Transcript ADVANCED PROGRAMME IN INTERNATIONAL BUSINESS

MODULE:
ADVANCED GLOBAL BUSINESS STUDIES
FACILATOR
KWAME BOASIAKO OMANE – ANTWI;
PhD; FCCA.
Monday, April 27, 2020
PROF. K. B. OMANE-ANTWI
ADVANCED PROGRAMME IN
INTERNATIONAL BUSINESS
ADMINISTRATION AND GLOBAL
LEADERSHIP
1
PROF. K. B. OMANE-ANTWI
What is Global Business?
Structure of Global Business
Global Business Communication
Managing in a Global
Environment
Monday, April 27, 2020
MODULE OUTLINE
2
PROF. K. B. OMANE-ANTWI
 “Globalization – the removal of barriers to
free trade and the closer integration of
national economies – can be a force for good
that has the potential to enrich everyone in
the world, particularly the poor, but the way
it has been managed (especially the
international trade agreements) needs to be
rethought”. (Joseph Stiglitz)
 Globalization has been “misgoverned”.
(John K. Galbraith)
Monday, April 27, 2020
GLOBALIZATION AND ITS
CHALLENGES
3
PROF. K. B. OMANE-ANTWI
The shift
toward a more
integrated and
interdependent
world economy
Monday, April 27, 2020
WHAT IS “GLOBALIZATION”?
4
PROF. K. B. OMANE-ANTWI
Trade and investment barriers are
disappearing.
Perceived distances are shrinking due to
advances in transportation and
telecommunications.
Material culture is beginning to look
similar.
National economies merging into an
interdependent global economic system.
Monday, April 27, 2020
GLOBALIZATION-BASICS
5
PROF. K. B. OMANE-ANTWI
Merging of historically distinct and
separate national markets into one huge
global marketplace:
 Facilitated by offering standardized
products: Coca – cola
 Sony PlayStation
 McDonalds
Does not have to be a big company to
participate
Monday, April 27, 2020
GLOBALIZATION OF MARKETS
6
PROF. K. B. OMANE-ANTWI
Globalization of markets
Globalization of production
Decline of barriers of trade
(WTO)
Increase technological
capabilities
Monday, April 27, 2020
THE GLOBALIZATION OF THE
WORLD ECONOMY
7
- Increased revenue
opportunity through
global sales.
-Reduced cost by
producing in ‘low cost’
countries.
CONS
- Different nations =
Different problems
-Similarities between
nations may be
superficial.
- Global planning may be
easy, but global
execution is not.
PROF. K. B. OMANE-ANTWI
PROS
Monday, April 27, 2020
GLOBALIZATION: PROS & CONS
8
PROF. K. B. OMANE-ANTWI
International Trade:
When a firm exports goods or
services to consumers in another
country.
Foreign Direct Investment:
When a firm invests resources in
business activities outside its home
country.
Monday, April 27, 2020
GLOBAL BUSINESS - BASICS
9
Not
Consumer
Goods
 Commodities such as
aluminum, oil and wheat.
 Industrial products such
as microprocessors,
aircraft.
 Financial assets such as
U.S. Treasury bills and
Eurobonds.
PROF. K. B. OMANE-ANTWI
Industrial goods and
Materials
Monday, April 27, 2020
THE LARGEST GLOBAL MARKETS
10
PROF. K. B. OMANE-ANTWI
Refers to sourcing of goods and
services from locations around the
world, to take advantage of:
Differences in cost or quality of the
factors of production
 Labor
 Land
 Capital
Monday, April 27, 2020
GLOBALIZATION OF PRODUCTION
11
“Global Products”
PROF. K. B. OMANE-ANTWI
“ The sourcing of goods and
services from locations around
the globe to take advantage of
national differences in the cost
and quality of factors of
producing (labor, energy, land
and capital).”
Companies hope to lower their
overall cost structure and/or
improve
the
quality
or
functionality of their product
offering – increasing their
competitiveness.
Monday, April 27, 2020
GLOBALIZATION OF PRODUCTION
12
Decline in
Trade Barriers
Globalization
Technological
Change
PROF. K. B. OMANE-ANTWI
Monday, April 27, 2020
MACRO FACTORS
13
 New markets
opened through
www.
 Jet aircraft move
people and
goods.
 Global media
creating a
worldwide
culture
Monday, April 27, 2020
Production
dispersed to
economical
location due to
transportation
and
communication
advances
PROF. K. B. OMANE-ANTWI
IMPLICATIONS FOR PRODUCTION
AND MARKET GLOBALIZATION
14
PROF. K. B. OMANE-ANTWI
• U.S. dominance of the world economy
and world trade.
• U.S. dominance in world FDI.
• U.S. firms dominance of international
business
• Half of the world economies (communist
dominated) were off-limits to western
businesses.
Monday, April 27, 2020
THE CHANGING PARADIGM OF THE
GLOBAL ECONOMY
15
Labor Policies and the
Environment
• Firms move jobs to low cost
countries.
• Countries specialize in
efficiently produced goods
and import those they
cannot efficiently produce.
• Increases income in less
developed countries
• May lead to income
inequality.
• Firms move to countries
with weak laws
• Economic progress leads to
stronger laws
• By creating wealth and
incentives for technology
improvements, world will
be better.
• Tie strong laws to
international agreements.
• Firms are not amoral.
PROF. K. B. OMANE-ANTWI
Jobs and Income
Monday, April 27, 2020
GLOBALIZATION
16
PROF. K. B. OMANE-ANTWI
The United States has developed a world
leadership position due to:
Its use of market – based transactions in the
Western World
A broad flow of ideas, goods, and services
across national borders
An encouragement of international
communication and transportation
Pax Americana, an American sponsored
and enforced peace
Monday, April 27, 2020
UNITED STATES:
A GLOBAL LEADER
17
UN
WTO
Supernatural organizations are
limited to powers granted by
member countries and serve the
collective interest of members.
Power is derived from the
organization’s ability to sway
members to action.
Monday, April 27, 2020
EU
WTO
Founded in 1994
140 members
Police GATT trading system
PROF. K. B. OMANE-ANTWI
GLOBALIZATION AND
NATIONAL SOVEREIGNTY
18
PROF. K. B. OMANE-ANTWI
Critics argue that globalization has not helped the
poor.
• 1870: per capita income of 17 richest nations was
2.4 times that of all other countries
• 1990: it was 4.5 times larger
Other factors may have influenced the gap.
• Totalitarian governments.
• Economic policies that destroy wealth creation.
• Little protection of property rights.
• Expanding populations
• War.
Monday, April 27, 2020
GLOBALIZATION AND THE WORLD’S
POOR
19
Monday, April 27, 2020
PROF. K. B. OMANE-ANTWI
MANAGING IN THE GLOBAL MARKET
PLACE
An International Business is any firm that
engages in international trade or investment.
Managing an international business is
different compared to managing a domestic
business:
 Countries are different.
