International Business And Management

1 An Introduction to International Business &
Management

2 Analysing the Global Business Environment

3 International and Global Strategy
4 Behaving Responsibly Around the World

5 Managing Change in The International
Organization

6 International Leadership & Management

7 Managing Human Resources Worldwide
8 Managing Difference

9 International Organization Design & Structure

10 Global Business Processes

11 Managing Information Resources

12 Managing Knowledge Resources

13 Global Business & Enterprise Systems

14 Global Digital Business

15 International Operations

16 International Marketing

17 Managing Global Financial Resources

Kelly, P. (2009) „International Business
and Management‟, Cengage Learning

An Introduction to International Business &
Management

2 Analysing the Global Business Environment


5 Managing Change in The International
Organization

6 International Leadership & Management

7Managing Human Resources Worldwide
8 Managing Difference



11 Managing Information Resources

12 Managing Knowledge Resources

13 Global Business & Enterprise Systems

14 Global Digital Business


16 International Marketing

17 Managing Global Financial Resources

Kelly, P. (2009) „International Business
and Management‟, Cengage Learning

Module Delivery Plan

© Dr Phil Kelly

Induction
Learning
Groups
Review
Assessment

1An Introduction to International Business & Management
1
2 Analysing the Global Business Environment 2
3
5 Managing Change in The International Organization 4
6 International Leadership & Management 5
6
7 Managing Human Resources Worldwide 7
8 Managing Difference 8
9
10
11 Managing Information Resources 11
12 Managing Knowledge Resources 12
13 Global Business & Enterprise Systems 13
14 Global Digital Business 14
15
16 International Marketing 16
17 Managing Global Financial Resources 17

International Business & Management

© Dr Phil Kelly 5


Ch1

AN INTRODUCTION TO
INTERNATIONAL BUSINESS &
MANAGEMENT

INTRODUCTION TO INTERNATIONAL BUSINESS

THE INTERNATIONAL ORGANIZATION
INTERNATIONAL ORGANIZATIONAL
PERFORMANCE

International Business & Management © Dr Phil Kelly

International Business & Management 6


Learning Outcomes
After completing this session

 Distinguish between types of international organizations
 Explain the difference between international business (IB) and
international management (IM)
 Explain what is meant by globalization and its impact upon
organizations worldwide
 Distinguish the generic methods used to deliver sustainable
superior international organizational performance
 Describe the trade theories typically associated with the
economic activities of international business
 Describe the resource based view (RBV) and explain its
relationship with productive activities and sustainable
competitive advantage

© Dr Phil Kelly 7


Activity

ACTIVE LEARNING CASE 

© Dr Phil Kelly 8


Growth of International Trade

(source: UNCTAD 2008)
© Dr Phil Kelly 9


Location of Global 500 companies

Adapted from Fortune Global 500 data
© Dr Phil Kelly 10


Primary activities:
1. Inbound logistics: materials handling,
warehousing, inventory control, transportation; Value chain
2. Operations: machine operating, assembly,
packaging, testing and maintenance;
3. Outbound logistics: order processing,
warehousing, transportation and distribution;
4. Marketing and sales: advertising, promotion,
selling, pricing, channel management;
5. Service: installation, servicing, spare part
management;

Support activities:
6. Firm infrastructure: general management,
planning, finance, legal, investor relations;
7. Human resource management: recruitment,
education, promotion, reward systems;
8. Technology development: research &
development, IT, product and process
development;
9. Procurement: purchasing raw materials, lease
properties, supplier contract negotiations.

© Dr Phil Kelly 11


Value System

© Dr Phil Kelly 12


Convergence or Divergence?

© Dr Phil Kelly 13


The world economy

© Dr Phil Kelly 14


Comparative advantage

© Dr Phil Kelly 15


Value Chain Fragmentation

© Dr Phil Kelly

Case3
16


the Porter Diamond

© Dr Phil Kelly 17


Value Add Process (activities & resources)

© Dr Phil Kelly 18


Sources of competitive advantage

© Dr Phil Kelly 19


Any questions




Ch2
BSNMIM001

1
Analysing the GLOBAL BUSINESS
ENVIRONMENT

EXTERNAL MACRO ENVIRONMENT

INDUSTRY (MICRO) ENVIRONMENT

THE INTERNAL ENVIRONMENT

CONTINGENCY & ENVIRONMENTAL PERSPECTIVES

Version 2007_8 v1


Learning Outcomes

 Understand the significance and the influence of the external
(macro and micro) global business environment for the
international organization
 Understand the significance and the influence of the internal
business environment for the international organization
 Critically evaluate and apply a range of tools for analysing the
internal and external environment
 Explain the concepts of strategic fit and alignment
 Distinguish between the positioning and resource based
perspectives

