Introduction to management 13th schemerhorn bachrach chapter 05

5 John R Schermerhorn, Jr Daniel G Bachrach Introduction to Management 13th edition Chapter International Management Planning Ahead — Key Takeaways  What are the management challenges of globalization?  What are global businesses and how they work?  What is culture and how does it influence global management?  How can we benefit from global management learning? Copyright ©2015 John Chapter Outline Management and Globalization     Global management Why companies go global How companies go global Global business environments Global Businesses    Types of global businesses Pros and cons of global businesses Ethics challenges for global businesses Copyright ©2015 John Chapter Outline Culture and Global Diversity     Cultural intelligence Silent languages of culture Tight and loose cultures Values and national cultures Global Management Learning    Are management theories universal? Intercultural competencies Global learning goals Copyright ©2015 John Management and Globalization  Key      concepts in the challenges of globalization: Global economy Globalization Global management World 3.0 Global manager Copyright ©2015 John Management and Globalization  Global  economy Resources, markets, and competition are worldwide in scope  Globalization  The process of growing interdependence among elements in the global economy  World  3.0 Nations cooperate while respecting different national characters and interests Copyright ©2015 John Management and Globalization  Global  Managing business and organizations with business interests in more than one country  Global  management manager Is culturally aware and informed on international affairs Management and Globalization  International  businesses Conducting for-profit transactions of goods and services across national boundaries  Reasons Profits why businesses go global: Customers Suppliers Capital Labor Risk Copyright ©2015 John Management and Globalization  Market  entry strategies involve the sale of goods or services to foreign markets but not require expensive investments Management and Globalization  Types      Global sourcing Exporting Importing Licensing agreement Franchising  Types    of market entry strategies: of direct investment strategies: Joint venture Strategic alliance Owned subsidiary Copyright ©2015 John Global Businesses Copyright ©2015 John Global Businesses  Ethical   issues for Global Businesses: Corruption – illegal practices that further one’s business interests Foreign Corrupt Practices Act – makes it illegal for U.S firms and their representatives to engage in corrupt practices overseas Bribes to foreign officials  Excessive commissions  Non monetary gifts  Copyright ©2015 John Global Businesses  Child   labor and Sweatshops: Child labor – full time employment of children for work otherwise done by adults Sweatshops – employ workers at very low wages for long hours in poor working conditions Copyright ©2015 John Cultures and Global Diversity Copyright ©2015 John Cultures and Global Diversity Stages in adjusting to a new culture: Copyright ©2015 John Cultures and Global Diversity Silent languages of culture Copyright ©2015 John Cultures and Global Diversity Context  Low context cultures - emphasize communication via spoken or written words United States  Canada  Germany  Copyright ©2015 John Cultures and Global Diversity Context  High context cultures – rely on nonverbal and situational cues as well as on spoken or written words Thailand  Malaysia  Copyright ©2015 John Cultures and Global Diversity Time   Monochronic cultures – people tend to one thing at a time United States Polychronic cultures – time is used to accomplish many different things at once Egypt Copyright ©2015 John Cultures and Global Diversity Space  Proxemics – study of how people use space to communicate In the U.S people value “personal space”  Many Latin and Asian cultures expect much less personal space  Copyright ©2015 John Cultures and Global Diversity Tight and Loose Cultures  Cultural tightness-looseness • • • • Strength of norms that govern social behavior Tolerance for any deviance from norms Tight = Japan, Korea, Malaysia Loose = Brazil, Hungary, Australia Copyright ©2015 John Cultures and Global Diversity Values and national cultures (Hofstede): Copyright ©2015 John Figure 5.3 How countries’ short-term thinking and long-term thinking compare on Hofstede’s dimensions of national culture Copyright ©2015 John Global Management Learning  Comparative  How management systematically differs among countries and/or cultures  Intercultural  competencies Skills and personal characteristics that help us be successful in cross-cultural situations  Global  management managers Need to successfully apply management functions across international boundaries Copyright ©2015 John Global Management Learning Global learning goals:     Not universal Engage critical thinking Look everywhere for new management ideas Always consider culture! Copyright ©2015 John ... business—from market entry to direct investment strategies Copyright ©2015 John Management and Globalization Copyright ©2015 John Management and Globalization Insourcing refers to local job creation... ©2015 John Management and Globalization Types of insourcing: Copyright ©2015 John Management and Globalization Copyright ©2015 John Management and Globalization Copyright ©2015 John Management. .. Copyright ©2015 John Management and Globalization  Market  entry strategies involve the sale of goods or services to foreign markets but not require expensive investments Management and Globalization