 Problems are more complex.
 Must work within government regulations.
 Currency conversion presents unique
problems.
20
PROF. K. B. OMANE-ANTWI
 Destroys manufacturing jobs in
wealthy, advanced countries
 Wage rates of unskilled workers in
advanced countries declines
 Companies move to countries with
fewer labor and environment
regulations
 Loss of sovereignty
Monday, April 27, 2020
GLOBALIZATION DEBATE
21
PROF. K. B. OMANE-ANTWI
“Under the new system, many
decisions that affect billions of people
are no longer made by local and
national governments but instead, if
challenged by any WTO member
nation, would be deferred to a group of
unelected bureaucrats sitting behind
closed doors in Geneva.
Monday, April 27, 2020
GLOBALIZATION AND NATIONAL
SOVEREIGNTY
22
PROF. K. B. OMANE-ANTWI
“The bureaucrats can decide whether or
not people in California can prevent the
destruction of the last virgin forests or
determine if carcinogenic pesticides can
be banned from their foods; or whether
European countries have the right to ban
dangerous biotech hormones in meat…
At risk is the very basis of democracy and
accountable decision making.”
Ralph Nader
Monday, April 27, 2020
GLOBALIZATION AND NATIONAL
SOVEREIGNTY (Cont’d)
23
PROF. K. B. OMANE-ANTWI
International business has created a
network of global links that binds
countries, institutions, and individuals
with
trade,
financial
markets,
technology, and living standards.
For example, a reduction in coffee
production in Brazil would affect
individuals and economies worldwide.
Monday, April 27, 2020
GLOBAL LINKS TODAY
24
Politics & Law
International Suppliers
Governance
Technology
PROF. K. B. OMANE-ANTWI
Culture
Monday, April 27, 2020
CONTEXTUAL FACTORS THAT AFFECT
GLOBAL SUPPLY CHAIN MANAGEMENT
25
(Commercial Counselor USA Embassy, Accra (2012)).
PROF. K. B. OMANE-ANTWI
Power
Access to Credit
Urban Water
Land Tenure System
Corruption
Monday, April 27, 2020
GLOBALIZATION – The Challenges
of doing business in Africa:
26
PROF. K. B. OMANE-ANTWI
STRATEGY
• Key strategic decisions relate to:
Access to international markets
• Spotting new markets
• Building exports
The extent to which the business will be
competitive in international markets
The effect on decision making of the existence of
trade blocs
Consideration of the necessity and importance of
acquisitions
Monday, April 27, 2020
GLOBAL FACTORS INFLUENCING
BUSINESS
27
PROF. K. B. OMANE-ANTWI
• Religious Considerations- appropriateness of
some business ventures – e.g. selling condoms
in staunchly Catholic countries
• Impact on local communities of business
development- availability of jobs, training,
environmental impact for these communities
• Impact on the environment- can impact on the
businesses image
• Ethical considerations
• Cultural issues
Monday, April 27, 2020
SOCIAL
28
PROF. K. B. OMANE-ANTWI
• Availability and developments in technology
can be a powerful influence on global business
strategy:
• E.g.
Access to bandwidth
Pc ownership
Technology and sales – processing and
payments and sales
Compatibility of technologies in Business
Management – accounting systems, language
differences, etc.
Monday, April 27, 2020
TECHNOLOGICAL
29
PROF. K. B. OMANE-ANTWI
Political Change – regime change
through coup, violence, etc.
Change in government through
democratic election can influence
future business strategy
 E.G. the opportunities that are now
available in Russia and Eastern
Europe following the collapse of
communism
Monday, April 27, 2020
POLITICAL
30
PROF. K. B. OMANE-ANTWI
Political Uncertainty – in countries like
Zimbabwe, Sudan, Venezuela.
Political uncertainty can lead to a fall in
investment by businesses and influence
decisions on expansion and business
ventures
War/Terrorism – create uncertainty
Political Doctrine – can affect the ease
with which business is conducted
Monday, April 27, 2020
POLITICAL (Cont’d)
31
PROF. K. B. OMANE-ANTWI
Key factors influencing global
business strategy can be
summarized under the PEST
heading:
• Political
• Economic
• Social
• Technological
Monday, April 27, 2020
FACTORS
32
GLOBALIZATION DRIVES INTEGRATION
Deployment
And mobility
strategies
competency
Vision
Culture O
Values
Business
Strategy and
objectives
Alignment
Talent
Management
Workforce
analytics
And planning
Leadership
development
Learning
and
training
Succession
planning
Total rewards
and recognition
Performance
management
Career
Mapping
People and
Business
Results
PROF. K. B. OMANE-ANTWI
Recruitment
Sourcing and
On and off –
Role and boarding
Monday, April 27, 2020
Strategy
Processes
Integration
33
PROF. K. B. OMANE-ANTWI
International business consists of
transactions that are devised and
carried out across national
borders to satisfy the objectives of
individual,
companies,
and
organizations.
Monday, April 27, 2020
WHAT IS INTERNATIONAL
BUSINESS?
34
PROF. K. B. OMANE-ANTWI
Definitions
1. IB field is concerned with the issues facing international
companies and governments in dealing with all types of
cross – border transactions
2. IB involves all business transactions that involve two or
more countries
3. IB consists of transactions that are devised and carried
out across border to satisfy the objectives of individuals
and organizations
4. IB consists of those activities private and public
enterprises that involve the movement across national
boundaries of goods and services, resources, knowledge
or skills.
Monday, April 27, 2020
INTERNATIONAL BUSINESS
35
Licensing
Foreign Direct
Investment
Franchising
Management
Contracts
PROF. K. B. OMANE-ANTWI
Export-import
Trade
Monday, April 27, 2020
TYPES OF INTERNATIONAL BUSINESS
36
PROF. K. B. OMANE-ANTWI
IB has a distinct field of study for the past three
decades, but it does not have a widely accepted theory
on which to base its uniqueness as a discipline.
IB has been a subject of academic research since the
early 20th century with principal focus on :
Trade and inter-company relations
Study of Export activities
Foreign Direct Investment (FDI)
Technology Transfer
Management of Transnational Corporations (TNC)
Monday, April 27, 2020
THEORY IN INTERNATIONAL
BUSINESS (IB)
37
PROF. K. B. OMANE-ANTWI
IB, in my opinion, is the theory of policies and activities of
business and Government in conflict and cooperation
IB theory must explain the problems of exports and
import rather than the desire to trade, which is not
different from domestic trade; Explain:
The gains from trade
The reason for and direction of FDI and of contractual
relations
Strategies and operation resulting in
- cross-cultural issues
- corporate advantage analysis i.e. the bargaining
model
- international contractor (INC) dimensions.
Monday, April 27, 2020
THEORY IN INTERNATIONAL
BUSINESS (IB) - Cont’d
38
PROF. K. B. OMANE-ANTWI
Operates in different countries with
different cultures, political systems,
economic systems, and are at different
levels of economic development
Interact with different governments
- Conflict between nation-state and MNC
Work within the limits of international
trade and investment systems
Deal with foreign exchange changes
Monday, April 27, 2020
WHY INTERNATIONAL BUSINESS
IS DIFFERENT?
