Issues Concerned With Developing Oversea Operations Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 2887 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? The report summarises the issues arising when KW DT Ltd is trying to establish its operations in an overseas destination. The report briefly describes the issues for chosen Location Singapore. The advantages of choosing Singapore as a location are covered. Don’t waste time! Our writers will create an original "Issues Concerned With Developing Oversea Operations Finance Essay" essay for you Create order The issues covered include the differences in the accounting standards across countries. The accounting differences will include the estimation and consideration of various risks such as translation and transaction exposure. Also issues of taxation and transfer pricing need to be addressed. In addition, for starting a new branch, it is of utmost importance that the cultural differences be patched up. For this it becomes imperative to understand the cultural differences first. The aspect has been briefly touched upon. Objective To understand the accounting and other issues which will arise and which must be considered when developing an overseas operation in locations selected amongst Singapore, Taiwan and South Korea. Introduction KW DT Ltd, until now has been operating from Australia. It has been invoicing primarily in Australian Dollars and hence it has not been exposed much to the risks of fluctuations in the exchange rates. However, when it is considering establishing itself in other countries, it will have to face several issues. These will include the accounting issues such as differences in standards and procedures, the risks due to currency fluctuations and the taxation issues. In addition, KW DT Ltd will also have to consider the legal procedures for setting up a unit in a foreign destination where the legal procedures will be different from Australia. Lastly, due to differences in culture, the people management has to be handled tactically. Prudence lies in an understanding of these issues so that appropriate measures can be taken. Location Chosen Singapore is ranked 1st in the world in the ease of doing business by the World Bank. The report describes the issues and concerns if KW DT ltd decides to set up a branch in Singapore (World Bank Site). On the same parameters, Australia ranks 9. Advantages of Setting up a branch in Singapore For KW DT Ltd, setting up a branch in foreign country should basically provide three most important benefits. Succinctly stated these would be Strong Foothold in International Markets Cost advantage Tax benefits Singapore provides advantage in all the three aspects Foothold in International Markets Singapore is strategically located. It has access to most international markets. It is an integral part of the ASEAN (Association of South East Asian Nations). Hence enjoys trade relations with several markets both inter region and intra region. In addition the maritime routes enable Singapore an important destination. Setting up a branch in Singapore will definitely help KW DT ltd expand rapidly. Cost Advantage Singapore has efficient, hardworking labour available at relatively low cost. Hence the prospect of setting up a branch seems more lucrative. Tax Advantages The tax regime in Singapore is highly conducive for the corporate. The Income taxes as well as the corporate tax are low compared to several other nations. The tax rates shall be detailed further down the report. Although there are several benefits in setting up a branch in Singapore, there are also several issues and risks that need to be addressed. Some of the important ones include Accounting Differences Accounting standards differ across different countries. The differences occur due to following of accounting standards established by the supreme authority of the country. Singapore has modelled its accounting standards to match the IFRS. Whereas, the accounting standard followed in Australia happens to follow Australian Accounting Standards. Currency Exposure (Bennett, 2006) Until the firm was invoicing in Australian dollars, it was not facing currency risk. However, now that the branch is being set up in Singapore and its earnings will be in Singapore dollars, it will face currency risk. Currency exposure will include Foreign currency terms denominated in the balance sheet Actual, physical purchases and sales of goods and services which have yet to be involved Contracted purchases and sales such as long term contracts to purchase capital equipment and Uncontracted foreign currency denominated receipts and payments which will materialize if forecasted trading activity is realized. The exposure can take the form of translation, transaction or economic exposure. Translation exposure When the assets and liabilities in the balance sheet are converted to the foreign currency, their value is changed. This results in gain or loss. For instance if Singapore branch is reporting its asset in its local currency, when the balance sheet is translated into Australian dollars at the prevalent exchange rate, the balance sheet values change. Exchange rate movements from one balance sheet date to the next produce a period-to-period difference in the value of the Singapore Branchs balance sheet. Year Net Assets Exchange Rate 1 SGD= Australian Dollar Equivalent 1 SGD 20400000 AUD 0.77 $15708000 2 SGD 20400000 AUD 0.80 $16320000 3 SGD 20400000 AUD 0.75 $15300000 From the table, although the net asset value remains the same in Singapore dollars, the Australian dollar Equivalent changes because of the fluctuations in exchange rate. This brings a risk to KW DT Ltd. The company might need to undertake hedging depending on its acc ounting policies. Translation exposure affects the book values however; it doesnt affect the cash flows. Hence the company might assume its stand on hedging from no hedging to complete hedging. Transaction Exposure If the exchange rate changes during the course of a deal, this affects the cash flows to the company. This particular risk is termed as the Transaction exposure. For example if the branch set up in Singapore still sources its components from U.S on 30 days payment