International Business Sustainable Growth Dissertation

Introduction and Background of the Research

The twentieth and twenty first centuries are known for the high rate of globalisation that they recorded. The global community has been reduced to a global village, especially with the coming of the information technology. Boundaries have virtually disappeared, and now business activities can be carried anywhere in the world, provided the business observes the rules and regulations of the host nation.

Globalisation came with the emergence of multinational corporations such as Coca Cola, Unilever, Microsoft and the like. As such, international business can be conceptualised as one of the products and indicators of globalisation.

With international business came the idea of sustainable growth and development. For these multinationals to survive in these new markets, they had to come up with strategies that will ensure that the growth and development of the business were well within the capabilities of the firm. This means that the growth and development of the business can be comfortably supported by the revenues generated and can be sustained in the long term.

Defining sustainable growth and development in the wider context of the economy, Pohle and Hittner (2008 p. 3) view it as the stable growth of the economy, characterised by full employment and no inflation. This way, the economy can comfortably maintain the growth and developments therein without borrowing either from within or from without. It can also be conceptualised as the income that a business generates and which can be used to support future growth and development (Costa 1997 p. 25). When a business or economy can grow using retained earnings, less external funding or borrowing, and in the absence of altered financial leverage, the same can be described as having attained sustainable growth.

Sowinski (2006 p. 8) furnishes us with a simple definition of sustainable growth and development within the business context. He views it as the “realistically attainable growth” that can be comfortably achieved by a business (Sowinski 2006 p. 8). This means that the company can grow and at the same time it will not run into problems such as debts or bankruptcy. If the business can grow and develop, but does so from borrowing, and it can not maintain the growth in the long run without external intervention, then that business can not be said to be growing and developing sustainably.

If a business grows too fast, it may be hard for it to fund this from retained revenue (Gallinger 2000 p. 50). On the other hand, if the business happens to grow and expand too slowly, or not at all, this again may spell doom for it. It may end up stagnating in one position for a long time, and may be overtaken by competition and at long last, vanquished. The above two scenarios spell a lack of sustainable growth and development. From this, the importance of striking the optimum growth and development rate, which is neither too fast nor too slow, becomes the goal of managers interested in attaining sustainable growth and development for their business (Iafincoff 2010 para. 3: Buxton and Davidson 1996 p. 12). This is the point at which the business can expand and grow within the boundaries that it can afford and maintain.

There are several methods that an international business enterprise can attain sustainable development and growth in the global market. These include social corporate responsibility (Pohle and Hittner 2008 p. 3), prudent management techniques (International Institute for Sustainable Development 1992 p. 15), diversification and expansion of business processes among others.

This dissertation is going to address sustainable growth and development in the context of international business. It will address the methods through which international business firms can attain this fete given the competitive nature of the global market. The author uses the case study of two companies in the united kingdom in this study. These are Tropicana and Innocent fruit juice products.

The researcher will use questionnaires and interviews of top business executives and other relevant informants in these two companies to find out the models that are favoured most, and the more effective ones, in attaining sustainable growth and development. The data will be analysed using simple statistical techniques and presented in tables and charts, among other presentation tools that the researcher will find useful.

Problem Statement

According to Lozanda and Mintu-Wimstall (1996 p. 65), sustainable development is an indispensable practice to the international business manager. By adopting sustainable practices, the business can be taken to the next level in the field and its competitive edge or advantage enhanced. As such, the importance of this practice in international business can not be down played.

Globalisation of capitalism has brought with it many hurdles that the business executive must be aware of and which they must take the company through to attain sustainable business growth. For example, industrialisation has been associated with pollution of the environment through the emission of effluent and green house gas. Expansion of businesses has also been associated with exploitation of third world communities at the expense of the capitalist west.

Sustainable development, according to the International Institute for Sustainable Development (1992 p. 8) should be an all rounded phenomenon. This means that it has to take into consideration the environment, the community within which it operates as well as the financial attributes. A business that does not take interest in the welfare of the community will be denied of social capital and goodwill of those people, and will not be able to sustain a long term growth and development trajectory. A business that is not concerned with the environment within which it operates will find that, in the long run, the environment will not be able to support its activities. For example, drying up of rivers will mean that the industry will not have a source of water for their future operations.

Sustainable growth has several aspects that are fluid and can not be contained within the boundaries of a single definition or conceptualisation (Lozanda and Mintu-Wimstall 1996 p. 67). It is important to note that this is not a phenomenon frozen in time and space. Rather, sustainable development in the context of international business does vary both spatially and chronologically. This is because some features that were considered sustainable development in the eighteenth and nineteenth centuries do not apply today. For example, during the nineteenth and twentieth centuries, imperialism and colonisation were some of the favoured techniques of international business growth.

The colonials exploited the resources of their subjects, both natural and human resources, with the aim of achieving their economic ends. This, according to their reasoning, may have been their idea of sustainable development. They had no concern whatsoever for the local communities.

This has changed today. Multinational corporations are engaging in corporate social responsibility as an effort to maintain the goodwill of their host (Pohle and Hittner 2008 p. 17). This is because they have realised the fact that growth can be maintained better if the host community is willing and able to support their efforts.

Sustainable growth and development of international business also do vary from one place to the other. What is considered as a strategy to achieve this in one place or within one organisation may differ from the perceptions held in another society or organisation. A case in point is the comparison of how workers are regarded by employers in American corporations and those from Asia. In the latter, the society supports the idea that for sustainable growth and development, the employer must obtain and retain the complete loyalty of the employee. In other words, the employee is owned by the employer, and is not free to change positions from one organisation to the other.

Contrast this with how American corporations regard their staff, and one comes up with a different scenario. Contemporary American corporations believe that for their human resource to support sustainable growth and development, they must be free. As such, an employee has the freedom of moving from one organisation to the other without any repercussions.

It is important to point out at this juncture that, though sustainable growth and development in international business do vary from one place to the other, and from one time to the other, some attributes are universal, meaning that they hold across space and time. For instance, it is a fact beyond doubt that for a sustainable development, the international business must take into consideration the environment. This is a fact that is held by both Asian and American corporate managers.

The method adopted by a particular international business to attain sustainable growth and development depends on several factors, which have to be taken into consideration by the management (Sowinski 2006 p. 8).

For instance, the revenue that the business generates will determine whether it will engage in social responsibility techniques or it will have to diverse its operations. Most international business managers have the perception that the chief goal of their activities is to generate revenue. But the fact of the matter is that trade offs have to be made. The executives must know when to do what they must do for the sake of future growth and development, and what they would otherwise have liked to do (International Institute for Sustainable Development 1992 p. 14). The manager would have liked to expand the activities of the corporation, but a rational and logical consideration reveals that the company must first adapt to the current environment of the economy before any expansionary ideas can be accommodated.

Objectives of the Study

Objectives of any research act as the sign posts that guide the activities of the researcher throughout the research process. The whole research process is aimed at achieving these objectives, which can also be conceptualised as the goals and intentions of the study.

Throughout this study, the researcher will be guided by one major objective. This is the analysis of sustainable growth and development of an international business using the case study of Tropicana and Innocent. To attain this major objective, a number of specific ones will further guide the researcher. It is by addressing the specific objectives that the researcher would have successfully tackled the major one. The specific objectives are as listed below:

1. An analysis of various strategies of attaining sustainable growth and development in both Tropicana and Innocent
2. An analysis of the importance of sustainable growth and development in international business
3. An analysis of challenges of sustainable development in international business
4. An analysis of various methods that are used by various international businesses to attain sustainable development (case study of Tropicana and Innocent)

Research Questions

Like objectives and aims of a study, research questions guide the efforts and focus of the researcher throughout the study. As the researcher pursues the goals and objectives of the study, they must ensure that the questions identified are answered by the attainment of those objectives. In this study, the researcher will be aiming to answer the following research questions:

1. What are the several methods and strategies used by international businesses to attain sustainable growth and development?
2. Of all the methods and strategies identified in (1) above, which are the most favoured in contemporary global market?
3. Why is it that the methods and strategies identified in (2) above are the most favoured?
4. Are the most favoured methods and techniques usually the most effective?

Justifications and Significance of the Study

Kosterich (2009 p. 587) opines that a large number of studies are continually being carried out in all academic fields at any given time. This being the case, it becomes very important for a new research to be justified so that the significance and contribution that it is going to have on the field is identified.