39
Manufacturing firms
Service companies (i.e. banks,
insurance, consulting firms)
Art, film, and music companies
PROF. K. B. OMANE-ANTWI
More and more firms around the
world are going global, including:
Monday, April 27, 2020
NEED FOR INTERNATIONAL
BUSINESS
40
PROF. K. B. OMANE-ANTWI
 Causes the flow of ideas, service, and capital
across the world
 Offers consumers new choices
 Permits the acquisition of a wider variety of
products
 Facilitates the mobility of labor, capital, and
technology
 Provides challenging employment opportunities
 Reallocates resources, makes preferential
choices, and shifts activities to a global level
Monday, April 27, 2020
NEED FOR INTERNATIONAL
BUSINESS (Cont’d)
41
 The immediate international
environment also plays a role ( in terms
of partnerships) – consequently, look for
the right partnerships from a distance
too
Monday, April 27, 2020
 Important to position e – trade in a
broader context of economic
development, socio – economic culture in
the country, and engineering growth
PROF. K. B. OMANE-ANTWI
THE INTERNATIONAL BUSINESS
IMPERATIVE
 Globalization is potentially positive, but
needs better management: well –
designed rules
42
PROF. K. B. OMANE-ANTWI
Total world trade declined
dramatically after 2000, but is again
on the rise.
The rate of globalization is
accelerating.
Regionalization is taking place,
resulting in trading blocs.
The participation of countries in
world trade is shifting.
Monday, April 27, 2020
RECENT CHANGES IN
INTERNATIONAL BUSINESS
43
PROF. K. B. OMANE-ANTWI
Internationalization is the process by which a
firm gradually changes in response to
international competition, domestic market
saturation, and the desire for expansion, new
markets, and diversification.
Structural evolution (stages model) occurs
when managers redesign the organizational
structure to optimize the strategy’s changes to
work, making changes in the firm’s tasks and
relationships and designating authority,
responsibility,
lines
of
communication,
geographic dispersal of units and so forth
Monday, April 27, 2020
EVOLUTION AND CHANGE IN MNC
44
• Balances the need to respond quickly to local
conditions with the pressures for providing
products globally
Most MNCs evolve through certain basic
structural arrangements in international
operations
PROF. K. B. OMANE-ANTWI
A number of basic structures exist that permit an
MNC to compete internationally
Structure must meet the need of both the local
market and the home – office strategy of
globalization
Contingency approach
Monday, April 27, 2020
BASIC ORGANIZATIONAL
STRUCTURES
45
PROF. K. B. OMANE-ANTWI
A MNC has a worldwide approach
to foreign markets and production
and an integrated global
philosophy encompassing both
domestic and international
markets.
Monday, April 27, 2020
MULTINATIONAL COMPANIES
46
PROF. K. B. OMANE-ANTWI
Defined as a process of accomplishing the global
objectives of a firm by
(1)effectively coordinating the procurement,
allocation, and utilization of the human,
financial, intellectual, and physical resources
of the firm within and across national
boundaries and
(2) effectively charting the path toward the
desired organizational goals by navigating the
firm through a global environment that is not
only dynamic but often very hostile to the
firm’s very survival.
Monday, April 27, 2020
INTERNATIONAL MANAGEMENT (IM)
47
PROF. K. B. OMANE-ANTWI
TRADE BLOCS
Trade Blocs influence the ease of access to new
markets and affect the relative costs of trading
in different regions of the world:
EU
NAFTA
Locating within a trading bloc could help to
reduce long term trading costs( e.g. Japanese
companies building plants in the UK to help
overcome exposure to the Common External
Tariff)
Monday, April 27, 2020
IM CHALLENGES:
48
IM CHALLENGES (Cont’d):
PROF. K. B. OMANE-ANTWI
All these factors need to be
considered in any global business
venture:
Tax Systems
Investment Considerations and
Allowances
Sophistication of Financial Markets –
ease with which capital can be moved
and raised
Monday, April 27, 2020
ECONOMIC
49
PROF. K. B. OMANE-ANTWI
Commodity Prices – oil ,energy, metals
Monetary and Fiscal Policies – interest
rates, tax regimes, government aid
Internal Regulation and Bureaucracy –
can be stifling!
Exchange Rates
Monday, April 27, 2020
ECONOMIC (Cont’d)
50
PROF. K. B. OMANE-ANTWI
US share of world output has
dramatically declined.
Sources and destinations of FDI has also
changed dramatically in the past 30
years and the developing countries
becoming more important
New MNCs from developing countries
Fall of communism and rise of free
enterprise system
Monday, April 27, 2020
CHANGING NATURE OF
INTERNATIONAL BUSINESS
51
Availability of other markets to
replace the one in question
Availability of other sources of
supply to replace this country
Importance of this negotiation in
the firm’s dealings with the given
country
Relationship of the business in
this country to the firm’s total
global business
Availability of the other firms to
replace the one in question
Importance of the situation to
the government’s interests
Importance of this negotiation in
the government’s dealings with the
given firm
Relationship of this situation to
the country’s overall interests
PROF. K. B. OMANE-ANTWI
Factors contributing to the Factors contributing to the
stakes of the firm
stakes of the government
Monday, April 27, 2020
RELATIVE STAKES OF MNCS AND
GOVERNMENTS OF HOST COUNTRIES
52
Governments of host
countries offer
1. Assistance in improving
host country internal
balance ( e.g. income,
employment)
Proprietary technology
Access to funds for
investing in the host country
Managerial/ marketing skills
1. Control over access to
the host country market
Control over access to the
market in general
Ability to offer an
important market to TNCs
when the government itself
is a customer
PROF. K. B. OMANE-ANTWI
MNCs offer
Monday, April 27, 2020
BARGAINING RESOURCES OF MNCS AND
GOVERNMENTS OF HOST COUNTRIES
53
2. Assistance in improving
host
country external balance
Access to low cost inputs
from abroad
Access to foreign markets for
exports
Replacement of imports
through local production
2. Control over access
to
factors of production
Natural resources, such as
minerals and metals,
farmland, forests and
fisheries
Low cost production inputs
such as labor
Funding and investing
opportunities in local
financial markets
Monday, April 27, 2020
Governments of host
countries offer (cont’d)
PROF. K. B. OMANE-ANTWI
MNCs offer (cont’d)
54
PROF. K. B. OMANE-ANTWI
3. Assistance in achieving
host country non –
economic goals
Co-opting pressure groups
by providing jobs and other
benefits
Local presence of TNC aids
the government of the host
country in dealing with the
firm’s home government
Monday, April 27, 2020
MNCs offer (cont’d)
55
PROF. K. B. OMANE-ANTWI
Bargaining resources
Form a strategic alliance with a firm that
possesses a desired resource (e.g. technology,
local ownership in the host country, foreign
distribution network).
