...MBA505 INTERNATIONAL BUSINESS MANAGEMENT REV11A CHAPTER 1: ASSESSING THE ENVIRONMENT POLITICAL, ECONOMIC, LEGAL, TECHNOLOGICAL CHAPTER SYNOPSIS This chapter explains the elements of International Business Management. It gives a sound understanding of factors such as Political and Economic Environment, Legal Environment, and Technological Environment. Also, it covers the effects of Regional Trading Blocks, Information Technology, The Globalization of Human Capital, The Global Manager’s Role CHAPTER OUTLINE The Global Business Environment Regional Trading Blocks Information Technology The Globalization of Human Capital The Global Manager’s Role The Political and Economic Environment The Legal Environment The Technological Environment ISSUES FOR REVIEW AND DISCUSSION I. The Global Business Environment A. Global management Global management is the process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage. 1. Globalism “Global competition characterized by networks that bind countries, institutions and people in an interdependent global economy.” 2. Evidence/Indicators of Globalism The growth rate of the trade of goods has grown faster than the world production of goods. The European Union has now caught up with the United States to share the position of the world’s largest investor. 2011 AMERICAN CITY UNIVERSITY Page 1 of 28 MBA505 INTERNATIONAL BUSINESS MANAGEMENT ...
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...International human resource management (IHRM) is concerned with identifying and understanding how multinational organisations (MNC’s) manage their geographically dispersed workforce in order to sustain their competitive advantage. Literature shows that globalisation has brought about new challenges and increased complexity for human resource (HR) directors in managing organisational systems in areas of recruitment and selection and training and development (Kayworth and Leidner, 2000; Selmer, 2001; O’Leary, Cummings, 2002). Geographical dispersion has created trends correlated with several challenges IHR managers face when dealing with the global environment. These include issues associated with the Internet, time zones and employee isolation. Being in contact with different geographic locations leads IHR managers to do business with employees of different nationalities and cultures. The challenge for IHR managers is to avoid culture clashes and adequately prepare unit members, specifically expatriates, on adapting in a foreign environment (Tung, 1987; Selmer, 2001; Chauh, Hoffman, Jones and Williams, 2007). This essay will discuss these challenges in relation to IHR directors designing recruitment and selection processes and training and development programs. The essay will also describe briefly the challenges IHRM come across as a result of pressure to rationalise and differentiate their operations, and explain how these challenges prove IHRM to be more complicated than the...
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...part, not forcing it. Japan, for example, took a cue from the United States in taking majority stakes in major banks; while in Russia, the Kremlin was exploiting the economic crisis to establish more control over industries that it had long coveted, such as energy. 2- Discuss examples of recent macro political risk events and the effect they have or might have on a foreign subsidiary. What are micro political risk events? Give some examples and explain how they affect international business. Answer: An event that affects all foreign firms doing business in a country or region is called a macro political risk event. In many regions, terrorism poses a severe and random political risk to company personnel and assets and can obviously interrupt the conduct of business. The increasing incidence of terrorism around the world concerns MNCs. In particular, the kidnapping of business executives has become quite common. In addition, the random acts of violence around the world have a downward effect on global expansion, not the least because of the difficulty in attracting and retaining good managers in high-risk areas, as well as the expense of maintaining security to protect people and assets and the cost of insurance to cover them. Companies that go ahead and invest in those high-risk areas do so with the expectation of a higher profit premium to offset risk. An event that affects one industry or company or only a few companies is called a micro political risk event. Such events...
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...GMS200 Chapter 1 1. What does the term Global Management mean? Global management is the management of operations in more than one country 2. Define Global Economy (See Text) In the global economy, resources, markets, and competition are worldwide in scope. It pretty much means how well all the countries are doing as one in terms of economy, resources, markets and competition. 3. In a competitive global business landscape, the increasing demand for talented knowledge workers is primarily due to the increasing use of low cost production.?????? 4. The age gap in today's workplaces is one of the diversity issues that may create major challenges for managers. (true) The age gap in today's workplace is one of the diversity issues that may create major challenges for managers. 5 The recruitment and retention of talented workers is one of the major challenges faced by mangers in a globally competitive economy. ??????? 6. According to Katz's framework on essential managerial skills, low-level managers need to develop more conceptual skills then top-level managers. (false). Lower level managers need to consist of a lower level of conceptual skills then top-level managers, equivalent human skills and lower level managers need to consist of a higher level of technical skills then the top level managers. 7. What are the key conditions that describe the general business environment? The key conditions that describe the general business environment are: 1. Economic...
