GLOBAL MANAGEMENT

Globalization

The collapse of time & distance

3 important development

Global village & e-commerce

One big world market: the global economy

Cross border business

Megamergers operating worldwide

Minifirms operating worldwideGet started more easily

Can maneuver faster

Why learn about internationalmanagement?

You may deal with foreign customer or partners

You may deal with foreign suppliers

You may work for a foreign firm in Indonesia

You may work for an Indonesian firm outside Indonesia

Manager's view of culturaldifferences

Parochialism

Ethnocentric managers

"We know the best"(orientation: home country)

Polycentric managers

"They know the best"(orientation: host country)

Geocentric managers

“What’s best is what effective, regardless of origin”(orientation: world)

Companies expand internationally

Why ?

Availability of supplies

New markets

Lower labor costs

Access to finance capital

Avoidance of tariffs & import quotas

How ?

Global outsourcing

Importing, exporting, & counter trading

Licensing & francising

Joint ventures

Wholly-owned subsidiaries

Barriers

Tariffs

Import quotas

Embargoes

Etc.

Organization promotinginternational trade

IMF

WTO

World banks

& many more

National Culture

Culture

Shared of :

Beliefs

Values

Knowledge

Pattern of behavior

Cultural dimensions

Low-context cultureWritten & spoken words

High-context cultureSituational cues of meaning

Hofstede’s dimensions

Individualism / collectivism

Power distance

Uncertainty avoidance

Quantity of life

Masculinity / femininity

GLOBE

Assertiveness

Future orientation

Gender differentiation

Uncertainty avoidance

Power distance

Individualism / collectivism

In-group collectivism

Performance orientation

Humane orientation

Other cultural variations

Language

Interpersonal space

Time orientationMonocromatic time

Polycromatic time

Religion

5 best multicultural office

Google

Yahoo

Youtube

Microsoft

Apple

Skills of global manager

End-state dimensions

Sensitivity to cultural differences

Business knowledge

Courage to take a stand

Act with integrity

Insightful

Committed to success

Take risks

Learning-oriented dimensions

Uses feedback

Culturally adventurous

Seeks opportunities to learn

Open to criticism

Seeks feedback

Flexible