Acquire a desired resource through a purchase or
contracting arrangement
Relative stakes
Diversify business to activities outside of the
control of the government of the host country
Establish multiple sites in different countries for
the given business, so that the firm is not
“hostage” to any one of them.
Monday, April 27, 2020
STRATEGIES FOR IMPROVING
BARGAINING ADVANTAGES
56
PROF. K. B. OMANE-ANTWI
Share the business venture with a local firm,
such that the firm can push the government to
offer favorable treatment.
Form a strategic alliance with other firms that
might offer the government of the host country
an alternative, thus raising the government’s
stakes in the bargain.
Similarity of interests
Retreat from initial bargaining position to offer
more benefits( as seen by the government ) to
the host country.
Monday, April 27, 2020
Relative stakes (Cont’d)
57
PROF. K. B. OMANE-ANTWI
• Involve the government of the host country in
the business venture (e.g. through a state owned
company) such that interests become mutual in
the venture.
• Structure activities of the venture (such as
profit remittances, financing, importing of
inputs, training) to meet key concerns of the
government.
Monday, April 27, 2020
Similarity of interests (Cont’d)
58
Monday, April 27, 2020
There is no permanent organizational
chart for the world. . . .It is of supreme
importance to be ready at all times to
take advantage of new opportunities.
- Robert c. Goizueta, (Former)
Chairman and Ceo, Coca – Cola
Company
PROF. K. B. OMANE-ANTWI
ORGANIZATIONAL STRUCTURE
OF MNC
59
 Global Area Division
• Structure under which global
operations are organized on a
geographic rather than a product
basis
PROF. K. B. OMANE-ANTWI
Global Structural Arrangement
Global Product Division
• Structural arrangement in which
domestic
divisions
are
given
worldwide responsibility for product
groups.
Monday, April 27, 2020
BASIC ORGANIZATIONAL
STRUCTURES
60
 Structure which global operations
primarily based on function and
secondarily on product.

Matrix Organization Structure

Structure that is a combination of a global
product, area, or functional arrangement.
PROF. K. B. OMANE-ANTWI
Global Functional Division
Monday, April 27, 2020
BASIC ORGANIZATIONAL
STRUCTURES (Cont’d)
61
PROF. K. B. OMANE-ANTWI
Domestic structure plus export
department
Domestic structure plus foreign
subsidiary
International division
Global functional structure
Global product structure
Global Geographic Structure
Monday, April 27, 2020
TYPICAL WAYS THAT FIRMS ORGANIZE
INTERNATIONAL ACTIVITIES
62
Chief
Executive
Officer
Headquarters
departments
Finance
Production
Marketing
VP International
Operations
Overseas
subsidiaries
Japan
Germany
Mexico
HRM
PROF. K. B. OMANE-ANTWI
Monday, April 27, 2020
DOMESTIC PLUS FOREIGN SUBSIDIARY
63
Area Specialists: North
America
Latin America
Europe
Far East
Corporate
Functional Staff
Product 1
Division
Product 2
Division
Product 3
Division
PROF. K. B. OMANE-ANTWI
CEO
Monday, April 27, 2020
GLOBAL PRODUCT DIVISION
Country B
Country A
64
Finance
Production
Marketing
Board of
Directors
Chair
CEO
VP
Finance
Group VP
VP
Plastics
VP North
America
VP South
America
VP
Agriculture
VP
Europe
France
Finance
Production
VP
Pacific
PROF. K. B. OMANE-ANTWI
Monday, April 27, 2020
GLOBAL GEOGRAPHIC STRUCTURE
United
Kingdom
marketing
65
Production
Domestic
Division
Paint
Marketing
Domestic
Division
Tools
Personnel
Finance
International
Division
Domestic
Division
Furniture
Japan
Australia
Italy
Office
Operations
Marketing
Government
Relations
Domestic
Division
Hardware
PROF. K. B. OMANE-ANTWI
Chief Executive Officer
Monday, April 27, 2020
INTERNATIONAL DIVISION STRUCTURE
66
PROF. K. B. OMANE-ANTWI
Monday, April 27, 2020
MULTINATIONAL MATRIX
STRUCTURE
67
PROF. K. B. OMANE-ANTWI
Two opposing forces in structural decisions
- The need for differentiation (focusing on and
specializing in specific markets)
- The need for integration (coordinating those
same markets)
Globalization – a specific strategy that treats
the world as one market by using a
standardized approach to products and
markets.
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
68
PROF. K. B. OMANE-ANTWI
Organizing to facilitate a globalization strategic
typically involves rationalization and the
development of strategic alliances.
Organizing for global product standardization
necessitates close coordination among the
various countries involved.
The problem facing companies in the future is
that the structurally sophisticated global
networks leave the organization exposed to risk
environmental volatility from all corners of the
world.
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
69
PROF. K. B. OMANE-ANTWI
The global functional structure is designed on
the basis of the company’s functions –
production, marketing , finance, and so forth.
Foreign operations are integrated into the
activities and responsibilities of each
department to gain functional specialization
and economies of scale.
Matrix Structure is a hybrid organization
of overlapping responsibilities – it is used
by some firms but has generally fallen into
disfavor recently.
Monday, April 27, 2020
INTEGRATED GLOBAL STRUCTURES
70
PROF. K. B. OMANE-ANTWI
If you misjudge the market
[ by globalizing], you are
wrong in 15 countries rather
than only in one.
- Ford European Executive
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
71
Design of appropriate structures
Use of effective staffing practices
Visits by head-office personnel
Regular meetings
PROF. K. B. OMANE-ANTWI
Direct Coordinating Mechanisms
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
72
Sales quotas
Budgets
Other financial tools
Feedback reports
PROF. K. B. OMANE-ANTWI
In–Direct Coordinating Mechanism
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
73
Factors likely to affect the
appropriateness of monitoring systems
include:
- Management practices
- Local constraints
- Expectations regarding: Authority,
Time, and Communication
PROF. K. B. OMANE-ANTWI
Appropriateness of Monitoring and Reporting
Systems
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
74
In deciding on appropriate monitoring
and reporting systems, additional factors
to be considered include:
• The role of information systems
(adequacy of management information
systems in foreign affiliates, noncomparability of performance data
across countries)
• Evaluation variables across countries
PROF. K. B. OMANE-ANTWI
Managing Effective Monitoring Systems
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
75
When does a company need to make a
change in organizational structure?
- Makes a change in goals or strategy
- Makes a change in scope of operations
- Indications of organizational inefficiency
- conflicts among divisions and subsidiaries
- Overlapping responsibilities
- Complaints regarding customer service
PROF. K. B. OMANE-ANTWI
Organizational Change and Design
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
76
The establishment of a single currency
makes it possible, for the first time, to
establish shared, centralized
accounting and administrative systems.