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...ESSENTIALS OF MANAGEMENT ➢ The need / scope / meaning & definition / process of management / managerial hierarchy MANAGERIAL FUNCTIONS ➢ Planning / Organizing / Staffing / Directing / Controlling MANAGERIAL SKILLS ➢ Technical / Conceptual / Human TYPES OF MANAGERS ➢ Functional / Specialists / Generalists / Line & Staff managers DECISION MAKING ENVIRONMENT ➢ Open & closed system / decision making under certainty, uncertainty & risk DECISION MAKING TYPES ➢ Structured / unstructured decisions ➢ Programmable / non-programmable ➢ Classical & Administrative Models DECISION MAKING STYLES ➢ Autocratic / Participative / Consultative Essentials of Management An International Perspective Harold Koontz & Heinz Weihrich Lesson 1 Characteristics of the term Organization: ➢ Social unit with a purpose Characteristics of the term Management ➢ Process of optimum utilization of the resources of the Organization to accomplish its goals Functions of Management ➢ Planning ➢ Organizing ➢ Leading ➢ Controlling ➢ Coordination Characteristics of the term Productivity ➢ A ratio of Output to Input ➢ It can be improved by o Increasing output with same inputs o Decreasing inputs, but maintaining the same output Characteristics of the term Effectiveness: ➢ Accomplishing of Objectives of the Organization Characteristics of the term Efficiency ➢ How Objectives are...
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...Chapter 1 Operations and Productivity 1. What is operations management? a. Production is the creation of goods and services. b. Operations Management (OM): Activities that relate to the creation of goods and services through the transformation of inputs to outputs. (For both tangible and intangible activities in an organization) 2. Organizing to Produce Goods and Services c. All organizations must perform three functions: i. Marketing: generates the demand, or at least takes the order for a product or service (nothing happens until there is a sale) ii. Production/operations: creates the product. iii. Finance/accounting: tracks how well the organization is doing, pays the bills, and collects money. 3. Why study OM? d. OM is one of the three major functions of any organization, and it is integrally related to all the other business functions. All organizations market, finance, and produce, and it is important to know how the OM activity functions. Therefore, we study how people organize themselves for productive enterprise. e. We study OM because we want to know how goods and services are produced. The production function is the segment of our society that creates the products and services we use. f. We study OM to understand what operations managers do. g. We study OM because it is such a closely part of an organization. A large percentage of the revenue of most firms is spent in the OM...
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...Sustainable Business Tammy T. Maden BA 317 International Management 21 April 2013 Instructor Lee Abstract Sustainability combines the principles of economic growth, environmental stewardship, governance, and social accountability. This Compare and Contrast analysis will introduce Managing Partner, David Blood's views on The Case of Sustainable Business. This review will include a brief description of what an International Manager may face in the business world and the duties of a successful International Manager. You will gain the knowledge of David's view, the International Manager, and how they relate. While corporate sustainability is not new, companies still fail to apply sustainability principals at the heart of the business. It should become part of the company's fabric and later an essential support for growth. David Blood, Managing Partner of Generation Investment Management, believes that putting together fundamental equity analysis and sustainability research throughout the process is a reasonable way to invest and provide superior returns to clients (Gresham College Lecture, 2008). He defines sustainability in both investing and business. I chose this video because it is about our future and how businesses could save the quality of life; this is what matters right now. It is very important in today's world because according to the United States Census Bureau, the population of the world as of this second is 7,080,247,340, in which one birth takes place...
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...International Marketing Strategy, 5th Edition Isobel Doole and Robin Lowe Publishing Director: John Yates Publisher: Jennifer Pegg Development Editor: Lucy Mills Production Editor: Leonora Dawson-Bowling Manufacturing Manager: Helen Mason Senior Production Controller: Maeve Healy Marketing Manager: Angela Lewis Typesetter: Newgen, India Cover design: Adam Renvoize Text design: Design Deluxe, Bath, UK For product information and technology assistance, contact emea.info@cengage.com. For permission to use material from this text or product, and for permission queries, email clsuk.permissions@cengage.com Products and services that are referred to in this book may be either trademarks and/or registered trademarks of their respective owners. The publishers and author/s make no claim to these trademarks. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 978-1-84480-763-5 Cengage Learning EMEA High Holborn House, 50-51 Bedford Row London WC1R 4LR Cengage Learning products are represented in Canada by Nelson Education Ltd. For your lifelong learning solutions, visit www.cengage.co.uk Purchase e-books or e-chapters at: http://estore.bized.co.uk CHAPTER 1 AN INTRODUCTION TO INTERNATIONAL MARKETING INTRODUCTION Managers around the globe are recognising the increasing necessity for their companies and organisations to develop the skills, aptitudes and knowledge to compete effectively in international markets...
