Management in global enviornment1

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  • 1. MANAGEMENT IN GLOBAL ENVIORNMENT
    PRESENTED BY:
    AARUSHI, AASIM, ACHINT, ADITYA, ADITI, ANA
  • 2. Parochialism
    An obstacle for managers in global business world.
    Monolingualism should be abolished.
    Managers who follow “ours is better then their’s”;its difficult for them to compete with other managers.
    JAPANESE
    AMERICANS
  • 3. THREE POSSIBLE GLOBAL ATTITUDES
    ETHNOCENTRIC
    POLYCENTRIC
    GEOCENTRIC
  • 4. ETHNOCENTRIC
  • 5. POLYCENTRIC
  • 6. GEOCENTRIC
  • 7. An award winner- American marketing.
  • 8. When a manager ignore foreign values and custom unfortunately cross culture blunders can happen.
    “EAT YOUR FINGERS OFF”
  • 9. PEPSI BRINGS YOU BACK TO LIFE
  • 10.
  • 11.
  • 12. Understanding the global environment
    • Managers of all type of organization faced with opportunities and challenges of Managing in
    a global environment.
    • In modern time global trade is being shaped by two forces :
    • 13. regional trading alliance.
    • 14. World Trade Organization.
  • Regional trading alliance
    • Few years ago global competition meant country against country.
    • 15. Such as France versus Germany and America and Japan.
    • 16. Regional trading agreements reshaped global competition which mainly involves :
    • 17. European union (EU)
    • 18. North American free trade agreements (NAFTA)
    • 19. Association of southeast Asian nation(ASEAN)
  • 20. Map Of European Union
  • 21. The European union
    • In 1992 formation of European union which include 12 members.
    • 22. In 1995 three other country joined the group Austria, Finland, and Sweden.
    • 23. In 2004 EU added 10 new members.
    • 24. In 2007 there is two other countries joined thus the union include 27 member.
    • 25. The main aim of nation to reassert their economic position against the united states and Japan.
  • North American free agreement
    • NAFTA came into existence in1992 between the Mexico, Canada and U.S.A .
    • 26. The main aim eliminating the barriers to free trade has resulted to strengthening the economic power.
    • 27. Now 34 countries in the Caribbean region, south America are negotiating a free trade of Americas agreement.
  • Association of southeast Asiannation
    It is one of the fastest – growing economic regions of the world.
  • 28. The World Trade Organization
    • The WTO was formed in 1995.It has evolved from general agreement on Tariffs and Trade (GATT)
    • 29. It deal with the rules of trade among nations and the total number of members are- 146
    • 30. The function of WTO is help businesses (import and
    Export)their business.
    • It play an important role in monitoring and promoting
    global trade
  • 31. Different Type of Global Organizations
    1.Multinational Company (MNC)
    This type of Organization has operation in multiple country but managed from home country.
    Characteristic of Ethnocentric attitude
    Example:-
    Sony , Deutsche Bank AG ,Merrill Lynch etc.
  • 32. 2.Transnational Corporation
    (TNC)
    Operational in more than one country but decentralizes management to local country.
    Polycentric Attitude
    Nestle , Frito -lay etc.
  • 33. 3.Borderless Organization
    Geocentric Attitude
    A firm that has eliminated structural divisions that impose
    artificial geographic barriers and is organized along
    business lines.
    IBM , Telefonica etc
  • 34. How Organizations Go Global
  • 35. Why Globalization
  • 36. Reduce dependence on home market
    Build more brand and shareholder value
    Add revenue sources and growth markets
    Award more franchises in the home country by being
    global.
  • 37. How Organizations Go Global
    STAGE 3
    • Foreign Subsidiary
    • 38. Joint Venture
    • 39. Strategic Alliance
    • 40. Licensing/
    Franchising
    STAGE 2
    Hiring foreign representation
    Or
    Contracting with foreign manufactures
    STAGE 1
    Directly
    or
    Indirectly exporting to
    or
    importing from foreign countries
  • 41. ECONOMIC ENVIRONMENTANDCULTURAL ENVIRONMENT
  • 42.
  • 43.
  • 44. 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.
  • 45.
    • Americans are very informal.
    • 46. Americans are direct.
    • 47. Americans are competitive.
    • 48. Americans are achievers.
    • 49. Americans are independent and individualistic.
    • 50. Americans are questioners.
    • 51. Americans value punctuality.
    • 52. Americans value cleanliness.