© Dr Phil Kelly 26


Activity

European Airline Industry

© Dr Phil Kelly 27


Layers of the International Organization
Business Environment

© Dr Phil Kelly 28


Environmental
Influences

© Dr Phil Kelly 29


PESTLE Factors

© Dr Phil Kelly 30


Political Risks &
Their Impact

© Dr Phil Kelly 31


Political and Economic Risk Map

© Dr Phil Kelly 32


Elements of culture

© Dr Phil Kelly 33

Copyright © Geert Hofstede BV, reproduced with permission

Scores of cultural dimensions

© Dr Phil Kelly 34


Simplified view of East & West Cluster

© Dr Phil Kelly 35


Technology
& Work

© Dr Phil Kelly 36


Ecological Environment

© Dr Phil Kelly 37


Competitive
Forces

© Dr Phil Kelly 38


The industry life cycle

© Dr Phil Kelly 39


Assets which drive
value

© Dr Phil Kelly 40


SWOT Analysis

© Dr Phil Kelly 41


Positioning versus resource-based
perspective

© Dr Phil Kelly 42


Any questions




Activity


© Dr Phil Kelly 45


Ch3
BSNMIM001

3

International and Global STRATEGY

STRATEGY

CORPORATE STRATEGIC CHOICES

COMPETING WITH BUSINESS LEVEL STRATEGY

STRATEGY IMPLEMENTATION

Version 2007_8 v1


Learning Outcomes

 Explain what strategy is and how it is formed and implemented in
the international organization
 Explain the role of values, mission, and vision in formulating and
implementing strategy
 Identify and describe the strategic importance of resources,
competencies, core competencies and dynamic capabilities and
evaluate how they may be used to confer a sustainable
 Explain generic strategies and how managers may develop
strategic capabilities within international organisations
 Discuss the strategic choices and decisions according to the
corporate, business and business unit or departmental level

© Dr Phil Kelly 48


Activity

Li & Fung

© Dr Phil Kelly 49


A dual approach to (profit) goal achievement

© Dr Phil Kelly Adapted from Grant (1991) 50


Activity

Examples of Vision statements:

1. To be earth's most customer centric company; to build a place
where people can come to find and discover anything they might
want to buy online.
2. A world where everyone can be connected.
3. To create a better everyday life for the many people.

Nokia | Amazon | IKEA

© Dr Phil Kelly 51


Activity

Examples of Mission statements:

To organize the world's information and make it universally accessible and useful.
To be the most successful computer company in the world at delivering the best
customer experience in markets they serve.
To create the world’s leading e-commerce franchise.
To refresh the world - in mind, body and spirit; inspire moments of optimism -
through our brands and actions, and create value and make a difference -
everywhere they engage.
(1) Dell (2) eBay (3) Coca-Cola (4) Google

© Dr Phil Kelly 52


Strategy process

© Dr Phil Kelly 53


Multi-business organization

© Dr Phil Kelly 54


Choosing corporate scope

© Dr Phil Kelly 55


Market-entry

© Dr Phil Kelly 56


Competitive strategies

© Dr Phil Kelly 57


Strategy Model

© Dr Phil Kelly 58


Any questions




END

© Dr Phil Kelly 61


Ch4
BSNMIM001

4
BEHAVING RESPONSIBLY
around the World

INTERNATIONAL BUSINESS ETHICS

STAKEHOLDER THEORY

CORPORATE SOCIAL RESPONSIBILITY

CSR IMPLEMENTATION

Version 2007_8 v1


Learning Outcomes

 Identify and explain ethical theories relevant to decision making
in the international business
 Distinguish the behaviours seen as desirable in all international
employees
 Discuss the important ethical issues and challenges facing the
contemporary international organization
 Explain what is meant by stakeholder theory and its relevance to
ethical management
 Explain what is meant by corporate social responsibility and the
reason organizations pursue CSR strategies
 Critically evaluate methods used to implement CSR and create
an ethical organization

