T H E M B A A P P R O A C H

GLOBAL BUSINESS ENGLISH

GLOBALIZATION

•The integration of international

markets for commodities,

manufacturing, labor and

capital.

FEATURES OF THE GLOBAL MARKET PLACE

• M&A (mergers and acquisitions)

• FDI (foreign direct investment)

• High speed capital flows – free flow of capital

(finance)

• Privatization

• Free trade agreements

GLOBAL YET NATIONAL

• Even though we live in globalized economy, nations

and cultures are very different:

• American, Japanese, Russian, Chinese, French

businesses are all quite different

-governance and management structures

- National laws and regulations about commerce

- -business culture

BUSINESS LEADERSHIP: THE ENTREPRENEUR

•Entrepreneur

•Entrepreneurial spirit

•entrepreneurship

GLOBAL ENTREPRENEURS

• What is an entrepreneur?

• A visionary: an innovative idea

• A risk taker (risks his or her own capital)

• Guts/ courage/ motivations– never give up

WHO IS THIS MAN? (1984)

Branson started a successfully music company– recording new artists

Then, in the early 1980’s he decided he wanted to start an airline.

Everyone said he was crazy!

It was too difficult to compete against

BA….

No experience running and airline!

•Also, it was almost impossible to get hangers (格納庫) or runways at Heathrow Airport.

So Richard Branson said: we’ll fly from

Gatwick!

•And they did: 1984

Virgin Atlantic Limited

Recent photo

A truly global entrepreneur

• Today over 250 companies under the Virgin brand with over $8 billion a year in revenue.

• Challenged the orthodoxy of business schools that should focus on core competency.

Virgin spaceship

• Do you want to reserve a seat?

Who is he?

University of Texas, Austin student

•As a young man at the University of Texas he designed a high quality PC

Michael Dell

He successfully used global supply-

chains to build one of the most

successful companies in America.

• In 1984, Dell's first full year in business, he had $6 million in sales.

• By 2000, Dell was a billionaire and his company had offices in 34 countries and employee count of more than 35,000.

KEY POINT: MAIN ECONOMIC FEATURE OF GLOBALIZED BUSINESS

CUTTING COSTS!!!

Cost cutting

• - labor costs

• - transportation costs (cargo ships and high speed air freight like FedEx

• - high speed cheap telecommunications: 1980’s:fax

1990’s: internet)

WHO IS THIS WOMAN?

She started a new type of

company: based on fair trade and

sustainability.サステイナビリティ

A new type of global business

• Green business

• Fair trade (“trade not aid”)

• Corporate social responsibility (CSR)

STARTED IN THE UK

•1980’s under the brand name

Body Shop

•Grew 50% annually

• Stock grew 500% on the London

Stock Exchange

A new approach?

ステークホルダー /stakeholder

The old style corporation: profits over people

Concerned only with share price, stockholder profits

New approach for modern globalized business: stakeholder profits

りがいかんけいしゃr【利害関係者】

Anita Roddick

“The business has existed for one

reason only– to allow us to use our

success to act as a force of

change……

…..to help protect people and

the environment.

One of the biggest cosmetics companies in the world

50 countries

Over 2000 outlets/franchises

[bought out by L’Oreal]

Global Presence

American entrepreneur: Steve Jobs

Desktop PC with graphical interface: this machine changed the world!

Small businesses and homes and schools could now have a computer!

He saw the next wave of computing was music.

Steve Jobs was a visionary.

The iTunes music library

Now: in terms of revenue, Apple changed from being a computer company to a music entertainment company.

iPhone: June, 2007

Market capitalization: $623

billion – one of the highest

ever by publically traded

corporation.

A company with innovation and value

SAM WALTON: AMERICAN RETAIL GENIUS

• What company did he start?

The World’s third largest corporation

according to the Fortune 500 list

The biggest private employer in the world

with over 2 million employees

Founded in 1962, and became publically

traded in 1972

2.5% OF U.S. GDP IS WAL-MART

• -- 70% of merchandise

imported from China!....

•….so 11% of U.S. trade deficit

with China is because of Wal-

Mart!

Customer service/ customer first

Conservative corporate culture

Strategies to dominate the retail market

Efficient supply chain

GLOBAL SUPPLY CHAINS

•Very efficient manufacturing operations in China with strict inventory control

IN THE 1980’S…..

•Sam Walton was the

richest man in the world

•Company operates in 15

international markets

NEGATIVE SIDE

•The loss of U.S. jobs

•Manufacturing is done in China but sales

are mostly in the U.S.

•SO…..

American dollars and jobs flow to China.

But this is the nature of global business today

What global company did he start?

A truly global brand

Unique marketing mix

Unique management structure

Unique product line

Unique corporate philosophy

Companies like Starbucks and Apple and others have changed the way we do business, the way we think about business.

These entrepreneurs and their companies have change our lives.

Even though new and creative business ideas are very important in the global economy, the traditional MBA is still the foundation for most business practices.

-marketing -operations -accounting -economics -finance - human resource management - leadership -quantitative analysis

developing a marketing plan- global or local targets???

Marketing mix: product, placed, promotion and price

Cash flow; balance sheet, income statement; accounts receivable.

Internal and external accounting

How to read and understand financial statements. Decision theory

OB classes help deal with the human challenges. …..

…..Good managers need to be good leaders…..how to set goals and reach people, motivate them.

*Organizational behavior

Most MBA course use the case study method--

The case study method:

Using specific cases to study

such things as

Supply-chain management (Wal-Mart, Dell)

Marketing (Coca Cola, Starbucks)

Management strategy (Google)

Finance (Enron, Bear Stearns)

Students of business English

• Should also study business cases of modern global businesses.

• With special focus on innovation

ENTREPRENEURSHIP

• Exploring new opportunities in business

• *Especially in emerging economies: ways to

develop capital

ENTREPRENEURIAL SKILLS

• Passion (motivation)

• Intensity (mental focus)

• Fearlessness (risk taker)

• Vision (creativity)

Leadership rather than management!

A new world

A quiet revolution in business

New models like systems thinking,

New philosophy like sustainability,

New ideas about leadership and entrepreneurship

Corporate social responsibility (CSR)

Knowledge-based enterprises.

This new world

Systems thinking focuses on the whole, not the

parts, of a complex system.

Systems thinking

OLD STYLE BUSINESS ORIENTATION

Focus on profit maximization:

making as much money as possible for shareholders

New types of business

Looking at the social

and environmental

impacts: stakeholder

value

The modern global economy

Communication is much more important-

cross-cultural communication

And of course, English language ability is

key- from Singapore to Dubai, from

London to NY to Tokyo-- the language of

business is English.

How to study:

There are many good website for business

case studies and business studies in

general

Many online resources….

Aegis global

www.bized.co.uk

U.K. business

BBC Learning (business)