International Mangmnt

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INTERNATIONALMANAGEMENT

presented by

NAWAL KISHOR SHARMA

SATARUPA KABI

DIGAMBER SINGH


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INTRODUCTION

International management is the simplyperformance of management activityacross the border

Most U.S companies see greatopportunities in the international marketplace, because its population growingslowly but steadily the population of othercountries exploding.


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US INVESTMENT IN FOREIGN COUNTRIES V/S FOREIGN

INVESTMENT IN US


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CATEGORIZING ORGANIZATION BY

INTERNATIONAL INVOLVEMENT

DOMESTICORGANIZATION

INTERNATIONALORGANIZATION

MULTINATIONALORGANIZATION

TRANSNATIONALORGANIZATION


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DOMESTIC ORGANIZATIONSOperate within a single country

Occasionally make an international sale oracquire some needed resources for a foreign

suppliers


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INTERNATIONAL ORGANIZTION

Based primarily within a single country

Have a continuous meaningful international

transactions-makes sales or purchases from foreignsuppliers

Example;-nu horzions is a small company can be classifiedas a international organization. This distributer of electric

goods made mainly by some 40 U.S manufacturers hasabout 5,000 customers worldwide.


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SIX STAGES OF

MULTINATIONALIZATION

EXPORTS ITSPRODUCTS

TO FOREIGNCOUNTRIES

ESTABLISHESSALES

ORGANIZATIONS

ABROAD

LICENCES

USE OF ITSPATTERNSAND KNOW

HOW TOFOREIGN

FIRMS THATMAKE AND

SELL ITSPRODUCTS

ESTABLISHESFOREIGN

MANUFACTURING

FACILITIES

MULTINATIONALIZEMGMT

FROM TOPTO BOTTOM

MULTINATIONLIZES

OWNERSHIPOF

CORPORATESTOCK


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MULTINATIONAL ORGANIZATIONOperate in more then one countries

Complexities of managing the multinational

corporation

International management differ from domestic management because

it involve operating.1. Within different national sovereignties.

2. Under widely disparate economic condition.

3. Among people living different value system and institutions.

4. In places experiencing the industrial revolution at different time.5. Often over generate geographical distance.

6. National market varying greatly in population and area.


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RISK AND THE MULTINATIONAL

ORGANIZATIONFor the development of multinational corporationobviously require a investment in foreign operations.

Managers except that such investment will accomplishthe following

1. Reduce or eliminate high transportation cost.

2. Allow participation in the rapid expansion of the

market abroad.3. Provide foreign technical design and marketing skills.

4. Earn higher profit.


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THE WORKFORCE OF

MULTINATIONAL ORGANIZATION

The organizational member become more

diversePeople of different races who speak different

language and come from different part off the

world.


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TYPES OF ORGANIZATIONAL MEMBERS

FOUND IN MULTINATIONAL

CORPORATIONS

Organizational members can be divided into three types.

Expatriates;-organizational members who live and work in a countrywhere they do not have citizenship.

Host country nationals;-organizational member who are citizenship ofthe country in which the facility of foreign based organization is

located.

Third country nations;-Organizational member who are citizenship ofone country and who work in another country for an organization

headquartered is still another country.


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MANAGEMENT FUNCTION IN THE

MULTINATIONAL ORGAANIZATIONBasically there is four management function in

multinational organization

1. Planning

2. Organizing

3. Influencing4. controlling


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PLANNING IN THE

MULTINATIONAL ORGNIZATIONPlanning in the multinational organization could involve;-

1. Establishing a new sales force in the multinational

organization.

2. Developing a new manufacturing plant in other

country through purchase or construction.

3. Financing international expansion.

4. Determine which country represent the most suitablecandidates for international expansion


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Components of international plan;-

Imports/exports

License agreement

Direct investing

Joint ventures


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PLANNING AND INTERNATIONAL

MARKET AGREEMENTS

THE EUROPEAN UNION(EU)- ESTABLISHED IN1994, MEMBERS-(DENMARK,THEUK,PORTUGAL,SPAIN, FRANCE, IRELAND)

NORTH AMERICAN FREE TRADEAGREEMENT(NAFTA)-ESTABLISHED IN1994,MEMBERS(US,CANADA,MEXICO)

ASIAN PACIFIC ECONOMIC CORPORATION(APEC)-ESTABLISHED IN 1989,MEMBERS(21 MEMBERS

INCLUDING THE PEOPLES OF REPUBLICCHINA,US,INDONASIA AND SOME ASIA PACIFICREGION)


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ORGANIZING MULTINATIONAL

CORPORATION

ORGANISATION STRUCTURE-sum of all

establish relationship among resources with in

the organization and the organization chart is

the graphic illustration of organizationstructure.