terms, the transaction is billed in dollars as follows Price to Singapore branch USD 1000000 Exchange Rate at order date 1SGD = 0.76 USD Expected cost in SGD = 1315789.4 SGD However, the SGD-USD exchange rates fluctuate to become 1SGD = 0.75 USD The cost in SGD becomes 1333333.3 USD Thus we see in addition to considering AUD- USD exchange rate, the company also has to consider SGD USD exchange rate. In order to avoid this loss, the company will have to undertake hedging. The company can use derivatives such as future contracts or currency options in order to cover its exposure. By entering into future contracts, the company can fix the exchange rates at which it will exchange SGD for USDs and hence be certain of the costs that it will have to incur to source its components at a future date. The issue is in reporting the exposures while preparing the Annual reports for KW DT ltd. Reporting the Differences The exposures mentioned above introduce changes in the book values and the profit and loss statement for the company. Hence accounting standards provide provision for the same. While KW DT ltd is preparing its consolidated books, it will have to keep in mind the provisions and mandate in the Australian Standards for accounting. The accounting standards applicable of interest include the AASB 121 (the Effects of Changes in Foreign Exchange Rates) and AASB 139 (Financial Instruments: Recognition and Measurement). AASB 121 (Aus1) This standard specifies the accounting procedures and standards to be followed. Foreign operations translate balances into functional currency: The exchange rate prevailing on the date of transaction is used for conversion from domestic to foreign currency. Closing rate is used to convert the monetary items on Balance Sheet. For items reported at historical cost, the exchange rate on the date of transaction is used. The differences, gains and losses are recognised under equity as ultimately these values affect the equity component. Foreign operations transactions When the foreign currency is reported in the domestic currency, the following have to be effected Closing period exchange rate is used for conversion purposes in case of monetary items. For non monetary items, the conversion is carried out using the exchange rate on the date when revaluation is being carried out. The differences in the values of transaction arising out of currency translation are recognised as income and expenses in the profit and loss account. In addition to considering the above points, it is also essential that disclosures should also comply with the standards specified under AASB 121. These include Profit and loss arising out of the currency translations The differences recognised under equity have to be reconciled and disclosed The reason for the change in currency in case the reporting currency and the currency of transaction are not the same. AASB 139 (Aus2) This standard specifies the accounting procedures and standards to be followed in case of using hedging instruments. Hedged Items The standard recognises a hedged item as one of the following. It can be an asset, a liability, a commitment of the firm, an investment in a foreign entity or a probable future transaction. Hedge Accounting The hedging could be carried out to ensure consistent cash flows, to maintain the value of assets or to protect form the risks of an investment. For Cash flow hedges, the change in the value of the instrument is recognised under equity in the balance sheet. To maintain the fair value of assets, the change in the value of the instrument is recognised in the profit and loss account. The accounting for net investment hedge is carried out in a similar manne to the accounting of the Cash flow hedge. Taxation The tax regimes in both the countries differ. Singapore has progressive taxation policy which makes it friendly for companies and investors. Double taxation has been done away with I Singapore. The dividends are exempt from taxation and the final tax is one paid on the taxable income. In addition, Capital gains are also not taxed. This makes the gain in sale of assets more profitable. Summary of Taxes (Solution, 2010) Tax Rate: 8.5% for taxable income till S$ 300,000 per annum Flat rate of 17% beyond that Capital Tax gain: Capital gains are not taxed Dividend Tax Gain: It is not a part of taxable income Tax Basis: All resident and foreign entities are considered at par in Singapore. However, the local laws allow resident companies to avail special benefits and rebates Taxable Income: Includes income from any trade, profession or vocation. Also included are gains in these professions. Singapore Taxation (TaxLaw) Singapore has tax treaty with Australia. Hence Australia applies taxes on Singapore companies according to the terms negotiated in the treaty. According to the treaty the resident country is mandated to remove double taxation on income from the foreign country. Hence essentially the burden of taxation is being shared by the countries. The tax relief is called Double Taxation relief DTR. In Singapore the claim is made while filing the annual income tax return. Ap propriate disclosures have to be made. There are three different methods by which tax exemption can be obtained by a foreign entity in Singapore. These can be stated as follows Reduced tax rate Under this form of relief, interest, dividends, royalties and profits from international shipping and air transport are taxed at a lower rate. Relief by deduction In case the foreign company has taxed the income in its country, the income is not taxed again in Singapore. This exemption helps Singapore attract investments. The regulations require companies to disclose the headline tax rates in their countries and corresponding benefits are provided in terms of tax relief in Singapore. Tax sparing credit Tax sparing credits are another means of providing tax relief to encourage investments in Singapore. Singapore has entered into tax treaties with countries such that Singapore will provide tax credits on royalties earned by Australia in Singapore. Hence the taxpaying company will have to pay lesser tax in Australia by the credits that it has been provided. The benefit to the companies is