  • HOFSTEDE’S FRAMEWORK FOR ASSESSING CULTURES
    Dimensions of National culture
    INTRODUCTION
    • Dutch Psychologist named Dr GeertHofstede
    • 53. Worked for IBM
    • 54. Undertook research survey from 1967-1973
    • 55. Data collected and analyzed from more than 100,000 people in more than 50 countries
    • 56. He scored each country using a scale of roughly 0 to 100 for each dimension
    INDIVIDUALISM VERSUS COLLECTIVISM
    POWER DISTANCE
    UNCERTAINTY AVOIDANCE
    QUANTITY VERSUS QUALITY OF LIFE
    LONG TERM AND SHORT TERM ORIENTATIONS
  • 57. INDIVIDUALISM VERSUS COLLECTIVISM
    INDIVIDUALISM
    • PEOPLE PEFER TO ACT AS INDIVIDUALS
    • 58. LOOK AFTER THEIR OWN INTERESTS AND THOSE OF THEIR IMMEDIATE FAMILY
    COLLECTIVISM
    • A social framework in which people prefer to act as members of a group and protect other members of the group
    • 59. personal needs are less important than the group's needs. This dimension influences the role government is expected to play in markets
  • POWER DISTANCE
    • A measure of the extent to which a society accepts the fact that power in institutions and organizations is distributed unequally.
    • 60. A high power distance society accepts wide differences in power in organizations.
    • 61. Employees show a great deal of respect for those in authority. Titles, rank, and status carry a lot of weight.
    • 62. In contrast, a low power distance society plays down
    inequalities as much as possible
    • Superiors still have authority, but employees are not afraid off or in awe of the boss
  • UNCERTAINTY AVOIDANCE
    A low uncertainty culture allows individuals to cope better with risk and innovation.
    They're also relatively tolerant of behavior and opinions that differ from their own because they don't feel threatened by them.
    On the other hand, people in a society that's high in uncertainty avoidance feel threatened by uncertainty and ambiguity and experience high levels of anxiety, which manifests itself in nervousness, high stress, and aggressiveness.
  • 63. QUANTITY VERSUS QUALITY OF LIFE
    Quantity of life-degree to which values such as assertiveness, the acquisition of money and material goods, and competition prevails.
    Quality of life is a national cultural attribute that emphasizes relationships and concerns for others
    Again like Individualism and collectivism.
  • 64. LONG TERM AND SHORT TERM ORIENTATIONS
    It looks at country’s orientation towards life and work.
    People in long term orientation culture looks to the future and value thrift and persistence.
    A short term orientation values the past and present and emphasizes respect for tradition and fulfilling social obligations.
  • 65. The globe ….
    The GLOBE (Global Leadership & Organizational Behavior Effectiveness) is a multi-phase, multi-method research project in which investigators around the world examine the inter-relationships between societal culture, organizational culture & organizational leadership.
    The idea was conceived by Robert J. House in 1991 but the project fomally began in 1993.
  • 66. The globe framework for assessing cultures
    Assertiveness
    Future orientation
    Gender differentiation
  • 67. 4) Uncertainty avoidance
    5) Power distance
    6) Individualism/ collectivism
  • 68. 7) In-group collectivism
    8) Performance orientation
    9) Humane orientation
  • 69. Global ranking of selected countries
  • 70. Global management in today’s world
    “arguing against GLOBALIZATION is like arguing against THE LAW OF GRAVITY”- Kofi Annan
    Doing business globally today isn’t easy.
    Managers face serious challenges like:
    1) Increased threat of terrorism
    2) Economic interdependence of trading countries
  • 71. 3) Loss of investments in unstable countries
    4) Americanization
  • 72.
  • 73. Conclusion
    Successfully managing in today’s global environment will require incredible sensitivity & understanding. Managers need to be aware of how their decisions & actions will be viewed, not only by those who agree, but especially, by those who disagree.
    They’ll need to adjust their leadership styles & management approaches according to these diversities.
  • 74.
  • 75. questions
    What is Global Perspective? How do organizations do business globally?
    Short notes (choose any two):
    1) WTO 2) NAFTA 3) ASEAN
    MCQs :
    1)Monolingualism is one of the key indicators of parochialism prevalence in a culture:
    a) true b) false
    2) Which one of the following regional alliances was formed after the signing of the Masstricht Treaty?
    a) European Union
    b) ASEAN
    c) NAFTA
    3) According to the GLOBE which country/countries rank the highest in Uncertainty Avoidance?
    a) Sweden b) Greece c) Kuwait d) Mexico
    4) National culture is more influential than an organizational culture- is justified by:
    a) Legal-political environment b) Social environment
    c) Cultural environment d) Economic environment