ninth edition

STEPHEN P. ROBBINS

CHAPTER

3
2007 Prentice Hall, Inc.
All rights reserved.

MARY COULTER

Managing in a Global
Environment
KELOMPOK I
PowerPoint Presentation by Charlie Cook
The University of West Alabama

Agenda for today

Review of last session

Four key questions in this Chapter:

I.
II.
III.
IV.

Global Perspectives
Different Types of International Organizations
How organizations go global (Important)
Managing in a global environment

Homework for international corporation case study

Wrap up for this session

2007 Prentice Hall, Inc. All rights reserved.

42

Three global attitudes

Ethnocentric Attitude
The best work approaches and practices are those of
the home country.

Polycentric Attitude
The host country know the best work approaches
and practices for running their business.

Geocentric Attitude
A world-oriented view that focuses on using the best
approaches and people from around the globe.
2007 Prentice Hall, Inc. All rights reserved.

45

Reasons for engaging in international business:

Profits
Customers

Suppliers
Capital
Labor

2007 Prentice Hall, Inc. All rights reserved.

48

 Q2:
What are different Types of International
Organizations ?

2007 Prentice Hall, Inc. All rights reserved.

412

Different Types of International Organizations

Multinational Corporation (MNC)
Maintains operations in multiple countries

Whats the difference?

Multidomestic Corporation
Global Company
Transnational Corporation (Borderless
Organization)
Born Globals/International New Ventures (INVs)

2007 Prentice Hall, Inc. All rights reserved.

413

Different Types of International

Organizations
Multidomestic Corporation
Decentralizes management and other decisions to the
local country.
Gives foreign operations more freedom to operate as
separate entities

Global Company
Centralizes its management and other decisions in
the home country.
Seeks total integration of global operations
2007 Prentice Hall, Inc. All rights reserved.

414

Different Types of International

Organizations (contd)
Transnational Corporation (Borderless
Organization)
Eliminated structural divisions that impose artificial
geographic barriers and is organized along business
lines that reflect a geocentric attitude.

Born Globals/International New Ventures (INVs)

Commit resources upfront (material, people, financing)
to doing business in more than one country.

2007 Prentice Hall, Inc. All rights reserved.

415

Schermerhorn/Management, 7e
Chapter 5, Figure 05-05

Alternative multinational structures for global operations.

2007 Prentice Hall, Inc. All rights reserved.

416

 Q3: How organizations go global?

2007 Prentice Hall, Inc. All rights reserved.

420

Schermerhorn/Management, 7e
Chapter 5, Figure 05-02

Common forms of international businessfrom market entry to direct

investment strategies.

2007 Prentice Hall, Inc. All rights reserved.

422

Market entry strategies involve the sale of goods or

services to foreign markets but do not require expensive

investments.
Types of market entry strategies:
Global sourcing

Exporting
Importing
Licensing agreement
Franchising

2007 Prentice Hall, Inc. All rights reserved.

423

Direct investment strategies require major

capital commitments but create rights of

ownership and control over foreign operations.
Types of direct investment strategies:
Joint ventures

Wholly owned subsidiaries

2007 Prentice Hall, Inc. All rights reserved.

424

 Q4: How to Manage in A Global Environment?

2007 Prentice Hall, Inc. All rights reserved.

433

Managing in A Global Environment

The Legal Environment
Stability or instability of legal and political systems

Legal procedures are established and followed

Fair and honest elections held on a regular basis

Differences in the laws of various nations

Effects on business activities

Effects on delivery of products and services

2007 Prentice Hall, Inc. All rights reserved.

434

The Economic Environment

Economic Systems
Market economy

An economy in which resources are primarily owned and

controlled by the private sector.

Command economy

An economy in which all economic decisions are planned by

a central government.

Monetary and Financial Factors

Currency exchange rates
Inflation rates
Diverse tax policies

2007 Prentice Hall, Inc. All rights reserved.

435

The Cultural Environment

National Culture
Is the values and attitudes shared by individuals from
a specific country that shape their behavior and their
beliefs about what is important.
May have more influence on an organization than the
organization culture.

2007 Prentice Hall, Inc. All rights reserved.

436

Hofstedes Framework for Assessing Cultures

Individualism
versus
Collectivism
Long-Term
versus
Short-Term
Orientation

Achievement
versus
Nurturing

2007 Prentice Hall, Inc. All rights reserved.

Power
Distance

Culture

Uncertainty
Avoidance

437

 Based on the content of this chapter, do you

think management concepts are universal?
That is, do they apply worldwide?

2007 Prentice Hall, Inc. All rights reserved.

440

Are management theories universal?

The need for management is universal, but the way

management is practiced is not.
U.S. management theories may be ethnocentric.

Participation and individual performance are not emphasized as

much in other cultures.

Not all Japanese management practices can be applied

successfully abroad.

Lifetime employment, job rotation and broad career experience,

shared information, collective decision-making, and quality emphasis.

2007 Prentice Hall, Inc. All rights reserved.

441