in availing these credits. KW DT Ltd can look forward for this benefit while setting up its base in Singapore. Withholding tax A part of remittances of entities operating out of Singapore to their parent companies in foreign countries is retained and is called as the withholding tax. Withholding tax on management fees, technical fees and service fees, the withholding tax is applicable at 17%. Also all the withholding taxes have to be paid by the 15th of the month as required by the mandate. Terms of Taxation in Australia In Australia, since 2004, income earned by an Australian Resident Corporation (AUSCO) through a foreign branch is exempted from paying corporate income tax. Hence income from Singapore branch of KW DT Ltd shall not be taxed. (PricewaterhouseCoopers, 2008). Similarly, capital gains and capital losses realized by AUSCO as part of their business operations are not included in the taxable income while calculating the applicable corporate income tax. In addition a provision entitles the companies to offset their income using foreign losses. This law is in place since July 2008. Transfer Pricing Firms that have branches and international dealings in other nations might resort to practises like paying lesser taxes than compared to counter parts in Australia. This is done by manipulating the prices such that country where income tax is lower is likely to receive higher income to save taxes. This is called as shifting of profits. The transfer pricing laws in Australia aim to remove such incidences. To counter this, arms length pricing is employed. Hence, KW DT ltd. will be subjected to reviews and audit in order to ascertain that transfer pricing and international profit shifting is not taking place in related party transactions. The Arms Length price is used as a benchmark to determine if the transfer pricing is being followed. The principle compares related party transactions and transactions between independent bodies. In order to discourage transfer pricing, Schedule 25A is mandatory for companies to fill in while filing returns. Hence all companies that have internati onal dealings are required to fill in this form. (Government, 2005) The current Schedule 25A imposes obligations to disclose information about related party international dealings, including The nature and amount of certain categories of transactions Details of interest-free loans Receipts or payments of non-monetary consideration Details of arms length methodologies used The level of documentation held to support the selection and application of the most appropriate arms length methodologies, and Details of disposals of any interest in a capital asset Appropriate disclosures help minimize the risk. In case of violations, the firm is subjected to penalties and price adjustments. Hence to avoid such situations, KW DT Ltd will have to ensure compliance with Transfer pricing policies. Political Issues It is the political environment that determines the laws in a country. Singapore has a stable democratic political system. Hence the laws are favourable for business. The laws lay emphasis on efficiency and help businessmen flourish in Singapore. In addition the relationships between Australia and Singapore have always been cordial. SAFTA agreement signed in 2003 is a reiteration of the fact that both the countries have strategic outlook in promoting cordial relationships (Department of Foreign Affairs, Australia). Hence, business is facilitated in Singapore for KW DT Ltd. Legal Issues While registering a branch in Singapore, the laws of the land have to be given due importance. Legal Status Singapore laws do not differentiate between a Singapore Branch Office from the foreign entity and the head office situated in another country outside Singapore. Any legal action against a Singapore Branch is also applicable to the head office. This has to be borne in mind by KWDT Ltd. Most of the foreign companies prefer to register as a subsidiary company in Singapore rather than declaring their office as their branch. (10Tu). In addition, the approval on the name of the entity has to be sought from the Accounting and Corporate Regulatory Authority (ACRA). Another consideration for establishing Singapore branch is that the branch must have two employees who should necessarily be the residents of Singapore. The employees should be on payrolls accepting the services and serving the company. They are called to be acting as agents for the company. Cultural issues Jeffrey Braithwaite et al. ( (Jeffrey Braithwaite, 2007) describe the differences in culture in Singapore and Australia. They mention that Singapore is a high power distance and low Individualism culture whereas Australia is low power distance and high individualism culture. Singapore is characterized by employees fearing their superiors and considering co employees as threat. Managers are less considerate, typical of high power cultures. Also consistent with the high individualism cultures, Singapore work culture is described to demonstrate calculative involvement with the work organizations and the lack of concept of organization taking care of employees. Australian employees on the other hand are more involved with their organizations and expect their organizations to look after them. Also the distance between those in power and those who arent is not so evident. In addition, Australians are more casual compared to Singaporeans and hence might appear brash to the local Singaporeans who tend to be more formal and conservative in their interaction. Hence when KW DT Ltd is considering a new office in Singapore, it has to be sensitive to these issues while dealing with people and formulating its HR policies. Conclusion Having identified the issues, it is imperative that KW DT Ltd takes appropriate measures to counter these issues. For instance to ensure that currency exposure doesnt affect the cash flows, hedging would be an option. Similarly, compliance with legal requirements should be ensured to avoid penalties and lastly, people management has to be effective in order to avoid employees resentment. The basic issues that need to be addressed have been listed down for KW DT Ltd to establish its operations in Singapore.