—Francesco Caio, CEO, Merloni
Elettrodomestici
PROF. K. B. OMANE-ANTWI
Control Systems for Global Operations
Monday, April 27, 2020
CONTROL SYSTEMS FOR GLOBAL
OPERATIONS
77
ORGANIZING FOR GLOBALIZATION
Monitoring Systems
Multinationa
l Structures
Output Control
Bureaucratic
Control
Decision-Making
Control
Organization
Control
International
Division
Most likely profit
control
Must follow
company policies
Some centralization
possible
Treated like
other divisions
Global
geographic
structure
Profit center most
common
Some policies and
procedure necessary
Local units have
autonomy
Local subsidiary
culture often
most important
Global
product
structure
Unit output for
supply; sales volume
for sales
Tight process
controls for product
quality and
consistency
Centralized at
product division
headquarters
Possible for
some companies
but not always
necessary
Transnational
network
structure
Used for supplier
units and some
independent profit
centres
Less important
Few decisions
centralized at
headquarters; more
decisions
centralized in key
network nodes
Organizational
culture
transcends
national
cultures;
supports sharing
and learning; the
most important
control
mechanism
Views the various companies,
subsidiaries, suppliers, or
individuals as a relational networks
Allows the different network
partners to adopt unique structures
that are adapted to the local context
PROF. K. B. OMANE-ANTWI
Inter-organizational networks
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
79
PROF. K. B. OMANE-ANTWI
Global E-Corporation Network
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
80
The Chinese commonwealth is a form of
global network that has become the envy of
Western multinationals
Network of entrepreneurial relationships
in Asia primarily
Includes mainland China, 1.3 billion
citizens, and more than 55 million
Chinese in Taiwan, Indonesia, Hong Kong,
and Thailand
Estimated to control $2 Trillion in liquid
assets
Focus: Chinese Global Network
PROF. K. B. OMANE-ANTWI
Comparative Management
Monday, April 27, 2020
COMPARATIVE MANAGEMENT FOCUS:
CHINESE GLOBAL NETWORK
81
PROF. K. B. OMANE-ANTWI
Comparative Management Focus: Chinese
Global Network
Most observers believe that this Chinabased informal economy is the world leader
in economic growth, industrial expansion,
and exports
Comprises most mid-sized, family-run firms
linked by transnational network channels
Channels move information, finance, goods,
and capital
Network alliances bind together and draw
from the substantial pool of financial capital
and resources available in the region
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
82
Involves linking foreign operations to each other and
to headquarters in a flexible way
Leverages local and central capabilities
Not a matter of boxes on an organizational chart; it is
a network of company units and a system of
horizontal communication
Requires the dispersal of responsibility and decision
making to local subsidiaries
Effectiveness is dependant on the ability and
willingness to share current and new learning and
technology across the network
PROF. K. B. OMANE-ANTWI
Transnational Corporation
Monday, April 27, 2020
ORGANIZATIONAL FOR GLOBALIZATION
83
Inter-organizational networks
The global e-corporation
network structure
The transnational corporation
(TNC) network structure
PROF. K. B. OMANE-ANTWI
Emergent structure forms
Monday, April 27, 2020
ORGANIZING FOR GLOBALIZATION
84
PROF. K. B. OMANE-ANTWI
• “The Jack Welch of the future cannot be
me. I spent my entire career in the
United States. The next head of General
Electric will be somebody who spent
time in Bombay, in Hong Kong, in Buenos
Aires. We have to send our best and
brightest overseas and make sure they
have the training that will allow them to
be the global leaders who will make GE
flourish in the future.”
Monday, April 27, 2020
MANAGING IN A GLOBAL ENVIRONMENT
85
encourage managers to blind themselves to
gender, race and ethnicity and see people only
as individuals and to judge them according to
their professional skills.
This approach causes problems because it
confuses recognition with judgement (italics
added)...... To ignore cultural differences is
unproductive... Choosing not to see minimize
the problems it causes while maximizing the
advantages it allows.... When we blind ourselves
to cultural diversity, foreigners become mere
projections of ourselves.” (Adler, 1991, pp.77 )
Monday, April 27, 2020
“Cultural norms, especially in North America,
PROF. K. B. OMANE-ANTWI
MANAGING IN A GLOBAL ENVIRONMENT
(Cont’d)
86
Internalization
Acceptance
Appreciation
PROF. K. B. OMANE-ANTWI
Adaptation
Monday, April 27, 2020
GLOBAL LEADERSHIP COMPETENCE
(GLC) MODEL
Understanding
Understanding
87
Understanding
Eld. K. B. Omane-Antwi
L = IQ + EQ +CQ
Where L = Leadership at the global
level
IQ = Intellectual Intelligence
Quotient
EQ = Emotional Intelligence
Quotient
CQ = Cultural (Cognitive)
Intelligence Quotient
27/04/2020
GLOBAL LEADERSHIP PROCESS
FRAMEWORK
88
PROF. K. B. OMANE-ANTWI
Monday, April 27, 2020
GLOBAL STRATEGIC LEADER
CHARACTERISTICS
89
Monday, April 27, 2020
STRATEGIC LEADER PROCESS
PROF. K. B. OMANE-ANTWI
Strategic Actions
Learning and
Change
(Absorption)
90
PROF. K. B. OMANE-ANTWI
Strategic Positioning
A central tenet of the basic strategy paradigm is that
in order to maximize its long run return on
invested capital, a firm must:
• Pick a position on the efficiency frontier that is
viable in the sense that there is enough demand to
support that choice
• Configure its internal operations so that they
support that position
• Make sure that the firm has the right organization
structure in place to execute its strategy.
Monday, April 27, 2020
GLOBAL BUSINESS
MANAGEMENT STRATEGY
91
 The firm can be thought of a value
chain composed of a series of
distinct value creation activities,
including production.
These value creation activities can
be categorized as primary activities.
PROF. K. B. OMANE-ANTWI
Operations: The Firm as a Value Chain
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
92
PROF. K. B. OMANE-ANTWI
Primary Activities
The primary activities of a firm have to do
with creating the product, marketing and
delivering the product to buyers, and
providing support and after-sale service to the
buyers of the product.
Support Activities
Support activities provide the inputs that
allow the primary activities of production and
marketing to occur.
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
93
The term organizational architecture can be used
to refer to the totality of a firm’s organization,
including formal organizational structure, control
systems and incentives, organizational culture,
processes and people.
