Omnipotent view of management: the view that managers are directly responsible for an organization’s
success or failure
Symbolic view of management: the view that managers have only a limited effect on substantive
organizational outcomes because of the large number of factors outside their control
External environment: outside forces and institutions that potentially can affect organizations
performance
Specific environment: the part of the external environment that is directly relevant to the achievement
of organizations goals (customers, suppliers, competitors, public pressure groups
General environment: broad external conditions that may affect the organization
Conditions: economic, legal-political, socio-cultural, demographic, and technological
Global trade: regional trading alliances (European Union EU, North American free trade agreement
NAFTA, association of Southeast Asian nations ASEAN) world trade organization WTO
The economic environment: market economy and planned economy
Market economy: an economic system in which resources are primarily owned and controlled by the
private sector.
Planned economy: an economic system in which all economic decisions are planned by a central
government
National culture: the values and attitudes shared by individuals from a specific country that shape their
behaviour and beliefs about what is important
Different types of international organizations: multinational corporations, multidomestic corporations,
global companies, transnational or borderless organizations, born global’s
Multinational Corporations: a broad term that refers to any and all types of international companies
that maintain operations in multiple countries
Multidomestic Corporations: an international company that decentralizes management and other
decisions to the local country
Global Companies: an international company that centralizes management and other decisions in the
home country
Transnational or borderless organizations: a type of international company in which artificial
geographical barriers are eliminated
Born global’s: international companies that choose to go global from inception.
Licensing: an approach to going global in which a manufacturer gives another organization the right to
use its brand name, technology, or product specifications
Franchising: an approach to going global in which a service organization gives a person or group the right
to sell a product, using specific business methods and practices that standardized
Strategic Alliance: an approach to going global that involves a partnership between a domestic and
foreign company in which both share resources and knowledge in developing new products or building
production facilities.
Foreign Subsidiary: an approach to going global that involves a direct investment in a foreign country by
setting up a separate and independent production facility or office.
Joint venture: an approach to going global in which the partners agree to form a separate, independent
organization for some business purpose: it is a type of strategic alliance
Environmental uncertainty: the degree of change and the degree of complexity in an organizations
environment.
Environmental complexity: the number of components in an organizations environment and the extent
of the organizations knowledge about those components
Stakeholders: any constituencies in the organizations external environment that are affected by the
organizations decisions and actions
Shareholders: individuals or companies that own stocks in a business