Globalization and management


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Globalization and management. Special focus on Medical Tourism

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  • Globalization and management

    1. 1. Globalization and Management
    2. 2. Topics (1 hour each) <ul><li>Part 1: </li></ul><ul><ul><li>Introduction to Globalization </li></ul></ul><ul><ul><li>Definition </li></ul></ul><ul><ul><li>Pros & cons of globalization </li></ul></ul><ul><ul><li>Building global management skills </li></ul></ul><ul><li>Part 2: </li></ul><ul><ul><li>Global healthcare organization: Doctors without borders </li></ul></ul><ul><ul><li>Case study: Medical tourism in India </li></ul></ul>
    3. 4. Globalization <ul><li>  </li></ul><ul><li>1975 8% of world’s countries had a free-market system </li></ul><ul><li>2007 38% had one with $1644 bn FDI </li></ul>
    4. 5. Evidence of Globalization <ul><li>World trade increased more than: </li></ul><ul><ul><li>20x between ’50 and ’98 </li></ul></ul><ul><ul><li>25x from ’70 to ’02 </li></ul></ul><ul><li>FDI annual flows increased more than: </li></ul><ul><ul><li>10x from ’84 to ’98, or </li></ul></ul><ul><ul><li>50x between ’75 and ’02 </li></ul></ul>
    5. 6. More evidence of Globalization <ul><li>By 2000, 60,000 parent companies : </li></ul><ul><ul><li>operated away from home markets through 500,000 subsidiaries / affiliates </li></ul></ul><ul><ul><li>Produced US$11 trillion in global sales, 25% of global output </li></ul></ul><ul><li>US, Japanese, Western European companies the major investors in Europe, Asia, and North America </li></ul>
    6. 7. Globalization of Markets <ul><li>Distinct/separate markets merging into a huge global marketplace </li></ul><ul><ul><li>Mostly NOT consumer product markets </li></ul></ul><ul><ul><li>Mostly industrial products </li></ul></ul><ul><li>MNCs creating global marketplace </li></ul><ul><li>MNCs more vulnerable to competition in their home markets </li></ul>
    7. 8. “Drivers” of Globalization: Technological Change <ul><li>Globalization of markets and production </li></ul><ul><ul><li>result of lowering of trade barriers </li></ul></ul><ul><ul><li>enabled by technological change </li></ul></ul><ul><li>Telecommunications and microprocessors </li></ul><ul><li>The internet and the world-wide web </li></ul><ul><li>Transportation technology </li></ul>
    8. 9. Global Telecommunications
    9. 10. <ul><li>Globalization: A Preliminary Definition </li></ul><ul><ul><ul><li>“ an unprecedented compression of time and space reflected in the tremendous intensification of social, political, economic, and cultural interconnections and interdependencies on a global scale.” </li></ul></ul></ul><ul><li>Stegler, p. ix </li></ul><ul><li>time-space compression </li></ul><ul><li>deterritorialization </li></ul>
    10. 11. From Wikipedia: <ul><li>Globalization refers to the increasing unification of the world's economic order through reduction of such barriers to international trade as tariffs, export fees, and import quotas. </li></ul>
    11. 12. Positive effects of globalization <ul><li>Industrial </li></ul><ul><li>Financial </li></ul><ul><li>Economic </li></ul><ul><li>Political </li></ul><ul><li>Informational </li></ul><ul><li>Ecological </li></ul><ul><li>Cultural </li></ul><ul><li>Technical </li></ul>
    12. 13. Negatives: <ul><li>Income inequality </li></ul><ul><li>Brain drains </li></ul><ul><li>Sweat shops </li></ul><ul><li>Illicit goods trade </li></ul>
    13. 14. Opening question: <ul><li>How can we best prepare today’s managers for tomorrow’s global challenges? </li></ul>
    14. 15. Building Global Management Skills <ul><li>Global Management Skills </li></ul><ul><ul><li>Integration of management and cross-cultural skills </li></ul></ul>(p. 37)
    15. 16. Types of Global Managers (p. 29) Expatriates Frequent flyers Virtual managers Management Focus <ul><li>Long-term </li></ul><ul><li>Face to face </li></ul><ul><li>Live in foreign country </li></ul><ul><li>Short term </li></ul><ul><li>Face to face </li></ul><ul><li>Frequent visits </li></ul><ul><li>Remote </li></ul><ul><li>Work through technology </li></ul>Mode of communication Mostly face to face Mixed face-to-face and virtual Mostly virtual Key success factors <ul><li>Deep knowledge of local culture </li></ul><ul><li>Local language </li></ul><ul><li>Local business environment </li></ul><ul><li>Global business issues </li></ul><ul><li>Understanding of cultural issues </li></ul><ul><li>Multilingual skills important </li></ul><ul><li>Deep understanding of global issues </li></ul><ul><li>Some understanding of cultural differences and variation in business practices </li></ul><ul><li>Multilingual skills useful </li></ul>Cultural challenge Regional myopia : overemphasis of local versus global Global myopia : overemphasis of global versus local Technological myopia : ignore impact of culture on uses and applications of technology
