copyright © 2011 pearson education, inc. publishing as prentice hall ch 11 -1 chapter 11 global /...
TRANSCRIPT
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -1
Chapter 11Global / International Issues
Strategic Management: Concepts & Cases
13th Edition
Fred David
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -2
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -3
Global Issues
Global considerations impact virtually all strategic decisions
A world market has emerged It is difficult for a firm to survive
relying solely on domestic markets
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -4
Multinational Organizations International firms or multinational
corporations face many complex variables: Social Cultural Demographic Environmental Political Governmental Legal Technological Competitive opportunities and threats
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -5
Potential Advantages of International Operations Gain new customers Absorb excess capacity, reduce unit
costs, and spread economic risks Allow firms to establish low-cost
production facilities Competition may be less intense
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -6
Potential Advantages of International Operations (continued) Reduced tariffs, lower taxes, and
favorable political treatment Joint ventures can enable firms to learn
new technology, culture, and business practices
Economies of scale Power and prestige in domestic markets
may be significantly enhanced
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -7
Potential Disadvantages of International Operations
Foreign operations could be seized Different and often little-understood social,
cultural, demographic, environmental, political, governmental, legal, technological, economic, and competitive forces
Weakness of competitors overestimated Different language, culture, and value systems Understanding of regional organizations needed Dealing with two or money systems
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -8
Reasons for Global Expansion
Advancements in telecommunications
Growth in demand for goods and services outside the U.S. is considerably higher than inside
95% of the world's population lives outside the U.S.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -9
Globalization
Globalization: The process of doing business worldwide
Global strategy includes considering global needs during Design Production Marketing
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -10
Cultural Differences
Time Space Family roles Religious factors Family time Values Eating Rules of etiquette Importance of relationships
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -11
European Business Cultures
Participatory management Most workers are unionized More frequent vacations and holidays Guaranteed permanent employment
common Workers often resent pay for performance,
commissions, and objective measurement and reward systems
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -12
Asian Business Cultures
First names are not generally used in business
Extended periods of silence are important
A sale is the beginning, not the end of a relationship
Resting, listening, meditating, and thinking are considered productive
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -13
Mexican Business Culture
Low tolerance for adversarial relations or friction at work
Employers are paternalistic Workers do not expect self-expression or
initiative at work Businesses stress collectivism, continuity,
cooperation, belongingness, formality, and doing exactly what you are told
Rarely entertain business associates at homes
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -14
Mexican Business Culture (continued) Preserving one’s honor, saving face, and
looking important are valued Opinions expressed by employees are often
regarded as back talk Supervisors are viewed as weak if they
explain the rationale for their orders to workers
Mexicans often do not follow rules Life is slower in Mexico, tardiness is common
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -15
Japanese Business Culture
Importance of group loyalty and consensus called “Wa”
Constant discussion and compromise Silence is a plus in formal meetings When confronted with disturbing questions,
managers often remain silent Managers are reserved, quiet, distant,
introspective, and other oriented
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -16
Communication Differences Across Cultures Italians, Germans, and French do not soften
up executives with praise before a criticism Israelis are accustomed to fast paced
meetings British executives complain that Americans
chatter too much Europeans feel that they are being treated
like children when asked to wear nametags
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -17
Communication Differences Across Cultures (continued) Executives in India are used to
interrupting each other In Malaysia and Japan periods of silence
are appropriate, no silence is needed in Israel
“How was your weekend?” is considered intrusive by many business people
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 11 -18
Worldwide Tax Rates
US and Japan 38% Asia-Pacific Region 30% Germany 30% Great Britain 28% France 27% Europe 26% Ireland near 0% Former Soviet-Bloc nations near 0%