Organizational structure refers to:
The formal division of the organization into subunits
The location of decision-making responsibilities within
that structure
The establishment of integrating mechanisms to
coordinate the activities of subunits including cross
functional teams and or pan-regional committees
PROF. K. B. OMANE-ANTWI
Organization: The Implementation of strategy
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
94
PROF. K. B. OMANE-ANTWI
Controls are the metrics used to measure the
performance of subunits and make judgments about
how well managers are running those subunits
Incentives are the devices used to reward appropriate
managerial behavior
Processes are the manner in which decisions are made
and work is performed within the organization
Organizational culture is the norms and value systems
that are shared among the employees of an organization
By people we mean not just the employees of the
organization, but also the strategy used to recruit,
compensate and retain those individuals and the type of
people that they are in terms of their skills, values and
orientation
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
95
PROF. K. B. OMANE-ANTWI
Firms that operate internationally are able to:
Expand the market for their domestic product offering
by selling those products in international markets
Realize location economies by dispersing individual
value creation activities to locations around the globe
where they can be performed most efficiently and
effectively
Realize greater cost economies from experience
effects by serving an expanded global market from a
central location, thereby reducing the costs of value
creation
Earn a greater return by leveraging any value skills
developed in foreign operations and transferring them
to other entities within the firm’s global network of
operations
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
96
PROF. K. B. OMANE-ANTWI
Expanding the market: Leveraging Products and
Competencies
A company can increase its growth rate by taking goods or
services developed at home and selling them
internationally
The success of firms that expand in this manner is based
not only on the goods or services they sell, but also on their
core competencies (skills within the firm that competitors
cannot easily match or imitate)
Core competencies enable the firm to reduce the costs of
value creation and/or to create perceived value in such a
way that premium pricing is possible.
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY (Cont’d)
97
PROF. K. B. OMANE-ANTWI
Location Economies
Firms can benefit by basing each value creation
activity at that location where economies,
political, and cultural conditions, including
relative factor costs, are most conducive to the
performance of the that activity
Firms that pursue such as strategy can realize
location economies (the economies that arise
from performing a value creation activity in the
optimal location for that activity, wherever in the
would that might be)
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
98
PROF. K. B. OMANE-ANTWI
Locating a value creation activity in the
optimal location for that activity can have
one of two effects:
It can lower the costs of value creation
and help the firm to achieve a low cost
position
It can enable a firm to differentiate its
products offering from the offereings of
competitors
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
99
PROF. K. B. OMANE-ANTWI
Creating a Global Web
By taking advantage of location economies in different
parts of the world, multinational firms create a global
web of value creation activities
Under this strategy, different stages of the value chain
are disperse to those locations around the globe
where perceived value is maximized or where the
costs of value creation are minimized
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
100
PROF. K. B. OMANE-ANTWI
Some Caveats
Introducing transportation costs and trade barriers complicate
this picture
Political risks must be assessed when making location decisions
Experience Effects
The experience curve refers to the systematic reductions in
production costs that have observed to occur over the life of a
product
Learning Effect
Learning effects are cost savings that come from learning by
doing
So, when productivity increase, individuals learn the most
efficient ways to perform particular tasks, and management
learns how to manage the new operation more efficiently.
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
101
PROF. K. B. OMANE-ANTWI
Economies of scale
Economies of scale refers to the reductions in
unit cost achieved by producing a large
volume of a product.
Sources of economies of scale include:
The ability to spread fixed costs over a large
volume
The ability of large firms to employ increasing
specialized equipment or personnel
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
102
PROF. K. B. OMANE-ANTWI
Strategic Significance
Moving down the experience curve allows a
firm to reduce its cost of creating value
Serving a global market from a single location
is consistent with moving down the
experience curve and establishing a low-cost
position
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
103
Managers must recognize that valuable skills that could be
applied elsewhere in the firm can arise anywhere within the
firm’s global network (not just at the corporate center)
Managers must also establish an incentives system that
encourages local employees to acquire new skills
Summary
Managers need to keep in mind the complex relationship
between profitability and profit growth when making strategic
decision about pricing.
PROF. K. B. OMANE-ANTWI
Leveraging Subsidiary Skills
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
104
NOTE: EXPLANATION FOLLOWS IN THE NEXT SLIDES
PROF. K. B. OMANE-ANTWI
CHOOSING A STRATEGY
Firms use four basic strategies to compete
in the international environment:
Global Standardization
Localization
Transnational
International
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
105
PROF. K. B. OMANE-ANTWI
Global Standardization Strategy
A global standardization strategy focuses on increasing
profitability and profit growth by reaping the cost
reductions that come from economies of scale, learning
effects, and location economies
The strategic goal is to pursue a low-cost strategy on a
global scale
This strategy makes sense when there are strong pressure
for cost reductions and demands for local responsiveness
are minimal
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
106
PROF. K. B. OMANE-ANTWI
Transnational strategy
A transnational strategy tries to simultaneously:
Achieve low costs through location economies,
economies of sale and learning effects
Differentiate the product offering across geographic
markets to account for local differences
Foster a multidirectional flow of skills between
different subsidiaries in the firm’s global network of
operations
 A transnational strategy makes sense when cost
pressures are intense, and simultaneously, so are
pressures for local responsiveness.
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
107
PROF. K. B. OMANE-ANTWI
Localization Strategy
• A localization strategy focuses on increasing
profitability by customizing the firm’s goods or
services so that they provide a good to tastes and
preferences in different national markets
• Localization is most appropriate when there are
substantial difference across nation with regards to
consumer tastes and preferences, and where cost
pressures are not too intense
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
108
PROF. K. B. OMANE-ANTWI
International Strategy
• An international strategy involves taking
products first produced for the domestic
market and then selling them internationally
with only minimal local customization
• When there are low cost pressures and low
pressures for local responsiveness, an
international strategy is appropriate.
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
109
An international strategy may not be viable in the long
term
To survive, firms may need to shift to a global
standardization strategy or a transnational strategy in
advance of competitors.
Similarly ,localization may give a firm a competitive edge,
but if the firm is simultaneously facing aggressive
competitors, the company will also have to reduce its cost
structures, and the only way to do that may be to shift
toward a transnational strategy
PROF. K. B. OMANE-ANTWI
The Evolution of Strategy
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
110
PROF. K. B. OMANE-ANTWI
Strategic Alliances
• Strategic alliances refer to cooperative agreements
between potential or actual competitors
The Advantages of strategic Alliances
strategic alliances:
• Facilitate entry into a foreign market
• Allow firms to share the fixed costs(and associated risk ) of
developing new product or processes
• Bring together complementary skills and assets that
neither partner could easily develop on its own
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
111
Making Alliances work
The success of an alliance seems to be a function of
three main factors:
 partner selection
Alliance structure
The manner in which the alliance is managed
PROF. K. B. OMANE-ANTWI
The Disadvantage of strategic Alliances
Strategic alliances can give competitors low-cost
routes to new technology and markets, but unless a
firm is careful, it can give away more than it receives
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
112
PROF. K. B. OMANE-ANTWI
Partner Selection
A good partner has three principal characteristics
A good partner helps the firm achieve its strategic
goals and has the capabilities the firm lacks and that it
values
A good partner shares the firm’s vision for the
purpose of alliance
A good partner is unlikely to try to opportunistically
exploit the alliance for its own ends: that it, to
expropriate the firm’s technological know-how while
giving away little in return
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
113
PROF. K. B. OMANE-ANTWI
Alliance Structure
• Alliances can be designed to make it difficult to transfer
technology not meant to be transferred
• Contractual safeguards can be written into an alliance
agreement to guard against the risk of opportunism by a
partner
• Both parties can agree in advance to swap skills and
technologies to ensure a chance of equitable gain
• The risk of opportunism by an alliance partner can be
reduced if the firm extracts a significant credible
commitment from its partner in advance
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
114
PROF. K. B. OMANE-ANTWI
Managing the Alliance
Successfully managing an alliance requires
managers from both companies to build
interpersonal relationships
A major determinant of how much a company
gains from an alliance is its ability to learn
from its alliance partner
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
115
CENTRALIZATION
Disadvantages
DECENTRALIZATION
Disadvantages
 Coordination of the value chain
facilitated.