Ways in Which Not-for-Profit Organizations Can Raise Their Profile by Assignment

Essays on Ways in Which Not-for-Profit Organizations Can Raise Their Profile by Using Social Media Assignment The paper â€Å"Ways in Which Not-for-Profit Organizations Can Raise Their Profile by Using Social Media† is a  spectacular example of an assignment on marketing. The available mediums in social media that not for profit organizations can use are Twitter, Facebook, and MySpace categorized under network builders, Google hangout and Wikis categorized under collaboration tools, YouTube, and blogs categorized under conversation starters (Kanter and Allison 2010). One needs to start by creating an interactive website and a good email support system before venturing into social media sites. This is because once the viewers see the content on the social sites they will want to get more information from the organization’s website. Secondly, venture into the most appropriate social site for your brand. It is recommendable to hire a content manager as social media marketing consumes a lot of time and the nature of the content posted is vital. The content needs to be original an d interesting to the viewer to arouse curiosity and subsequent visits. Then one needs to find a way to link the user content from one site to another. For example, if a blog post was the initial posting, use Facebook and Twitter to repost it to more viewers (Omidvar 2011). The content should have the auditor’s name and the stories should integrate donor and staff stories with supporting videos and pictures to give it a more personal touch. Share stories that are not directly linked to your organization but which share some degree of commonness with your values. This keeps the viewers interested and encourages interaction with other organizations. Share your viewers’ stories on your site as well. Make them feel that you support their cause as well. Engage your viewers in a discussion when you get feedback. It is advisable to engage the viewers by personification, for example addressing them by their names. Remember to thank the visitors to your site and tell them what t o expect next. It creates a feeling of eagerness and suspense. All these actions enhance loyalty with your supporters. They change from being supporters to true friends and they can freely share your cause with their friends and families creating the necessary social support needed in a not for profit organization (Miller 2012). The organization majorly depends on volunteers and the more friends and loyal supporters for your cause the higher the chance of volunteers. It is also important to follow up on your loyal supporters through personal calls or emails and thank them personally. One can also ask them to grace occasions by your organization such as the end of year parties free of charge. Post pictures and videos of such events and inform the viewers that you hosted some lucky supporters. Lastly, one should also use internet-marketing metrics to gauge the performance of the marketing strategy. Such metrics include time-trending data that shows weekly, monthly, and yearly trends o f your site, comparative data that shows how your site fairs compared to competitors, and use such data to improve (Treadaway and Smith 2012).

The Proforma Earnings

Questions: (1) What is the background and motivation for the study? This part should indicate why the researchers did the study in the first place. Questions to think about here are: What issue were they trying to address? Why was it important at the time? Is it still as important today? If not, is there a related issue thats important today? (2) What types of conceptual or theoretical arguments did the researchers make to develop their hypotheses and/or analyses? How do they build upon what we have already seen from the studies weve already read? What additional/new concepts or theories do they use (NOTE: here you dont need to go to the previous literature to look these up; well talk about them in class and summarize them briefly)? Apply a bit of critical thinking here. Do the conceptual arguments make sense? Its easy to take the researchers word for it, but sometimes you can tell that they are taking shortcuts or ignoring certain things (accidentally or otherwise) when developing their arguments. See if this seems to be the case. (3) How do they design the study to examine what they want to examine? The parts to focus on here include: How do they choose the sample of companies to study? Why do they drop certain companies or choose certain time periods? Do these choices make sense? How do they statistically test their hypotheses or conduct their analyses? (NOTE: here you dont need to look up and study the particular statistical methods they use. We can, in general, trust that the peer review process in publishing has done its job, and the methods work well in general.) How do they achieve research control (eliminate alternative explanations)? (4) What results do the researchers find? How strong are the results? Are they slam-dunk very strong results, or do they seem weak? (NOTE: here, as I told you in class, look at the tables and graphs and see if they tell you the same thing that the researchers are trying to sell you when they explain the results in words. Apply some critical thinking here. Its hard to do at first, but youll get better at it over time.) (5) (Most importantly) What are the implications for accounting and financial reporting of their findings? What does your group feel like it can take away from the study? Here Im asking you to reflect on the studys contribution to what you know and understand about accounting. Im not having you read these articles and present them as busy work. Think about why the particular study matters, not to academics, but to professionals and the profession itself. Answers: 1. The main focus of the researchers is on the proforma earnings. They explore that the most prominent measure of the proforma earnings eradicates some of the expenses that are considered noncash, nonrecurring or somehow not relevant for comprehending the firms future value. They claim that such eradications can result in the lower cash flows within the future. The study is quite important at the time and is still important today because