This presentation is about management in emerging markets – How is it different? Assumes that management in BRIC countries might be slightly differentDefinition : MNC : is a corporation or an enterprise that manages production or delivers services in more than one country. BRIC : acronym that refers to the related economies of Brazil, Russia, India, and China.
4 factors influence management decisionsCompetition – local Culture - The set of shared attitudes, values, goals, and practices that characterizes an institution, organization or groupConsumer - is a broad label for any individuals or households that use goods and services generated within the economy. Communication – How the MNC is going to get it’s products and services into the local market
Directness : American’s Believe in direct yes or no communication. Indians often find it hard to say "no" or raise problematic issues effectively with their American counterparts.Ends vs Means :In Indian business culture, following the rules and implementing correct processes is highly valued, but in American business culture, it's all about results. Americans don't like to be told all the procedural reasons and why something can't be or hasn't been done.Conflict Resolution : Americans are relatively unconcerned with face-saving or the avoidance of conflict, disagreements will be dealt with openly and straightforwardly, in a "tell it like it is" manner. Indians and people from other cultures that tend to avoid conflict and loss of face.Hierarchy :In American business culture, rank and title aren't as important as they are in India
Spoken in local language, more acceptance, local jobs going away
Value and culture embraced !
Management in general looks at evil’s in other societies and method’s to combat it Cronyism is partiality to long-standing friends, especially by appointing them to positions of authority, regardless of their qualifications.
Factors affecting Management in Emerging Markets (BRIC)- An MNC perspective
Factors affecting Management in Emerging Markets (BRIC)- An MNC perspective How is it different?What should managers keep in mind? <br />
Collective decisions vs. Individual decisions </li></li></ul><li>Competition <br />Local Competitor = Local Knowledge & Support <br />Expand the pie by aligning with competitor<br />
Communication<br />Understand contexts & respect beliefs<br /><ul><li>‘Sex’ not okay in Indian ads</li></ul>Speak the language of your audience <br /> - “Come alive with Pepsi” translated to “Pepsi brings your ancestors back from the dead” in China <br />