Mauricio Xavier Fiallos, The University of Texas at Austin, et al.

Predictive analytics in supply chain management

For effective management of the organization and making optimal management decisions at all levels, it is necessary to carry out an analysis of the results of activities. Intellectual analytics of big data is a modern trend in the analysis of financial, economic and operational activities. Predictive analytics can be attributed to intellectual analytics of big data, the results of which are formed on the basis of historical facts processed by the system that has undergone machine learning. The direction of predictive analytics is actively developing, including in the field of supply chain management. Predictive analytics can be effectively used at each stage of supply chain management: inventory planning, distribution, demand forecasting, warehousing, production planning, and delivery. This article discusses the use of predictive analytics and the effects of its use to improve the efficiency of supply chain management. As confirmation of this conclusion, the author cites examples of large international companies using forecast analysis to forecast demand for their products, supply planning, pricing, after-sales service planning, etc. The author concludes that it is necessary to introduce forecast analytics systems into the business intelligence system of production and supply of products.

PROCESS IMPROVEMENT OF PRODUCT DEVELOPMENT BASED ON TECHNOLOGIES OF PRODUCT LIFECYCLE MANAGEMENT

In connection with the onset of the fourth industrial revolution, the transformation of the external and internal conditions of the enterprise increases, which forces the enterprise to increase the efficiency of processes, including through their automation. An important role in this problem is played by design activity, which determines the timeliness of the output of products to the market, quality planning and production processes, and this is a significant contribution to the economic efficiency of the enterprise. This article is devoted to the improvement of processes as one of the tools to improve the performance of the organization. On the example of improving the process of Engineering Change Management of a large international company engaged in the production of household appliances, a Process improvement technique was developed and a key performance indicator (KPI) was developed, which allows to assess the effectiveness of the developed methodology. The proposed practical experience can serve as a basis for the implementation of technical improvements in the business processes of the organization and the assessment of these changes.

Time, precarisation and age normality: on internal job mobility among men in manual work

AbstractThis article explores the conditions for extended working life from an organising perspective. Based on the idea that temporality makes up a fundamental organising dimension, it discusses conceptions of internal job mobility, and if and when employees are expected to relocate to a different unit at work. The material consists of interviews with 11 men between the ages of 56 and 74, working in manual and managerial capacities at a foundry of a Swedish branch of a large international steel company. The results show that internal work mobility is regulated by normative assumptions of mobility in terms of on- and off-time. This socio-temporal order constructs younger age groups as the age normality while designating the older employees’ transitions as a normative breach. It is also shown that the temporal order constitutes a disciplining element steering employees from an early stage to plan for limitations that may arise as a result of ageism and/or physical changes. The result confirms that transition to less-physically demanding tasks is a prerequisite for continuing working in a physically demanding job. These transitions are not, however, included in the socio-temporal order of the company, but are presented as the older employees’ individual problem. All together, these results show the need to introduce organisational practices and corporate strategies in the debate on extended working life.

Improving the experience for software-measurement system end-users: A story of two companies

ContextSoftware measurement systems are used in large companies to provide developers with up-to-date feedback and metrics. ObjectiveHowever, the front-ends of these systems are often not ready to provide a real-time experience for the end-users, who sometimes have to wait minutes before visualizations are provided. MethodIn this paper, we present the case studies of two large international companies and compare alternative technological setups for measurement system front-ends used and explored within these companies. We use a publicly available data-set for a performance evaluation and to analyze the results. ResultsFor both companies we found significant performance differences between the alternative setups. However, in one of the companies these differences are not there for large data-sets. Furthermore, we found that not all setups enable the visualization of the newest available data. ConclusionsOur results indicate that the choice of the visualization component has a larger impact on the performance than the choice of the data storage. However, companies are also willing to invest into setups that ensure that visualized measures are always up-to-date.