As earlier indicated, international business has been one of the many outcomes of globalisation, and it’s a significance fixture of the society today. In this light, it becomes very important to identify the dynamics of various features of this phenomenon. This will make it possible to come up with strategies that can be used to effectively carry out this activity and for the society to derive the maximum benefit from it.

By identifying the dynamics of sustainable growth and development in international business, the researcher will be arming the executives with important information regarding the importance of this practice and how it can be attained. The best practice to achieve sustainable development will be identified, and this information will help the international business managers in formulating policies aimed at the same.

Methodology of the Study

As indicated earlier, this study is going to combine the attributes of both qualitative and quantitative research methods. A sample group of international business scholars and managers will be picked. These will be drawn from Tropicana and Innocent in the United Kingdom. Structured questionnaires will be administered, which will be followed by a semi structured interview. The questionnaire will capture quantitative data, while the interviews will capture qualitative data. The results will then be analysed using simple statistical operations such as percentages and fractions. The data will be presented in tables, graphs and other presentation tools that will be applicable.

Professional and Personal Context of the Study

According to Kanth (2008), any form of academic exploration holds some significance both to the personal and professional life of the researcher. It is important to note that the research does not take place within a vacuum, but it is carried out within the context of the researcher’s personal and professional experiences. These experiences influence the dynamics of the study, while at the same time indicating the significance that the researcher attaches to the same.

This study is no exception. It was carried out within the personal and professional experiences of this researcher, and this shaped the whole process. The impetus for this study was developed by a case study that was examined in an international business management class. The case involved an international organisation that was seemingly doing well, until it started expanding its businesses at a very high rate. Within five years, the organisation had collapsed. This case study got the researcher thinking. This is especially because they harbour dreams of one day heading a multinational company. The researcher was interested in finding out why the organisation failed.

A preliminary research revealed that the organisation experienced what can only be termed as unsustainable growth. The rapid expansion could be sustained in the long term. The researcher was further interested to find out about the strategies that can be used to attain a sustainable growth and development, and the strengths, weaknesses and effectiveness of each. From this, the study was borne.

Scope and Limitation of the Study

Many academic fields are wide in scope, covering large swathes of topics and other factors to be addressed. It is usually hard to conduct a study that addresses all of these issues at the same time. This is because the study is likely to lack focus and insightfulness when such a wide range of topics are addressed. To avert this, the researcher always concentrates on a specific area of the field. The study that will follow will then be conducted within the demarcated boundaries identified.

International business is such one academic field that is wide. Sustainable growth and development is also a wide field, and on this light, the following limitations and scope that were set by this researcher:

1. The study will address sustainable growth and development in the context of international business alone. Sustainable growth and development pertaining to other forms of businesses such as local enterprises will not be part of the study.
2. The researcher will also limit themselves to addressing sustainable growth and development aspect of international business alone. Other factors of international business such as marketing and others will not be addressed.
3. It is only executives of international businesses and scholars on the same topic that will form part of this study. Other stakeholders such as employees of international business will not form part of the research.
4. The study will take the form of a case study of two fruit juice companies in the United Kingdom. Other companies that are involved in international enterprises will not be studied, together with other international companies that are involved in the production of other products apart from soft drinks.

Assumptions Made in this Study

In any study, it is important to make some assumptions as far as some of the variables are concerned. This is because in any field, there are a lot of factors that are riding on any one of its disciplines. It is not always possible to consider all the factors when conducting one study. This being the case, the researcher assumes that some of the factors that they are not interested in will remain constant, and they will not affect the study in any way. It is also assumed that even if the factors do change, they will not affect the findings of the study. In this study, a number of assumptions were made. These are as stated below:

1. it is assumed that all businesses recognize the importance of attaining and maintaining sustainable growth and development.
2. All international businesses are involved in some efforts to attain and maintain sustainable growth and development. For those that are not involved in the efforts, it is not out of ignorance but rather, it is out of choice.
3. It is also assumed that there is no universal strategy to attain and maintain sustainable growth and development in international business. As such, “one size fits all” mantra does not apply.
4. However, it is also assumed that some strategies work best than others, while still some strategies work best for certain businesses and not others.
5. Further, the researcher assumed that the experiences of the international businesses were uniform to a larger extent, and importance of sustainable growth and development will be recognized despite the location that the business was operating from.
6. It was also assumed that the experiences of Tropicana and Innocent can be generalised to the whole of international businesses and other companies that produce other products other than soft drinks.

Summary

This chapter introduced the reader to the study that will be conducted later on. An outline of the whole project was provided, and the reader was made aware of what to expect in subsequent sections of the paper. The researcher started by introducing the whole study and giving a brief background. This was followed by problem statement, statement of objectives and the outlining of the research questions. The study was contextualised within the researcher’s personal and professional experiences. Justifications for the study were also provided.

The following chapter will cover the review of literature that the researcher found to be relevant to the study.

Review of relevant literature

Introduction

According to Kanth (2008, p. 130), findings of studies that have been carried out in the past within any given field are chronicled in journals and other information storage tools that are available. Any new study that is to be conducted in the fielder must take into account these findings. It is thus up to the researcher to familiarise themselves with the developments that are there within the field. The only way they can do this is by reviewing the relevant literature available (Watanabe, Matsumoto and Hur, 2004 p. 950).

The importance of conducting literature review before commencing on any study is a multi faceted phenomenon. The researcher identifies the knowledge lacunas that are available in the field and seeks to fill them (Ayers, 2003 p. 3). The value of any research is to be found in the quality of new knowledge that it generates. If the researcher engages in a study that has already been conducted, their efforts will be in futility. This is given that the new research will not generate any new information.

All it would do is to recycle and resuscitate already existing knowledge. The value of the research, as a result, will be watered down. In addition to this, familiarising themselves with the knowledge existing within the field helps the researchers to locate their current study within that particular field. They will be successfully identifying the position and area that the study is addressing (Rowland and Tesar 1998 p. 199).

In this study, the researcher is going to review literature that addresses sustainable growth and development as far as international trade is concerned. The literature will be obtained from a number of sources (Hansen and Jagannathan 1991 p. 224). These include books, magazine and journal articles, and online databases among others. The quality and relevance of the literature to the study will determine those that will be reviewed and those that will not.

Sustainable Growth Rate

Iafincoff (2010 para. 1) conceptualises sustainable growth rate as “the highest growth rate” that the (international) business can sustain in the long term without “external equity financing” (1). Not only should the business be able to survive in the long run without the financing from external equity sources, but it also has to display a non-fluctuating “debt equity ratio” (Iafincoff 2010 para. 1). Sowinski (2006 p. 7) concurs with Iafincoff, and says that for a business to be considered as having attained a sustainable growth rate, which is the goal of every business executive, it must support a maximum rate of growth without “having to increase financial leverage” (7).

Sowinski goes ahead to state that there is one question that the managers should pose to themselves as they are making strategic decisions, and the answer to the same is what defines the sustainable growth rate of their business. They have to ask themselves how far on the growth and development trajectory that the company can proceed before it starts borrowing money to support this growth (Sowinski 2006 p. 9). When this is determined, the managers have in effect mapped out the sustainable growth rate of their entity, which, opines Iafincoff (2010 para. 1) is intimately related to the organisation’s internal growth rate.

Calculating Sustainable Growth Rate

From the above discourse on determining sustainable growth rate, the fact that this was a facet of international business that can be mathematically defined was obviated, albeit subtly. Sowinski (2006 p. 9) holds that several models are employed in calculating this rate. He goes on to say that several assumptions are made when computing this, and these are central to the process.

The first assumption maintains that the particular international business organisation wishes to maintain a set financial and operational structure without the need to issue new equity (Lozanda and Mintu-Wimstall 1996 p. 70). This is especially so for those businesses owned by share holders. This assumption means that the business will not need to issue new equity to the share holders or other financiers to raise extra revenue to support the projected or initiated growth and development.

It is also assumed that, for those international businesses that have share holders, the managers have the wish to maintain a set threshold of “dividend payment ratio” (Costa 1997 p. 2). In other words, the growth and development will not affect the dividend that was targeted to be issued to the share holders. It is vital to note that when expanding, some businesses use the dividend that was intended for the share holders to support the process. This, according to Costa (1997), can not be termed as sustainable growth.

