week 3 global management managing across border 3 sks
TRANSCRIPT
GLOBAL MANAGEMENT:MANAGING ACROSS BORDERS
Week 3
Prepared by Management Department | www.unimedia.ac.id | [email protected]
Globalization: the collapse of time & distance
Process by which
the world economy is becoming
a single interdependent system
(Griffin)
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(Griffin)
Globalization: as reflected in three important developments
INTEGRATING
EFFICIENCY &
EFFECTIVENESS
ONE BIG WORLD
MARKET: THE GLOBAL
ECONOMY
# 2 Giving positive & negative effects
CROSS BORDER BUSINESS# 3
The rise of both Megamergers & Minifirms Worldwide
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THE RISE OF THE
“GLOBAL VILAGE” &
E-COMMERCE
# 1 From transportation to communication, the Net, the Web, & the World
“THE WORLD IS SMALLER”
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USING THE WEB
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SCHWAB’S CHINESE-LANGUAGE WEB SITE
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“ ONE BIG WORLD MARKET ”
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MCDONALD’S IN JAPAN & CHINA
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CROSS BORDER BUSINESS: THE RISE OF ....
2. MINIFIRMS OPERATING WORLDWIDE
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Small Companies Can Get Started More Easily
PIXAR ANIMATION STUDIAS: SMALL COMPANIES CAN MANEUVER FASTER
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WHY LEARN ABOUT INTERNATIONAL MANAGEMENT ?
International managers oversee the conduct of operations International managers oversee the conduct of operations in, or with organizations in foreign countries
multinational organizations
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multinational corporations
THE SITUATIONS THAT MANAGER MUST BE CONSIDER :
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4. YOU MAY WORK FOR AN AMERICAN FIRM OUTSIDE INDONESIA
The Successful International Manager
ETNOCENTRIC
MANAGERS
“WE KNOW BEST”
POLYENTRIC
MANAGERS
“THEY KNOW BEST”
GOECENTRIC
MANAGERS
“WHAT’S BEST IS WHAT
EFFECTIVE, REGARDLESS OF
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“WE KNOW BEST” “THEY KNOW BEST” EFFECTIVE, REGARDLESS OF
ORIGIN”
1. AVAILABILITY OF SUPPLIES
WHY COMPANIES EXPAND INTERNATIONALLY :
1. AVAILABILITY OF SUPPLIES
3. LOWER LABOR COSTS
2. NEW MARKETS
4. ACCESS TO FINANCE CAPITAL
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5. AVOIDANCE OF TARIFFS & IMPORT QUOTAS
HOW COMPANIES EXPAND INTERNATIONALLY :
LICENSING & GLOBAL
LOWEST RISK HIGHEST RISK
LICENSING &
FRANCISING
JOINT VENTURES
WHOLLY-OWNED
SUBSIDIARIESIMPORTING,
EXPORTING, &
COUNTERTRADING
GLOBAL
OUTSOURCING
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LOWEST RISK
& INVESTMENT
HIGHEST RISK
& INVESTMENT
ECONOMIC DIFFERENCES:
ADJUSTING TO OTHER COUNTRIES’ ECONOMIES
2. COMMAND ECONOMY
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2. COMMAND ECONOMY
DEVELOPED VERSUS LESS-DEVELOPED COUNTRIES
Developed CountriesDeveloped Countries
Less-Developed Countries
Infrastructure & Resources
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Infrastructure & Resources
Currency Exchange Rates
FIRST WORLD OR THIRD WORLD?UNITED COLORS OF BENETTON
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“OH, SAME OLD THING.”
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POLITICAL-LEGAL DIFFERENCES:
ADJUSTING TO OTHER COUNTRIES’S GOVERNMENTS & LAWS
GOVERNMENTAL SYSTEMS
TOTALITARIAN GOVERNMENTS
DEMOCRATIC GOVERNMENTS
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BARRIERS TO INTERNATIONAL TRADE
1. TARIFFS
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3. EMBARGOES
Organizations Promoting International Trade
WORLD
BANK
… and many more
IMF
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WTO
NAFTA
EU
NAFTA
Mercosur
APEC
The Importance of National Culture
CULTURE....
the shared set of beliefs, values, knowledge, and the shared set of beliefs, values, knowledge, and
patterns of behavior common to a group of people.
CULTURAL DIMENSIONS....
Low-Context Culture, Low-Context Culture, in which shared meanings are primarily derived from written and spoken words.
High-Context Culture,
in which people rely heavily on situational cues for meaning when communicating with others.
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HOFSTEDE’S DIMENSIONS OF NATIONAL CULTURE.
Source: Schermerhorn, Management, Figure 05-04
OTHER CULTURAL VARIATIONS :
1. LANGUAGE
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3. TIME ORIENTATION
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Nokia Office in Richmond, Canada
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Download : www.natriumz.wordpress.com
thank you
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