Transcript International management

International management
Purpose
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Global economy!
How does that impact management practices?
Go beyond the book--emphasizes planning
and strategic issues.
Definitions
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International management involves
managing operations in more than one
country.
Globalization is the process of growing
interdependence among elements of the
global economy.
Why is this an issue today
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GATT treaty create the WTO. Monitors trade
disputes.
NAFTA Regional trade alliance with Canada,
Mexico, and the US.
Fall of Communism and restricted economies.
China and India (over 2 billion people).
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How does the global economy differ from the
protectionistic economy.
Think about opportunities and threats.
Basically, advantages and disadvantages to
free trade. Is there consensus on your team
that unlimited free trade is better than
protectionism.
Examine International Management
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Planning
Organizing
Leading
Controlling
Video of Coke
Use this as an opportunity to examine the
management process.
Strategic planning
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Level of involvement with import and export.
Do you engage in
International business (trade)
Become Multinational company (extensive
trade)
Transnational company--worldwide
operations.
Look at mission statements
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How is global or international mentioned?
Strategies of involvement
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Importing and exporting
global sourcing--procurement
Licensing and franchising
Joint ventures
wholly own subsidiary
Issues of
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Control
Market penetration
Local autonomy
Legal issues in other countries
Paying others
Political risk assessment
Ethics exposure (child labor, sweatshops).
Nike
Coke video
Function of mission and resources.
Organizing
Coke Video.
How are international
responsibilities delegated?
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Efficiency and effectiveness
Production or distribution.
Overlap of product lines.
Leadership
Issues of Centralization
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Ethnocentric management. Use of home
country policies abroad.
Decentralized--adjustments to local cultures.
Socio-cultural differences
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Countries differ on issues such as power
distance, masculinity and femininity,
collectivism and individualism.
Chinese vs Americans
Italians vs English
Opportunities for
misunderstandings abound
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Valid instinctive feeling about other people.
Examples from Hong Kong
Coke?
How to manage
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Extensive cultural workshops.
Diversity training in the US leads to role
models with international management.
Rely on people who are bi-cultural.
It is definitely challenging.
Central issue is can expatriates
manage other national cultures
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Expatriate is someone who lives and works in
a foreign country.
Problems
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Culture shock--confusion and discomfort a
person experiences in an unfamiliar culture.
Credibility
Adjusting to local customs.
Controlling
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Very much a cultural norm issue. Different
methods of control related to power distance.
Issues of weak leadership or overbearing
leadership. Its all relative.
All too often absence of controls. (Berings
Bank). DuPont and Bhopal.
Summary
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International competition--Can not ignore.
Companies are struggling to manage
international issues. Varies. Franchising is
excellent (Coke).
No perfect solutions to issues. Everything is a
tradeoff.
Higher risks and higher payoffs.