Management 12e richard draft chapter 04

Chapter Managing in a Global Environment © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part A Borderless World Organizations and managers are not isolated from international forces Trade barriers have fallen Communication is faster, cheaper Consumer tastes converge Organizations address the needs and desires that transcend national boundries © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.1 Ranking of Six Countries on the Globalization Index © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Global Mindset  Ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent: Different social, cultural, political, institutional, intellectual, and psychological characteristics  Develop by engaging with people from different cultures © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.2 The Dimensions of a Global Mindset © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Changing International Landscape  China Inc China manufactures many products for U.S companies China is also a growing consumer market Regulations and government policies make doing business in China a challenge © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Changing International Landscape  India is a service giant, growing in software design and engineering  Brazil is a country that is gaining the attention of American managers © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Impact of Multinational Corporations (MNC)  The size and volume of international business is LARGE  MNC is managed as an integrated whole Companies have revenue = GDP of small country Move assets from country to country 25% or more of its profit comes from outside parent country © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Impact of Multinational Corporations (MNC)     Controlled by one management authority  Geocentric companies – world oriented and favor no specific country MNC managers must have a global perspective Ethnocentric companies – place emphasis on their home countries Polycentric companies – oriented toward the markets of individual foreign host countries © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Globalization Backlash  68% of Americans say other countries benefit the most from free trade  The United States’ primary concern is the loss of jobs  Another trouble spot is how overseas contractors and suppliers treat employees 53% believe free trade has hurt U.S 10 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.4 Key Factors in International Environment 17 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Economic Environment  Economic development – Countries are categorized as either developed or developing based on per capita income Government policies Market size Financial markets Infrastructure 18 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.4 Country Competitiveness Comparison 2011–2012 19 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Economic Environment  Economic interdependence The current economic crisis has highlighted how interconnected economies are around the world 20 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.6 How Countries are Bearing the Economic Crisis 21 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Legal-Political Environment  Political risk is defined as the risk of lost assets, earning power, or managerial control  Political instability includes riots, revolutions, civil disorders, and frequent changes in government 22 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part The Sociocultural Environment The values and behaviors that govern U.S business not always translate   Social values Communication differences 23 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Hofstede’s Value Dimensions  Power distance  Uncertainty avoidance  Individualism and collectivism  Masculinity and femininity 24 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.7 Rank Orderings of Ten Countries Along Four Dimensions of National Value Systems 25 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part GLOBE Project Value Dimensions      Assertiveness Future orientation Gender differentiation Performance orientation Humane orientation 26 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.8 Examples of Country Rankings on Selected GLOBE Value Dimensions 27 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.9 High-Context and Low-Context Cultures 28 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part International Trade Alliances  General Agreement on Tariff and Trade (GATT) 23 nations in 1947, a set of rules for fair trade  World Trade Organization (WTO) Maturation of GATT into permanent global institute 29 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part International Trade Alliances  European Union 1957 alliance to improve economic and social conditions among members; evolved to 28-nation European Union  North American Free Trade Agreement (NAFTA) Merged the United States, Canada, and Mexico into a single market 30 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 4.10 The Nations of the European Union 31 © 2016 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ... website, in whole or in part The Impact of Multinational Corporations (MNC)     Controlled by one management authority  Geocentric companies – world oriented and favor no specific country MNC managers