inaglobal environment-zhengxin
TRANSCRIPT
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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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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).