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...Chapter 1 – Assessing the Environment – Political, Economic, Legal, Technological Multiple Choice Questions 1. One indicator of globalism is that foreign direct investment has grown ____________ the world output of goods. a. as fast as b. twice as fast as more than three times as fast as (difficult, page 5) c. negatively compared to 2. The European Union (EU) has now caught up with the United States to share the position of the world’s ____________. a. largest debtor largest investor (moderate, page 5) b. largest market c. largest tariff-free market 3. The TRIAD market consists of which regions? a. Western Europe, Eastern Europe, and North America b. Western Europe, Asia, and the United States c. Western Europe, Asia, and North America (moderate, page 5) d. Europe, Southeast Asia, and the Americas 4. Which of the following countries is not one of the Four Tigers? a. South Korea b. Hong Kong c. Taiwan d. Thailand (moderate, page 6) 5. Which of the following best describes the keiretsu and chaebol? a. control b. globalize c. conglomerate (moderate, page 6) d. culturally diverse 6. Which of the following does not characterize keiretsu and chaebol? a. financially linked entities b. market the same products (moderate, page 6) c. play a significant role in their nation’s economies d. function like a trade barrier to U.S. firms ...
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...International Management, 7e (Deresky) Chapter 1: Assessing the Environment Political, Economic, Legal, Technological 1) Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent global economy? D) globalization 2) All of the following factors contribute to globalization EXCEPT ________. C) higher number of trade restrictions 3) Which of the following is the most highly globalized in regards to economic integration, technological connectivity, personal contact, and political engagement? A) Singapore 4) Most small and medium-sized enterprises (SMEs) are ________. C) contributing to their national economies through exporting 5) Gayle Warwick Fine Linen owes its success as a global business primarily to the firm's ________. B) labor outsourcing in Vietnam 6) Which of the following are the three dominant currencies in the world today? C) Euro, Japanese yen, U.S. dollar 7) Most of today's world trade takes place in which three trade blocs? C) European Union, Asia, and the Americas 8) The European Union currently consists of how many nations? B) 27 9) Which of the following is NOT one of the Four Tigers? D) Thailand 10) Which of the following best explains China's success in exporting? A) low costs and steady stream of capital 11) Which of the following is NOT a true statement about India? A) India's biggest contributor to growth is its excellent infrastructure. 12) India's economic boom is most likely...
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...Seventh Edition INTERNATIONALEDITION INTERNATIONAL MANAGEMENT MANAGINGACROSSBORDERS AND CULTURES TEXTANDCASES Helen Deresky Professor Emerita, State University of New York-Plattsburgh Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo PART OUTLINE Chapter 1 Assessing the Environment—Political, Economic, Legal, Technological Chapter 2 Managing Interdependence: Social Responsibility and Ethics Assessing the Environment Political, Economic, Legal, Technological Outline Opening Profile: Economic Crisis Spreads Through Financial Globalization The Global Business Environment Globalization Globality and Emerging Markets Effects of Institutions on Global Trade Effects of Globalization on Corporations Regional Trading Blocs The European Union (EU) Asia Comparative Management in Focus: China's Economy Keeps on Chugging. The Americas Other Regions in the World The Russian Federation The Middle East Developing Economies The African Union The Globalization of Human Capital The Global Manager's Role The Political and Economic Environment Political Risk Political Risk Assessment Managing Political Risk Managing Terrorism Risk Economic Risk The Legal Environment Contract Law Other Regulatory Issues The Technological Environment Global E-Business Conclusion Summary of Key Points...
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...Leadership in Action: Leading Effectively in Humanitarian Operations A CK N O W L E D G E M E N TS First and foremost, we would like to thank the individuals who allowed their leadership to be placed in the spotlight as one of our case-study examples of effective operational humanitarian leadership. Their generosity and openness in doing so and in answering our many questions are greatly appreciated. We also thank the many other interviewees who spoke to us frankly and shared their insights on what they valued in terms of operational humanitarian leadership. David Peppiatt played an important role in identifying and facilitating a number of the case studies. Isobel McConnan carried out interviews and provided helpful comments on earlier drafts. Georgia Armitage helped with the literature review. The Advisory Group provided invaluable input, words of advice and comments on the draft report, they are: Tim Cross, Wendy Fenton, Randolph Kent, Ky Luu, and Claire Messina. Paul Knox Clarke’s inputs undoubtedly raised the quality of the analysis. Deborah Eade provided excellent editorial services and comments. Sara Swords also commented on an earlier draft. Ben Ramalingam played a key role in getting the study off the ground and in its design. Finally, thanks to John Mitchell for his ongoing and valuable support to this work. The project was undertaken as part of the joint initiative on leadership in the humanitarian sector in partnership with People In Aid, Humanitarian...