    16. 17. Globalization: Stylized Shifts (c) Venkatraman, 2008
    17. 18. Globalization 1.0 (c) Venkatraman, 2008
    18. 20. One of the First Global Corporations… (c) Venkatraman, 2008
    19. 21. Globalization 2.0 (c) Venkatraman, 2008
    20. 22. Globalization 2.0 Infrastructure (c) Venkatraman, 2006
    21. 23. Globalization 2.0 Infrastructure (c) Venkatraman, 2006
    22. 24. (c) Venkatraman, 2006 Globalization 3.0
    23. 25. Globalization 3.0 is about IT-enabled work (c) Venkatraman, 2008 Engineering Legal Medical Software BPO Call Centers Tech Support ?? R&D Analytics ?? ?? Services Design ??
    24. 26. Where’s it designed? Where is it manufactured? (c) Venkatraman, 2006
    25. 27. Globalization through digital networks.. (c) Venkatraman, 2008
    26. 28. Remote, Connected Work (c) Venkatraman, 2006
    27. 29. Globalization 3.0: Early observations…. (c) Venkatraman, 2008
    28. 30. It’s not all about accent neutralization! (c) Venkatraman, 2008
    29. 31. Globalization 3.0: Early Experimenters (c) Venkatraman, 2008
    30. 32. Part 2 Global healthcare organization: Doctors without borders Case study: Medical tourism in India
    31. 33. Globalization in Healthcare (c) Venkatraman, 2008
    32. 34. Heart Bypass <ul><li>U.S.: $130,000 </li></ul><ul><li>Singapore: $18,500 </li></ul><ul><li>Thailand: $11,000 </li></ul><ul><li>India: $10,000 </li></ul>Photo: EastShore Hospital, Singapore Data: Business Week, The EastShore Hospital is an International Member of Blue Cross, Blue Shield of South Carolina..
    33. 35. Heart Valve Replacement <ul><li>U.S.: $160,000 </li></ul><ul><li>Singapore: $12,500 </li></ul><ul><li>Thailand: $10,000 </li></ul><ul><li>India: $9,000 </li></ul>Photo: Apollo Hospital, Chennai. India Data: Business Week, The Apollo Hospital is an International Member of Blue Cross, Blue Shield of South Carolina..
    34. 36. Angioplasty <ul><li>U.S.: $57,000 </li></ul><ul><li>Singapore: $13,000 </li></ul><ul><li>Thailand: $13,000 </li></ul><ul><li>India: $11,000 </li></ul>Photo: Bumrungard International Hospital , Bangkok Data: Business Week, 35,000 Americans traveled to Bangkok in 2007 for this treatment
    35. 37. Hip Replacement <ul><li>U.S.: $43,000 </li></ul><ul><li>Singapore: $12,000 </li></ul><ul><li>Thailand: $12,000 </li></ul><ul><li>India: $9,000 </li></ul>Photo: Gleneagles, Singapore Data: Business Week, US Private equity firm, TPG has taken a controlling interest in the Parkway Group that owns the hospital.
    36. 38. Hysterectomy <ul><li>U.S.: $20,000 </li></ul><ul><li>Singapore: $6,000 </li></ul><ul><li>Thailand: $4,500 </li></ul><ul><li>India: $3,000 </li></ul>Photo: a subsidiary of Wockhardt in Mumbai, India Data: Business Week, Active discussions with US insurers
    37. 39. Knee Replacement <ul><li>U.S.: $40,000 </li></ul><ul><li>Singapore: $13,000 </li></ul><ul><li>Thailand: $10,000 </li></ul><ul><li>India: $8,500 </li></ul>Photo: St. Luke’s Hospital in Manila Data: Business Week, Early stage infrastructure; not yet world-class..
    38. 40. Spinal Fusion <ul><li>U.S.: $62,000 </li></ul><ul><li>Singapore: $9,000 </li></ul><ul><li>Thailand: $7,000 </li></ul><ul><li>India: $5,500 </li></ul>Photo: Tiantan Puhua Hospital, Beijing, China Data: Business Week, Experimental stem cell treatments, not available in the USA..
    39. 41. Article Discussion: <ul><li>Globalization of health care: </li></ul><ul><li>Discuss article on “Medical Tourism in India” </li></ul><ul><li>(Wharton Business School) </li></ul>
    40. 42. Discussion points: <ul><li>“ India has the highest potential in medical tourism in the world”. Do you agree? Why? </li></ul><ul><li>Give examples of Indian Hospitals taking advantage of medical tourism. </li></ul><ul><li>Is “medical tourism” the correct terminology to describe overseas medial care? </li></ul>
    41. 43. Discussion points: <ul><li>It is said that the biggest beneficiary of medical tourism in the world is U.S… Why is that so? </li></ul><ul><li>Are the government policies friendly for Indian Medical Tourism? </li></ul>