© Dr Phil Kelly 63


Activity

Texas Instruments

© Dr Phil Kelly 64


Thinking and behaving with principles

© Dr Phil Kelly 65


Desirable employee
behaviours

© Dr Phil Kelly 66


Stakeholder model

© Dr Phil Kelly 67


Sources of unethical & undesirable
behaviour in the value Chain

© Dr Phil Kelly 68

Adapted from Mitchell, Agle & Wood 1997

Stakeholder
identification model

© Dr Phil Kelly 69


Decision-making
considerations

© Dr Phil Kelly 70


Components of CSR

© Dr Phil Kelly 71


CSR Initiatives

© Dr Phil Kelly 72


Issues addressed in codes of conduct

© Dr Phil Kelly 73


Establishing
an ethical
infrastructure

© Dr Phil Kelly 74


Any questions




Ch5
BSNMIM001

5
MANAGING CHANGE
in the International organization

UNDERSTANDING CHANGE

THEORIES OF CHANGE

IMPLEMENTING CHANGE

Version 2007_8 v1


Learning Outcomes

 Describe the main theoretical foundations of change
management
 Critically evaluate the planned and the emergent approach to
change
 Identify and describe a selection of integrated change
management models
 Understand the situations in which the various approaches to
change are most appropriately used
 Understand the role of leaders, managers and change agents in
the change process
 Understand resistance to change

© Dr Phil Kelly 78


Generic change
model

© Dr Phil Kelly 80


Activity – Case 17:
Making Australia's Telstra Nimble

This case examines change at Telstra, an Australian telecommunications and
media company, formerly state-owned triggered by poor performance.

Sol Trujillo talks about the challenges in turning Australia's Telstra from a poor
performing public-sector telecom into a nimble, diversified player. Historically,
the company had been losing market share since deregulation and the advent of
competition some ten years ago. Costs were rising greater than revenues. A
new CEO was brought in to transform the company from government to market
A key focus of this led.
case is the trigger for
change. Students will  How would you classify the changes described by the CEO at
consider different Telstra (emergent, episodic, continuous etc) ?
types of change and  Discuss the readiness for and potential resistance to change
how change is at Telstra during the period in question
accomplished at a
high level.

00:20:00
© Dr Phil Kelly 81

Proposed by Leavitt (1965)

The organisational system model

© Dr Phil Kelly 82

Source: Nadler and Tushman (1989) International Business & Management

Organization Model

© Dr Phil Kelly 83

Burke and Litwin (1992) International Business & Management

A model of organizational
performance and change

© Dr Phil Kelly 84


Three staged change process

© Dr Phil Kelly 85


Force field
analysis

© Dr Phil Kelly 86


Planned approach
to change

© Dr Phil Kelly 87


Organization change:
using technology to change practice
Lloyds of London needed to transform its manual practices for processing claims
into a tech-driven process. CEO Richard Ward tells how he pushed for greater
efficiency.

 Briefly describe the drivers or trigger for change at Lloyds.
How can change be  Critically evaluate the efforts of Richard Ward and how he
instigated? went about the task of building the need for change.
 With reference to change resistance and inertia, discuss why
the initial change effort seemed to fizzle out i.e. only attracted
effort from the early adopters.
 With reference to Richard Ward, what qualities and attributes
do you believe typical of a good change agent?

00:20:00
© Dr Phil Kelly 88


Factors affecting change difficulty

© Dr Phil Kelly 89


Any questions




Ch6
BSNMIM001

6
INTERNATIONAL LEADERSHIP &
MANAGEMENT

LEADERSHIP AND MANAGEMENT

POWER AND INFLUENCE

LEADERSHIP THEORIES

LEADING IN THE INTERNATIONAL ORGANIZATION

Version 2007_8 v1


Learning Outcomes

 Explain the apparent differences between the concepts of
leadership and management
 Evaluate how situation and organisational context impact upon
leadership style
 Understand the potential benefits and risks of shared and
delegated leadership
 Understand how position and personal attributes can be a
source of power for leaders
 Understand various psychological processes which explain how
leaders influence people
 Discuss how leadership styles and behaviour may need to be
adapted when working in other cultures

© Dr Phil Kelly 93


Leadership
Management Lessons from McDonald's
This case briefly explores the concepts of leadership and management and will
focus on leaders‟ and what they can do to influence and persuade followers to
act in ways that help the organization attain its goals.

Identify how leaders
and managers might  What is leadership and management? Are all leaders
Influence the managers? Are all managers leaders?
behaviour of others  What is meant by motivation and how do we motivate or
persuade others to do what we want them to do?
 In the video clip, Facella discusses recognition and
communication - how might these motivate others and which
motivational theories best address these as motivational
factors?
 Why is networking and building relationships and important
managerial activity?

