Transcript Management 8e. - Robbins and Coulter

Chapter 4 – Managing in a
Global Environment
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Three global perspectives
Regional trading alliances
Types of global organizations
How organizations go global
Exporting, importing, licensing, franchising
Strategic alliances, joint ventures, foreign
subsidiaries
GLOBE framework for assessing cultures
Challenges of doing business in global world
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Quiz: Who Owns What?
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Ben and Gerry’s ice Cream is owned by a company based in:
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The Bic Pen company is based in:
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Brazil, Switzerland, US, or Germany?
The company that markets Lipton tea is based in:
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Switzerland, Germany, US, or Japan?
PowerBar nutrition energy bars are products of a company
based in:
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US, Canada, Veneduela, UK?
The parent company of Braun electric shavers is located in:
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Japan, UK, US, or France?
Skippy peanut butter is a product of a company based in:
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Mexico, Saudi Arabia, UK, or US?
China, UK, Japan, US?
Dr. Pepper and 7-up are products of a company based in:
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US, Japan, Canada, UK?
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Selected Companies Deriving 50% or More of
Revenues from Non-U.S. Operations (in 1997)
Company
Alfac
Exxon
Manpower
Colgate-Palmolive
Coca-Cola
Gillette
Mobil
CPC International
Avon Products
IBM
Citicorp
Digital Equipment
Texaco
Hewlett Packard
Non-U.S. Income as Percentage of Total
84.3
77.4
68.8
68.4
68.3
68.0
67.6
64.4
64.0
62.3
62.3
61.5
55.9
54.1
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Table 4-1
Cross-Cultural Blunders
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Examples of Regional Trading
Agreements
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The European Union (EU)
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Belgium, Denmark, France, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain, the United
Kingdom, Germany, Austria, Finland, and Sweden
Currency = the Euro
North American Free Trade Agreement (NAFTA)
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Eliminated barriers to free trade (tariffs, import licensing
requirements, and customs user fees)
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United States, Canada, and Mexico
Association of Southeast Asian Nations (ASEAN)
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Trading alliance of 10 Southeast Asian nations
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European Union Countries
Exhibit 4.3
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ASEAN Members
Source: Based on J. McClenahen and T. Clark,
“ASEAN at Work,” IW. May 19, 1997, p. 42.
Exhibit 4.4
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Adopting a Global Perspective
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Ethnocentric Attitude
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Polycentric Attitude
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The parochialistic belief that the best work approaches and
practices are those of the home country.
The view that the managers in the host country know the
best work approaches and practices for running their
business.
Geocentric Attitude
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A world-oriented view that focuses on using the best
approaches and people from around the globe.
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Different Types of Global
Organizations
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Multinational Corporation (MNC)
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Transnational Corporation (TNC)
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A firm which maintains operations in multiple countries but
manages the operations from a base in the home country.
A firm that maintains operations in several countries but
decentralizes management to the local country.
Borderless Organization
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A firm that has eliminated structural divisions that impose
artificial geographic barriers and is organized along business
lines.
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Nestle’s – a Transnational Corporation
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How Organizations Go Global
Exhibit 4.5
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Other Forms of Globalization
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Strategic Alliances
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Joint Venture
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Partnerships between and organization and a foreign
company in which both share resources and knowledge in
developing new products or building new production
facilities.
A specific type of strategic alliance in which the partners
agree to form a separate, independent organization for some
business purpose
Foreign Subsidiary
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Wholly independent organization – separate and
independent
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Managing in a Global
Environment – Difficult Because…
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Different
Different
Different
factors
Different
legal environments
economic systems
monetary and financial
cultures! (next slide)
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National Cultures are Very
Strong
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National Culture
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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 the organization culture.
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The GLOBE (Global Leadership and Organizational
Behavior Effectiveness) Framework for Assessing
Cultures
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Assertiveness
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Future orientation
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Gender differentiation
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Uncertainty
avoidance
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Power distance
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Individualism/collecti
vism
In-group collectivism
Performance
orientation
Humane orientation
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What Are Americans Like?
Americans are very informal.
Americans are direct.
Americans are competitive.
Americans are achievers.
Americans are independent and individualistic.
Americans are questioners.
Americans dislike silence.
Americans value punctuality.
Americans value cleanliness.
Sources: Based on M. Ernest (ed.), Predeparture Orientation Handbook: For Foreign Students and Scholars Planning to Study in the
United States (Washington, DC: U.S. Information Agency, Bureau of Cultural Affairs, 1984), pp. 103–05; A. Bennett, “American Culture Is
Often a Puzzle for Foreign Managers in the U.S.,” Wall Street Journal, February 12, 1986, p. 29; “Don’t Think Our Way’s the Only Way,”
The Pryor Report, February 1988, p. 9; and B.J. Wattenberg, “The Attitudes behind American Exceptionalism,” U.S. News & World
Report, August 7, 1989, p. 25.
Exhibit 4.6
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Video - Nidek
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How did Nidek go global?
Ethnocentric, polycentric, or geocentric
attitude?
What evidence of:
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Differences between cultures
Hybrids culture
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