981 Chap04 Biz Final

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981 Chap04 Biz Final

  1. 1. Lecture 04
  2. 3. Multinationals and the Global Environment of Business Chapter Four © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business
  3. 5. Chapter 4 Multinationals and the Global Environment of Business <ul><li>The role of multinational companies in global production and trade & its impacts. </li></ul><ul><li>How multinationals are affected by the political systems to pursue free trade and reduce or abolish( 廢止 ) tariff barriers. </li></ul><ul><li>The nature of the specific forces in the global environment and challenges. </li></ul>
  4. 6. Chapter 4 Multinationals and the Global Environment of Business <ul><li>The nature of the general forces in competing industries or countries. </li></ul><ul><li>Main challenges in managing global business commerce and business occupations, and organizing method . </li></ul>
  5. 7. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Multinational companies </li></ul><ul><li>Are operating in a global environment and conditions such as opportunities and threats that affect the multinational company’s profitability </li></ul>
  6. 8. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Significance of Multinationals </li></ul><ul><li>In business commerce, multinationals control the giant production and distribution of products that handle the majority of world trade </li></ul>
  7. 11. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Capitalism </li></ul><ul><li>Capitalism as a business system (private ownership of the means of production and distribution) </li></ul>
  8. 12. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Totalitarian ( 集權國家 ) overnment </li></ul><ul><li>One person, usually a dictator, or party exercises absolute control over all business and social activity </li></ul>
  9. 13. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Communism </li></ul><ul><li>Not only totalitarian but all property is owned by the state (no property rights) or government and distribution is totally controlled by the state </li></ul>
  10. 14. 跨國貿亦無思想與社會制度之分
  11. 15. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Free trade agreements </li></ul><ul><li>( FTA ) </li></ul><ul><li>Established by countries to reduce or eliminate price barriers to and are designed to increase the flow of products among countries </li></ul>
  12. 16. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Tariffs </li></ul><ul><li>Taxes on imported products that raises the price and may make them uncompetitive with the local product </li></ul>
  13. 17. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Free Trade Zones </li></ul><ul><li>The establishment of free trade areas creates an opportunity for global manufacturing companies as it minimizes the cost and barriers to trade </li></ul>
  14. 18. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Global Environment </li></ul><ul><li>You may want to think of the global environment as a worldwide marketplace and as the set of forces surrounding you that determine the ability to obtain productive resources of land, labor, capital, and enterprise </li></ul>
  15. 19. Demographic 人口統計 S ociocultural ( 社會文化的 )
  16. 21. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Global Environment </li></ul><ul><li>Every product goes through three stages: </li></ul><ul><ul><li>Input </li></ul></ul><ul><ul><li>Conversion </li></ul></ul><ul><ul><li>Output </li></ul></ul><ul><ul><li>In the process of making and selling of goods and services </li></ul></ul><ul><ul><li>Evaluate the Peace Corps video and relate to the global environment of business </li></ul></ul>
  17. 22. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Forces in the Global Environment </li></ul><ul><li>The specific forces directly affect the company’s business model while general forces affect all multinationals </li></ul><ul><li>Specific forces are directly related to profitability and are suppliers, distributors, competitors, and customers </li></ul>
  18. 23. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Forces in the Global Environment </li></ul><ul><li>Customers and competitors are also specific forces and both affect the company’s market share or that portion of a product sold in a market by one company </li></ul>
  19. 24. Company Shares
  20. 26. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Forces in the Global Environment </li></ul><ul><li>General forces in the global environment affect multinationals access to resources and determine worldwide demand and include, economic, socio-cultural, demographic, and legal forces </li></ul><ul><li>Evaluate the PWE and productivity of Mexican brewery workers in a multicultural organization </li></ul>
  21. 27. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Forces in the Global Environment </li></ul><ul><li>These forces are general because they affect all multinationals and their suppliers, distributors and customers </li></ul>
  22. 29. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Global outsourcing </li></ul><ul><li>Of suppliers is not only a very controversial issue as it is the process by which companies purchase supplies, labor or raw materials throughout the world </li></ul>
  23. 31. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Global outsourcing </li></ul><ul><li>An intermediary such as a agent, broker, or wholesaler is a company that distributes or supplies a product to another company </li></ul>
  24. 33. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Challenges of global commerce </li></ul><ul><li>Building a global competitive advantage, integration of the Internet into the business models </li></ul>
  25. 35. Profiting from Global Expansion
  26. 36. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Challenges of global commerce </li></ul><ul><li>Managing ethically </li></ul><ul><li>Incorporating the differing cultures into global planning and organizing </li></ul><ul><li>Evaluate a multinational organization of your choice and describe their global environment </li></ul>
  27. 39. Chapter 4 Multinationals and the Global Environment of Business <ul><li>Globalization </li></ul><ul><li>Has led to the development of a diverse supply of IT workers in both Europe and Asia as these workers are linked through the Internet as a part of the global workforce </li></ul>

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