International management

Ch Muhammad Irfan +92-345-4426176 International Management Skype: ch.irfan786
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TOPIC: DEFINE GLOBALIZATION. ALSO EXPLAIN ITS ADVANTAGES AND DISADVANTAGES:
Globalization:
Globalization is a process of interaction and integration among the people, companies,
and governments of different nations, a process driven by international trade and investment and aided by
information technology.
Advantages:
- Globalization lets countries do what they can do best. If, for example, you buy cheap steel from
another country you don’t have to make your own steel. You can focus on computers or other
things.
- Globalization gives you a larger market. You can sell more goods and make more money. You can
create more jobs.
- Consumers also profit from globalization. Products become cheaper and you can get new goods
more quickly.
- Resources of different countries are used for producing goods and services they are able to do most
efficiently.
- Consumers get the product they want at more competitive prices.
- Companies get access to much wider markets
- It promotes understanding and goodwill among different countries.
- Businesses and investors get much wider opportunities for investment.
Disadvantages:
- Developed countries can stifle development of undeveloped and under-developed countries.
- Economic depression in one country can trigger unfavorable reaction across the globe.
- It can increase spread of communicable diseases.
- Companies face much greater competition. This can put smaller companies, at a disadvantage as
they do not have resources to compete at global scale.
Topic: Write a note on 7D cultural model:
The Seven Dimensions of Culture were identified by management consultants Fons Trompenaars and Charles Hampden-
Turner, and the model was published in their 1997 book, "Riding the Waves of Culture."
1. Universalism versus Particularism (Rules versus Relationships)
Universalism
People place a high importance on laws, rules, values, and obligations. They try to deal fairly with people
based on these rules, but rules come before relationships.
Particularism
People believe that each circumstance, and each relationship, dictates the rules that they live by. Their
response to a situation may change, based on what's happening in the moment, and who's involved.
2. Individualism versus Communitarianism (The Individual versus the Group)

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Individualism
People believe in personal freedom and achievement. They believe that you make your own decisions, and
that you must take care of yourself.
Communitarianism
People believe that the group is more important than the individual. The group provides help and safety, in
exchange for loyalty. The group always comes before the individual.
3. Specific Versus Diffuse (How Far People Get Involved)
Specific
People keep work and personal lives separate. As a result, they believe that relationships don't have much
of an impact on work objectives, and, although good relationships are important, they believe that people
can work together without having a good relationship.
Diffuse
People see an overlap between their work and personal life. They believe that good relationships are vital
to meeting business objectives, and that their relationships with others will be the same, whether they are
at work or meeting socially. People spend time outside work hours with colleagues and clients.
4. Neutral Versus Emotional (How People Express Emotions)
Neutral
People make a great effort to control their emotions. Reason influences their actions far more than their
feelings. People don't reveal what they're thinking or how they're feeling.
Emotional
People want to find ways to express their emotions, even spontaneously, at work. In these cultures, it's
welcome and accepted to show emotion
5. Achievement versus Ascription (How People View Status)
Achievement
People believe that you are what you do, and they base your worth accordingly. These cultures value
performance, no matter who you are.
Ascription
People believe that you should be valued for who you are. Power, title, and position matter in these
cultures, and these roles define behavior.
6. Sequential Time versus Synchronous Time (How People Manage Time)
Sequential Time
People like events to happen in order. They place a high value on punctuality, planning (and sticking to your
plans), and staying on schedule. In this culture, "time is money," and people don't appreciate it when their
schedule is thrown off.
Synchronous Time
People see the past, present, and future as interwoven periods. They often work on several projects at
once, and view plans and commitments as flexible.
7. Internal Direction versus Outer Direction (How People Relate to Their Environment)
Internal Direction
People believe that they can control nature or their environment to achieve goals. This includes how they
work with teams and within organizations.