All businesses, regardless of whether they intend to expand or not, have the desire to increase the revenue generated from sales as fast as the prevailing market environment can permit (Pohle and Hittner 2008 p. 17). This is another assumption that holds when computing sustainable growth rate.

There is some information that the manager should have when calculating sustainable growth rate. For example, they need to have intelligence on the profitability of the international business (Gallinger 2000 p. 51). The profitability is determined in relation to the business’s return on equity [ROE] (Gallinger 2000 p. 51). It is also important for the manager to be informed on the percentage of earnings per share that is paid out in form of dividends (Costa 1997 p. 3). This is what Buxton and Davidson (1996 p. 200) refer to as “dividend payout ratio”.

Armed with this, the manager can then calculate the sustainable growth rate using the formula provided below:

(Sustainable growth rate = [ROE x b] / [1 – ROE x b]) source Iafincoff (2010 para. 1).

“b” is a variable in the above equation. It represents the retention or plow back ratio of the business (Iafincoff 2010 para. 2: Sowinski 2006 p. 8). This ratio is computed by dividing the retained earnings of the business with its net earnings within a given period of operation.

A relationship of some sort can be established between a business’s break even point and its sustainable growth rate. The former determines the minimum sales that are required to cater for the business’s operating expenses within a given period, while the latter determines the maximum level of sales that the business can attain comfortably without “exhausting operating cash flows” (Iafincoff 2010 para. 4). In a nutshell, sustainable growth and development rate for an international business can be viewed as its growth’s break even point (Iafincoff 2010 para. 4).

Sustainable Growth and Development of International Business and Management Systems

Mennis (2009 p. 35) is of the view that the concept of sustainable growth and development in international business needs to be incorporated into the management systems of the same. It must be aligned with the policies and processes of the firm. This is to ensure that the principles of sustainable growth and development are adhered to.

However, Mennis’ (2009) statement should not be construed to mean that the firm needs to come up with entirely new management methods (Buxton and Davidson 1996 p. 13). To the contrary, all that is required is new cultural orientations on the part of the managers, whereby they change their professional and personal attitudes and the refinement of the already existing management methods so that they take into consideration sustainable growth and development concepts (Mennis 2009 p. 38). The practices and procedures that the managers were hitherto using will need to be refined and revised with sustainable development in mind.

Lozanda and Mintu-Wimstall (1996 p. 73) identify two dimensions of an international business’ management system that needs to be altered for sustainable growth and development to be attained. One of them is display of a greater accountability to what Lozanda and Mintu-Wimstall (1996 p. 73) refer to as non traditional stakeholders. These are for example the community within which the business is operating, the environment and such other peripheral elements to the business. These are referred to as non conventional stakeholders because, unlike the traditional stakeholders, they do not share in the profits of the company. The managers, for example, must be accountable to the community that hosts the business and the environment within which they are operating for their business to exhibit sustainable growth and development.

The second dimension, according to Mennis (2009) is the “continuous improvement of the reporting practices and culture of the managers” (39). What this portends for the managers is that they have to be honest in their reporting. For example, they should disclose the financial statements of the company to the stakeholders. Failure to do this may lead to misappropriations and embezzlement of the business’s funds among other things. This, in effect, will make very hard to sustain the growth and development envisioned (Bodnar, Hayt and Marston 1998 p. 229).

It is important to note the fact that effective management policy for the maintenance of sustainable development in the international business calls to attention two aspects of the management system. These are decision making practices and governance structure that has been adopted (Lewis 2000 p. 33). When planning and other decisions such as information and control system decisions are being made, sustainable development concepts must be taken into consideration. When these strategies have been made, it is up to the managers to furnish the stakeholders with reports and information gauging how the company is performing as far as sustainable development is concerned (Bekaert and Urias 1996 p. 866).

Sustainably managing an international business is a systematic endeavour that has to be carried out following a number of steps. Mennis (2009 p. 36) identifies seven steps that he deems to be crucial to managing an international business efficiently.

Carrying Out a Stakeholder’s Analysis

Stakeholders are the parties that have an interest of one kind or the other in the running of the business. Gallinger (2000 p. 50) opines that stakeholder analysis helps in identifying and mapping out all the parties that are affected by the performance of the international business. These include the share holders, whose earnings are affected by the profitability of the firm, and the community, whose environment and other aspects of their lives are affected by the operations of the business. A point to note is that the stakeholders can be affected by the running of the business either directly or indirectly. For example, losses on the part of the shareholders may be a direct effect, while deterioration of health conditions of the community due to emission of the factory’s effluent to the environment may be taken as an indirect effect.

When a stakeholders analysis is carried out, issues such as their relationship to the business, their concerns as far as the business is concerned, and the information that they need from the operations of the business are identified and examined carefully (Mennis 2009 p. 38). These considerations are incorporated in the process of coming up with strategies aimed at making the business attain and maintain sustainable development and growth.

The managers of any international business need to note that the existence of their entity is inextricably intertwined with a number of phenomena in the society. These include the economic, environmental and social attributes of the society. For sustainable growth and development to be attained and maintained, it is important to address all of these facets. The environment must be protected, and the dignity of the human who is in direct or indirect contact with the firm maintained.

As earlier indicated in the paper, analysis of stakeholders is to be carried out systematically. This begins by the identification of the parties affected by the business. These include share holders, clients (customers, suppliers, creditors and such others), and more important, the community. In an international business context, the stakeholders may transverse borders, acquiring a global outlook just like the business. For example, the shareholders may be from a different country that the firm is operating from.

The benefits accrued to the business by performing a stakeholder’s analysis can not be down played. One such potential benefit is the identification of conflicting expectations from various parties (Mennis 2009 p. 37). The shareholders may be demanding that the firm increase operations to raise the level of their earnings, while the community may be interested in the firm adopting more environmentally friendly measures of production that may cut back on its productivity. Sustainable growth and development are not likely to be maintained within such a scenario. This being the case, it is up to the managers to come up with strategies that will remove this conflict by trying to make both parties satisfied.

Formulation of Sustainable Development Goals and Strategies

After identifying the stakeholders and analysing them, the next step for the managers is to articulate the basic steps that will be followed in addressing the issues identified here and elsewhere. The values that the employees are expected to adhere to, and the targets that the company seeks to attain, are identified and defined (Harkleroad 2006 p. 38).

It is the duty of the managers to come up with a sustainable development policy that will guide the activities of the firm. These may include alleviation of poverty for the local community, growth of the firm and such other objectives. As much as it is the responsibility off the management to formulate these policies, they should not do it independent of other stakeholders in the business (Daly 1997 p. 13). Wider consultations are called for, and this is the only way that the expectations of various stakeholders can be addressed.

The sustainable development policies such formulated must meet a number of minimum requirements. Ambiguity and ambivalence must be avoided, and clarity withheld (Moore 2008 p. 102). They should also be realistic and within the capability of the firm. There is no point to set ambitious goals that are not likely to be attained, as this will negate the significance of the whole process.

Formulation and Execution of an Implementation Plan

A plan conceptualising the changes that will be carried out in the firm’s management system must be formulated (Daly 1997 p. 16). This will involve translation of the sustainable development strategies that have been identified into operational terms (Daly 1997 p. 16).

Just like in the case of formulation of policies and strategies, this step also calls for the incorporation of all the stakeholders in the business. This begins by having the management disseminate information regarding the decisions that have been made to all the stakeholders. This makes it clear to the latter what they are expected to do to achieve the goals and objectives of sustainable growth and development.

Formulation of a Supportive Corporate Culture

A supportive corporate culture is essential to ensure that the stakeholders and other people involved in the running of the international business gives their best and they adhere to the plans formulated to achieve sustainable growth (Harkleroad 2006 p. 44). Moore (2008 p. 110) is of the view that in their efforts to come up with sustainable growth and development strategies, many businesses experience a kind of a rebirth. The employees are actively involved in the process, they change their attitudes accordingly and their enthusiasm for the same changes the cultural orientation of the firm.

Formulation of Measures and Standards of Performance

After the goals and objectives of sustainable growth and development have been formulated, there needs to be a formulation of a measurement of performance, which will gauge the extent to which the firm is achieving the set goals and objectives (Harkleroad 2006 43). This means that information pertaining to the firm’s operations needs to be availed. This information will make it possible to gauge the performance of the business when compared with performance standards that are both external and internal to the same (Harkleroad 2006 43). The information may include, among others, the financial statements, output of the business, staff satisfaction.

