Management Practices
Lecture-29
1
Recap
• Social Responsibility
– Obligation to Responsiveness
– Factors That Affect Employee Ethics
– Stages of Moral Development
2
Today’s Lecture
• Managing in a Global Environment
•
Four key questions :
I.
II.
III.
IV.
Global Perspectives
Different Types of International Organizations
How organizations go global (Important)
Managing in a global environment
3
Three global attitudes
• Ethnocentric Attitude
– The best work approaches and practices are those of
the home country.
• Polycentric Attitude
– The host country know the best work approaches and
practices for running their business.
• Geocentric Attitude
– A world-oriented view that focuses on using the best
approaches and people from around the globe.
4–6
Reasons for engaging in international business:
– Profits
– Customers
– Suppliers
– Capital
– Labor
4–9
• Q2: What are different Types of International
Organizations ?
4–13
Different Types of International Organizations
• Multinational Corporation (MNC)
– Maintains operations in multiple countries
•
•
•
•
What’s the difference?
Multidomestic Corporation
Global Company
Transnational Corporation (Borderless
Organization)
Born Globals/International New Ventures (INVs)
4–14
Different Types of International
Organizations
• Multidomestic Corporation
– Decentralizes management and other decisions
to the local country.
– Gives foreign operations more freedom to
operate as separate entities
• Global Company
– Centralizes its management and other decisions
in the home country.
– Seeks total integration of global operations
4–15
Different Types of International
Organizations (cont’d)
• Transnational Corporation (Borderless
Organization)
– Eliminated structural divisions that impose artificial
geographic barriers and is organized along business
lines that reflect a geocentric attitude.
• Born Globals/International New Ventures (INVs)
– Commit resources upfront (material, people,
financing) to doing business in more than one
country.
4–16
Schermerhorn/Management, 7e
Chapter 5, Figure 05-05
Alternative multinational structures for global operations.
4–17
Q3: How organizations go global?
4–18
Schermerhorn/Management, 7e
Chapter 5, Figure 05-02
Common forms of international business–from market entry to direct
investment strategies.
4–20
 Market entry strategies involve the sale of goods or services
to foreign markets but do not require expensive investments.
 Types of market entry strategies:
– Global sourcing
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–
–
–
Exporting
Importing
Licensing agreement
Franchising
4–21
 Direct investment strategies require major
capital commitments but create rights of
ownership and control over foreign
operations.
 Types of direct investment strategies:
– Joint ventures
– Wholly owned subsidiaries
4–22
Summary
• Managing in a Global Environment
•
I.
II.
III.
IV.
Four key questions :
Global Perspectives
Different Types of International Organizations
How organizations go global (Important)
Managing in a global environment
23
Next Lecture
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•
•
•
•
Global outsourcing
Exporting and importing
Licensing and Franchising
Foreign subsidiary
Managing in A Global Environment
24