File - student business information
Download
Report
Transcript File - student business information
PowerPoint Presentation
to Accompany
Management, 9/e
John R. Schermerhorn, Jr.
Chapter 5:
Global Dimensions of Management
Prepared by: Jim LoPresti
University of Colorado, Boulder
Published by: John Wiley & Sons, Inc.
Study Question 1: What are the international business
challenges of globalization?
Key concepts in the challenges of
globalization:
Global economy
Globalization
International management
Global manager
Management 9/e - Chapter 5
2
Study Question 1: What are the international business
challenges of globalization?
Global economy
Resource supplies, product markets,
and business competition are
worldwide, rather than local
Globalization
The process of growing
interdependence of these components
in the global economy
Management 9/e - Chapter 5
3
Study Question 1: What are the international business
challenges of globalization?
International management
Management in organizations with business
interests in more than one country
Global manager
Informed about international developments
Transnational in outlook
Competent in working with multicultural people
Aware of regional developments in a changing
world
Management 9/e - Chapter 5
4
Study Question 1: What are the international business
challenges of globalization?
International businesses
Conduct for-profit transactions of goods and
services across national boundaries
Reasons why businesses go international:
Profits
Customers
Suppliers
Capital
Labor
Management 9/e - Chapter 5
5
Study Question 1 What are the international business
challenges of globalization?
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
Management 9/e - Chapter 5
6
Figure 5.1 Common forms of international business—from
market entry to direct investment strategies.
Management 9/e - Chapter 5
7
Study Question 1 What are the international business
challenges of globalization?
Direct investment strategies require
major capital commitments but
create rights of ownership and
control over foreign operations.
Types of direct investment
strategies:
Joint ventures
Foreign subsidiaries
Management 9/e - Chapter 5
8
Study Question 1 What are the international business
challenges of globalization?
Criteria for choosing a joint venture
partner:
Familiarity with your firm’s major business.
Strong local workforce.
Future expansion possibilities.
Strong local market for partner’s own
products.
Good profit potential.
Sound financial standing.
Management 9/e - Chapter 5
9
Study Question 1 What are the international business
challenges of globalization?
Complications in the global business
environment:
Environment is complex, dynamic, and highly
competitive.
Global business executives must deal with
differences in the environment of business in
different countries.
World Trade Organization resolves trade and
tariff disputes among countries.
Protectionism can complicate global trading
relationships.
Management 9/e - Chapter 5
10
Study Question 2: What are multinational
corporations and what do they do?
A multinational corporation (MNC) is a
business with extensive international
operations in more than one foreign
country.
Management 9/e - Chapter 5
11
Study Question 2: What are multinational
corporations and what do they do?
Mutual benefits for host country and
MNC:
Shared growth opportunities
Shared income opportunities
Shared learning opportunities
Shared development opportunities
Management 9/e - Chapter 5
12
Study Question 2: What are multinational
corporations and what do they do?
Host country complaints about MNCs:
Excessive profits
Domination of local economy
Interference with local government
Hiring the best local talent
Limited technology transfer
Disrespect for local customs
Management 9/e - Chapter 5
13
Study Question 2: What are multinational
corporations and what do they do?
MNC complaints about host countries:
Profit limitations
Overpriced resources
Exploitative rules
Foreign exchange restrictions
Failure to uphold contracts
Management 9/e - Chapter 5
14
Study Question 3: What is culture and how does it
relate to global diversity?
Culture
The shared set of beliefs, values, and patterns
of behavior common to a group of people.
Culture shock
Cultural intelligence
Confusion and discomfort a person experiences
in an unfamiliar culture.
The ability to adapt and adjust to new cultures
Ethnocentrism
Tendency to consider one’s own culture as
superior to others.
Management 9/e - Chapter 5
15
Study Question 3: What is culture and how does it
relate to global diversity?
Stages in adjusting to a new
culture:
Confusion
Small victories
The honeymoon
Irritation and anger
Reality
Management 9/e - Chapter 5
16
Study Question 3: What is culture and how does it
relate to global diversity?
Popular dimensions of culture:
Language
Interpersonal space
Time orientation
Low-context cultures and high-context
cultures
Monochronic cultures and polychronic
cultures
Religion
Contracts and agreements
Management 9/e - Chapter 5
17
Study Question 3: What is culture and how does it
relate to global diversity?
Values and national cultures
(Hofstede):
Power distance
Uncertainty avoidance
Individualism-collectivism
Masculinity-femininity
Time orientation
Management 9/e - Chapter 5
18
Study Question 4: How do management practices
transfer across cultures?
Comparative management
How management systematically
differs among countries and/or
cultures.
Global managers
Need to successfully apply
management functions across
international boundaries.
Management 9/e - Chapter 5
19
Study Question 4: How do management practices
transfer across cultures?
Are management theories universal?
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.
Management 9/e - Chapter 5
20
Study Question 4: How do management practices
transfer across cultures?
Global organizational learning:
Companies can and should learn from each
other.
Readiness for global organizational learning
varies based on managerial attitudes.
Ethnocentric attitudes
Polycentric attitudes
Geocentric attitudes
Be alert, open, inquiring, but always cautious.
Management 9/e - Chapter 5
21