 Decisions are consistent with
objectives
 Duplicate activities are preempted
 The risk of costly, wrong, lowerdecisions is reduced.
 Consistent dealing with stake is
ensured
 Decisions are made by those
who are directly involved.
 Lower-level managers are
corporate allowed to exercise
initiative.
 Lower-level employees are
motivated to perform better.
 Flexible responses to rapid level
changes are enabled.
 Subsidiary managers are held
holders more accountable.
PROF. K. B. OMANE-ANTWI
The Principles and Practice of Centralization and Decentralization
Monday, April 27, 2020
GLOBAL MANAGEMENT PROCESS
116
DECENTRALIZATION (Cont’d)
Initiative among lower
level employee is
discouraged.
Demoralized lower-level
workers instruction
Information flows from
the top thus, bottom- is
pre-empted.
The organization is put
at risk if bad, lower-level
decisions are made.
Cross-unit coordination
and wait for strategic fit
are impeded
Subsidiaries likely favor
their down; own projects
at the expense innovation
of global performance.
PROF. K. B. OMANE-ANTWI
CENTRALIZATION (Cont’d)
Monday, April 27, 2020
GLOBAL MANAGEMENT PROCESS (Cont’d)
117
PROF. K. B. OMANE-ANTWI
The reason for choosing one type of decisionmaking authority over another is partly a function
of attitude.
ethnocentric
attitude:
encourages
an
international or global firm to develop core
competencies in its home country and then
closely supervise their transfer and use abroad
i.e., centralized decision-making
- polycentric attitude: encourages a multidomestic firm to grant decision-making authority
to foreign subsidiaries, i.e., decentralized decisionmaking
Monday, April 27, 2020
GLOBAL MANAGEMENT PROCESS (Cont’d)
118
Decision-making should occur at the level of the people
most directly affected and who have most intimate
knowledge about the problem – the current trend is
toward more decentralized structures.
PROF. K. B. OMANE-ANTWI
- geocentric attitude: encourages a
transnational firm to creativity balance
the competing needs for centralized and
decentralized decision-making in order
to respond to both global and local
pressures
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT
STRATEGY (Cont’d)
119
Decentralization
Premises
 Decisions should be made by
senior managers.
 The effectiveness of the value
depends on headquarters’
authority.
 Centralized decisions ensure
operations in different
countries help achieve global
objectives.
 Decisions should be made by
lower-level employees
 The effectiveness of the value
chain depends on local
retaining managers’ authority
 Decentralized decisions
ensure that operations in
different countries help
achieve global objectives by
first meeting national goals
PROF. K. B. OMANE-ANTWI
CENTRALIZATION
Premises
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
120
DECENTRALIZATION
Encouraging Factors
 Corporate policies call for global
and uniformity.
 Interdependent subsidiaries values
activities.
 Firms need to move resources
activity to another
 Upper-level managers are more
experienced decision-makers.
 Decisions are important and risk of
loss is great
 Conditions call for local
reintegration sponsiveness and
adaptation.
 The firm is geographically share
dispersed.
 Economies of scale can from one
achieved nationally.
 Lower-level mangers are more
capable decision-makers.
 Decisions are relatively minor but
must made quickly.
 The need for foreign nationals to
reach headquarters is low.
PROF. K. B. OMANE-ANTWI
CENTRALIZATION
encouraging factors
Monday, April 27, 2020
GLOBAL BUSINESS MANAGEMENT STRATEGY
(Cont’d)
121
PROF. K. B. OMANE-ANTWI
Organization culture: the set of fundamental assumptions
about an organization, its goals and its practices that
employees share
Key features of a firm’s organization culture include:
— managerial values and principles
—The work climate and atmosphere
—Partners of “ how things are done around here”
—Tradition
—Ethical standards
Monday, April 27, 2020
ORGANIZATIONAL CULTURE IN THE
GLOBAL ARENA
Studies confirm a significant link between organization culture and
the financial performance of a firm.
122
PROF. K. B. OMANE-ANTWI
The shared values of an organization influence both
employees’ perception as well as the ways in which they
respond to the world.
Sustainable benefits and lasting competitive advantage
can only be realized when a firm exhibits a complementary
organization culture:
— An international strategy: requires rules, regulations, and
uniformity
—A global strategy: requires standardizing employees’
views
—A multidomestic strategy: requires greater tolerance of the
local interpretation of corporate goals
—A transnational strategy: requires a strategic blending of
standardization and adaptation ,i.e., dynamic flexibility
Monday, April 27, 2020
STRATEGY AND ORGANIZATION
CULTURE
123
NOTE: Culture defined as “the knowledge, beliefs, art,
law, morals, customs, and other capabilities of one
group distinguishing it from other groups
(Whiteley and Enghand, 2004).
PROF. K. B. OMANE-ANTWI
Helps us organize our world
Shared values, understandings,
assumptions and goals (values, beliefs,
norms)
Learned from earlier generation
Imposed by present members of society
Monday, April 27, 2020
THE ROLE OF CULTURE IN GLOBAL
MANAGEMENT
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PROF. K. B. OMANE-ANTWI
National character/ basic
Perception
Time concept
Space concept
Thinking
Language
Non verbal communication
Values
Behavior: norms ,rules,
Social grouping and relationships
Monday, April 27, 2020
CONCEPTS OF CULTURE
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PROF. K. B. OMANE-ANTWI
Understanding the ways culture can
differ
Understanding ourselves
Understanding others
Value different points of view
Develop shared values, beliefs and
norms
Monday, April 27, 2020
CULTURE CHARACTERISTICS
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PROF. K. B. OMANE-ANTWI
Power distance –how should the boss act
Uncertainty Avoidance –rules or common
sense
Masculine /feminine – material rewards or
quality of life
Individualism /collectivism- I versus we
Universalistic/ particularistic –treat all
equally versus do favors for friends
Monday, April 27, 2020
CULTURAL DIMENSIONS
127
PROF. K. B. OMANE-ANTWI
Achievement /Ascription- respect for what
you do or respect for who you are
Locus of control – I am in control of my
destiny versus outside forces are in control
Neutral /Affective –hide versus display
emotions
Diffuse/specific (high /low context) –indirect
versus direct communication
Monday, April 27, 2020
CULTURAL DIMENSIONS
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GLOBAL BUSINESS ETIQUETTE
You may think you’re polite, but how much do you really
know about Global Etiquette?
ethical and socially acceptable
behavior regarding professional
practice or action among the
members of a profession in their
dealings with each other.
