Management Chapter 5--Managing in the Global Arena
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Transcript of Management Chapter 5--Managing in the Global Arena
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© Prentice Hall, 2005 1 - 1
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© Prentice Hall, 2005 1 - 2
1.An understanding of international management and its importance to modern managers
2.An understanding of what constitutes a multinational corporation
3.Insights concerning the risk involved in investing in international operations
4.Insights into those who work in multinational corporations
5.Knowledge about managing multinational corporations
6.Knowledge about managing multinational organizations versus transnational organizations
7.An understanding of how ethics and the preparation of expatriates relate to managing internationally
ObjectivesObjectivesObjectivesObjectives
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© Prentice Hall, 2005 1 - 3
Managing Across the Globe:Why?Managing Across the Globe:Why?Managing Across the Globe:Why?Managing Across the Globe:Why?Great opportunities in the international marketplace today
U.S. population growth slow but steady
Other countries having population explosions
Strong profit potential has serious risk
Some challenges are:Cultural differences
Different technology levels
Laws and political systems
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© Prentice Hall, 2005 1 - 4
Fundamentals of International ManagementFundamentals of International ManagementFundamentals of International ManagementFundamentals of International Management
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© Prentice Hall, 2005 1 - 5
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International Involvement
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© Prentice Hall, 2005 1 - 6
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementDomestic Organizations
International Organizations
Multinational Organizations:The Multinational Corporation
Defining the Multinational Corporation
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© Prentice Hall, 2005 1 - 7
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International Involvement
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© Prentice Hall, 2005 1 - 8
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International Involvement
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© Prentice Hall, 2005 1 - 9
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International Involvement
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© Prentice Hall, 2005 1 - 10
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International Involvement
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© Prentice Hall, 2005 1 - 11
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementComplexities of Managing the Multinational Corporation
1. Within different national sovereignties
2. Under widely disparate economic conditions
3. Among people living within different value systems and institutions
4. In places experiencing the industrial revolution at different times
5. Often over greater geographical distance
6. In national markets varying greatly in population and area
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© Prentice Hall, 2005 1 - 12
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International Involvement
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© Prentice Hall, 2005 1 - 13
Categorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementCategorizing Organizations by International InvolvementRisk and the Multinational Corporation
1. Reduce or eliminate high transportation costs2. Allow participation in the rapid expansion of a market abroad3. Provide foreign technical, design, and marketing skills4. Earn higher profits
The Workforce of Multinational CorporationsTypes of Organization Members Found in Multinational Corporations
Expatriates Host-Country Nationals Third-Country Nationals
Workforce AdjustmentsAdjusting to a New CultureRepatriation
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© Prentice Hall, 2005 1 - 14
Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsPlanning in Multinational Corporations
Plans for multinational organizations could include:1. Establishing a new sales force in a foreign country2. Developing new manufacturing plants in other countries3. Financing international expansion4. Determining which countries are most suitable
Components of International Plans Imports/ExportsLicense AgreementsDirect InvestingJoint Ventures
Planning and International Market AgreementsThe European Union (EU)North American Free Trade Agreement (NAFTA)Asian-Pacific Economic Cooperation (APEC)
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© Prentice Hall, 2005 1 - 15
Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational Corporations
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© Prentice Hall, 2005 1 - 16
Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational Corporations
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© Prentice Hall, 2005 1 - 17
Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsOrganizing Multinational Corporations
Organization StructureSelection of Managers
Managerial Attitudes Toward Foreign OperationsAdvantages and Disadvantages of Each Management Attitude
Influencing People in Multinational CorporationsCulture
1. Acquire a working knowledge of the languages2. Understand the attitudes of people3. Understand the needs that motivate people
Controlling Multinational CorporationsSpecial DifficultiesImproving Communication
Transnational Organizations
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© Prentice Hall, 2005 1 - 18
Management Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational CorporationsManagement Functions and Multinational Corporations
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© Prentice Hall, 2005 1 - 19
International Management: Special IssuesInternational Management: Special IssuesInternational Management: Special IssuesInternational Management: Special IssuesMaintaining Ethics in International Management
Respecting Core Human RightsRespecting Local TraditionsDetermining Right from Wrong by Examining Context
Preparing Expatriates for Foreign Assignments Culture profiles Cultural adaptation Logistical information Application
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© Prentice Hall, 2005 1 - 20
QuestionsQuestions