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Management Ch 4. PPT.pptx
1.
ninth edition STEPHEN P.
ROBBINS PowerPoint Presentation by Charlie Cook The University of West Alabama MARY COULTER Ā© 2007 Prentice Hall, Inc. All rights reserved. Chapter 4 Managing in a Global Environment
2.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā2 L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. Whatās Your Global Perspective? ā¢ Define parochialism. ā¢ Contrast ethnocentric, polycentric, and geocentric attitudes towards global business. ā¢ Explain why itās important for managers to be sensitive to global differences Understanding the Global Environment ā¢ Describe the current status of the European Union. ā¢ Discuss the North American Free Trade Agreement and other regional trade alliances in Latin America. ā¢ Tell about the Association of Southeast Asian Nations.
3.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā3 L E A R N I N G O U T L I N E (contād) Follow this Learning Outline as you read and study this chapter. Understanding the Global Environment ā¢ Explain the interdependence that globalization involves. ā¢ Discuss the role of the WTO. Doing Business Globally ā¢ Contrast multinational, multidomestic, global, transnational, and born global organizations. ā¢ Describe the different ways organizations can go international. ā¢ Define global sourcing, exporting, importing, licensing, and franchising. ā¢ Describe global strategic alliances, joint ventures, and foreign subsidiaries.
4.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā4 L E A R N I N G O U T L I N E (contād) Follow this Learning Outline as you read and study this chapter. Managing in a Global Environment (contād) ā¢ Explain how the global legal-political and economic environments affect managers. ā¢ Discuss Hofstedeās five dimensions for assessing cultures. ā¢ Explain the nine GLOBE dimensions for assessing cultures. ā¢ Discuss the challenges of doing business globally in todayās world.
5.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā5 The Global Marketplace ā¢ Opportunities and Challenges ā¢Coping with the sudden appearance of new competitors ā¢Acknowledging cultural, political, and economic differences ā¢Dealing with increased uncertainty, fear, and anxiety ā¢Adapting to changes in the global environment ā¢Avoiding parochialism
6.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā6 Whatās Your Global Perspective? ā¢ Parochialism ā¢Is viewing the world solely through its own eyes and perspectives. ā¢Is not recognizing that others have different ways of living and working. ā¢Is a significant obstacle for managers working in a global business world. ā¢Is falling into the trap of ignoring othersā values and customs and rigidly applying an attitude of āours is better than theirsā to foreign cultures.
7.
Exhibit 4ā1 Key
Information About Three Global Attitudes Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā7
8.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā8 Adopting a Global Perspective ā¢ Ethnocentric Attitude ā¢The parochialistic belief that the best work approaches and practices are those of the home country. ā¢ Polycentric Attitude ā¢The view that the managers in the host country know the best work approaches and practices for running their business. ā¢ Geocentric Attitude ā¢A world-oriented view that focuses on using the best approaches and people from around the globe.
9.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā9 Regional Trading Agreements ā¢ The European Union (EU) ā¢A unified economic and trade entity ā Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, Germany, Austria, Finland, and Sweden ā¢Economic and monetary union (Euro) ā¢ North American Free Trade Agreement (NAFTA) ā¢Eliminated barriers to free trade (tariffs, import licensing requirements, and customs user fees) ā United States, Canada, and Mexico
10.
Exhibit 4ā3 European
Union Countries Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā10
11.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā11 Regional Trading Agreements (contād) ā¢ U.S.-Central America Free Trade Agreement (CAFTA) ā¢ Free Trade Area of the Americas ā¢ Southern Cone Common Market (Mercosur) ā¢ Association of Southeast Asian Nations (ASEAN) ā¢Trading alliance of 10 Southeast Asian nations ā¢ African Union ā¢ South Asian Association for Regional Cooperation (SARRC)
12.
Exhibit 4ā4 ASEAN
Members Source: Based on J. McClenahen and T. Clark, āASEAN at Work,ā IW. May 19, 1997, p. 42. Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā12
13.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā13 The World Trade Organization (WTO) ā¢ Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995. ā¢ Functions as the only global organization dealing with the rules of trade among nations. ā¢ Has 149 member nations and 32 observer governments. ā¢ Monitors and promotes world trade.
14.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā14 Different Types of International Organizations ā¢ Multinational Corporation (MNC) ā¢Maintains operations in multiple countries. ā¢ Multidomestic Corporation ā¢Is an MNC that decentralizes management and other decisions to the local country. ā¢ Global Company ā¢Is an MNC that centralizes its management and other decisions in the home country.
