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  1. 1. International ManagementMultiMedia by 2001 South-
  2. 2. Companies Go International for Two Basic Reasons1. Proactive motives include the search for new customers, new markets, increased market share, increased return on investments, needed raw materials, and other resources.2. Reactive motives include the desire to escape from trade barriers and other government regulations, to better serve a customer or group of customers, and to remain competitive. MultiMedia by 2001 South-
  3. 3. International Management Managing resources (people, information, funds, Managing resources (people, information, funds, inventories, and technologies) across national inventories, and technologies) across national boundaries. boundaries.Adapting management principles and functions to theAdapting management principles and functions to the demands of foreign competition and environments. demands of foreign competition and environments.MultiMedia by 2001 South-
  4. 4. Two Kinds of Multinational Companies Those that market their  Those that modify their product lines in products and services relatively unaltered along with the marketing states throughout the of them to appeal to world (standardization). specific groups of consumers in specific geographical areas (customization). MultiMedia by 2001 South-
  5. 5. Three Staffing Strategies The first is to decide to adopt a “high skills strategy.” The second is to “dumb down jobs” and shift the work to cheap-labor countries. The third is to mix the preceding two strategies.MultiMedia by 2001 South-
  6. 6. Five Basic Environments 2. Political 4. Legal 1. Economic3. Sociocultural 5. Technological MultiMedia by 2001 South-
  7. 7. Laws that Have an Impact on CommerceQuotas limit the import of a product to a specifiedamount per year.Tariffs are taxes placed on goods in order to makethem more expensive and less competitive.Embargoes keep a product out of a country for a timeor entirely. MultiMedia by 2001 South-
  8. 8. Sociocultural Environment for International Managers People’s traditions Values Languages Religion Customs Levels of educationMultiMedia by 2001 South-
  9. 9. Planning for International Operations Assumptions Assessing Developing the assumption environment s Forecasting based on those assumptionsMultiMedia by 2001 South-
  10. 10. Four Ways to Get Involved in Overseas Trade  Export your product or service  License others to act on your behalf  Enter into joint ventures  Build or purchase facilitiesMultiMedia by 2001 South-
  11. 11. Assessing the External Variables  Political Instability and Risk  Currency Instability  Competition from National Governments  Pressures from National Governments  Nationalism  Patent and Trademark Protection  Intense CompetitionMultiMedia by 2001 South-
  12. 12. Effectiveness of the Assessment Efforts Depends on(1) Apportion responsibility for gathering and analyzing information between line and staff managers and between in-house personnel and outside consultants.(2) Build credibility and effectiveness into the analysis so that the organization takes it seriously.(3) Bring an understanding of the importance of analysis into corporate operations, particularly capital budgeting and long-term planning. MultiMedia by 2001 South-
  13. 13. International Organization and Traditional Issues Achieving operational efficiencies. Creating flexibility to respond to national and global changes. Allowing units to share information and technology quickly. Coordinating activities from various cultures. Responding swiftly to changes in consumer needs and demands. Differentiating operations by function, product, customers, or geography. Developing management teams with common goals and shared visions. MultiMedia by 2001 South-
  14. 14. Becoming Multinational Three Phases 1. Pre-international 1. Pre-international division phase division phase2. International2. International 3. Global structure 3. Global structuredivision phase division phase phase phaseMultiMedia by 2001 South-
  15. 15. Moving Away from an International Division Phase The international market is as important to it as the domestic market. Senior officials in the company have both foreign and domestic experience. International sales represent 25 to 35 percent of total sales. The technology used in the domestic division has far outstripped that of the international division. MultiMedia by 2001 South-
  16. 16. Rules on Gift GivingMultiMedia by 2001 South-
  17. 17. Doing Versus BeingA doing orientation is an A being orientation “finds action orientation. people, events, and ideas Western culture fosters flowing spontaneously; thethis orientation; citizens people stress release, like to be rewarded for indulgence of existing individual actions and desires, and working for behaviors. the moment . . . they will not work strictly for future rewards.”MultiMedia by 2001 South-
  18. 18. Repatriation Program Its PurposesReverse culture shock.Help to adjust to new assignment.Facilitate the sharing of expatriates knowledge.MultiMedia by 2001 South-
  19. 19. Controls Fall Into Two Groups2. Indirect controls include the various kinds of reports 2. Indirect controls include the various kinds of reports sent daily, weekly, monthly, and by fax and by computer sent daily, weekly, monthly, and by fax and by computer linkups. linkups.MultiMedia by 2001 South-
  20. 20. International Controlling Methods1 Regular reporting procedures and communications between affiliates and their headquarters.2 Progress reports toward goals established with local input by strategic planners.3 Regular screening of reported data by area and functional experts.4 Regular on-site inspections by a variety of corporate personnel, both staff and line. MultiMedia by 2001 South-