00:20:00
© Dr Phil Kelly 95


Leadership –v- management roles & functions

© Dr Phil Kelly 96


Leader-follower relationship

© Dr Phil Kelly 97


Network development, interactions &
resources

© Dr Phil Kelly 98


Power &
Influence

© Dr Phil Kelly 99


Motivating Others




Maslow's Hierarchy
of Needs

© Dr Phil Kelly 105


two factor theory of motivation



Equity theory


Process theories

1. Goal difficulty –
challenging & Goal setting theory
demanding
2. Goal specificity –
clarity &
explicitness of the
target
3. Goal acceptance –
legitimate &
appropriate for self
4. Goal commitment
– interest in
achieving the goal/
participate in the Clear, Communicated, Challenging goals can lead to higher levels of
goal setting process performance. Also consider participation & Commitment


Process theories

Expectancy theory
That behaviour results from a
conscious decision making process

If you expect to get what you desire from hard work
then you will work hard (Effort)



Motivating
Workers



Any questions




Ch7
BSNMIM001

STRATEGIC USE OF HUMAN RESOURCES

CENTRAL ISSUES: THE IHRM FUNCTION &
GLOBAL PRACTICES
LOCAL ISSUES: IHRM/HRM PRACTICES &
PROCEDURES

Version 2007_8 v1


Human capital characteristics

(adapted from Lepak and Snell 2002)


Learning Outcomes

 Identify HRM issues and problems arising from the
internationalisation of organizations
 Explain how human capital can be a source of sustainable
 Identify and describe the core HR practices
 Explain the role of the IHRM function
 Discuss factors which may impact upon HR Policy and Practice
design



HRM an Introduction

This case provides an introduction to the evolving role of HR.
Human Resources (HR) will be the main driver of strategy in the future,
according to Dr. Rainer Strack, Partner and Managing Director of Boston
Consulting Group. In this video case, Dr Strack discusses the current and future
role of HR in companies.

 What is HRM?
What is the role of  With reference to the film clip, trends and your research,
HR now and in the brainstorm aspects of the emerging HR role; in your answer
future? you should describe the role historically, now and ideas for
the future and discuss the profile of a HR manager– what are
the key HR activities and challenges? You should also explain
why the HR role seems to be getting more important in
organizations

00:20:00


Human Capital & Competitive Advantage

(adapted from Wright, Dunford and Snell 2001)


HUMAN RESOURCE PHILOSOPHY & POLICY



Factors affecting IHRM
Policies & Practices –
a contingency model



Approach to IHRM Policy & Practice



Activity – Case 10: Employee selection
How to Hire the Best Talent
Critically evaluate the recruitment process and methods used to make
recruitment decisions.

How to make good  Discuss why it is important to make good recruitment
hiring (recruitment) decisions: your answer should list and evaluate the costs
decisions… associated with recruitment generally and costs associated
with making a bad recruitment (staffing/ hire) decision
 In response to the question: why do managers fail at hiring,
Smart replies, because they don‟t follow a rigorous process.
Brainstorm the typical steps in a recruitment process.
 With reference to previous questions and activities and the
recruitment process, identify and discuss common mistakes
that you should avoid when recruiting
 Discuss how approaches to recruitment vary worldwide.

00:20:00


Staffing
Strategies



Activity – Case 11: Globetrotting
GlaxoSmithKline helps executive expats
a research-based pharmaceutical company that employs around 100,000
people in over 100 countries - Headquartered in the UK and with operations
based in the US, GSK are one of the industry leaders, with an estimated seven
per cent of the world's pharmaceutical market.
How and why might  Discuss why the organization may demand expatriates.
organizations  The HR Role in managing expats - Lack of preparation
support and manage generally has been associated with a higher expatriate failure
employees operating rate, (Schuler, Budhwar, and Florkowski 2002:51). One of the
in different countries most challenging tasks for any company operating
(expatriates, internationally is to manage its expatriates. The statistics
consultants and showing their efficiency on that matter are not encouraging,
other employees on (Treven 2006). Identify and discuss potential problems and
assignment)? what the organization may do in order to reduce the risk of
expat failure and support them in their work.
 What traits, skills, abilities or knowledge may be desirable in
managers about to take an overseas (expat) assignment?

