Chapter 3
The Global Environment
and Entrepreneurship
Management Fundamentals
Concepts
Applications
Third Edition
Copyright © 2006 Thomson Business and Economics.
All rights reserved.
Skill Development
Robert N. Lussier
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Learning Outcomes
After studying this chapter, you should be able to:
1. Discuss the role of technology in the global village.
2. State the difference between a domestic, an international, and a
multinational business.
3. List the six activities that make a business a global one, in order
from lowest to highest cost and risk.
4. Describe some differences in the business practices of large
multinational corporations and small international companies.
5. Explain the difference between an entrepreneur and an
intrapreneur.
6. Describe how global diversity affects the management functions.
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–2
Learning Outcomes (cont’d)
7. Define the following key terms:
ethnocentrism
new venture
global village
entrepreneurs
international business
intrapreneurs
multinational corporation (MNC) small business
global sourcing
competitive advantage
joint venture
first-mover advantage
direct investment
business plan
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–3
The Global Environment
•
Ethnocentrism
–
•
_________________________________________________
_________________________________________________
Technology and the Internet in the Global Village
–
E-Commerce/E-Business
•
–
___________________________________
_
___________________________________
_
Wireless communication
•
___________________________________
_
___________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–4
Global Trading Agreements
•
World Trade Organization
–
•
_________________________________________________
Trade Alliances
–
European Union (EU)
•
–
North American Free Trade Agreement (NAFTA)
•
–
–
___________________________________
_
___________________________________
_
___________________________________
_
Association of Southeast Asian Nations (ASEAN)
Asia-Pacific Economic Cooperation (APEC)
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–5
Classifying Businesses in the Global Village
•
Domestic Business
–
•
International Business
–
•
_________________________________________________
_________________________________________________
_________________________________________________
Multinational Corporation (MNC) or Global Business
–
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–6
Taking a Business Global
•
Global Sourcing
–
•
Importing
–
•
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Exporting
–
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–7
Taking a Business Global (cont’d)
•
Licensing
–
•
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Franchising
–
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–8
Taking a Business Global (cont’d)
•
Contracting
–
•
Joint Venture
–
•
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Direct Investment
–
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–9
Entrepreneurship
•
New Venture Creation
–
•
Entrepreneur
–
•
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Intrapreneur
–
_________________________________________________
_________________________________________________.
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–10
Entrepreneurship (cont’d)
•
Small Business Defined
–
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–11
Selecting the New Venture
•
Factors in Selecting a New Venture
–
•
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Competitive Advantage
–
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–12
Selecting the New Venture (cont’d)
•
Five Most Commonly Used Entrepreneurial Strategies
–
–
–
–
–
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–13
The Business Plan
•
The well prepared business plan answers the following
questions:
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–14
Information Commonly Included in a Business Plan
•
•
•
•
•
•
•
•
•
Executive Summary
Introduction
Location and Layout
Operations
Marketing
Human Resources
Accounting
Controls
Financing
• ________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–15
Global Diversity
•
Diversity in Work-Related Values
–
Geert Hofstede’s Dimensions of National Value Systems
• _____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–16
Global Diversity (cont’d)
•
Diversity in Management Functions
–
–
•
Management practices that work well in one country
_________________________________________________
_________________________________________________
Managers must base their actions on _________________
_________________________________________________
_________________________________________________
The Global Learning Organization
–
Successful multinational organizations _______________
_________________________________________________
_________________________________________________
Copyright © 2006 Thomson Business and Economics. All rights reserved.
3–17