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Outer Direction
People believe that nature, or their environment controls them; they must work with their environment to
achieve goals. At work or in relationships, they focus their actions on others, and they avoid conflict where
possible. People often need reassurance that they're doing a good job.
Topic: Discuss various criteria for choosing a right alliance partner
Once you have identified that leveraging alliances is an appropriate growth strategy, your executive team
needs to do the following:
- Establish criteria for your alliances
It is far too easy to be drawn into alliances with companies
with whom you have an existing relationship. At the same time, the appeal of aligning with a company that
is widely recognized within your industry can be hard to resist. The most effective alliances result when
each ally has established a set of measurable criteria with which to evaluate potential partners. To
establish that criteria, each company needs to look at it and identify clearly and accurately their competitive
position in the market, their internal strengths and weaknesses, their plans for product/service innovation
and their brand’s equity. The gaps that are identified during this analysis serve as the criteria for identifying
potentially well-suited allies.
- Establish an evaluation process
The criteria that has been established is so important to the
success of an alliance, there needs to be a mechanism to ensure it is applied consistently throughout the
initial stages of any ally evaluation. That means: (I) creating an intake process to capture, organize and
manage interest expressed by potential allies; (ii) assigning an individual the responsibilities and resources
required to effectively manage potential allies; and (iii) creating a cross-functional team that evaluates
potential allies against the chosen criteria.
- Test the partners
Strong alliance partners are not created overnight. Even after all of the criteria
and processes are in place, true success comes over a period of time. As a result, each partnership should
start with a well-defined project that serves to “pilot” the alliance. Ideally, this is a low-risk initiative that
helps each partner learn about the pros and cons of working together with a shared objective. Lessons
learned from these initiatives also help to best match alliance partners with initiatives that require more
resources, longer periods of time, higher levels of risk and greater potential returns.
Topic:Disscuss various attraction and deterrents of E- commerce:
- E-Commerce:
Commercial transactions conducted electronically on the Internet are called E-
commerce.
Following are the attractions of E-commerce:
- Technology:
The technology to reach anyone with an Internet-linked computer is readily available.
- Efficiency:
Electronic communication and processes can be very efficient.
- Convenience:

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The Web is in operation seven days a week and 24 hours a clay. Regardless of location
- Speed of access:
Once a website is developed a company's products or services can be accessed
immediately from anywhere in the world
- Expansion of Market:
Using E-Commerce, organization can expand their market to national and international
markets with minimum capital investment. An organization can easily locate more customers, best
suppliers and suitable business partners across the globe.
- 24x7 supports.
Customer can do transactions for the product or enquiry about any product/services
provided by a company anytime, anywhere from any location. Here 24x7 refers to 24 hours of each seven
days of a week
Some deterrents include:
- The return/receipt burden and cost of delivery:
If the pattern follows catalog sales, businesses should expect a 30 to 40 percent return
rate for online purchases.
- Costs of site construction, maintenance, upgrades:
Website construction and maintenance in multiple languages, currencies, and tax
locations can cost companies millions of dollars per year.
- Channel conflicts:
Distributors and retailers that sell a company's products may be undermined by
competition from a company's website that sells directly to end user. A major fear of many automobile
dealers if the manufacturers were to sell directly, Consider what is happening to travel agents as more
people buy tickets online directly from the airline companies.
- Easily copied models:
Local competitors can easily see and copy a multinational's product. Service or business
model if it is displayed on the Web.
- Customer trust and satisfaction:
Companies must determine whether customers abroad will trust and be satisfied with e-
commerce in general and with their websites in particular.
- Lack of System security:
There can be lack of system security, reliability or standards owing to poor
implementation of e-Commerce.
Topic: Discuss the three types of strategic alliances:
- Strategic Alliance:
A strategic Alliance is an agreement for cooperation among two or more
independent firms to work together toward common objectives. Unlike in a joint venture, firms in a
strategic alliance do not form a new entity to further their aims but collaborate while remaining apart and
distinct.
Following are the different types of strategic alliance:

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- Joint Venture:
Joint venture is a strategic alliance in which two or more firms create a legally
independent company to share some of their resources and capabilities to develop a competitive
advantage.
- Equity Alliance:
Equity strategic alliance is an alliance in which two or more firms own different
percentages of the company they have formed by combining some of their resources and capabilities to
create a competitive advantage.
- Non- Equity Alliance:
Non-equity strategic alliance is an alliance in which two or more firms develop a
contractual-relationship to share some of their unique resources and capabilities to create a competitive
advantage.
Topic: Write a note steps in a negotiation process:
- Negotiation:
Negotiation is a method by which people settle differences. It is a process by which
compromise or agreement is reached while avoiding argument and dispute.
Following are the steps involved in negotiation process:
 Step 1: Prepare –
The first step in the negotiation process is to ensure that everyone is ready the actual negotiation. Before
you begin negotiation walk through the steps in your mind of what you are going to do, and think of
different situations that may occur and how you are going to handle them. If you need to, do some
research beforehand? For instance, if you are preparing to buy a washer and dryer, you may want to read
some reviews online or check out some price points of models that are available to see how low you can
negotiate your price.
 Step 2: Open—
o In the opening stage of the process, you will identify your needs with the other party.
o Be confident and demonstrate to the other party that you know what you are doing.
o State your case: state your case by painting the context of your negotiation, verify you need and
what you want as a result, and position yourself to frame the outcome appropriately.
 Stage 3: Exchange Views—
Some people can refer to this as the “arguing” stage, but it is more appropriate to say that you are simply
exchanging views with the other party. In such instances as a collaborative negotiation, the arguments may
be gentle and polite, so it all depends on the situation the negotiation is taking place.
 Stage 4: Explore —
In the exploration stage, usually no agreements have been made other than early positioning. Both sides
have established what they want, and now they can both move forward to reach an agreement.
 Step 5: Signal —
The phase of signaling in the negotiation process is when both parties let it be known that they are ready to
move forward with their position. Signaling indicates the willingness to negotiate certain terms.