PROF. K. B. OMANE-ANTWI
Etiquette is……..
Monday, April 27, 2020
WHAT IS “ETIQUETTE”?
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PROF. K. B. OMANE-ANTWI
But etiquette isn’t recognized as one
uniform set of standards around the
globe………
For example, a hand gesture in one
country may have the exact opposite
meaning in another culture.
Why are global etiquette and cultural
differences important to us?
Monday, April 27, 2020
WHAT IS “ETIQUETTE”? (Cont’d)
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PROF. K. B. OMANE-ANTWI
As global continues to expand , the
critical element of a successful business
outcome may be the appreciation and
respect for cultural differences.
You will need to utilize your knowledge
of cultural diversity and intercultural
communication during your
international travels and overseas
assignment
Monday, April 27, 2020
WHY ARE GLOBAL ETIQUETTE AND CULTURAL
DIFFERENCES IMPORTANT BUSINESS?
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PROF. K. B. OMANE-ANTWI
The case for business intelligence:
IT – enabled business decision making based on
simple to complex data analysis processes
Database development and administration
Data mining
Data queries and report writing
Data analytics and simulations
Benchmarking of business performance
Dashboards
Decision support systems
Monday, April 27, 2020
ICT THE ENABLER IN THE GLOBAL
BUSINESS COMMUNICATION
133
( Prof Ted Levitt , Harvard Business School, USA)
PROF. K. B. OMANE-ANTWI
“ a powerful force drives
the world forward to a
converging commonality,
and that force is
technology”
Monday, April 27, 2020
ICT THE ENABLER IN THE GLOBAL
BUSINESS COMMUNICATION
134
PROF. K. B. OMANE-ANTWI
Make more informed business decisions:
Competitive and location analysis
Customer behavior analysis
Targeted market and sales strategies
Business scenarios and forecasting
Business service management
Business planning and operation
optimization
Financial management and compliance
Monday, April 27, 2020
BUSINESS INTELLIGENCE
135
PROF. K. B. OMANE-ANTWI
In the operations of the corporate
communication function in international
corporations
In all interactions taking place in corporate
context
N/B International Business Communication
enhances the business knowledge of
internationally operating companies by
contributing to greater understanding of the
strategic role of communication in international
business operations
Monday, April 27, 2020
GLOBALCOMMUNICATION HAS TWO
LEVELS
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PROF. K. B. OMANE-ANTWI
Interaction through messages
Knowledge sharing in organizations
Dialogue through which organizations
reach their goals
The glue that ties are organization
together
The corporate function that maintains
business relations
Monday, April 27, 2020
BUSINESS COMMUNICATION IS:
137
PROF. K. B. OMANE-ANTWI
What is the relationship between
communication and organizations?
What is the power of communication
and the responsibility that goes with
power?
What is the view of globalization and
the future of business
communication?
Monday, April 27, 2020
KEY QUESTIONS
138
PROF. K. B. OMANE-ANTWI
• Communication now and in the future, is seen
as absolutely integral to corporate strategy
• Accordingly, a communication manager should
have a key role in strategy consolidation in an
organization
• ‘Persuasive rhetoric’ is seemingly the topmost
communication skill needed in the 21st
Century
• This rhetorically persuasive communication
will increasingly be done in english
Monday, April 27, 2020
COMMUNICATION AND THE FUTURE OF
INTERNATIONAL BUSINESS
139
PROF. K. B. OMANE-ANTWI
Visual identity, logo
Online corporate communication
Intercultural issues
Project communication
Employee communication
Change communication
Knowledge communication
Identity, image, reputation
Monday, April 27, 2020
COMMON DENOMINATOR FOR KEY
COMMUNICATION WORDS
140
Monday, April 27, 2020
How will an idea, good, or service fit into the
international market?
Should trade or investment be used to enter a
foreign market?
Should supplies be obtained domestically or
abroad?
What product adjustments are necessary to
be responsive to local conditions?
What are the threats from global competitors,
and how can these threats be counteracted?
PROF. K. B. OMANE-ANTWI
GLOBAL BUSINESS
CONCLUDING QUESTIONS
141
PROF. K. B. OMANE-ANTWI
“In today’s business environment, nine out of
every ten enterprises have shared services
operating in the international arena. Thus a
well-executed global business services
strategy is distinctly the new world order in
doing business”
(Phil Forsht, CEO and Founder, HFS
RESEARCH)
Monday, April 27, 2020
SUMMARY
142
PROF. K. B. OMANE-ANTWI
The world is shrinking rapidly
with the advent of fast
communication, transportation,
and finance flows.
Global competition is
intensifying
Higher risks with globalization
Monday, April 27, 2020
SUMMARY
143
PROF. K. B. OMANE-ANTWI
Foreign attacks on domestic markets
Foreign markets with higher profit
opportunities
Stagnant or shrinking domestic markets
 need larger customer base to achieve
economies of scale
Reduce dependency on single market
Follow customers who are expanding
Monday, April 27, 2020
Reasons to consider going global:
144
Monday, April 27, 2020
Exporting
Joint Venture
Direct Investment
PROF. K. B. OMANE-ANTWI
MARKET ENTRIES
STRATEGIES
145
PROF. K. B. OMANE-ANTWI
Before going abroad, the company
should try to define its international
marketing objectives and policies
What volume foreign sales is Desired?
How many countries to market in?
What types of Countries to enter?
Monday, April 27, 2020
DECIDING WHICH MARKETS TO
ENTER
146
PROF. K. B. OMANE-ANTWI
“ Choose Possible Countries and Rank
Based on Market Size, Market Growth,
Cost of Doing Business, Competitive
Advantage and Risk Level”
(Omane-Antwi, B (2011) )
Monday, April 27, 2020
FINALLY
147
PROF. K. B. OMANE-ANTWI
1. Discuss how the international trade system,
economic, political-legal, and cultural
environments affect a company’s
international marketing decisions
2. Describe three key approaches to entering
international markets
3. Explain how companies adapt their
marketing mixes for international markets
4. Identify the three major forms of
international marketing organization
Monday, April 27, 2020
REVIEW CONCEPTS
148
Monday, April 27, 2020
Prof. Kwame Boasiako Omane-Antwi PhD, MBA,
MA, ITP (HARVARD) AMP(OXON),FCCA,
FRSA(UK), FBI(Hon), FIOD(UK), FIOD(GH),
FCIM, MCIPD, MIMIS
Professor of Accounting & Vice Rector
Pentecost University College
Sowutuom
Tel 0244-32448/0202011775
E’mail: [email protected]
[email protected]
PROF. K. B. OMANE-ANTWI
THE END
THANK YOU
149