What is international business?
Who is a Global Business Leader?
Type of international business.
Risks that international business has to confront with
How to deal with the risk?
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Global Business Guide
1.
2. CONTENTS
Introduction
Who is a Global Business Leader
International Strategic Alliance
Designing Structure and Strategy
Risk Management
Managing Network
Innovation
3. INTRODUCTION
Activity connecting trade and
investment activities by organization
across national boundaries.
WHY company should do
international business?
WHAT is international
business?
Cavusgil, Knight, Riesenberger, Rammal, & Rose, (2014), Daft,
Generating new markets and finding
potential growth
Economic of Scale: get large volume of
production
Risk diversification
Competitive equality
4. GLOBAL BUSINESS LEADER CHARACTERISTIC
Ability to motivate followers: idea and action
Connect all followers together
Good Decision Maker
Clear vision
Know themselves
Have open mind
Altman and Altman (2012)
5. INTERNATIONAL STRATEGIES ALLIANCE
The simplest way of contract.
Trademarks, intellectual property, and all
trade secrets.
Partnership: governments, banks,
suppliers, or distributors.
International
Licensing
International
Joint Venture
Two or more companies joint
to generate new things
Reason of doing IJV: low cost,
government policy, and skills,
knowledge, and technology
Forsgren and Johanson (2014), Saha and Chattopadhyay (2015)
6. DESIGNING STRUCTURE & STRATEGY
STRUCTURE Allocate power and authority in the right
position
Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014)
“The most successful firms create an organizational structure that
best matches their strategic vision”.
Daft (2013), Cavusgil, Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),
7. Formulate a strategic
vision
Set an effective
organizational structure
Adequate research
*Key factor: Cultivate an Organizational Culture
Knight, Riesenberger, Rammal, and Rose (2014), Kates & Galbraith (2010),
8. RISK MANAGEMENT
Verbeke (2013), Niedergassel, Kanzler, and Leker (2011), O'Regan (2010), Sadri (2013)
RISKS
Legal and Regulatory Risk Legal Training course by internal or external
expertise or Joint Venture
Cultural difference Collectivistic or Individualistic
Example: Women in Saudi Arabia
Gesteland (2012), “When in Rome, do as the Romans do”.
Communication Obstacle Communication Style, Language Barrier
Local Preference Product customization, Market research by focus
groups
9. MANAGING NETWORK IN INTERNATIONAL
BUSINESS
50 – 60% of joint venture fail. (Büchel & Strategy, 2013)
Maintain position in the international network
Building relationship with business network.
Sharing information
The impact of partner relationships from offspring
or next generation
Initial stage: Set up a clear role Ex: 50-50 Joint
venture
Büchel & Strategy (2013), Forsgren & Johanson (2014)
10. INNOVATION
Internationalization and innovation have positive link.
- Digital age, should not limit our creativity, Give chance to
new generation
- Make difference and increase competitive advantage
- Applied to corporate culture to grow business
Spirit of Innovation International expansion, new
business model e.g. P&G
Pegan and de Luca (2015), Verbeke (2013), Amit and Zott (2012)
11. Making sure that ready or not
Knowing your competitive advantage
Knowing target customer and strategy to attract them
Operating and running the business ethically and responsibly
CONCLUSION
12. REFERENCES
Altman, Y., & Altman, B. (2012). Who is a Global Business Leader?. People & Strategy, 35(2), 10-11.
Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan
Management Review, 53.
Büchel, B., & Strategy, E. S. (2013). Managing partner relations in joint ventures. Image.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International
business. Pearson Australia.
Daft, R. L. (2013). Organization Theory & Design (11th ed,.Pp.348-380). Mason, OH: South-Western,
Cengage learning.
Forsgren, M., & Johanson, J. (2014). Managing networks in international business. Routledge.
Kates, A., & Galbraith, J. R. (2010). Designing your organization: Using the STAR model to solve 5
critical design challenges. John Wiley & Sons.
Niedergassel, B., Kanzler, S., & Leker, J. (2011). Cross-Cultural perceptions on knowledge sharing in
Heterogeneous Collaborations. International Journal Of Innovation Management, 15(3), 563-592.
O'Regan, D. (2010). International Business Risk. Internal Auditor, 67(2), 21-23.
Pegan, G., & de Luca, P. (2015). Innovation and Internationalization: Evidences from the Italian
furniture industry. International Journal Of Management Cases, 17(4), 188-207.
Saha, A., & Chattopadhyay, U. (2015). The impact of International Joint Venture on Local Economy: A
Case Study of Hero Honda. South Asian Journal of Business and Management Cases, 4(1), 14-
26.
Verbeke, A. (2013). International business strategy. Cambridge University Press.
For example, Procter & Gamble Company failed to aggressively redesign organizational structure to a global organization because of their conservative company culture. The reason was insufficient research and poor planning and implementation.
The characteristic of high-context communication is collectivistic, thoughtful, human relation, instinctive, and contemplative. Moreover, most of information and meaning rests on a physical context or on people. Also, they also use indirect verbal expressions and non-verbal instead of directly specific on detail. In contrast with the characteristic of low-context communication, which is individualistic, logical, and action-orientated.