companies claim that the business events that are non-recurring are not expected to occur within the future years. But it should be noted that that Pro-forma earnings might get above or fall below of the typical reports of earnings and that they are only reported usually by the companies if the proforma earnings surpass the true performance. The major issue that they are trying to address is that Pro-forma earnings are found to be debatable within the financial environment. The reason behind this is that the Pro-forma earnings are inconsistent with t he GAAP i.e. accepted accounting principles and are not found to be audited. Most of the organizations can report the results of the Pro-forma earnings by the solid business ethics, but an unaudited work can prove to make it troublesome for verifying the Pro-forma earnings accordingly. The authors also pinpoint the fact that the management in todays world has abused the utilization of the non-GAAP financial metrics to overstate the earnings and mislead investors. 2. The authors have cited numerous sources that favor the Pro-forma earnings through which they have developed their hypothesis. For instance, Bradshaw and Sloan (2002) and Brown and Sivakumar (2001) were already for the proforma earnings than the accepted accounting principles as they believed that pro forma earnings reflect the actual earnings per share. But the author of the article denies their procedures and claims by stating that the response of the stock market can be a good way to respond to the earnings announcement and can be considered a significant way to determine the relevancy of the information market is utilizing, but it does not consider the fact that the market can be misled by the utilization of the proforma earnings, and this is the only debatable issue that the financial press and regulators have expressed. The researcher has favored his viewpoint by exploring that it is not clear as to why the capability to predict itself can be found to be a desirable character istic of the performance measure. They have also differentiated the Pro-forma earnings and GAAP where they indicate that the earnings within the GAAP rule entails as to how much money an organization made, but they criticize the fact that pro forma earnings would just indicate as to how much money any organization has made from its ordinary or usual activities of the business. They further give an example of ATT, which in the 4th quarter of 2001 had a pro forma earnings of 0.05 and their GAAP earnings were 0.39 which meant that the total exclusions were 0.44. These exclusions included losses on the sale of businesses, asset impairments and other losses on the equity method investments. They defend the usage of GAAP by claiming that it corresponds with Financial Accounting Standards Boards conceptual framework when there is an involvement of the decision usefulness which will allow the certainty of the decision making and uncertainty of the future cash flows. 3. The researchers had opted for the selected companies within the selected period because in the 4th quarter of 1999 earnings announcement press release for the 50 randomly selected firms, the 48 cases had the Institutional Brokers Estimate System true earnings per share was featured predominantly within the PR. While, for the remaining two of the case, the GAAP EPS was reported and that the exclusions that were required for reconciling to the Institutional Brokers Estimate System actual EPS were demonstrated in the lead paragraph of the press release. 4. According to me, the results seem to be quite reliable because they have clearly stated that if the accounting principle as per GAAP is implemented, then there would be a provision of the decision usefulness of it. This would mean the businesses would maintain persistency within the presentation of the financial data which would further facilitate the risk of any fraud or misrepresentation. It is the only GAAP framework it should be there for safeguarding the rights of stakeholders that would incorporate investors too. Their claim proves that fact that GAAP would hold the company to get to be responsible for their activities within the financial reporting while making a provision of a significant assurance for all of the parties interested. With the utilization of GAAP, the companies can make a provision for a fair and true presentation of the financial information. Holding fast to the guidelines of GAAP can help one to actualize legitimate safeguards and controls. The way that th e GAAP rules recommend utilizing a persistent premise that the professionals can apply to accounting transactions makes an illustration of the fact. Consistency prompts an all the more fair representation and aides in looking at financial statements over numerous periods. This helps one to make a determination of the overall performance of the company, make an identification of the areas that require improvement while judging the advantage of the changes being implemented. 5. By the financial reporting, one significant implication could be that the financial reporting is found to be a language which corresponds the information about the operational results and financial condition of the company. GAAP earnings would make a provision of information that would be quite useful and imperative for the lenders, investors who would potentially give resources to any particular organization and this indicates that GAAP is based on the established objectives, standards, concepts and conventions that seem to be evolved time by time to guide as to how the financial statements are prepared and then presented. It gives us a true explanation as to what items are recognization within the financial statements of revenue, assets, expenses, and liabilities. It also gives us a significant information as to the reporting of the amounts for all of the elements incorporated into the financial statements. Furthermore, it also provides us with a core and imperative information that is found to be quite favorable to the users of the financial statements and that the Disclosures explain and supplement the amounts within the statements. Therefore, GAAP is the definite guideline on which the companies or organizations can depend on while preparing the financial statements.

