2012- Students International Business - Fernando Guerrero (1)

8/3/2019 2012- Students International Business - Fernando Guerrero (1)

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INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS

CONCEPT OF MANAGEMENTCONCEPT OF MANAGEMENTAND EVOLUTION OFAND EVOLUTION OF

MANAGEMENT THOUGHTMANAGEMENT THOUGHT

Professor: Fernando Guerrero M.

Management Studies


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INTERNATIONALINTERNATIONALBUSINESSBUSINESS

MANAGEMENTMANAGEMENT

ObjectivesObjectives

INTERNATIONALINTERNATIONALBUSINESSBUSINESS

MANAGEMENTMANAGEMENT

ObjectivesObjectives


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AGENDAAGENDA

1-.

Concept of management and evolution ofmangement thought.

2-.Managerial Functions in International

Business.

3-.Why a company goes international ?

4-.

How companies go international ?

5-.

Managerial attitudes towardsinternationalization.

6-.Multinational Enterprises

7.

Potential benefits of MultinaltionalEnterprise.


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OBJETIVESOBJETIVES

1-. Define what management is.

2-.K

now and understand the concept andfuntions of management.

3-. Know and understand how

management has evolved.

4-.

Know the major contributors in thefield of management and theircontributors

You will be able to:


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DefinitionDefinition ofof managementmanagement

Management is a distinct

ongoing process ofallocating inputs of an

organization by variety of

specialist functions for thepurpose of achieving statedobjectives


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Management may be

labelled as the art ofgetting work done throughpeople, with satisfaction

for employer , employeesand the public.


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For getting the work done

through the efforts or otherpeople, it is necessary toguide, direct, coordinate

and control human efforttowards the fulfillment ofthe goals.


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The goals are fulfilledthrough the use ofresources like men,

money, materials andmachines.


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Management may becalled as ARTas well as

SCIENCE.a) Management hasscientific basis becausemanagement techniques

are susceptible tomeasurement and factual

determination.


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b) Management is an art

because managementmeans coordinating and

getting work done

through others.


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The functions ofmanagement are executive

and largely governing.

Management is the servantof administration; it gets

salary or a part of profit inlieu of its services.


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Management is productive incharacter.

Planning, organizing, staffing,motivation, directing, coordinatingand controlling are all functions of

management.


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ManagerialManagerial FunctionsFunctions ininInternational BusinessInternational Business

In This session, you must be ableto learn and understand:

1. Why a company goesinternational ?2. How companies go international

?3. Managerial attitudes towards

internationalization.4. Multinational Enterprises5. Potential benefits of

Multinaltional Enterpriese.


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ManagerialManagerial functionsfunctions ininInternational BusinessInternational Business

In This session, you must be able tolearn and understand:

1. Impacts of MNEs on Host Countries2. Impacts of MNEs on Home Countries.3. Managing in a Multinational

Environment.

4. The management Process.


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WhyWhy doesdoes aa companycompany gogoInternationalInternational

According to Donald Ball WendellMcCulloch, the reason for acompany to go international canbe characteized into:

Agresive reasons

Defensive reasons


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Agressive reasons:

Support an attempt to increaseprofits, sales and markets. ForInstance: Open new markets. Obtain greater profits. Acquire productos for the home country.

Satisfy management s desire forexpansion.


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Defensive reasons:

Include the wish to protect profits,

sales an markets Protect domestic markets Protect foreign markets. Guarantee a supply of raw materials. Acquire technology.

Seek politically stable bases for newoperations.


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The reasons for going abroadmay also vary by industry.

The nacionality of a company willalso affect its motives in goinginternacional.

Recently, U.S. companies havebegun to look to Japan for newideas in management.


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International ?International ?

Chistopher Korth has identified thefollowing for (4) stages of theprocess of an organizations

internationalization:

First Degree Internationalization. Second - Degree

Internationalization.

Third Degree Internationalization Fourth Degree

Internationalization.


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FIRST DEGREEINTERNATIONALIZATION:

Occurs when a company hasonly indirect or passiveinternational dealings.

This is accomplished with theassistance of a third company.

Internationalization is handledby existing departaments.


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FIRST DEGREEINTERNATIONALIZATION:

Has traditional domestic

organizational structure.

Type of internationalactivity: Foreingn trade of goods and services.


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owow ompan esompan es ooInternational ?International ?

SECOND DEGREEINTERNATIONALIZATION:

Company deals with its overseasconcerns. Retains some of its foreign trade agents

and seedks out for more in an activemanner.

Comapny will create an import export

departament.


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How Companies Go InternationalHow Companies Go International??

SECOND DEGREEINTERNATIONALIZATION: (

Contd..)

Some managers will travel regularly tocustomers countries.

Organization would have anInternational Departament.

Type of international activity: Foreign trade of goods and activities.


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THIRD DEGREEEINTERNATIONALIZATION:

It is reached when internationalconcerns of the company are of muchhigher importance to its overallmakeup.

The firm still remanins domesticallyoriented in this stage.

Firm will have direct and in importingand exporting and/or producing goodsor services abroad.


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THIRD DEGREEEINTERNATIONALIZATION:

Some managers will be permanentlyplaced overseas. Comapany possesses an entire

international division and not adepartament.


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FOURTH DEGREEINTERNATIONALIZATION:

It is the last stage in the process. Company reachers this level when itsmanagement sees the companyorientation as being multinational.

The operation are both international as

well as domestic.


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FOURTH DEGREEINTERNATIONALIZATION:

Type of international activity:

Foreigns trade, foreign assitance contracts, foreigndirect investment.

Company will have a global organizational structure


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Managerial Attitudes towardsManagerial Attitudes towardsInternationalizationInternationalization

Managers attitudes remain importantin guiding companys progressiveinternationalization.

Howard Perlmutter has identified threeprimary attitudes among the managersof international companies.: Ethnocentric Polycentric. Geocentric

2012- Students International Business - Fernando Guerrero (1)

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