The measures and standards of performance that the management will adopt will be informed by the nature of goals and objectives that have been set (Moore 2008 p. 112). This is because different goals call for different measures of performance, given that they will alter the reporting and management system of the firm. For example, if poverty reduction through corporate social responsibility is the sustainable growth and development objective, performance may be measured by the rate of poverty level in the community. On the other hand, if increment of retained revenues is the objectives, measurement may include the profitability of the business.

Formulation and Preparation of Reports and other Relevant Statements

The report should include the international business’s sustainable development goals and objectives, plans formulated to achieve the same, and the comparison of the firm’s performance against them (Daly 1997 p. 15). This report is prepared with the intended audience in mind. The target audience may include the shareholders, the government, the management, the employees or the community within which the business enterprise is operating from.

The report enables the management and other stakeholders to monitor the whole process. As such, the reports should be honest and truly reflect the performance of the company. This is because misleading reports may affect the monitoring process and alter the capability of the firm to attain and maintain sustainable growth and development.

Improvement of Internal Monitoring Systems

Monitoring systems helps the management to track the implementation of the goals and objectives of sustainable growth and development. His must be done continuously (Daly 1997 p. 17). The monitoring system is more often than not interlinked with reporting systems. For the management, it can assume several forms.

The management can review reports that have been submitted by their subordinates concerning the operations of the international business (Daly 1997 p. 17). Using the information from these reports, they can then gauge the performance of their enterprise. They can also monitor the activities of the employees themselves by visiting the working sites. This way, they can monitor the activities of their employees and gauge whether or not they are aligned with the goals and objectives of sustainable growth and development. The management can also hold regular meetings during which they are informed of the operations of the firm by their subordinates.

Attaining and Maintaining Sustainable Growth and Development in International Business: Challenges and Threats

From the above discourse, it was made obvious that the achievement of sustainable growth and development is a major concern for most of the international business executives in the world. As much as this is the case, this is no easy task for them. This is given the fact that the international business operates within a fluid and very dynamic, complicated environment (Costa 1997 p. 5). Political, economic, competitive and consumer trends rest on a constantly shifting ground (Costa 1997 p. 5). All of these factors pose challenges to the international business as the executives attempt to search for the sustainable growth rate (Buxton and Davidson 1996 p. 15).

For instance, the expectations of the contemporary consumer are significantly different from those of a consumer in the late eighties and early nineties. The emerging consumer, as a result of the fluctuating economic environment, tends to have less disposable income then their parents. This is a fact that makes them more discriminative and choosy as they make consumption decisions (Harkleroad 2006 44). The contemporary consumer is also more environmental conscious, demanding products and services that have been produced in a manner that takes into considerations environmental conservation. The international business, to attain sustainable growth and development from one generation to the other, has to shift in these changes. This is no easy task.

Growth strategy and growth capability appear to be inseparable as far as sustainable growth and development are concerned (Daly 1997 16). To achieve sustainable growth and development, the international business executives must pay attention to these factors in equal measures. When one of them is under estimated or ignored, the business is more likely to fail and sustainable growth becomes more elusive.

This is despite the fact that the business may attain short term growth rates and gains. For example, if the managers have a recommendable and sound growth strategy in place, but lack to implement the relevant infrastructure to achieve the same, sustainable growth and development will be attained. The strategy may be excellent, but the employees and other stakeholders have not been informed of it, and as such, their activities and operations are not aligned to its achievement. In the long run, achievement of sustainable growth and development may not be achievable.

Importance of Sustainable Growth and Development to International Business

The importance of the concept of sustainable growth and development to the international business can not be down played. According to Gallinger (2000 p. 50), it is crucial in helping the management to come up with strategies that lead to a healthy corporate growth. The managers are forced to take into consideration the financial impacts that any programme or project that they start will have on their business. For example, what will an increase in the sales of the business mean for the future financial stability? In this light, the targets and goals that are set by the management as far as future sales are concerned are in line with the financial policies that have been identified for the international business (Cole and Obtsfeld 1991 p. 23).

Sometimes in the course of the international business operation, a conflict can arise between the sustainable growth and development of the business and the set growth targets. This occurs when the two aspects of growth are not in tandem. For example, if the growth objectives are higher than the firm’s sustainable growth and development and vice versa.

Economists and other international business experts are of the view that if the sales of a business grow at a rate that is either higher or lower than the firm’s sustainable growth and development, some adjustments are inevitable. For instance, there are times when the growth rate is higher than the sustainable growth rate. In such an instance, the management adopts by borrowing money to support this growth and expansion, since it can not be supported by the revenue generated by the business. This is especially when the growth rate exceeds sustainable growth and development rate on an ephemeral basis (French and Poterba 1991 p. 222).

However, if the growth rate is higher than the sustainable growth and development rate of the firm for a longer period, new adjustments are called for all together. The managers have to come up with new financial strategies aimed at keeping the firm afloat. Any of the following strategies can be adopted:

Sale of New Equity

This is done to the share holders or any other potential investors who express an interest in the firm. The aim is to raise extra cash, where the managers feel that borrowing is not a viable option. The buyers of the equity become new share holders in the international business if they were not hitherto, or if they already shared holders, they do increase their shares in the firm (Jobson and Korkie 1989 p. 200).

Increase of Financial Leverage

This can be done permanently. This is whereby the managers opt to borrow from external financiers to support the growth of the firm. A case in point is when an international business takes a loan from a bank to open a new branch or a new factory. Unlike the sale of equity where the borrowed money is not returned to the financiers, loan is usually refundable, often with an interest (Tesar and Werner 1995 p. 490).

Reduction of Dividends

This is whereby the firm cuts back on the dividends that are supposed to be paid to the share holders. The money that is withheld from the share holders is then reinvested to fund for the expansion of the business (Epstein and Zin 2009 p. 951). This means that some of the earnings that are made by the company are retained instead of being distributed to the shareholders.

Increment of the Company’s Profit Margin

The extra profit that is sought by the company is the one that is used to fund for the expansion. This can be done by increasing the prices of the company’s goods or services. This means that the consumers in this case are the ones that pay for the expansion of the business (MacKinlay and Richardson 2001 p. 527).

Decreasing the Percentage of Total Assets to Sales

This is another strategy that is favoured by the managers when they are pressed for money to expand. The sales of the company are increased in relation to the assets that are held by the company.

In normal sense, the managers resort to these measures as a last option. This is because some risks are riding on each of the measures. For example, when the equity is issued, the cost of issue may be too high, eating too much into the company’s profit margin. The earnings per share may also be diluted, making the equity sales an unattractive venture both to the company and to the share holder. It is also an unreliable source of funding. This is because it is very hard to come into agreements with the financiers as to the terms of issue that will favour the issuer, meaning that the company may face the risk of issuing the equity at very low prices (Tesar and Ingrid 2004 p. 4611).

Also, an international business can borrow money for expansion if it has assets that it can use as collateral. Also, the ratio of debt and equity of the firm has to be favourable if the financier is to consider extending a loan to the company. When the firm reduces the dividends on its shares on the other hand, it may have negative impacts on its share prices.

Sustainable growth and development rate of a firm is used by financiers when the firm is seeking extra financing, where it already has borrowed money that has not been fully repaid. However, this scenario is not attractive to the managers, given that the increase in amount of loans may affect the ratio of debt to equity in favour of debts. As such, most international business managers opt to reduce the rate of growth instead of borrowing for expansion.

Firms that are considered to be mature and stable in their industry usually exhibit an actual growth rate that is lower than the sustainable growth and development rate of that particular firm. Instead of the managers concentrating on efforts to find extra funding for the company, they are concerned with finding productive and beneficial use for the extra revenue generated. The international business may opt to use the extra revenue by increasing the dividends paid to the share holders. It can also be used to finance the debt that the company has already accumulated.

Sustainable Growth and Development of International Economies

The writer has so far concentrated on sustainable growth and development as far as international business enterprises are concerned. It is also important to address how international economies can address the issue sustainable growth and development in their context (Levy and Marshal 2007 p. 668).

Sustainable Growth and Development of International Economies through Diversification

Several strategies are available to be used by international economies to attain sustainable growth and development. One of them is diversification of exports, where a country stops relying on one export commodity. The recent economic melt down that was experienced around the world in the year 2008 and 2009 especially heightened the importance of diversification as far as exports are concerned.