00:20:00


Activity Case 103: Individual differences
Culture & Personality
The psychological construct that has been used to embrace the features of
individual difference is that of personality. This case considers the nature and
determinants of individual difference, discusses why organisations may consider
personality an important construct and then focuses on the role of personality
and personality testing in a specific work context - working in other cultures -
Neil Jacobs gives the personality qualities companies should look for when
Considers culture as sending execs abroad
a source of
 Discuss why organisations may consider personality an
individual difference
important construct
and the work based
problems that cross  With reference to psychometrics discuss how organisations
cultural encounters measure personality and individual difference and the main
might present. reasons such tests or instruments may be used-the situations
where the application of personality concepts could be of
value within an organisation
 With reference to the video clip, identify skills and attitudes
that allow individuals to effectively and appropriately
communicate with people who are different from themselves.
00:20:00


Performance management
The Power of Recognition
Efficiency is about how the organisation uses its resources to undertake
activities and how some companies are able to get more out of their resources
than others. In the case of human resources, this is achieved through
motivation.
Understand the
behaviour of  Why is motivation so important in business?
employees may be  How can managers (and anyone with responsibility for others)
influenced in order motivate employees?
to attain desired
 Recall comments made during the video clip - When and how
levels of
should recognition be used if it is to be an effective motivator?
performance

00:20:00


©HRM systems
Dr Phil Kelly & Organizational Performance
133
(adapted from Katou and Budhwar (2006))


Determining the right HRM approach



Ch8
BSNMIM001

8

MANAGING DIFFERENCE

THE CONTEMPORARY DIVERSE & MULTICULTURAL WORKPLACE

DIVERSITY

WORKING WITH OTHER CULTURES

WORKING IN MULTICULTURAL AND DIVERSE GROUPS

Version 2007_8 v1


Learning Outcomes

 Evaluate diversity and multiculturalism as source of sustainable
 Explain, with reference to social identity theory, stereotyping,
generalising, perception and attribution theory why some employees of
the international organization may be treated differently from others
 Discuss the organisation consequences of discriminatory behaviours
 Evaluate why it is important to understand culture and inter-cultural
communication in the contemporary workplace of the international
organization
 Critically evaluate methods for building cross-cultural competence and
discuss the cultural challenges both working with and managing people
from different cultures
 Critically evaluate the performance of multicultural groups working
within the international organization



Activity

Diversity in Broadcasting



SOCIAL IDENTITY THEORY (SIT)



Perception




Tday we re explring th cncept of percption nd how
we proces infrmation. In som cases we fil n th gaps
– in uthe cases we curect mstakes or may leve
thngs out.




FINISHED FILES ARE THE RESULT OF YEARS OF
SCIENTIFIC STUDY COMBINED WITH THE
EXPERIENCE OF YEARS




The process of Perception



„World-views‟



Perception…




Generalisations from population
characteristics



THE BUSINESS CASE FOR DIVERSITY
& DIVERSITY INITIATIVES




Diversity: a New Approach

Considers how and why organizations pursue diversity goals and promote
inclusion

Identify what is
meant by diversity  discuss the meaning of diversity
 MMC aims to increase diversity and promote inclusion - (1)
Understand why how does it and how could it seek to increase diversity/
organizations need promote inclusion and (2) why should it?
to promote diversity
 Why is it difficult to change monocultural into multicultural
constantly
organizations? Why might MMC and similar organizations find
it difficult to retain staff from minorities?
 Why does MMC have to use a range of search agencies
(outsourced recruiters)?

00:20:00


THE BUSINESS CASE FOR DIVERSITY

 Cost savings
 Winning the competition
for talent
 Improved marketplace
understanding
 Enhanced creativity &
increased quality of
team problem-solving



integration of identity groups



Homosocial reproduction –
driving out diversity



CULTURE

“Culture is more often a source of conflict than of synergy.
Cultural differences are a nuisance at best and often a disaster."

Prof. Geert Hofstede, Emeritus Professor, Maastricht University




Elements of
culture



The web of cultural determinants


WORKING IN
MULTICULTURAL & DIVERSE GROUPS &
WITH OTHER CULTURES




Organizational Culture




Culture Trumps Strategy

SVB Financial Group has more than 1,200 employees and $11 billion in assets.
Founded in 1983, SVB Financial Group serves nearly 11,000 clients around the
world through 27 domestic offices, and international subsidiaries in the U.K.,
Israel, India and China, and an extensive network of relationships with venture
capitalists in Asia, Australia, Europe, India, and Israel.

