International Business Environment Essay Example | Topics and Well Written Essays - 3000 words - 3

International Business Environment - Essay Example (Koontz 1984) Gabor (1990) in his analysis has mentioned that the theory of management has developed over the past one-hundred years growing from the time and motion studies of engineers to get influenced by the social movements or events; from a decentralized operation to the concept of looking for the best or supremeoperative mode of an organization or Total Quality Management or TQM. (Gabor, 1990) There are various theories associated with the organizational management and those theories are developed based on functionality of various departments. Those theories are revised with the time depending on various real life examples (incidents of various departments in various organizations) over the world. All those theories have various advantages as well as some limitations. In this paper the focus is to analyze three of the following theories, their applications and most importantly what are their advantages and what are the limitations. The Three theories are: International Product Life cycle theory; Krugman’s First Mover Advantage Theory and Porter’s Diamond model. The life cycle of any product can be divided into four distinct parts namely: introduction phase, growth phase, maturity and decline phase. When any particular product first introduce in the market then the demand for that product remains high as people wants to buy the new product. Soon after the introduction, the product often passes through the growth phase where the sales volume hit the top. Slowly it reaches the maturity phase when the demand and supply meets one point and the product is able to reach its ultimate high in terms of demand. This is the normal product life cycle associated with any product all over the globe. The IPLC or international product life cycle model was first designed by Vernon in the year of 1966. The main objective of this mode was to develop an advanced trade theory beyond David Ricardo’s static framework of comparative advantages which was designed in