According to Almas (2009 para. 6), majority off the developing countries are today resorting to export diversification to facilitate growth and development of their economies and to cushion the same against unfavourable trade relations. For example, the countries may be resorting to this mode off sustainable growth and development to cushion against fluctuations off their terms of trade which may have far reaching effects on the economy. They also diversify export to “stabilise domestic incomes and employments” (Almas 2009 para. 6). This is especially so because developing countries are involved in the exportation of raw materials and unfinished goods to the larger extent. These commodities tend to experience fluctuating prices, unlike finished products that are exported by the developed nations and which have a relatively stable price (Haselmann and Hewartz 2005 p. 28).

The significance of export diversification can not be down played in the context of international economies especially in developing countries. A country which relies so much on one export will suffer negatively as far as their economy is concerned when the price of the same fluctuates. Jobs will be lost; terms of trade will take a negative turn and affect the country and such other impacts. But a diverse export portfolio will cushion the economy against such negative developments (Fang and Warnock 2006 p. 1220).

Almas (2009 para. 5) conceptualises diversification as a two pronged phenomenon in the international market arena. First of all, the economy must have manufacturers, from whom the goods and services that are to be exported are sourced from. This means that the country must come up with strategies that encourage growth of manufacturers who concentrate on the production of varying goods and services. One of such strategies is to level the playing field such that no preferential treatment is given to some manufacturers at the expense of others. Subsidies can also be used to attract investors, together with strategies aimed at making the entry to the manufacturing sector easy (Chabot and Kurz 2009 p. 972).

New markets must also be sourced for the extra goods and services that are being produced. This is especially the case where the current market is deemed to be insufficient to absorb the increased production. To this end, authorities must engage in marketing campaigns to popularise the products and services that it has to offer in the international market (Chhaochharia and Laeven 2008 p. 66). This can be carried out through the hosting of trade fairs, where manufacturers from the country get the chance to exhibit to the rest off the world what they have to offer. The authorities can also brand their products, which ensure that they are distinct from like products in the world market. For example, a country that deals with the exportation of agricultural products such as coffee can brand their product, ensuring that consumers all over the world will associate what they are taking with the country of origin (Engel and Matsumoto 2005 p. 165).

Another form of diversification that can be carried out by the developing nations is to ensure that they move away from relying solely on primary goods, and expand their operations to include exportation of manufactured goods. A study that was carried out by the World Trade Organisation, and cited by Almas (2009 para. 2) indicates that the developing economies are moving away from over reliance on primary goods as their exports. They are making efforts to engage in the exportation of finished or semi-finished products. This trend, according to the World Trade Organisation’s study (Almas 2009 para. 2) has been most notable during the past three decades.

Diversification of Exports as a Strategy for Sustainable Growth and Development in International Economies: A Case Study of Pakistan

Almas (2009 para. 3) gives the case of Pakistan, which has successfully diversified its exports in the past two decades as a strategy for sustainable growth and development off their economy. For example, in the year 1980 to 1981, forty four percent of Pakistani exports were primary. In the year 1990 and 1991, ten years down the line, this has reduced to nineteen percent off the exports. As the 1990’s decade came to a close, the percentage of primary goods exported by this country has dropped to less than twelve percent off the total exports (Sawyers 2006 p. 22).

As the percentage of primary goods in Pakistani exports decreased, that of manufactured goods was rising proportionately. In the year 1980 and 1981, manufactured goods accounted for forty five percent off the total exports. This increased to fifty seven percent in the year in the year 1990 and 1991, and to seventy seven percent in the year 2002 to 2003 (Almas 2009 para. 4).

During the same period, the share of semi manufactured goods exported by Pakistan remained more or less the same. It ranged from eleven to fourteen percent of the total exports, according to Almas (2009 para. 5). This observation is very significant. It means that the vacuum left by the fall of primary goods was not taken by semi manufactured goods or shared between the semi-manufactured and manufactured exports. Rather, the space was taken fully by manufactured goods. This, according to Almas (2009 para. 5) is a very important development to the Pakistani economy. It indicates that the value addition that the economy was able to achieve for its exports can help it attain and maintain sustainable growth and development.

Sustainable Growth and Development: A Critique

In the preceding sections of this paper, the writer has given a glowing account of sustainable growth and development in contemporary society. However, it is noted that not everyone in the society views this phenomenon through these positive lens. Some feel that it is more costly than it is beneficial to the society. Failure to acknowledge the contention of this school of thought will make this discussion incomplete.

According to Anderson (2000 p. 22), the developed nations use the concept of sustainable growth and development to curtail economic prosperity in developing nations of the globe. For example, the developed nations, when talking of sustainable growth and development in the context of environment, they advocate for reduction in the population growth rate. They also advocate for agriculture programs that are sustainable environmentally.

A closer look at these programs will reveal that they are low-income agriculture products, meaning that the developed nations will continue to manufacture while at the same time encouraging the developing nations to go back to agriculture (Anderson 2000 p. 23 and Aguirre 2002 p. 923). In effect, the developed nations assume a semblance of protecting the resources of the world while their real motivation lies in controlling the same.

On his part, Aguirre (2002 p. 935) faults sustainable growth and development policies based on their consequences, noting that some of them are negative, while others are unknown. He is of the view that the policies can be used to encroach on individual and corporate freedoms. For example, a regime may close down a factory that they consider to be against their political agenda by invoking environmental concerns. The regime may claim that the factory or business is engaging in unsustainable practices, while the truth of the matter is that the corporation was a threat to the regime.

Tropicana Products Company

This is one of the multi international companies that have emerged as a result of globalisation and the industrialisation riding on it. It has its origins in the year 1947, and it is an American based venture (Rich 2006). The headquarters of this company is to be found in Chicago, Illinois. It was founded by one Anthony Rossi. Since the year 1998, the company has been run by PepsiCo, Inc., which acquired it and has been operating it ever since.

This company can be conceptualised as one of the many multi nationals that have made efforts to grow sustainably. Some milestones to this end are identifiable when one looks at the history of this company.

Rossi, the founder of this company, did something in the year 1952 that saw the revolutionization of this company. He acquired a grape fruit canning company in Bradenton area where he sought to use the facility to produce orange juice (Quigley 2003). This venture was so successful such that he opted to abandon other products to concentrate on the production of fruit juices. To further this venture, he came up with the idea of flash pasteurisation (Braga and McQuaid 2009). Through this innovation, the temperature of the fruit juice could be peaked rapidly for a short spurt of time. This way, the freshness of the juice was preserved, and the consumer could now enjoy a packed fruit juice that is fresh. This is as opposed to the concentrated juice that was the norm in those days.

From the above discourse, the fact that innovation is a means of attaining and sustaining sustainable growth and development is obviated. The development of the flash pasteurisation was an effort to give the company an edge in the market, taking it a long way in the path of sustainable growth and development.

When Rossi purchased the fruit company in 1952, it was known as Grapefruit Canning Company (Braga and McQuaid 2009). However, the name was changed to Tropicana Products in the year 1957 (Quigley 2003). This was an ingenious tact by the company’s management to appeal to the consumers by the use of branding. It is important to note at this juncture that branding is one means of attaining sustainable growth and development in an international business context, and Tropicana was aware of this fact.

The juice that was produced through the innovation of flash pasteurisation came to be known as Tropicana Pure Premium (Alissa 2009). The company used this as their flagship brand, a brand that is uniquely theirs. This is still another conscious or subconscious effort by the management to attain sustainable growth and development. This is by having a brand that can be identified with the company, creating customer loyalty.

Expansion is another option that the company picked on to attain sustainable growth and development. In 1969, the company was listed in the New York Stock Exchange (Braga and McQuaid 2009). Listing is used by companies to raise extra capital for expansion. This is favoured against borrowing capital to expand. This is because the investors inject their monies into the company, and their debt is turned into share capital. As such, the company averts debt burden, and can use the extra capital to expand extensively.

Summary

This chapter dealt with a review of literature that exists and is relevant in the field that this study is to be conducted. Sustainable growth rate, which is the pace at which a business can comfortably grow and develop without the need for external funding, was analysed. This is together with its accompanying use to the international business. The researcher also looked at international business management and achievement of sustainable growth and development. The seven steps that are needed to be followed to make the business’s management adopt sustainable growth and development culture were highlighted. This was followed by the challenges encountered by managers as they go about implementing sustainable growth and development strategies and management.