Leadership Strategy of Google Inc

Question: Discuss about the Leadership Strategy of Google Inc. Answer: Introduction Effective leadership in an organization requires establishing real and attainable objectives. Setting achievable, measurable, specific, and time-bound objectives helps in keeping the focus of the subordinate towards results that can enable productivity and long-term success. It requires the workforce to align their professional development objectives with the goals of the organization. To effectively manage the employees as well as the human resources of the organization, it is necessary for an organization to adopt a suitable leadership style that can help in meeting the strategic goals of the respective organizations (Manimala Wasdani 2013, P. 13). It also requires effective decision-making to promote the relationship between the selected leadership styles and the capabilities of the employees to achieve the strategic objectives. This paper presents a detailed analysis of the leadership styles adopted by Google Inc. to enable the organization to achieve the strategic its objective s. Leadership strategy is the process of adapting well-considered tactics in the process of communicating the vision of an organization according to (Eggers Lin 2015, 1786). A strategic leadership typically motivates, persuades, and manages staff to share similar visions. It is a vital tool for creating effective organizational structures or implementing effective changes within the business. A leadership strategy hence defines the leadership requirements of the organization as well as their roles in the process of driving the organizational activities towards the set goals and objectives according to Kilburg (2012). According to Price (2015), a well-defined leadership strategy play major roles for the organization to perform successfully since every organization has strategies put in place for the main purpose of achieving particular objectives. As a result, effective leadership strategies are important so as to ensure a successful coordination of the organizational activities in the plan of achieving the set strategic objectives and goals. A good leadership strategy is thus the backbone to a successful and effective performance of an organization as the actives of the employees is mainly dependent on the motivation, guidance, and direction from the leadership as denoted by Walker, Aritz (2015, p. 458). As a result, there are various types of strategies of leadership that can be seen in a working environment or adopted in an organization. The types of strategic leadership styles adopted by an organization dependent on various factors such as the goals and culture of the business in addition to the tasks put in place by the organization according to Marquardt et al. (2009). Core elements of good leadership strategy development A well-developed leadership strategy encompasses the following core elements; Geared towards team-building Great leadership strategy shows and adopts clear team building skills so as to attract and retain the top talents of the workforce for effective service. Every great leadership or management of an organization needs to recognize that having the best talents also requires good relationships and teamwork so as to promote success within the organization. A good leadership strategy hence needs to build a workforce with complementary skills and set experience towards their duty. According to (Durmaz and Ilhan (2015), teams performs best when they are made up of different styles and personalities so as to expand ideas and perspectives for problem solving and effective performance. Good leadership strategy thus facilitates teamwork, healthy discussions, and great consensus among the employees. Such a team will be more promoted to believe in themselves and work towards achieving the strategic plans of the organization. It hence builds trust between the employees and the management and thus p romotes the employees to work with little supervision (Kelly Chung 2013, p. 200). Vision driven A good leadership style also works effectively toward the vision of the organization. Instead of focusing much on the initiatives and tasks of the organization, a well-developed leadership strategy promotes a deep industrial or professional knowledge towards the strategic goals and objectives of the organization. According to (Manimala Wasdani 2013) a strategic thinking towards the goals promotes a strong network with a consistent identification of the market trends to as to tune the organization performance towards the dynamics of the market that may affect the achievement of the strategic goals of the organization. A good leadership strategy hence needs to sell the culture and a clear vision of the organization to the employees so that they can by the vision and work towards it. It hence requires a clear understanding of the target customers, propositional values of the organization, competitive abilities, and weaknesses of the organization. Well-developed leadership strategies wi ll hence promote core competencies; develop capabilities and skills that will enhance value promotion towards the strategic goals of the organization. Promotes honesty and integrity within the workforce Honesty and integrity are the primary core values that uphold the accountability and commitment of employees in an organization. Without integrity and honesty, it becomes difficult for an organization to uphold a long-term success and performance. Creating an organizational culture that promotes honesty and success hence require a well-developed leadership strategy with a visionary focus on the basic principles of achieving strategic objectives of the organization. Effective leadership should also be trustworthy and participate in the highest ethical conduct standards as denoted by (Diaz-Saenz Raile 2011). A good leadership strategy will as well promote the management to admit their mistakes as a step to administer trust and honesty between the management and the subordinate. When all these are adopted, it will be clear that the leadership strategy is focused towards the interest of the success of the organization rather than a personal gain of the management. In such an environment , there is unity in accountability as well as decisions and actions. According to Grant (2011), it promotes transparency since sharing both the good and the bad of the organization between the employees creates trust and deeper understanding