15.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā15 Different Types of International Organizations (contād) ā¢ Transnational Corporation (Borderless Organization) ā¢Is an MNC that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines that reflect a geocentric attitude. ā¢ Born Globals/International New Ventures (INVs) ā¢Commit resources upfront (material, people, financing) to doing business in more than one country.
16.
Exhibit 4ā5 How
Organizations Go Global Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā16
17.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā17 Other Forms of Globalization ā¢ Strategic Alliances ā¢Partnerships between and organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities. ā¢ Joint Venture ā¢A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose. ā¢ Foreign Subsidiary ā¢Directly investing in a foreign country by setting up a separate and independent production facility or office.
18.
Managing in A
Global Environment ā¢ The Legal Environment ā¢Stability or instability of legal and political systems ā Legal procedures are established and followed ā Fair and honest elections held on a regular basis ā¢Differences in the laws of various nations ā Effects on business activities ā Effects on delivery of products and services Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā18
19.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā19 The Economic Environment ā¢ Economic Systems ā¢Market economy ā An economy in which resources are primarily owned and controlled by the private sector. ā¢Command economy ā An economy in which all economic decisions are planned by a central government. ā¢ Monetary and Financial Factors ā¢Currency exchange rates ā¢Inflation rates ā¢Diverse tax policies
20.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā20 The Cultural Environment ā¢ National Culture ā¢Is the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important. ā¢May have more influence on an organization than the organization culture.
21.
Exhibit 4ā6 What
Are Americans Like Americans are very informal. Americans are direct. Americans are competitive. Americans are achievers. Americans are independent and individualistic. Americans are questioners. Americans dislike silence. Americans value punctuality. Americans value cleanliness. Sources: Based on M. Ernest (ed.), Predeparture Orientation Handbook: For Foreign Students and Scholars Planning to Study in the United States (Washington, DC: U.S. Information Agency, Bureau of Cultural Affairs, 1984), pp. 103ā05; A. Bennett, āAmerican Culture Is Often a Puzzle for Foreign Managers in the U.S.,ā Wall Street Journal, February 12, 1986, p. 29; āDonāt Think Our Wayās the Only Way,ā The Pryor Report, February 1988, p. 9; and B.J. Wattenberg, āThe Attitudes behind American Exceptionalism,ā U.S. News & World Report, August 7, 1989, p. 25. Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā21
22.
Hofstedeās Framework for
Assessing Cultures In Ind iv iv id idua li ls ism verrsus Collelectitvivisism Powerr D is is ta tance Uncerrtatainintyty Avoididance Ach ie ievemen tt verrsus Nurrtuturrining Long -T -Te rrm verrsus Sho rr t- tT -Te rrm Orrieientatatitoion Cultlture Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā22
23.
Exhibit 4ā7 Examples
of Hofstedeās Cultural Dimensions Source: Based on G. Hofstede, āMotivation, Leadership, and Organization: Do American Theories Apply Abroad?ā Organizational Dynamics, Summer 1980, pp. 42ā63. Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā23
24.
Exhibit 4ā8 GLOBE
Highlights Source: M. Javidan and R. J. House, āCultural Acumen for the Global Manager: Lessons from Project GLOBE,ā Organizational Dynamics, Spring 2001, pp. 289ā305. Copyright Ā© 2001. Reprinted with permission from Elsevier. Ā© 2007 Prentice Hall, Inc. All rights reserved. 4ā24
25.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā25 Global Management in Todayās World ā¢ Challenges ā¢Openness associated with globalization ā¢Significant cultural differences (e.g., Americanization) ā¢Adjusting leadership styles and management approaches ā¢ Risks ā¢Loss of investments in unstable countries ā¢Increased terrorism ā¢Economic interdependence
26.
Ā© 2007 Prentice
Hall, Inc. All rights reserved. 4ā26 Terms to Know ā¢ parochialism ā¢ ethnocentric attitude ā¢ polycentric attitude ā¢ geocentric attitude ā¢ European Union (EU) ā¢ Euro ā¢ North American Free Trade Agreement (NAFTA) ā¢ Association of Southeast Asian Nations (ASEAN) ā¢ World Trade Organization (WTO) ā¢ multinational corporations (MNCs) ā¢ multidomestic corporation ā¢ global company ā¢ transnational or borderless organization ā¢ born globals ā¢ global sourcing ā¢ exporting ā¢ importing ā¢ licensing ā¢ franchising ā¢ strategic alliances ā¢ joint venture ā¢ foreign subsidiary ā¢ market economy ā¢ command economy ā¢ national culture ā¢ GLOBE ā¢ wikis ā¢ blogs
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