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Show the other party that you are ready to move forward, wait for their signal, and move towards
concession.
 Step 6: Package / Concession–
In this stage, the negotiation has not yet been finalized, and both parties may still be determining and
dealing with various possibilities. It is important to keep a feeling of openness so that it will be easier to
consider different options and exchanges without having either party feeling tied down to a decision yet.
 Step 7: Agreement –
The closing portion of the negotiation process signals that you are moving towards a complete solution and
getting ready to close the final deal.
During this, you will agree on the details and confirm the agreement.
Usually when you confirm the agreement, you will sign a legitimate contract. However, closing a
negotiation deal can also be shaking hands, or agreeing to what has been said.
 Post Agreement–
The final phase of the negotiation process deals with sustaining your terms of agreement. In sustaining
your agreement, you ensure that the commitment stays closed and each party adheres to what they
promised. Make sure both parties keep their promises and are ready to renegotiate if need be. Here are
some techniques to use in the negotiation process to ensure that both parties sustain their agreements:
Topic: Discuss the various types of nonverbal communication:
Non-Verbal Communication:
Non-Verbal is a communication type in which the words are not used.
Followings are the types that can communicate non-verbally.
 Eye Contact
Eye contact, a key characteristic of nonverbal communication, expresses much without
using a single word. In American culture, maintaining eye contact shows respect and indicates interest. Eye
contact also establish the nature of a relationship
 Facial Expressions
Facial expressions are the key characteristics of nonverbal communication.
Your facial expression can communicate happiness, sadness, anger or fear.
 Posture
Posture and how you carry yourself tells a lot about you. How you walk, sit, stand or hold
your head not only indicates your current mood, but also your personality in general.
 Hepatices or Touch
Hepatic communication is communicating by touch. Touch or Hepatices is the
characteristic of nonverbal communication and used when we come into physical contact with other people. For
example: We use handshakes to gain trust and introduce ourselves.
 Gestures
A gesture is a characteristic of nonverbal communication in which visible body actions
communicate particular message. Gestures include movement of the hands, face, or other parts of the body.
 Personal Space

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Personal space is your "bubble" - the space you place between yourself and others.
This invisible boundary becomes apparent only when someone bumps or tries to enter your bubble.
Topic: Write a note on process theories of motivation:
- Motivation:
Motivation is the characteristic that helps you achieve your goal. It is the drive that
pushes you to work hard .It is the energy that gives you the strength to get up and keep going - even when
things are not going your way.
Following are the process theories of motivation:
- Adams' equity theory
- Vroom's expectancy theory
- Goal-setting theory
- Reinforcement theory
- Adam’s Equity Theory
First developed in 1963 by John Stacey Adams Employees seek to
maintain equity between the inputs that they bring to a job and the outcomes that they receive from it
against the perceived inputs and outcomes of others. The structure of equity in the workplace is based on
the ratio of inputs to outcomes
- Goal Setting Theory: In 1960’s, Edwin Locke put forward the Goal-setting theory of
motivation. This theory states that goal setting is essentially linked to task performance. It states
that specific and challenging goals along with appropriate feedback contribute to higher and better
task performance.
In simple words, goals indicate and give direction to an employee about what needs to be done and how
much efforts are required to be put in.
- Vroom's expectancy theory:
Whereas Maslow and Herzberg look at the relationship between
internal needs and the resulting effort expended to fulfill them, Vroom's expectancy theory separates effort
(which arises from motivation), performance, and outcomes.
Vroom's expectancy theory assumes that behavior results from conscious choices among alternatives
whose purpose it is to maximize pleasure and to minimize pain. Vroom realized that an employee's
performance is based on individual factors such as personality, skills, knowledge, experience and abilities.
He stated that effort, performance and motivation are linked in a person's motivation. He uses the variables
Expectancy, Instrumentality and Valence to account for this.
- Reinforcement theory:
Reinforcement theory of motivation was proposed by B.F. Skinner and
his associates. It states that individual’s behavior is a function of its consequences. It is based on “law of
effect”, i.e., individual’s behavior with positive consequences tends to be repeated, but individual’s
behavior with negative consequences tends not to be repeated.
Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and
drives of individuals are ignored by Skinner.
This theory focuses totally on what happens to an individual when he takes some action
The external environment of the organization must be designed effectively and positive so as to motivate
the employee.

