Management in Global environment. Global attitude and types Regional Trading How organizations go international Types of environment

1. MANAGEMENT IN
GLOBAL ENVIRONMENT

2. What is Management in Global
Environment
• In this borderless world business is becoming a unified, global
field.
• Global Environment is an environment in which organization
work, operate and compete in more than one country.

3. Global Perspective
Monolingualism is one sign that a nation suffers from parochialism,
which is viewing world solely through one’s own eye and perspective.
Parochialism is a significant obstacle for
managers working in a global business world . Its not unusual for
Germans, Italians to speak three or four languages. Maybe that is the
reason of their best management. As a wide knowledge of languages
is important for successful management.

4. There are three types of global
attitude:
1.Ethnocentric Attitude.
2.Polycentric Attitude.
3.Geocentric Attitude.

5. Types of Global Attitude:
Ethnocentric Attitude:
The parochialistic belief that the best work approaches and practices are those
of the home country.
 Polycentric Attitude:
The view that the managers in 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.

6. ETHNOCENTRIC POLYCENTRIC GEOCENTRIC
OREIENTATION Home country Host country World
ADVANTAGES • Simpler structure.
• More tightly
controlled.
• Extensive
knowledge of
foreign market.
• More support from
host government
• Committed local
managers with high
morale.
• Forces
understanding of
global issues.
• Balance local and
global objectives.
DRAWBACKS • More ineffective
management.
• Inflexibility.
• Social and political
black lash.
• Duplication of work.
• Reduced efficiency.
• Difficult to achieve.
• Managers must
have local and
global knowledge.

7. Regional Trading's:
The Europeans
Unions:
The union of 25 Europeans
nations created as a unified
economic and trade entity.

8. Understanding the Global environment:
Examples
Unilever PLC of the United Kingdom
is a powerful force in consumer’s
product.
Adidas of Germany the multinational
corporation is a dominant player in
manufacturing shoes.

9. Regional Trading's:
North American Free Trade agreement:
An agreement among the Mexican,
Canadian and U.S
government in which barriers to trade have
been eliminated.
3.Association of South East Asian
nations (ASEANS):
A trading alliances of 10 South East Asian
nations.

10. Global Trade Mechanism:
The World Trade Organization
The WTO is the only global international
organization that deals with the global rules
of trade between 161 countries around the
world.
International Monetary Fund
The International Monetary Fund (IMF) is
an international organization consisting of
"189 countries working to foster global
monetary cooperation.

11. Global Trade Mechanism
The World Bank Group
The World Bank Group (WBG) (is a family of five
international organizations that make leveraged
loans to developing Countries.
Organization For Economic Cooperation and
Development:
The Organization for Economic Co-operation and
Development is an economic organization with
35 member countries,

12. Different Types of national organizations:
• Multinational Corporation:
A broad term that refers to any all types of international companies that
maintain operations.
• Multidomestic Corporation:
A international company that decentralized management and other decisions to
the local country.
• Global Company:
An MNC that centralize management and other decision in the home country.
• Transnational:
An MNC that eliminates artificial geographical barriers.

13. How Organization goes International?
When organization go
internationally, they often use
different approaches depending
on whether they are just starting
or whether they have been doing
business internationally for a
while. For example: They import,
export, purchase cheap material
and labor around the world.

14. FOR EXAMPLE:
Fast food giant like Burger King is
like many big franchise firms
opening more new outlets overseas.
Along the way is making
appropriate changes in its menu
offering s such as substituting juice
and fruits for coke and fries.

15. 1.KHAADI
The luxury fashion house, Khaadi, first
expanded internationally to UAE in 2010.
Khaadi now boasts successful outlets in
United Arab Emirates, Saudi Arab, Australia,
the United States of America, Mexico,
Malaysia, Canada and the United Kingdom.
2. NATIONAL FOODS
One of Pakistan’s leading spice and
foodstuffs manufacturer, National Foods
became the certified vendor of McCormick,
a spice and herbs manufacturing brand, in
the USA.

16. When organizations go international they often use
different approaches some of them are as follow:

17. Types of Environment
The Legal Political Environment.
The Economical Environment.
Cultural Environment

18. Types of Environment
•THE ECONOMICAL ENVIRONMENT
The global mangers must be aware of economic
issues when doing business in other countries.
Basically there are two types of economic
environment:

19. MARKET ECONOMY
An economic system in which
resources are primarily owned
and controlled by private sectors.
Example:
• Hong-Kong
• Singapore
• Switzerland
• New Zealand
COMMAND ECONOMY
An economic system in which all
economic decisions are planned
by central government.
Example:
• Cuba
• North Korea

20. Types of Environment
• THE LEGAL POLITICAL ENVIRONEMENT:
Managers in global organization must stay
informed of specific laws in counties where
they run business.
For Example:
Few years ago many businesses have postponed
doing business in China because the government
controls what organization do and how they do it. As
Chinese consumers gain more power, however, that
attitude is likely to change.

21. •CULTURAL
ENVIRONMENT:
Every
country has its own
culture so it is very
necessary to get
knowledge about
culture of that
specific country.

22. Hofstede framework for assessing
culture
Individual versus Collectivism
Power Distance
Uncertainty Avoidance
Quantity versus Quality of Life
Long-term versus Short-term Orientation

23. The GLOBE framework for assessing
cultures
1. Assertiveness 2. Power Distance
4. Individualism/Collectivism 5. In-group collectivism
6. Future orientation 7. Performance
8. Gender Difference 9. Human orientation
10. Uncertainty Avoidance

24. CONCLUSION
As globalization its obvious that managers need to understand
how to best manage global workforce.
Mangers need cultural intelligence or cultural
awareness( Knowledge of culture, mindfulness, behavior, skills)
Managers need global mindset which includes intellectual
capital, psychological capital and social capital.

25. “Success in management requires learning
as fast as the world is changing.”
Warren Bennis