- 1. International Management
2. management decision and control
3. Decision-Making process and challenges
-
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- The process of choosing a course of action among
alternatives.
4. Stage Process 1 Problem perception 2 Problem identification 3
Problem formulation 4 Search for alternatives 5 Evaluation of
alternatives 6 Choice of alternatives 7 Start of Operation 8
Implementation 9 Control 5. Factors affecting decision -making
authority
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- relatively high importance to MNC
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- highly competitive environment
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- strong volume-to-unit-cost relationship
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- high degree of technology
6. Factors affecting decision-making authority
- Encourage Decentralization
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- relatively low importance to MNC
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- weak volume-to-unit-cost relationship
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- moderate to low degree of technology
7. cultural differences
- Culture, whether outside or within the organization, has an
effect on how individuals and businesses perceive situations and
subsequently react.
8. Cultural Differences
- Do decision-making philosophies and practices differ from
country to country?
9. Cultural Differences
- Research shows that to some extent they do, although there also
is evidence that many international operations, regardless of
foreign or domestic ownership, use similar decision-making
norms.
10. Total quality management decisions
- An organizational strategy and the accompanying techniques that
result in the delivery of high-quality products or services to
customers
11. Empowerment
- the process of giving individuals and teams the resources,
information, and authority they need to develop ideas and
effectively implement them
12. Decision and Control linkages
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- the process of evaluating results in relation to plans or
objectives and deciding what action, if any, to take.
13. The controlling process
- evaluating results in relation to plans or objectives and
deciding what action to take
14. TraditionalModel based on sales forecasts, a manufacturer
orders parts for the PCs the parts are warehoused until they are
needed by the manufacturer The manufacturer builds the PCs and
stores them in the warehouse the units are ordered by the
distributors and shipped to the latters warehouse Orders are then
received from retailers and the PCs are shipped to them by the
distributors Customers buy the PCs from the retailers and receive
assistance in setting up the entire system. Direct-Sales Model the
manufacturer orders a small number of parts from its suppliers
business and individual customers place orders by phone or over the
internet the manufacturer builds computers to customers exact
specifications the manufacturer ships the computer directly to the
customer Hybrid Model the computer manufacturer builds shells: a
case, power supply, floppy disc, basic circuitry. the shells are
shipped to the distributors, and component suppliers establish a
parts inventory with, or near, that of the distributor the customer
orders a computer through a retailer or directly from the
manufacturer, and the order is forwarded to the distributor. the
distributor gathers the parts to assemble the computer to the
customers specifications on the dealers behalf, the distributor
ships the computer directly to the customer. the dealer then
provides setup and additional services for a separate fee 15. Types
of control
- Internal and External Control
16. APPROACHES TO CONTROL
- EVALUATING APPROACHES TO CONTROL
17. PERFORMANCE EVALUATION AS A MECHANISM OF CONTROL
18. 50 most-admired global companies 19. Case study
- Since the mid 80s Microsoft has progressively moved throughout
China. However, throughout the years Microsoft has faced
significant challenges, such as the widespread piracy of its
products, Chinese government pressures to transfer its technology,
host government promotion for competitor products, discriminatory
procurement practices by subnational authorities, and strong
encouragement to enter into joint ventures (JVs) with local
firms.Microsofts executives have built relationships with top
Chinese leaders and have heavily invested in China and built
alliances with Chinese technology companies.Even though China
committed itself to honor the IPR, the software piracy rates are
still extremely high.
20. Questions
- 1. What are the risks that Microsoft has faced in operating in
China and dealing with the Chinese government? Do you see these
risks as increasing, diminishing, or changing in the future? Are
these risks unique to China or present in other developing
countries?
- 2. What approaches did Microsoft take to manage its political
risks in China? Why might it have favored some of these techniques
versus others? Which do you feel worked best? What should Microsoft
do going forward?
- 3. In its dealings with China, Microsoft frequently had to deal
with lower levels of government. What special types of challenges
and opportunities did this present?
- 4. Do other firms have the same risk management options as
Microsoft? Why or why not?
- 5. Is Microsoft creating serious risks by supporting,
financing, and transferring technology to local Chinese software
firms? How might Microsoft manage these risks?
21. International Management