 Ken Wilcox initiates the film clip with an argument that culture
is very important - more important than strategy. In groups,
Evaluate why it is
discuss what is meant by culture and more specifically
important to
organizational culture and then strategy. Why does culture
understand
matter?
corporate culture
 There are many manifestations of culture. Wilcox discussed
the companies guiding principle - what the organization
values, what they see as important. Brainstorm further
manifestations of culture.
 Discuss how explicit values statements, guiding principles,
codes of conduct & similar documents can both describe &
contribute to the development of the corporate culture.
00:20:00


Ch9
BSNMIM001

9
INTERNATIONAL ORGANIZATION
DESIGN & STRUCTURE

ELEMENTS OF ORGANIZATIONAL STRUCTURE

GLOBAL ORGANIZATIONAL DESIGNS – THE CHOICES

WHAT DETERMINES THE DESIGN OF INTERNATIONAL
ORGANIZATIONS?
COORDINATION & CONTROL MECHANISMS IN INTERNATIONAL
BUSINESS

Version 2007_8 v1


Learning Outcomes

 Define and discuss the nature of international
organization design
 Explain factors likely to determine the design of
international organizations
 Identify and describe common forms of international
organization design
 Describe how international firms coordinate activities
 Explain the general purpose and methods of control in
international business



Activity

BP



ELEMENTS OF STRUCTURE

 Specialization
 Standardization
 Formalization
 Centralization
 Configuration
 Org Chart/Structure
 Job Definitions
 Span Of Control
 Authority, Responsibility,
Accountability



Organizational relationship types



Basic organization parts
Mintzberg at the strategic level
identified five basic parts of an
organizational structure:

Strategic Apex
Middle managers
Operating core
Technostructure
Support staff



WHAT DETERMINES THE DESIGN OF
INTERNATIONAL ORGANIZATIONS?

‘There is not one best organization design, or style of
management, or method of working.
Rather, different patterns of organization and management will
be most appropriate in different situations’ Nadler (1980).




The contingency
approach



External environment



Internal Environment:
STRATEGY & STRUCTURE



Cognizant Designing the Global Organization

Cognizant Technology Solutions is a large information technology services and
consulting company with headquarters in the United States and significant
operations in India. Since 1996, Cognizant has worked closely with large
organizations to help them build stronger, more efficient, and more agile
businesses. Cognizant started with an India-centric functional organization.
They then considered their strategy and the main things that they needed to do
well http://cognizant.com
How do large
companies organise  Cognizant started with an India-centric functional
(in a manner that organization. In groups, discuss this type of structure and
may provide evaluate its strengths and weaknesses, particularly in the
advantage) to meet context of globalisation.
global demands?  Chandler (1962) famously argued that “structure-follows-
strategy”. Identify the key aspects of Cognizant's strategy
which are likely to influence its structural choices.

00:20:00


SIMPLE DESIGNS



Designs & Structures for
international organizations



Activity

 Which of the structures
discussed, best
describes BP as
represented in the
opening case study?
 Consider BP and then
place area, product and
functional knowledge in
order of importance to
the organization. Explain
your answer.



Types of organization structure



THE DETERMINATION OF
ORGANIZATIONAL STRUCTURE

The Integration-Responsiveness Framework –
source: Devinney, Midgley and Venaik (2000)


Activity

Organizational chart
 create an organizational
chart



Body Shop Organization structure changes

In this case we consider what is meant by organization structure and design;
consider why it is necessary to structure human resources, discuss how we
should set about this enormous challenge and ask how we can make efficient
and effective use of human resources in order to attain goals and derive a
sustainable competitive advantage. In particular we consider issues associated
with bureaucracy and hierarchy. Body Shop grew and with it came particular
design challenges. www.thebodyshop.com
What is  Anita Roddick states that „for nearly twenty years we never had
organizational an organizational chart‟ (they had no systems, procedures, job
structure and why do descriptions or functional departments like marketing – despite
large organizations this the company won plenty of awards – these ceased when the
need continually to company restructured and formalised aspects of work); she also
consider the designs described the proposed organizational chart as „a Lego set from
of their hell‟; Duncan (1979) suggested that ORGANIZATIONAL
organization? STRUCTURE is more than boxes on a chart –
discuss the statements of Roddick and Duncan and consider
what organization structure/ design really includes
(what are the tools typically used to structure organizations?).