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...3M CASE STUDY Group: 20 Team: 11 Xizi Yang : S2780364 Tan Long: S2797402 S. van Eijk: S2755246 Lecturer: Henk Ritsema Question 1 Identify 3M’s core competencies, core products and end products. How are these three sources of competitive advantage lined with each other? 3M, also known as Minnesota Mining and Manufacturing, has several core competencies. First, the rule of allowing 15 per cent of its employees’ working hours has been spent on their own projects. It is the symbol of tolerance for experimentation for 3M. Second, the development of spirit of innovation. The shared characteristics of the trio, the calculated risk-taker, the rule-breaker and the inventor, shaped 3M’s climate of innovation. 3M supplies money for independent research products. For example, 3M launched the Genesis Program to fund research projects unable to go through the regular funding channels. Same for developing unconventional projects that would not otherwise receive funding in the outside world. Technology and ideas are shared through an informal way, such as conversations, but also through a formal way, such as the ‘R&D Workcentre’ and ‘Tech Forum’. Also, 3M has mentors and sponsors who help younger people by listening to their ideas, giving them advice and assistance, and acting as their champions. Patents give 3M the power and time to protect the growth potential of its business. All these thinks develops the spirit of innovation. Third, 3M keeps the functions of engineering...
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...Coca Cola’s International Strategy Table of Contents Introduction …………………………………………………………………………...…. 3 Coca-Cola’s International Strategy ..............................................................……….……. 4 Effective branding…….............................................................................................…….. 4 Quality Production ………...…...……………………………………………...………… 6 Good marketing Strategy……………………………………………………...…..………6 Global availability………………………………………………………………..………..7 Consistent innovation………………………………………………………………...……7 Communication across cultures…………………………………………………...………8 Assessing the environment………………………………………………………..………9 Interdependence Social Responsibility and Ethics……………………..……….……….11 Conclusion ………………………………………………………………….…….….….10 Bibliography…………………………………………………………………..................10 Introduction Managers of multinational organisations need to be able to manage businesses internationally. One needs to possess knowledge and skills beyond those of usual business expertise to be in a position to manage at the international level. For instance, managers in multinational firms are required to understand the various regulations in the countries in which the organisation operates. They also need to understand the values and customs, as well as the laws in the various societies in different countries. The ability to execute transactions in various nations is also essential...
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...TABLE OF CONTENT Background 3 I. Current Situation 3 ♣ Current Performance 3 ♣ Strategic Posture 3 1. Mission 3 2. Objectives 3 3. Strategies 3 4. Policies 3 II. Corporate Governance 3 ♣ Board of Directors 3 ♣ Top Management 4 ♣ Shareholders 4 III. External Environment: Opportunities and Threats (SWOT) 4 ♣ Societal Environment (P.E.S.T Factors) 4 1. Political - Legal Factors 4 2. Economic Factors 4 3. Socio-cultural Factors 4 4. Technological Factors 4 ♣ Task Environment (Industry) 4 Porter’s Approach 4 1. Threat of New Entrants 5 2. Rivalry among Existing Firms 5 3. Threat of Substitute Products or Services 5 4. Bargaining Power of Buyers 6 5. Bargaining Power of Suppliers 6 6. Relative Power of Other Stakeholders 6 External Factor Analysis Summary EFAS (As Attached) 6 IV. Internal Environment: Strength and Weaknesses (SWOT) 6 ♣ Corporate Structure 6 ♣ Corporate Culture 6 ♣ Corporate Resources 6 1. Marketing 6 2. Finance 7 3. Research and Development 8 4. Operations and Logistics 8 5. Human Resources 8 6. Information Systems 8 Internal Factor Analysis Summary IFAS (As Attached) 8 V. Analysis of Strategic Factors (SWOT) 8 ♣ Situation Analysis 8 ♣ Review of Mission and Objectives 8 VI. Strategic Alternative and Recommended Strategy 8 ♣ Strategic Alternative 8 ♣ Recommended Strategy 9 VII. Implementation...
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