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GLOBAL MANAGEMENT:
                                                                         MANAGING ACROSS BORDERS
                                                                                            Week 3




Prepared by Management Department   |   www.unimedia.ac.id   |   man@unimedia.ac.id
Globalization: the collapse of time & distance




                           Process by which
             the world economy is becoming
             a single interdependent system
                                     (Griffin)




                                     www.unimedia.ac.id
Globalization: as reflected in three important developments




                                   The rise of both Megamergers & Minifirms
                                   Worldwide
     CROSS BORDER BUSINESS
#3

      INTEGRATING


                                   Giving positive & negative effects
        ONE BIG WORLD
#2     EFFICIENCY &
      MARKET: THE GLOBAL
      EFFECTIVENESS
           ECONOMY


                                   From transportation to communication, the Net,
        THE RISE OF THE
#1                                 the Web, & the World
      “GLOBAL VILAGE” &
         E-COMMERCE




                                                                              www.unimedia.ac.id
“THE WORLD IS SMALLER”




              www.unimedia.ac.id
USING THE WEB




                www.unimedia.ac.id
SCHWAB’S CHINESE-LANGUAGE WEB SITE
www.unimedia.ac.id
“ ONE BIG WORLD MARKET ”




                           www.unimedia.ac.id
MCDONALD’S IN JAPAN & CHINA




                              www.unimedia.ac.id
www.unimedia.ac.id
www.unimedia.ac.id
CROSS BORDER BUSINESS: THE RISE OF ....




       2. MINIFIRMS OPERATING WORLDWIDE



                Small Companies Can Get Started More Easily




                                                              www.unimedia.ac.id
PIXAR ANIMATION STUDIAS:
SMALL COMPANIES CAN MANEUVER FASTER




                                      www.unimedia.ac.id
www.unimedia.ac.id
?
WHY LEARN ABOUT INTERNATIONAL MANAGEMENT



                   oversee the conduct of operations
 International managers


 in,        with organizations in foreign countries
       or



                                        multinational organizations




         multinational corporations




                                                          www.unimedia.ac.id
THE SITUATIONS THAT MANAGER MUST BE CONSIDER :




                               AMERICAN FIRM OUTSIDE INDONESIA
      4. YOU MAY WORK FOR AN




                                                            www.unimedia.ac.id
The Successful International Manager




                                       GOECENTRIC
ETNOCENTRIC       POLYENTRIC           MANAGERS
 MANAGERS         MANAGERS           “WHAT’S BEST IS WHAT
“WE KNOW BEST”   “THEY KNOW BEST”   EFFECTIVE, REGARDLESS OF
                                             ORIGIN”




                                                            www.unimedia.ac.id
WHY COMPANIES EXPAND INTERNATIONALLY :


 1. AVAILABILITY OF SUPPLIES
                                     2. NEW MARKETS

      3. LOWER LABOR COSTS

                     4. ACCESS TO FINANCE CAPITAL


          5. AVOIDANCE OF TARIFFS & IMPORT QUOTAS



                                                      www.unimedia.ac.id
HOW COMPANIES EXPAND INTERNATIONALLY :


                                LICENSING &
GLOBAL                          FRANCISING
                                                                 WHOLLY-OWNED
               IMPORTING,
OUTSOURCING
                                                                 SUBSIDIARIES
                            &
               EXPORTING,
                                              JOINT VENTURES
               COUNTERTRADING




 LOWEST RISK                                                   HIGHEST RISK
& INVESTMENT                                                   & INVESTMENT




                                                                      www.unimedia.ac.id
ECONOMIC DIFFERENCES:

ADJUSTING TO OTHER COUNTRIES’ ECONOMIES




                        2. COMMAND ECONOMY




                                             www.unimedia.ac.id
DEVELOPED VERSUS LESS-DEVELOPED COUNTRIES


Developed Countries


                               Less-Developed Countries



 Infrastructure & Resources



                              Currency Exchange Rates


                                                   www.unimedia.ac.id
FIRST WORLD OR THIRD WORLD?
         UNITED COLORS OF BENETTON




                         www.unimedia.ac.id
“OH, SAME OLD THING.”




                        www.unimedia.ac.id
POLITICAL-LEGAL DIFFERENCES:
ADJUSTING TO OTHER COUNTRIES’S GOVERNMENTS & LAWS



                                 DEMOCRATIC GOVERNMENTS
       GOVERNMENTAL SYSTEMS
                                 TOTALITARIAN GOVERNMENTS




                                                       www.unimedia.ac.id
BARRIERS        INTERNATIONAL TRADE
           TO




     1. TARIFFS




                             3. EMBARGOES




                                            www.unimedia.ac.id
Organizations Promoting International Trade



                                             WORLD
… and many more
                                             BANK




     IMF

                                WTO




                                                   www.unimedia.ac.id
NAFTA




EU
               Mercosur




     APEC
The Importance of National Culture


CULTURE....
         shared set of beliefs, values, knowledge, and
   the


   patterns of behavior common to a group of people.

CULTURAL DIMENSIONS....


Low-Context Culture,
         in which shared meanings are primarily derived from written and spoken words.

High-Context Culture,
         in which people rely heavily on situational cues for meaning when communicating with others.



                                                                                          www.unimedia.ac.id
HOFSTEDE’S DIMENSIONS OF NATIONAL CULTURE.




                                   Source: Schermerhorn, Management, Figure 05-04
CULTURAL VARIATIONS :
OTHER




        1. LANGUAGE




                      3. TIME ORIENTATION




                                            www.unimedia.ac.id
Nokia Office in Richmond, Canada




                 www.unimedia.ac.id
www.unimedia.ac.id
www.unimedia.ac.id
www.unimedia.ac.id
www.unimedia.ac.id
www.unimedia.ac.id
www.unimedia.ac.id
www.unimedia.ac.id
Download :   www.natriumz.wordpress.com




                                          thank you

                                                www.unimedia.ac.id

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Week 3 Global Management Managing Across Border 3 Sks