In the next chapter, the researcher is going to highlight the method of data collection. This will involve the steps that were followed when data was being collected and justifications of the same.

Methodology

Introduction

Like earlier explained, this chapter is going to highlight and justify the method used for data collection in this study. Data were collected using two tools; a structured questionnaire and a semi structured interview. The structured questionnaire was first administered, and then followed by the semi structured interview. The role of the interview was to clarify on the responses made on the questionnaire. The questions on the latter were also drawn from the questionnaire, and structured according to the responses that were highlighted on the questionnaire. A group of twenty respondents was identified for the study. These were international business executives and scholars on the same topic.

Target Population

Hart (2001 p. 181) defines the target population as that totality of which the researcher is interested to study a certain phenomenon or character. It is a totality that has commonality in terms of certain attributes, for example age and race, and which makes them belong to one distinctive group in society.

In this study, the target population was international business executives. The reader needs to note that the researcher deliberately made the executives and scholars the target population and not the international business themselves. Under normal circumstances, since the study is about international business, it would have been expected that international business is the target population. However, given the fact that international businesses are likely to be scattered around the globe, it would have been hard for the researcher to carry out a comprehensive study on them. However, it was relatively easy to carry out a study on the business executives and scholars since the researcher could communicate with them via the internet in cases where physical contact was not possible.

Sample Population

Adeloitte (2008 p. 7) is of the view that, due to the sheer size of the target population, it is always impossible to carry out a study on all of it at the same time. To address this problem, the researcher carries out the study on a small portion of the population and then performs what Hart (2001 p. 188) refers to as sample generalizability. The portion of the population that is chosen for the study is referred to as a sample. For it to be representative of the whole population from which it was drawn from, it must have the characteristics that are associated with that population. This is the only sample generalizability, which is the extension of findings and observations on a sample to the whole population, can be carried out. The sample population in this study was made up of forty respondents (N= 40).

The forty were drawn from two companies, Tropicana and Innocent. Each of these companies produced twenty respondents.

Sample Size

As indicated in (1.3) above, the sample size was forty international business executives.

Sample Characteristics

Of the forty respondents, twenty were male while the other twenty were female. This balance in gender was not by default, rather it was by design. The researcher intended to make the study appear unbiased, and the final results could not be faulted in terms of lack of gender balance.

The forty respondents were drawn from Tropicana and Innocent soft drink companies, twenty from each company. Ten of the respondents from each company were male, while the other ten were female. Again, this gender balance was by design, to eliminate bias based on gender.

All of the executives had an experience of heading international business at various capacities and various locations in the world. All of them had experiences ranging from two to five years. The scholars had a minimum of Masters Degree in their respective fields. This criterion for the scholars and the international business executives was meant to increase the credibility of the study.

Sampling Procedure

Sampling procedure is the process that the researcher follows when selecting samples for the study. Several sampling procedures are at the disposal of the researcher. However, care must be taken in selecting the one that will meet the needs of the study.

In this study, stratified sampling was used. The researcher first identified the corporations from which the executives were to be drawn. The corporations were stratified in terms of those that were international and those that were not. From these strata, the researcher picked those that were international. Those that were international were also stratified in accordance with the continents within which they operated. The researcher picked those companies that were from the United Kingdom. This was done for convenience of the researcher. The latter comes from this country, and given the short time within which the study was to be completed, it was prudent to come up with samples that were easily accessible.

The researcher further analysed the companies in the United Kingdom according to their products. They used their subjectivity to come up with two companies that were involved in the soft drinks industry. The two selected companies were Tropicana and Innocent. These two companies were selected given that they are some of the leaders in the soft drink industry in this company, and they are multi nationals with operations in the United Kingdom.

The researcher further stratified the staff from Tropicana and Innocent according to the level that they occupied in their companies. Only the executives were picked for the study, meaning that the other members of staff that were not involved in the running of the business were not involved. Each of these corporations had twenty of their executives selected for the study. The researcher made sure that the respondents were proficient in English. This was to maintain ease of communication. There was the option of using the services of a translator for the executives that were not English speakers. However, the researcher felt that some meanings in both the questions and the responses may be lost in the translation process.

It is important to note that the line of business that the international businesses engaged in was not taken into consideration. The researcher was more interested in the fact that the businesses were international in operation. As such, the fact that the two companies were soft drink market players in the United Kingdom was not seminal in determining the direction of the study.

Administering of Questionnaires

The respondents in this research were unique in their diversity of both culture and locations from where they worked from. This is despite the fact the two sample companies were located in the same country. This is given the fact that they were a collection of professionals from the global market. This aspect presented to the researcher challenges that were also unique. For example, some of the respondents came from different cultural backgrounds. There were others who, given the nature of their work, were in continual movement. They had to spend a lot of time outside their offices, travelling abroad or regionally on business. The researcher couldn’t establish physical contact with them.

This problem was addressed by the use of the internet. The researcher contacted the respondents using e-mails and over the phone. Six respondents were abroad throughout the study, and this was the only way that the researcher could contact them. They were requested to participate in the study via e-mails, and when they accepted, the questionnaires were sent to them via the same means.

The questionnaires took a total of thirty minutes to fill. They were administered before the semi structured interview could be carried out. They were to be completed in privacy. Given the fact that the respondents were professionals with high levels of education, the researcher did not anticipate serious problems in the completion of the questionnaires.

Instructions were given to the respondents to complete the questionnaire and return them within seven days. The researcher found it prudent to leave the questionnaires with the respondents to complete them at their pleasure. This is because it was recognized that given their level of duties in the society and their organizations, they were likely to have tight schedules. As such, it would have been too much to expect them to complete the questionnaires in one sitting. It was after receiving the questionnaires and evaluating the responses for each of the respondents that the researcher conducted the interview. The interviews were conducted over the phone for those respondents abroad and face to face with those that were available locally.

To ease the compilation of data from the questionnaires for each of the respondents, it was important for each of them to be identified and their responses tracked down. This presented an ethical dilemma for the researcher. To safe guard the privacy of the respondents, it is important to eliminate the necessity for them to indicate their names on the questionnaires. The researcher addressed this problem by assigning each off the respondents a number code. To enhance privacy, it was only the researcher who was aware of the code for each of the respondents. The questionnaires were marked with this code.

Structure of the Questionnaire

The questionnaire was made up of several sections. The first section sought to find out the personal and professional background of the respondent. This included questions covering areas such as age, experience in terms of years, gender and such other pertinent data. The other section sought to locate the respondent within the international business scenario. It covered questions such as the future objectives of the respondents as far as their professions as international business executives and scholars were concerned. This section aimed to connect the responses that will follow from the preceding sections with the professional articulations of the respondent.

The next section of the questionnaire introduced international business and sustainable growth and development. The respondents were asked about the sustainable growth and development strategies that they preferred and used in their businesses. The reasons for using these strategies were sought. They were also asked about strategies that they would prefer to use but were unable to. The questionnaire also sought to find out the challenges that the respondents experienced in implementing the strategies. The other section sought the views of the respondents concerning the future of sustainable growth and development in international business.

Conducting Interviews

After the respondents completed and submitted the questionnaires, the researcher went through the responses and formulated questions that will be posed to the respondents on individual cases. This meant that the questions did vary from one respondent to the other. This is because in most of the cases, the researcher was seeking clarification on issues that had arisen from the responses of the questionnaire.

The interviews took a total of fifteen minutes for each of the respondents. Unlike the questionnaires, all the questions for the interview were to be completed in one sitting, and that was one of the reasons why they were made short. They were carried out on a personal basis for the respondents that were in the country and over the phone for those that were abroad. For those that could not be contacted over the phone, the researcher also used the “chat” feature on the internet to interact with them on a real time basis, and this was how they were interviewed.

The responses from the interviews were combined and integrated with those from the questionnaires for each of the respondents. The individual nature of the interviews necessitated the researcher to treat all the responses from the respondents on a personal basis too.

Ethical Considerations

In any research that involves human subjects ethical considerations can not be ignored. The researcher must ensure that the study conforms to guidelines set down within the field of the study regarding dealing with humans. This study was no exception.