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Topic: Write any two need theories and any two process
theories of motivation:
- Maslow’s Theory:
We each have a hierarchy of needs that ranges from
"lower" to "higher." As lower needs are fulfilled there is a tendency for other,
higher needs to emerge.” Maslow’s theory maintains that a person does not
feel a higher need until the needs of the current level have been satisfied.
- Motivation-hygiene theory:
According to Herzberg: The job should
have sufficient challenge to utilize the full ability of the
employee, Employees who demonstrate increasing levels of
ability should be given increasing levels of responsibility. If a
job cannot be designed to use an employee's full abilities,
then the firm should consider automating the task or
replacing the employee with one who has a lower level of
skill. If a person cannot be fully utilized, then there will be a
motivation problem.
Topic: Hofstede’s Culturel Dimensions:
The Six Different Types of Hofstede’s Dimension
Geert Hofstede’s is a professor who researched how people from different countries and cultures interact
based on six different categories of cultural dimensions. Those categories are:
- Power Distance:
This dimension expresses the degree to which the less powerful members of a
society accept and expect that power is distributed unequally.
- Individualism vs. Collectivism:
This dimension focuses on the questions about whether people prefer a close
knit network of people.
- Masculinity vs. Femininity:
Masculinity represents a preference in society for achievement, heroism,
assertiveness and material reward for success. Its opposite, femininity, stands for a preference for
cooperation, modesty, caring for the weak and quality of life.
- Uncertainty Avoidance:
This dimension expresses the degree to which the member of a society feels
uncomfortable with uncertainty and ambiguity.
- Long-term vs. Short-term Orientation:
Long-term orientation dimension can be interpreted as dealing with society's
search for virtue. Societies with a short-term orientation generally have a strong concern with establishing
the absolute truth.
- Indulgence/ Restraint:

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Allowing gratification of basic drives related to enjoying life and having fun vs.
regulating it through strict social norms.
Topic: Write a note on participation strategies:
- Participation strategies:
The choice of how to enter each international market OR the strategies
that deal with choices regarding how to enter foreign markets and countries are called participation
strategies. Following are the participation strategies:
- Exporting
- Licensing
- Strategic alliances
- Foreign direct investment
o Exporting
 Easiest way to sell a product in international market
 Passive exporter: company that treats and fills overseas orders like domestic orders
 Alternatively, a company can put extensive resources into exporting with dedicated export
department
o Export Strategies
 Indirect exporting: uses intermediaries or
go-between firms
 The most common intermediaries
 Export Management Company (EMC) and
Export Trading Company (ETC)
 Specialize in products, countries, or regions
 Provide ready-made access to markets
 Have networks of foreign distributors
 Direct exporting: direct contact with
customers in the foreign market
 More aggressive exporting strategy
 Requires more contact with foreign
companies
 Uses foreign sales representatives,
distributors, or retailers
 May require branch offices in foreign
countries
o Licensing
 Licensing: contractual agreement between a domestic licensor and a foreign licensee
 Licenser has valuable patent, know-how, or trademark
 Foreign licensee pays royalties for use
o Special Licensing Agreements
 International franchising: the franchisor grants the use of a whole business operation
 Contract manufacturing: production following the foreign companies’ specifications
 Turnkey operation: multinational company makes a project fully operational before the foreign
owner takes control
Topic: Discuss the eight types of organization structure:
1. Line Organizational Structure:
A line organization has only direct, vertical relationships between different levels in the firm. There is only
line departments-departments directly involved in accomplishing the primary goal of the organization. For