SELECTION OF MANAGERS-For multinational

organization manager should be competentwith the highly competitive environment.


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VICE PRESIDENTINTERNATIONAL

DEVISION

PRODUCTION MARKETING FINANCE

STRUCTURE BASED

INTERNATIONAL FUNCTION


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VICE PRESIDENT PRODUCTION

BRAKEDEVISIONMEXICO

DIESEL MOTORDEVISIONFRANCE

ELECTRICPARTSDEVISION

BRAZIL

STRUCTURE BASED ON

COMPANY PRODUCTS


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PRESIDENT

VICE

PRESIDENTNORTH

AMERICA

VICE

PRESIDENTSOUTH

AMERICA

VICEPRESIDENTEUROPE

STRUCTURE BASED ONTERRITORY SERVED


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INFLUENCING PEOPLE IN

MULTINATIONAL CORPORATION

INFLUENCING IS GENERALLY GUIDING THE ACTIVITY OF

ORGANIZATIONAL MEMBERS IN APPROPRIATE

DIRECTION THROUGH

COMMUNICATING,LEADING,MOTIVATING AND

MANAGING GROUPS.

CULTURE- CULTURE IS SET OF CHARACTERISTICS OF A

GIVEN GROUPOF PEOPLEAND THEIR ENVIRONMENT.AQUIRING A WORKING KNOWLEDGEOF LANGUAGES

UNDERSTAND THE ATTITUDE OF PEOPLE

UNDERSTAND THE NEEDS THAT MOTIVATE PEOPLE


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CONTROLLING MULTINATIONAL

CORPORATIONS

CONTROLLING IS GENERALLY DEFINED ASSOMETHING HAPPEN THE WAY IT WAS PLANNED TOHAPPEN.

CONTROL IN SUCH AREAS AS LABOURCOST,PRODUCT QUALITY AND INVENTORY ISIMPORTANT TO ORGANIZATIONAL SUCCESS.

SPECIAL DIFFICULTIES-

1.DIFFERENCE IN CURRENCIES

2.CULTURE DIFFERENCE

3.GEOGRAPHICAL SEPERATION

4.COMMUNICATION


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TRANSNATIONAL ORGANISATION

ALSO CALLED GLOBAL ORGANISATION.

TAKE THE ENTIRE WORLD AS THEIR BUSINESS

ARENA

IT REPRESENT THE FOURTH, AND MAXIMUM

LEVEL OF INTERNATIONAL ACTIVITY.

EG- NESTLE HEADQUARTER INVENEY,

SWITZERLAND.

NO. OF EMPLYEES ARE MORE THAN 2,10,000

OPERATES 494 FACTORIES IN 71 COUNTRIES


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INTERNATIONAL

MANAGEMENT:SPECIAL ISSUES

MAINTAINING ETHICS IN INTERNATIONAL MANAGEMENT

1. RESPECTING CORE HUMAN RIGHTS

2. RESPECTING LOCAL TRADITIONS

3. DETERMENING RIGHT FROM WRONG BY EXAMING CONTEXT EG-WHIRLPOOLS DIRECTOR(ERRICO BIONDI) IN SLOVAKIA

WON BEST PRIZEFOR PROVIDING EQUAL OPPORTUNITIES

FOR WOMEN AND MEN IN BUSINESS ENVIRONMENT.

PREPARING EXPATRIATES FOR FOREIGN ASSIGNMENTS1.CULTURE PROFILES

2.CULTURAL ADAPTATION

3.LOGISTIC INFORMATION

4.APPLICATION


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CONCLUSION

INTERNATIONAL MANAGEMENT IS NECESSITY

TODAY BECAUSE COMPANIES SEE GREAT

OPPORTUNITIES IN THE INTERNATIONAL

MARKETPLACE TODAY!

ROLE OF FOREIGN SALES OF TOTAL

EXXON MOBBIL-69%

IBM-58%

INTEL-59%


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BIBILIOGRAPHY

MODERN MANAGEMENT-SAMUEL C. CERTO &

S. TREVIS CERTO


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THANK YOU

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International Mangmnt