The first ethical consideration involved informed consent. When the potential respondents were approached with the request to participate in the study, the researcher made it clear to them what the study involved, what was expected of them and the duration that they would be committed. It was made clear to them that they had the freedom to opt out of the study at any point without any repercussions. Despite this assurance, the researcher also informed them that it would be preferable if they remained as part of the study throughout.

Another facet of ethics that was put into consideration during this research was privacy and confidentiality. The respondents were assured that their responses will be used solely for the purpose off the study, and will not be disclosed to third parties without their consent. This statement was included at the introduction part of the questionnaire and the beginning of the interview.

There was danger of jeopardizing the privacy and confidentiality of the respondents when the researcher found that individual responses from the questionnaires will need to be tracked. If the names of the respondents did appear on the questionnaire, and it happens that the questionnaire is accessed by an unauthorized third party, the responses therein and the respondent will be compromised. This is the reason why the researcher opted to allocate each and every of the respondents a numeral code. However, this code was only by the researcher, and as such, will not make any sense to a third party who accesses the information.

To ensure that the research was conducted within the set guidelines as far as ethical considerations were concerned the researcher had to submit the proposal for the study to the school’s ethical committee for approval. It was only after the proposal was approved that the researcher was given the right to go ahead with the study.

A Commentary of the Research

The study started with a total number of forty four respondents. But the required number was forty. The reason for this was the fact that the researcher was aware of the fact that some of the respondents may drop out the study before it was complete.

A total of forty eight executives were approached with the request to participate in the study. Twenty three were from Tropicana, while the rest came from Innocent. Of these, a total of forty six expressed their interest to participate. The other two, both from Tropicana, expressed their regrets given that they were moving out of the company. One of them was retiring in a two month, while the other one was moving to another company within one month. The researcher had the option of incorporating them in the study given that the period within which they would have been around the company, the administering of questionnaires and interviews would have been completed. However, the need for the availability of the respondents for future clarifications overruled their inclusion. They will not be available in the future, and thus would not have been incorporated in the study.

Out of the forty six possible respondents, two more dropped out based on their forthcoming vacations out side the country. As such, they would not be available. This brought down the number to forty six, composed of respondents from the two companies as earlier indicated.

The researcher went ahead to research the forty four respondents, despite the fact that it was only forty that were required. It was expected that the extra four will somehow drop out of the study.

This expectation came to be realised when, two weeks into the study, four respondents withdrew from the study. Two cited tight schedules, while the other two cited marital constraints. This brought down the number to forty, the exact number that the researcher wanted, and twenty from each company.

Two of the respondents who were based overseas in the period of the study were late in submitting their completed questionnaires within the specified seven days. However, given the fact that the researcher needed a total of twenty respondents and the extras had opted out, these respondents had to be accommodated. This is especially so considering that they expressed desire to complete the questionnaire.

Summary

The steps that will be followed in collecting data for this research were outlined in this chapter. This included the structuring of the questionnaire, the selection of the respondents and a commentary of the whole process. Justifications were also given where necessary. The next section of the paper is going to outline the findings from the research. This is a combination of both the questionnaires and the interviews.

Findings

Identified Strategies to Attain and Maintain Sustainable Growth and Development in International Business

All of the questionnaires were completed and submitted, although some, like the two indicated above from overseas executives, were submitted late. The interviews were also conducted successfully. After the responses from the questionnaires and the interviews were collected, the researcher embarked on data analysis.

The respondents were asked to name five strategies they are aware of as far as attaining sustainable growth and development was concerned. The following were five of the most cited strategies:

1. Alteration and change of management style
2. Embarking on corporate social responsibility
3. Diversification of the international business
4. Adaptation to local community structures, local politics and other characteristics unique to the location of the business
5. Mentoring of staff through motivation talks and other motivation techniques such as remuneration and compensation

The reader should note that the responses as presented above do not follow any particular preference order.

Most used Methods for Attaining and Maintaining Sustainable Growth and Development in International Business

After stating the methods and strategies that they were aware of, the respondents were next required to state the methods that they applied the most in practices. In the case of the scholars, they were requested to state the strategies that they would have applied were they executive managers. The responses are as follows:

1. Change of management style – 40%
2. Adaptation to local situation – 21%
3. Corporate social responsibility – 15%
4. Diversification of business – 12%
5. Mentoring and motivation of staff – 8%
6. A combination of any of the above two – 4%

It was found that it was possible to use a combination of any two of the strategies for sustainable growth and development. The combination mix was determined by what the managers deemed to be the best solution for the business that they were heading.

Most Preferred Strategies

As earlier stated, there is a difference between the strategy that is used and the one that the respondents would have preferred to use. However, for a number of reasons, the respondents found that it was not possible to adopt their preferred strategies, and had to settle for the most applicable at that time, even if it was not their preference. The findings are as stated below:

• Change of management style – 39%
• Corporate social responsibility – 26%
• A combination of any two strategies – 17%
• Adaptation to local situation – 10%
• Diversification of international business – 5%
• Mentoring and motivation of staff – 3%

Challenges Faced in Implementing Strategies for Sustainable Growth and Development in International Business

Another facet that the researcher was interested in as far as international business is concerned was the challenges that are faced and encountered by the managers as they implemented the sustainable growth and development strategies. The following table displays some of the concerns that the respondents expressed:

Lack of staff commitment was identified by a large number of the respondents (36%) as the largest hindrance when it comes to implementing sustainable growth and development. This can be attributed to the management’s inability to educate their staff as to the importance of these strategies. Twenty four percent of the respondents felt that lack off funds was the greatest challenge that they faced. However, this lack of funds should not be construed to mean that the business was undergoing financial problems. It just means that there was a shortage in the amount of money that was set aside for sustainable growth and development programs.

This can be viewed as being related to lack of staff commitment, for the members of staff that were responsible for setting aside money for these programs did not take them as important. This was especially higher for those companies that adopted strategies that were not commercially oriented, for example corporate social responsibility and motivation of staff members.

The other problem that was cited was hostile local communities (20%). This was especially so for those firms that did not engage in strategies that were centred on the local communities. For example, the respondents that reported business expansion as their preferred strategy made up the majority that complained of hostility from the local communities (47%). The hostility was expressed in various forms, for example boycotting the products and services of the firm. Other challenges were that the political environment of some places was not conducive for implementation of sustainable growth and development strategies, for example where the international businesses had to bribe the government officials to be allowed to expand and to access trade and other forms of licences. Lack of clear guidelines and competition were some of the other challenges reported at six percent and four percent respectively.

Problems Encountered in the Field

Hart (2001) is of the view that the researcher encounters a number of challenges in the process of collecting data depending on the nature of their study. The challenges are the factors that threaten the success of the study, and they have to be addressed in one or the other if the research is to be completed.

During this study, the researcher encountered a number of challenges that had to be overcome for successful completion of the research. Some of them were located within the study itself, while others were from without the research. The former could be addressed by changing some aspects of the research, and they were within the control of the researcher. But those that were external to the study were beyond the researcher’s control. As such, the study had to be altered to accommodate them.

As earlier indicated, some of the respondents were abroad or away from their offices during the period of the study. It was a challenge to establish contact with them on a personal basis. The researcher overcame this by establishing contact through the internet. As indicated earlier on, the “chat” feature of the internet was used to conduct interviews where phone contact could not be established.

There was also the issue of privacy and confidentiality of the respondents’ data. Given that the questionnaires needed to be identified for each and every of the respondents, there was a danger of compromising their privacy. This was averted by having the researcher allocate codes to each and every of the respondents. The codes were only known to the researcher, and as such could not be deciphered by a third party.

The time that the researcher had to conduct the study was short. Given that duration, it was hard to conduct an in depth and insightful study on the topic. To avoid having a study that was conducted without enough data due to time limitation, the researcher had to use questionnaires and interviews to collect the data. This is because other techniques such as observations and focused group interviews would have taken a lot of time as tools for data collection.

The resources allocated for the project were meagre. The study was conducted using a moderate budget. The researcher was forced to cut back on some of expenses that they deemed to be not so necessary. This is for example using public transport instead of private car, being hosted by friends when travelling, instead of staying in hotels and such other factors.