as well as respect in the workplace (Eggers Lin 2015, 1786). A well-developed leadership strategy also promotes unity and good relationship in the working place. It ensures employees develop their skills and strategies through training and development that not only benefits the employees but the organization as well. It should promote an outstanding self-awareness among the employees and the management. According to Johnston and Marshall (2016), every employee has a fault and instinctive behavior that can result in consequences. Understanding the weaknesses and strengths of the workforce through healthy discussions and debates that can be helpful to promote the improvement of the weaknesses and strengthen the workforce. The strategy should also be persuasive and inspirational so as to unite the workforce towards achieving the strategic goals of the organization (Durmaz Ilhan 2015, p. 4). The business strategies adopted by Google Inc. Google Inc. is a global technological company whose main responsibility is organizing the worlds information so as to make it universally accessible and essential. It was founded in the 1998 but has grown to become the most outstanding organization in innovation technology and serves millions of customers globally. The organization hires smart and intelligent individuals who are taken through a series of training and development to develop their ability over experience that many organizations embrace as the major qualification. The organization strives to maintain a diverse culture where every employee is a hands-on contributor in sharing their opinions and ideas (Helft 2016, p. 87). Google Company adopts two major business strategies that have seen it sail through the top of the global technological ladder. According to Thompson (2015), the company adopts intensive growth and generic strategies and the major business plans promoted by its leadership. The strategies adopted relates directly to the nature of the business as well as the dynamics of the technological industry. As a result, the intensive strategies of growth adopted enable the firm to keep its position as among the best brands globally. Through the generic strategy, it is hence among the major players that influence the development and competitive nature of the industries. A combination of the generic and intensive strategies of growth has been effective in satisfying the continuous growth and leadership of the firm. Adopting the use of generic strategy has thus promoted its innovation and uniqueness in products as strategic objectives of remaining competitive in the technological industry (Zaccaro 2 011). Intensive strategies Google Company has adopted various methods of intensive strategies in its operations i.e. penetration, development, and product market development. The firm relies on the market penetration strategy especially for markets outside the United States such as China. Despite having set a market leadership in the US market, it is still competing with other online advertisement firms and larger search engines outside the US market. It thus uses the market penetration strategy to push its way of getting a better market share in the world online advertisement market. The company also uses marker development especially within the US market for its fiber product. For instance, Goodbridge et al. (2015) denote that cable television and Google Fiber services are available in few states such as Missouri, Utah, Texas, and Kansas. With the aim of expanding its Fiber products, the firm uses the market development strategy so as to cover more states in the future. The product development is adopted mai nly for the innovation and product uniqueness. Apart from the Google Glass as new products, the firm is also coming up with new models of the Nexus mobile devices. Through these intensive growth strategies, the firm has created more channels for income generation so as to attain its strategic objectives. Generic strategy The firm has adopted the strategy based on the Porters model of product differentiation involving a broad market scope. Even though the firm offers its products practically every digital individual across the globe, adopting generic strategy has enabled the company to develop various unique capabilities that makes it very competitive. The product uniqueness and high innovation level has led to other products such as Google Fiber Google Glass, and Google Search s its new innovations. They are a clear manifestation of the effectiveness of innovation and product differentiation under the generic business strategy. In addition, its search algorithm has evolved with time giving it a competitive advantage against Bing, Yahoo, among others (Huffaker 2010, 599). Google Inc. has a vision of providing access to the global information in one click and the business strategies adopted by the organization are a direct manifestation of its vision statement. For instance, one of its most popular products is the search engine optimization services. As a result, the strategies adopted should hence be geared towards the objective giving access to the worlds information. With the vision statement focused towards worlds information, easy accessibility, and single click, the strategies adopted thus promotes the working of the organization through offering products such as Google search engines that are easy to use. According to Thompson (2015), the good performance in the global technological industry by the organization is an evident of effective innovation strategic leadership that enables the organization to achieve its objectives. The innovative leadership style adopted by the company enabled the satisfaction of the universal information accessibility component which its mission statement is making its products globally recognized. The leadership strategies adopted promotes innovation that contributes to the capacity of the company to maintain its industrial leadership and performance. Implication on the leadership requirements The implementation strategies of the corporate visions of the firm have widely been successful for the organization. The firm has managed keeping a distinct and intact culture though its growth in the past 10 years. However, with the growth of the company as a result of good performance in the market, new challenges are coming up that are attributed to the leadership and business strategies adopted by the firm. For instance, focus on the product development required a