17.1

17.2

LEARNING OBJECTIVESLEARNING OBJECTIVES

• IDENTIFY FACTORS BEHIND IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATIONBUSINESS INTERNATIONALIZATION

• COMPARE GLOBAL STRATEGIES COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESSFOR DEVELOPING BUSINESS

• DEMONSTRATE HOW INFO SYSTEMS DEMONSTRATE HOW INFO SYSTEMS SUPPORT SUPPORT GLOBAL GLOBAL STRATEGIESSTRATEGIES

**

17.3

LEARNING OBJECTIVESLEARNING OBJECTIVES

• PLAN DEVELOPMENT OF PLAN DEVELOPMENT OF INTERNATIONAL INFORMATION INTERNATIONAL INFORMATION SYSTEMSSYSTEMS

• EVALUATE TECHNICAL EVALUATE TECHNICAL ALTERNATIVES IN ALTERNATIVES IN DEVELOPING DEVELOPING GLOBAL SYSTEMSGLOBAL SYSTEMS

**

17.4

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• GROWTH OF INTERNATIONAL INFO GROWTH OF INTERNATIONAL INFO SYSTEMSSYSTEMS

• ORGANIZING INTERNATIONAL INFO ORGANIZING INTERNATIONAL INFO SYSTEMSSYSTEMS

• MANAGING GLOBAL SYSTEMSMANAGING GLOBAL SYSTEMS

• TECHNOLOGY ISSUES & TECHNOLOGY ISSUES & OPPORTUNITIESOPPORTUNITIES

**

17.5

INTERNATIONAL INFORMATION INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURESYSTEMS INFRASTRUCTURE

BASIC INFORMATION SYSTEMSBASIC INFORMATION SYSTEMS

REQUIRED TO COORDINATEREQUIRED TO COORDINATE

WORLDWIDE TRADEWORLDWIDE TRADE

& OTHER ACTIVITIES& OTHER ACTIVITIES

**

17.6

GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGESGLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES

CORPORATE GLOBAL STRATEGIESCORPORATE GLOBAL STRATEGIES

ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE

MANAGEMENT & BUSINESS PROCEDURESMANAGEMENT & BUSINESS PROCEDURES

TECHNOLOGICAL PLATFORMTECHNOLOGICAL PLATFORM

INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTUREINTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

INTERNATIONAL INFORMATION INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURESYSTEMS INFRASTRUCTURE

17.7

GLOBAL BUSINESS DRIVERSGLOBAL BUSINESS DRIVERSGeneral Cultural Factors:General Cultural Factors:

• GLOBAL COMMUNICATION & GLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIESTRANSPORTATION TECHNOLOGIES

• DEVELOPMENT OF GLOBAL CULTUREDEVELOPMENT OF GLOBAL CULTURE• EMERGENCE OF GLOBAL NORMSEMERGENCE OF GLOBAL NORMS• POLITICAL STABILITYPOLITICAL STABILITY• GLOBAL KNOWLEDGE BASEGLOBAL KNOWLEDGE BASE

**

17.8

GLOBAL BUSINESS DRIVERSGLOBAL BUSINESS DRIVERSSpecific Business Factors:Specific Business Factors:

• GLOBAL MARKETSGLOBAL MARKETS• GLOBAL PRODUCTION & OPERATIONSGLOBAL PRODUCTION & OPERATIONS• GLOBAL COORDINATIONGLOBAL COORDINATION• GLOBAL WORK FORCEGLOBAL WORK FORCE• GLOBAL ECONOMIES OF SCALEGLOBAL ECONOMIES OF SCALE

**

17.9

CHALLENGES & OBSTACLES TO CHALLENGES & OBSTACLES TO GLOBAL BUSINESS SYSTEMSGLOBAL BUSINESS SYSTEMS

GENERAL:GENERAL:• CULTURAL PARTICULARISMCULTURAL PARTICULARISM• SOCIAL EXPECTATIONSSOCIAL EXPECTATIONS• POLITICAL LAWSPOLITICAL LAWS

SPECIFIC:SPECIFIC:• TELECOMMUNICATION STANDARDSTELECOMMUNICATION STANDARDS• NETWORK RELIABILITYNETWORK RELIABILITY• DATA TRANSFER SPEEDSDATA TRANSFER SPEEDS• SHORTAGE OF CONSULTANTSSHORTAGE OF CONSULTANTS

**

17.10

GLOBAL STRATEGIES & GLOBAL STRATEGIES & BUSINESS ORGANIZATIONBUSINESS ORGANIZATION

• DOMESTIC EXPORTER:DOMESTIC EXPORTER: Centralization in Centralization in home countryhome country

• MULTINATIONAL:MULTINATIONAL: Central home base; Central home base; decentralized production, sales, marketing in decentralized production, sales, marketing in other countriesother countries

• FRANCHISER:FRANCHISER: Product created, initially Product created, initially produced in home country; relies heavily on produced in home country; relies heavily on local workers to produce, market in other local workers to produce, market in other countriescountries

**

17.11

GLOBAL STRATEGIES & GLOBAL STRATEGIES & BUSINESS ORGANIZATIONBUSINESS ORGANIZATION

• TRANSNATIONAL:TRANSNATIONAL: Truly Global Firm; No Truly Global Firm; No National Headquarters; Value-added National Headquarters; Value-added Activities Managed From Global Activities Managed From Global Perspective; Optimizes Supply & Demand, Perspective; Optimizes Supply & Demand, Taking Advantage of Local Competitive Taking Advantage of Local Competitive StrengthsStrengths