COORDINATION & CONTROL MECHANISMS
IN INTERNATIONAL BUSINESS




COORDINATION MECHANISMS

 Hierarchy/design/structure
 Formalization
 Liaison roles
 Task forces
 Informal networks



Establishing a
control framework

adapted from Simons (1995)


Activity

 consider culture and
discuss how it might be
used as a coordination
and control mechanism.



Fitting formal & informal control
with environmental needs



Co-ordination & control mechanisms



Ch10
BSNMIM001

10

GLOBAL BUSINESS PROCESSES

THE PROCESS VIEW
MANAGING GLOBAL BUSINESS PROCESSES (GBP)
STRATEGIES FOR IMPROVING GBP

Version 2007_8 v1


Learning Outcomes

 Define what is meant by a business process and explain how
processes are designed and managed.
 Explain how processes may be used in organization design and
structuring.
 Explain how the process view of organizations may provide the
international organization with a source of sustainable
competitive advantage and enable the attainment of strategic
goals.
 Compare and contrast the process view with traditional views on
organizational design and structure.



MANAGING GLOBAL
BUSINESS PROCESSES (GBP)



Activity

Dell Inc.



Path



PROCESSES



Cadbury's processes at the factory

Cadbury is a leading global confectionery company which created market-leader
brands like Cadbury, Trident and Halls. The company employs around 50,000
people to make and sell three kinds of confectionery: chocolate, gum and candy.
It operates in over 60 countries. This case considers how Easter eggs are made
at the Cadbury's factory in Bournville, Birmingham (UK)- the case focuses on
operations and the production process.

 With reference to the TRANSFORMATION PROCESS MODEL,
Describe the types
analyse and describe how Easter eggs are made at the
of process used to
Cadbury's factory in Bournville, Birmingham. In your answer
produce goods and
you should identify the inputs/ raw materials and the
services.
transformational resources used within the process.

00:20:00


Process Hierarchy



Concepts relating
to processes

(adapted from ISO9000:2005)


Process Structure



Process modelling benefits


Activity
Start/ End
Draft a procurement process for company
ABC.
Activity
 In ABC managers are allocated budgets
and corporate credit cards for purchases
under € 1000. Approval is required for
purchases exceeding this amount or for
Decision any purchase whereby the buyer has no
allocated budget. Approved purchases
Yes No are made using a purchase order (with
unique identifying number) which is
Document completed and sent to procurement who
Created then place the order with the supplier and
notify the accounts department that an
order has been placed.
Start/ End


Activity

Draft a procurement process for company
ABC.
 In ABC managers are allocated budgets
and corporate credit cards for purchases
under € 1000. Approval is required for
purchases exceeding this amount or for
any purchase whereby the buyer has no
allocated budget. Approved purchases
are made using a purchase order (with
unique identifying number) which is
completed and sent to procurement who
then place the order with the supplier and
notify the accounts department that an
order has been placed.



STRATEGIES FOR IMPROVING GBP




The Process and Enterprise Maturity Model
Process enablers

 Design: The comprehensiveness of the specification of how the process is to be
executed.
 Performers: The people who execute the process, particularly in terms of skills
and knowledge.
 Owner: A senior executive with responsibility for the process and its results.
 Infrastructure: Information and management systems supporting the process.
 Metrics: Measures used to track process performance.

Enterprise capabilities

 Leadership: Senior executives who support the creation of processes.
 Culture: The values of customer focus, teamwork, personal accountability, and
a willingness to change.
 Expertise: Skills in, and methodology for, process redesign.
 Governance: Mechanisms for managing complex projects and change
initiatives.

© Dr Phil Kelly Hammer (2007) 215


Approaches to BPI

adapted from Ashayeri, et al (1998)


Managing quality inside
a frozen pizza factory
Northern Foods plc (Founded 1937) is a British food manufacturer. With
revenues of nearly £1 billion and a skilled workforce of 11,000 people, Northern
Foods is one of the leading food producers in the UK and Ireland. Northern
Foods produces both frozen pizza and chilled pizza. They make frozen pizza
under the Goodfella and San Marco brands as well as producing high quality,
own label pizzas for major UK and Irish multiples.

