Matakuliah Tahun : J0562 / Management : 2010 Managing In a Global Environment Pertemuan 02 (Second Meeting) Learning Outcome Student should be able to explain global perspective and understand how managing in a global environment -> C2 Learning Outline • What’s Your Global Perspective • Understanding the Global Environment • Doing Business Globally • Managing in a Global Environment 1. What’s Your Global Perspective Parochialism a) Ethnocentric Attitude b) Polycentric Attitude c) Geocentric Attitude 2. Understanding the Global Environment a. Regional Trading Alliances 1) The European Union (EU) 2) North American Free Trade Agreement (NAFTA) 3) Association of Southeast Asian Nations (ASEAN) 4) Other Trade Alliances (African Union, South Asian Association for Regional Cooperation) b. The World Trade Organization 3. Doing Business Globally a. Different Types of International Organizations Multinational Corporation (MNC) Three types of MNC: a) Global Company: Sony, Deutsche Bank AG, and Merrill Lynch b) Multidomestic Corporation: Nestle, and Frito Lay c) Transnational or Borderless Organizations: IBM, and Spain’s Telefonica b. How Organizations Go International Minimal global Investment Global Sourcing Significant global Investment Exporting and Importing Strategic Alliance Licensing Joint Venture Franchising Foreign Subsidiary 4. Managing In a Global Environment a. The Legal-Political Environment b. The Economic Environment c. The Cultural Environment 1)Hofstede’s Framework for Assessing Cultures a) Individualism versus collectivism b) Power distance c) Uncertainty avoidance d) Achievement versus nurturing e) Long-term and short-term orientation 2) The Globe Framework for assessing culture Nine dimensions on which national culture differ: a) b) c) d) e) f) g) h) i) Assertiveness Future orientation Gender differentiation Uncertainty avoidance Power distance Individualism/collectivism In-group collectivism Performance orientation Humane orientation d. Global Management in Today’s World 1) Sukhoi, the Russian jet maker 2) Nissan Motor Company 3) Danish toy maker Lego Group transferred production from factory in Switzerland to the Czech Republic 4) In Bangalore, India, General Electric has sunk more than $80 million into creating its largest research center outside the United States 5) Starting in 2006, the global electronics industry had to comply with new European rules called RoHS (Restrictions on Hazardous Substances)