more commitment from the employees so as to achieve the innovation targets owing to the high rate of competition in the global market. At the end of it all, there were complains that the firm was offering compensations that were not commensurate to the demand of the work despite inflation and the high standard of living that demanded more fiancs from the workforce. Poor payment leads to lack of commitment among the employees as well as poor motivation towards the strategic goals of the organization (Teoh Rashad 2015, 1 132). The firm is also reported to have issues with maintaining its fun image that might probably be as a result of lack of employees' motivation evident from the poor payment. The firm hence needs to adopt proper employees training and development strategies so as to shift focus of the workforce towards the strategic goals and objective of the Google Inc. As it moves towards smartphones platform and cloud computing, it is likely to run into the same sort of backlash in keeping the software priority. To keep such an image, the strategic leadership of the company will need to adopt plans that will motivate the workforce such as salary increment, performance appraisal, training and development, etc that will motive them and promote good working relationship. The firm has to work hard in keeping an open culture and maintain their developers, investors, and customers united in an open communication of innovation and development of not only the products but the workforce as well (Huffaker 2010, 600). A leadership strategy to support the achievement of effective strategic goals According to Durmaz and Ilhan (2015), it is necessary that the company focus on its product development efforts and the market boundaries. The firm has always been criticized for engaging in what seems to be disparate product development efforts in different markets and industries. The use of generic strategies as well as the intensive growth strategies has seen it through wide variety of products to build the dominance in the world market. However, there is a need of improving the strategic objectives and alignment. The firm hence needs to change focus towards ensuring the profitability on the current products it offers instead of concentrating on developing new products. It thus requires renewing its innovative leadership strategies towards production and market satisfaction and focus towards a wholesome development leadership strategy that focuses not only on product development and the employees. Development strategic leadership will also be vital in controlling the spending of the firm for programs such as training and development of employees, resource sustainability, good relationship in a working environment etc. It will lead to great investment and produce good returns that will fuel the innovation strategies and speed the launch of new products. According to Teoh and Rashad (2015) a development and innovation leadership strategy should not only focus on the strategic objectives of the organization. It should also focus on the training and development of workforce since they are the major driving force for the success of every organization. The strategy will as well help the firm in figuring out how to weather any negative economic environment as it maintains a productive workforce full of fun, skills, and diverse knowledge for a productive atmosphere. In the process of adopting the innovative development leadership strategies, it is also recommended that the organization ensure the leadership is equipped with different leadership skills in all the departments. These include charismatic, autocratic participative, and transformational types of leadership. Transformational According to Martin (2015), transformational leadership mainly dependents on a higher communication level from the leadership or management for guidance and instructions inmeeting the goals and objectives of the organization. Arnold et al., 2015 (p. 485) also note that such leaders enhance efficiency and productivity through employees motivation and high visibility as well as communication. The style requires the management participation so as to meet the goals of the organization. Leaders tend to delegate smaller responsibilities to the team in accomplishing the strategic goals of the organization while they focus on the big picture of the firm. Charismatic Charismatic leadership requires the leader to create a powerful self-image depending on his level of charm and his persuasiveness. For instance, a business leader with effective charismatic leadership skills can effectively launch new product lines or orchestrate turnarounds within the business. Charismatic leaders are hence driven by their conviction and commitment towards achieving their cause as denoted by Arnold et al. (2015, p. 453) in their study. Such leaders are known to use powerful oratory as well as engaging personality and unweaving commitment toward positively changing the organization. The charisma in the leader is normally identified during a crisis as the leader is seen to exhibit unique and exceptional expertise and devotion in different facets of positive development and change (Monzani, Ripoll, Peir 2015, p. 450). Participative Participative leadership is also called the democratic style of leadership in which the leader give high priority to the members input while he is charged with the responsibility for making final decisions in the organization. According to Monzani, Ripoll, and Peir (2015, p. 450), involving the workforce in the processes of making decisions boost the morale of the employees making them to feel that their decisions are also valued in the organization. In the process of making any possible change, participative leadership will enable the employees to accept any change as they play different roles in the changes. Conclusion The process of leadership involves influencing the thoughts, attitudes, and behavior of others in the attempt to set direction that can assist others to rise and face any issue or challenge that lies ahead. A good leadership strategy needs to identify the potential in the employees so as to identify effective ways of inspiring and encouraging greater heights of effective strategic performance. However, poor leadership strategy leads to conflicts between the management and the employees hence making it difficult to achieve the strategic objectives of the organization. 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