 Discuss what is meant by quality and brainstorm how you
Describe quality might define quality in relation to a frozen pizza. What are the
control systems and key aspects and other attributes of quality for the frozen
key issues in pizza? Next, brainstorm possible causes of poor quality
manufacturing - frozen pizzas.
case illustrates
 Why is QUALITY IMPORTANT to Northern Foods (quality and
automated
financial performance)? You should also discuss the costs
production in action
associated with quality.
and quality control

00:20:00


Transformation process congruence model



BPR Framework



Boeing 737 Lean enterprise manufacturing
Lean Production System
Boeing is the largest global aircraft manufacturer by revenue, orders and
deliveries, and the second largest aerospace and defence contractor in the
world. Assembling a 737 is a complex job. Factory employees must take
367,000 parts, an equal number of bolts, rivets and other fasteners and 36 miles
(58 kilometres) of electrical wire then put them all together to form an airplane.
Production methods have evolved enormously since the first 737 was made in
1966. The main difference is that instead of the aircraft being assembled in one
spot (static production bays - traditional manufacture) they are now on a moving
How to make assembly line similar to that used in car production. Since the late 1990's the
production company has continuously improved production, becoming a lean enterprise.
processes more
efficient.  What do the terms 'lean' and 'just-in-time' mean?
 Why is continuous improvement necessary at Boeing?

00:20:00


Ch11
BSNMIM001

11

Managing Information Resources

INFORMATION RESOURCES

SUPPORTING INTERNATIONAL BUSINESS

COMPETING THROUGH THE APPLICATION OF INFORMATION
RESOURCES

ENTERPRISE & GLOBAL INFORMATION NEEDS &
MANAGEMENT

Version 2007_8 v1


Learning Outcomes

 Differentiate between the concepts of data,
information, knowledge and wisdom resources
 Identify the role of information resources within the
international organization
 Explain how decisions are made within international
organizations and the role of information in improving
decision-making
 Discuss how information resources can be used to
deliver value and help the international organization
compete



Key organizational resources


Porter article questions
1. Define “IT”
2. How does Porter conceptualise internal operations
3. How does Porter conceptualise external relationships
4. How is value measured
5. With reference to Porter‟s generic strategies identify how an
organization might gain a competitive advantage
6. What is the value chain?
7. How might the VC help an organization manage its information
resources?
8. What framework does Porter introduce to analyse industry
structures?
9. Draw the framework
10. Explain how the framework helps analyse how information
might impact upon competition within industries

© Dr Phil Kelly

1. Define “IT” 1. More than computers, “Information” and
2. How does Porter conceptualise “technology”
internal operations 2. Value chain
3. How does Porter conceptualise 3. Value system
external relationships 4. the amount buyers are willing to pay;
4. How is value measured profitable if exceeds costs
5. With reference to Porter‟s generic 5. Cost or Differentiation
strategies identify how an 6. a set of linked activities which may be
organization might gain a competitive primary (inbound logistics, operations,
advantage outbound, marketing and sales) or
6. What is the value chain? secondary (HR, technology,
7. How might the VC help an procurement etc) concerned with
organization manage its information physical creation of goods and services
resources? and the support of those activities.
8. What framework does Porter 7. An analytical framework to decompose
introduce to analyse industry the organization, identify important
structures? activities and the information they
9. Draw the framework require or generate and how information
flows to link activities
10. Explain how the framework helps 8. 5 forces
analyse how information might
impact upon competition within 9. see text: rivalry, buyer and supplier
industries power, threat of substitution, barriers to
entry
10. discuss each force

© Dr Phil Kelly


Competitive
Forces



Tesco: use of IT and information systems -
Introduction to MIS
Founded in 1919 in London, Tesco plc is a British-based international grocery
and general merchandising retail chain. With revenues of £60 billion (2009), it is
the largest British retailer by both global sales and domestic market share, with
profits exceeding £3 billion. With almost 500,000 Employees (2009) and over
4000 stores Tesco is currently the third largest global retailer.
The business is dependent on efficient Information Technology (IT) systems.
Any significant failure in the IT processes of their retail operations (e.g. barcode
scanning or supply chain logistics) impacts ability to trade. Tesco recognise the
Identify the role of essential role that IT plays across the Group in allowing efficient trade and
information achievement of commercial advantage through implementing IT innovations
resources within the which improve the shopping trip for customers and make life easier for
organization employees.

 brainstorm as many examples of how IT and IS may be used to
help the company operate and achieve its objectives.
 Discuss the challenges faced by the CIO - which are the most
important and why?
 Which of Tesco's systems are most likely to confer a
competitive advantage for the company?
00:20:00

International Business And Management

International Business And Management

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