Inaglobal Environment-zhengxin

7/28/2019 Inaglobal Environment-zhengxin

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ninth edition

STEPHEN P. ROBBINS

PowerPoint Presentation by Charlie CookThe University of West Alabama

MARY COULTER

2007 Prentice Hall, Inc.All rights reserved.

Managing in a Global

Environment

Chapter

4 Instructor: ZhengxinLingnan College, Sun Yat-Sen University


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2007 Prentice Hall, Inc. All rights reserved. 42

Agenda for today

Review of last session

Four key questions in this Chapter:

I. Global Perspectives

II. Different Types of International OrganizationsIII. How organizations go global (Important)

IV. Managing in a global environment

Homework for international corporation case study Wrap up for this session


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Three global attitudes

Ethnocentric Attitude

The best work approaches and practices are those of

the home country.

Polycentric AttitudeThe host country know the best work approaches

and practices for running their business.

Geocentric AttitudeA world-oriented view that focuses on using the best

approaches and people from around the globe.


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Reasons for engaging in international business:

Profits

Customers

Suppliers

Capital

Labor


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Q2:

What are different Types of International

Organizations ?


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Different Types of International Organizations

Multinational Corporation (MNC)Maintains operations in multiple countries

Whats the difference?

Multidomestic Corporation

Global Company

Transnational Corporation (Borderless

Organization) Born Globals/International New Ventures (INVs)


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Different Types of International

Organizations

Multidomestic Corporation

Decentralizes management and other decisions to the

local country.

Gives foreign operations more freedom to operate asseparate entities

Global Company

Centralizes its management and other decisions inthe home country.

Seeks total integration of global operations


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Different Types of International

Organizations (contd)

Transnational Corporation (Borderless

Organization)

Eliminated structural divisions that impose artificial

geographic barriers and is organized along businesslines that reflect a geocentric attitude.

Born Globals/International New Ventures (INVs)

Commit resources upfront (material, people, financing)to doing business in more than one country.


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Alternative multinational structures for global operations.

Schermerhorn/Management, 7e

Chapter 5, Figure 05-05


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Common forms of international businessfrom market entry to direct

investment strategies.

Schermerhorn/Management, 7e

Chapter 5, Figure 05-02


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Market entry strategies involve the sale of goods or

services to foreign markets but do not require expensive

investments.

Types of market entry strategies:

Global sourcing

Exporting

Importing

Licensing agreement

Franchising


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Direct investment strategies require majorcapital commitments but create rights of

ownership and control over foreign operations.

Types of direct investment strategies:

Joint ventures

Wholly owned subsidiaries


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Q4: How to Manage in A Global Environment?


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Managing in A Global Environment

The Legal Environment

Stability or instability of legal and political systems

Legal procedures are established and followed

Fair and honest elections held on a regular basis

Differences in the laws of various nations Effects on business activities

Effects on delivery of products and services


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The Economic Environment

Economic Systems

Market economy

An economy in which resources are primarily owned and

controlled by the private sector.

Command economy

An economy in which all economic decisions are planned bya central government.

Monetary and Financial Factors

Currency exchange rates

Inflation rates

Diverse tax policies


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The Cultural Environment

National Culture

Is the values and attitudes shared by individuals from

a specific country that shape their behavior and their

beliefs about what is important.

May have more influence on an organization than theorganization culture.


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Hofstedes Framework for Assessing Cultures

Individualismversus

Collectivism

Power

Distance

Uncertainty

Avoidance

Achievementversus

Nurturing

Long-Term

versus

Short-TermOrientation

Culture


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Based on the content of this chapter, do you

think management concepts are universal?

That is, do they apply worldwide?


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Are management theories universal?

The needfor management is universal, but the way

management is practiced is not.

U.S. management theories may be ethnocentric.

Participation and individual performance are not emphasized as

much in other cultures.

Not all Japanese management practices can be applied

successfully abroad.

Lifetime employment, job rotation and broad career experience,shared information, collective decision-making, and quality emphasis.


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Wrap up and takeaways


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L E A R N I N G O U T L I N EFollow this Learning Outline as you read and study this chapter.

Whats Your Global Perspective? Contrast ethnocentric, polycentric, and geocentric

attitudes towards global business.

Explain why its important for managers to be sensitive to

global differences

Understanding the Global Environment

Describe the current status of the European Union.

Discuss the North American Free Trade Agreement and

other regional trade alliances in Latin America.

Tell about the Association of Southeast Asian Nations.


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L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.

Doing Business Globally

Contrast multinational, multidomestic, global,

transnational, and born global organizations. Describe the different ways organizations can

go international.

Define global sourcing, exporting, importing,

licensing, and franchising. Describe global strategic alliances, joint

ventures, and foreign subsidiaries.


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L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.

Managing in a Global Environment (contd) Explain how the global legal-political and economic

environments affect managers.

Discuss Hofstedes five dimensions for assessing

cultures. Explain the nine GLOBE dimensions for assessing

cultures.

Discuss the challenges of doing business globally in

todays world.


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Terms to Know parochialism

ethnocentric attitude

polycentric attitude

geocentric attitude

European Union (EU)

Euro

North American Free TradeAgreement (NAFTA)

Association of Southeast AsianNations (ASEAN)

World Trade Organization (WTO)

multinational corporations (MNCs)

multidomestic corporation global company

transnational or borderlessorganization

born globals

global sourcing

exporting importing

licensing

franchising

strategic alliances

joint venture foreign subsidiary

market economy

command economy

national culture GLOBE

wikis

blogs


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Homework

6-7 members in each group

Search for a realistic management problem

around you, give some suggestions

/recommendations to solve this problem

Next class:

Each group presents 5 mins, 5 ppts What will you research? (target). Find out its

management problem(s).

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Inaglobal Environment-zhengxin