Summary

This section of the paper presented to the reader the findings from the questionnaires and interviews submitted by the respondents. The findings were presented in accordance with the order that was followed in answering them. For example, the question on the strategies that the respondents were aware of as far as sustainable growth and development in international business was concerned came before that of the preferred strategy. This was the same order that was followed in presenting the findings. The challenges that the researcher encountered on the field were also highlighted. These were both external and internal challenges, which included lack off resources, distance between the researcher and some off the respondents, the lack of time among others. The steps that the researcher followed in addressing and overcoming these challenges were also highlighted.

It is important to note that the researcher merely reported on the findings and observations that were made during the research. No effort was made to analyze these findings. The researcher will use the next section of the paper to analyze the findings and provide a discussion on the same.

Discussion and analysis

Introduction

In this chapter, the researcher will take the reader through a discussion and analysis of the meaning of the observations and findings made in the previous section. The discussion will try to connect the findings and observations with the objectives and research questions that were presented at the beginning off the study. Efforts will be made to analyze whether or not the findings answered the research questions, and if so, to what extent.

Importance of Sustainable Growth and Development in International Business

The findings of this study confirmed the assertions of the researcher to the effect that international business executives are aware of the importance of attaining and maintaining sustainable growth and development. They were aware of the fact that, for the long term success of international businesses, strategies have to be formulated that address the long term as well as the short term concerns of the business. No business can survive in the competitive environment of the global market if it does not have a sustainable growth and development strategy.

Sustainable growth and development are important to ensure that the business can grow and expand comfortably without the need for external financiers. The respondents are also aware of the fact that too rapid a growth is not favourable for a long term development of the business, just as too slow a growth. In this light, the importance of striking a balance between the two is realized.

Importance of the Community in Sustainable Growth and Development of International Business

From the responses in this study, the researcher realized that a lot of importance is attached by the international businesses to the host community within which they operate. This finding supported the views of Mennis (2009 p. 36) who was of the view that contemporary international businesses, as compared with those of earlier decades, are taking the welfare of the local community seriously.

During the eighteenth century, business executives in the global arena were more focused on making profits for their firms. They did this in disregarding top the local community. In some cases, for example where slavery was prevalent, they exploited the local resources to make the profits. This view seems to have changed in the twentieth and twenty first centuries. The executives realize that without the goodwill off the local community, their business is at risk. This is because the locals are the ones that provide labour, and in some cases, is also part of the market targeted by the firm.

This realization has increased the relevancy of corporate social responsibility as a strategy for sustainable growth and development. Many firms have established projects that are aimed at giving back to the local community.

Importance of Combining a Number of Strategies to Attain Sustainable Growth and Development

The researcher found that a number of executives in the international business arena have realized that they can adopt more than one strategy to achieve sustainable growth and development. The combination will vary with the unique circumstances and experiences of the firm.

Summary

The findings of this study answered some of the research questions while at the same time it raised new questions that needed to be addressed. One off the research questions was the importance of sustainable growth and development in the context of international business. From the findings, it can be safely assumed that this phenomenon carries with it a lot of importance for the international business. There is no international business that is interested in its future that will not address the aspect of sustainable growth.

Another question that the study sought to address was whether there was a particular strategy that is favoured by many when it comes to sustainable growth and development of international firms. From the findings, management and corporate social responsibility strategies seem to be the most favoured, both in practice and in preference. This is because, according to Sawyers (2006 p. 22) these strategies have continued to work for the international community. As such, firms borrow from their peers and adopt them too. Social corporate responsibility as a preferred strategy for sustainable growth and development can be attributed to the change off attitude by the international investor. These investors, more than ever before, continue to realize the importance of safeguarding the environment and community within which they operate.

However, the research findings did also raise some pertinent questions, some of which the researcher was able to address in this study, while some can only be addressed by future insightful studies. Those questions that the researcher could not address are indicated in the recommendations’ section of this paper.

Conclusion

In this study, the researcher sought to find out information regarding several aspects of sustainable growth and development in the context of the international business. They made use of two companies in the United Kingdom, Tropicana and Innocent. Both of these companies are involved in the soft drink industry. The aspects sought included the strategies that are adopted by most of the international business enterprises and the challenges that are faced in the process.

The study was conducted on a group of forty respondents, made up of twenty international business executives from each of the companies selected. The group was made up of twenty males and twenty females. This was aimed at eliminating bias of the findings.

The data was collected by use of a structured questionnaire and a semi-structured interview. The questionnaire was the first that was administered, and the questions for the interview were derived from the responses so made. The questionnaire was to be completed within seven days, and there after, the interview was conducted. For the respondents who were abroad, and with whom the researcher could not establish physical contact, correspondence was through the internet and phone calls. The questionnaires were sent over the internet, while the interview was conducted via the phone.

The research suggested that there are a number of strategies that are at the disposal of the international business. These include corporate social responsibility, restructuring of existing management structures, adaptation to local situation, motivation and mentoring of employees and diversification of the international business. The findings also suggested that majority of international businesses are aware of the importance of adopting strategies that will address their sustainable growth and development. This was true to all organisations, even those that did not implement the strategies. The lack of implementation was not due to lack of information, but rather, it was out of choice.

Some strategies were found to be favoured more than others. These included adoption off management styles compatible with sustainable growth and development, and initiation of corporate social responsibility. Some challenges are encountered by the managers as they try to adopt strategies for sustainable growth and development in their businesses. They are, among others, lack of funds, lack of staff commitment, failure to put in place guidelines for sustainable growth and development by the firm, hostile local communities, unfavourable political environment and competition from other international enterprises, and in some cases, local enterprises too. Most of these challenges were inter-related, such that one led to the other. For example, competition will affect the profitability off the international business, leading to lack of funds to implement the strategies. This in turn led to hostile local communities in some cases, thus completing the scenario of a vicious cycle.

The findings of the research answered some of the research questions that the researcher sought to address at the start of the study. These included the importance of sustainable growth and development to an international business. They also pointed to the fact that there are a number of strategies that are available, and which can be used by the international business to achieve sustainable growth and development.

However, the research also raised some questions that the researcher could not address in this particular study. One of them was whether it was possible to come up with a universal strategy for sustainable growth and development that can be adopted by all international businesses regardless of their location or orientation in operations. This question was raised after it became apparent that there are a large number of strategies which can be combined to work for certain businesses well than others. The findings also raised questions pertaining to the reasons why some strategies worked well for some organisations and not for others. The researcher tried to ask themselves whether this could be related to the unique environments within which the businesses operated.

Areas for Future Research

The questions that arise from a research indicate to the researcher that it is not possible to explore all aspects of a discipline in one single research. Areas of the field that the research was unable to tackle could benefit from a future study directed at them. The researcher in this case identified a number of such areas:

Comprehensive research should be conducted to find out whether there is a possibility of developing a universal strategy for sustainable growth and development in international business.

It is also expected that research aimed at finding out the factors that make one strategy work for one business and not for another will be beneficial.

Another area that could benefit from future research is the interplay off culture and sustainable growth and development in international business. This is because it is recognised that international businesses work within a variety off cultural environment. This will give the international business a societal face by highlighting how some attributes off the society contribute or affect sustainable growth and development.

Recommendations

After carrying out the research and analysing the data that was collected, the researcher had some recommendations that they would wish to make to the reader and the international business community at large. This is including the scholars who are involved in international business; in effect. All stakeholders in international business are expected to be impacted by the recommendations. The recommendations are as follows:

1. Comprehensive and insightful research should be carried out to investigate the interplay of culture and sustainable growth and development in international business.
2. It is also recommended that international businesses adopt strategies of sustainable growth and development that are likely to work for their business. This is because so far, going with the current knowledge available in the field, there is no one universal strategy that will work for all businesses. This is until further studies agree or disagree with this assertion.
3. Before implementing any sustainable growth and development strategy, it is important for the international business to carry out an internal analysis that would reveal their strengths and weaknesses. That is the only way that they can achieve the recommendation (2) above, and identify the strategy that would work well for them.
4. It is recommended that sustainable growth and development strategies be incorporated in the every day operations of the international business. In other words, every international business should have in place strategies for attaining and maintaining sustainable growth and development.
5. The findings of this research suggest that international businesses should be aware of their sustainable growth rate. This is the only way that they will be able to realise the rate off growth that they can comfortably accommodate. As such, it is recommended that every international business constantly compute and review their sustainable growth rate. This is given the fact these rates are going to fluctuate given the varying performance of the company from one period to the other.

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