**

17.12

FUNCTIONFUNCTION

DOMESTICDOMESTIC

EXPORTEREXPORTERMULTI-MULTI-NATIONALNATIONAL

FRANCHISERFRANCHISER TRANS-TRANS-NATIONALNATIONAL

PRODUCTIONPRODUCTION CENTRALIZEDCENTRALIZED DISPERSEDDISPERSED COORDINATEDCOORDINATED COORDINATEDCOORDINATED

FINANCE/ACCOUNTINGFINANCE/ACCOUNTING CENTRALIZEDCENTRALIZED CENTRALIZEDCENTRALIZED CENTRALIZEDCENTRALIZED COORDINATEDCOORDINATED

SALES/MARKETINGSALES/MARKETING MIXEDMIXED DISPERSEDDISPERSED COORDINATEDCOORDINATED COORDINATEDCOORDINATED

HUMAN RESOURCESHUMAN RESOURCES CENTRALIZEDCENTRALIZED CENTRALIZEDCENTRALIZED COORDINATEDCOORDINATED COORDINATEDCOORDINATED

STRATEGIC MANAGEMENTSTRATEGIC MANAGEMENT CENTRALIZEDCENTRALIZED CENTRALIZEDCENTRALIZED CENTRALIZEDCENTRALIZED COORDINATEDCOORDINATED

STRATEGYSTRATEGY

GLOBAL BUSINESS STRATEGY GLOBAL BUSINESS STRATEGY & STRUCTURE& STRUCTURE

17.13

GLOBAL INFORMATION SYSTEMSGLOBAL INFORMATION SYSTEMS

• CENTRALIZED:CENTRALIZED: Domestic Home BaseDomestic Home Base• DUPLICATED:DUPLICATED: Copies of Home System Copies of Home System

Used in Foreign LocationsUsed in Foreign Locations• DECENTRALIZED:DECENTRALIZED: Each Unit has Unique Each Unit has Unique

SystemSystem• NETWORKED:NETWORKED: Integrated & Coordinated atIntegrated & Coordinated at

all Locationsall Locations

**

17.14

NATIONALNATIONAL

STRATEGYSTRATEGY SYSTEMSYSTEM DOMESTICDOMESTIC MULTI-MULTI- TRANS-TRANS- CONFIGURATIONCONFIGURATION EXPORTEREXPORTER FRANCHISERFRANCHISER NATIONALNATIONAL CENTRALIZEDCENTRALIZED X

DUPLICATEDDUPLICATED X

DECENTRALIZEDDECENTRALIZED x X x

NETWORKEDNETWORKED x X

X : DOMINANT PATTERN x : EMERGING PATTERN

GLOBAL INFORMATION SYSTEMS GLOBAL INFORMATION SYSTEMS CONFIGURATIONSCONFIGURATIONS

17.15

REORGANIZE THE BUSINESSREORGANIZE THE BUSINESS

• ORGANIZE VALUE-ADDING ACTIVITIES ORGANIZE VALUE-ADDING ACTIVITIES FOR COMPARATIVE ADVANTAGEFOR COMPARATIVE ADVANTAGE

• DEVELOP & OPERATE SYSTEMS AT DEVELOP & OPERATE SYSTEMS AT EACH LEVEL: National; regional, EACH LEVEL: National; regional, internationalinternational

• ESTABLISH SINGLE WORLD ESTABLISH SINGLE WORLD HEADQUARTERS: Have global chief HEADQUARTERS: Have global chief information officerinformation officer

**

17.16

• AGREE ON COMMON USER REQUIREMENTSAGREE ON COMMON USER REQUIREMENTS• INDUCE PROCEDURAL BUSINESS CHANGESINDUCE PROCEDURAL BUSINESS CHANGES• COORDINATE APPLICATIONS DEVELOPMENTCOORDINATE APPLICATIONS DEVELOPMENT• COORDINATE SOFTWARE RELEASESCOORDINATE SOFTWARE RELEASES• ENCOURAGE LOCAL ENCOURAGE LOCAL

USERS TO ACCEPT USERS TO ACCEPT OWNERSHIPOWNERSHIP

**

DEVELOPING GLOBAL SYSTEMSDEVELOPING GLOBAL SYSTEMS

17.17

STRATEGY: DIVIDE, CONQUER, STRATEGY: DIVIDE, CONQUER, APPEASEAPPEASE

• DEFINE CORE BUSINESS PROCESSESDEFINE CORE BUSINESS PROCESSES• IDENTIFY CORE SYSTEMS TO IDENTIFY CORE SYSTEMS TO

COORDINATE CENTRALLYCOORDINATE CENTRALLY• CHOOSE AN APPROACH: Incremental, CHOOSE AN APPROACH: Incremental,

grand design, evolutionarygrand design, evolutionary• MAKE BENEFITS CLEARMAKE BENEFITS CLEAR

**

17.18

MAIN TECHNICAL ISSUESMAIN TECHNICAL ISSUES

• HARDWARE & SOFTWARE HARDWARE & SOFTWARE INTEGRATIONINTEGRATION

• CONNECTIVITYCONNECTIVITY

• SOFTWARE:SOFTWARE: Languages can be a Languages can be a barrierbarrier

**

17.19

Connect to the INTERNETConnect to the INTERNET

PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION IN

THIS CHAPTER

17.20