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example, in a typical firm, line departments include production and marketing. In a line organization
authority follows the chain of command.
2. Staff or Functional Authority Organizational Structure
The jobs or positions in an organization can be categorized as:
(A) Line position:
A position in the direct chain of command that is responsible for the achievement of an organization’s goals
and
(B) Staff position:
A position intended to provide expertise, advice and support for the line positions.
The line officers or managers have the direct authority (known as line authority) to be exercised by them to
achieve the organizational goals. The staff officers or managers have staff authority (i.e., authority to advice
the line) over the line. This is also known as functional authority.
3. Line and Staff Organizational Structure:
Most large organizations belong to this type of organizational structure. These organizations have direct,
vertical relationships between different levels and also specialists responsible for advising and assisting line
managers. Such organizations have both line and staff departments. Staff departments provide line people
with advice and assistance in specialized areas (for example, quality control advising production
department).
4. Divisional Organizational Structure:
In this type of structure, the organization can have different basis on which departments are formed. They
are:
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.
5. Project Organizational Structure:
Project organization is a temporary organization designed to achieve specific results by using teams of
specialists from different functional areas in the organization. The project team focuses all its energies,
resources and results on the assigned project. Once the project has been completed, the team members
from various cross functional departments may go back to their previous positions or may be assigned to a
new project. Some of the examples of projects are: research and development projects, product
development, construction of a new plant, housing complex, shopping complex, bridge etc.
6. Matrix Organizational Structure:
It is a permanent organization designed to achieve specific results by using teams of specialists from
different functional areas in the organization.
7. Hybrid Organization:
This type of structure is used by multinational companies operating in the global environment, for example,
International Business Machines USA. This kind of structure depends on factors such as degree of
international orientation and commitment. Multinational corporations may have their corporate offices in
the country of origin and their international divisions established in various countries reporting to the CEO
or president at the headquarters. The international divisions or foreign subsidiaries may be grouped into

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regions such as North America, Asia, and Europe etc. and again each region may be subdivided into
countries within each region.
8. The Informal Organization:
An informal organization is the set of evolving relationships and patterns of human interaction within an
organization which are not officially presented. Alongside the formal organization, an informal organization
structure exists which consists of informal relationships created not by officially designated managers but
by organizational members at every level. Since managers cannot avoid these informal relationships, they
must be trained to cope with it.
Topic: Write a note on various layers of E commerce:
Following are the different layers of E- Commerce
 The Internet Infrastructure:
Layer 1 includes the backbone of the internet including internet service provider such is America online,
telecommunication companies and the manufacturers of networking systems. Companies on this level
include the following:
o Communication (MCI/ WorldCom Qwest)
o Internet Service Provider (AOL, Earth link)
o Networking (Cisco, Lucent, 3Com)
o Hardware (Compaq, Dell, HP)
 The Applications Infrastructure:
Layer 2 includes the companies and consultants that build web systems and supporting software.
Companies on this level include the following:
o Consultants (SBI)
o Commerce Application (IBM, Netscape, Sun)
o Web development software’s (Adobe, Net
Objects)
o Search engine Software (Verity)
o Web enabled database (Oracle)
 The Internet Intermediaries:
A layer 3 includes companies that provide linking services on the internet and drives its revenue from
commissions, advertising and membership fees. Examples of these companies include the following:
o Online Travel Agencies (Travelocity, Travel
web)
o Online brokerages (E * Trade)
o Content Aggregators (CNET, ZDNet)
o Online Advertising ( Yahoo!)
 The Internet Commerce layer:
Level 4 includes companies that conduct commercial transactions over the web. Amazon.com and
drugstore.com provide examples of companies from this layer. Other examples include the followings:
o E-retailer (Diamond.com, wine.com)
o Manufacturers Selling Directly (Dell,
hopshipping.com)
o Subscription based companies (BRBO.com)
o Transportation services (Most Airlines)
o Shipping services (FedEx, UPS

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Topic: Write a note on various strategies available to resolve global local dilemma:
 Multinational Strategies: Dealing with the Global-Local Dilemma
Local-responsiveness solution: customize to country or regional differences
Global integration solution: conduct business similarly throughout the world
Global-local dilemma: choice between a local-responsiveness or global approach to a multinational’s
strategies
 Multidomestic Strategy:
A multi-domestic marketing strategy assumes consumers in different countries or geographic regions
different from one another. Products are modified for each market, based on consumer wants and needs. A
multi-domestic marketing strategy is ideal for highly differentiated products.
 Transactional Strategy:
A transnational business conducts operations in several countries with varying degrees of coordination and
integration of strategy and operations. A transnational strategy combines global reach, coordination of
operations and leveraging unique advantages of local markets to drive sales, market share and profit
growth.
 International Strategy:
International strategy: selling global products and using similar marketing techniques worldwide
- A compromise approach
- Limited adjustment in product offerings and marketing strategies
- Upstream and support activities remain concentrated at home country
 Regional Strategy:
Managing raw-material sourcing, production, marketing, and support activities within a particular region
- Another compromise strategy
- Attempts to gain economic advantages from regional network
- Attempts to gain local adaptation advantages from regional adaptation
Resolving the Global-Local Dilemma: Formulating a Multinational Strategy
• Selection of strategy depends on degree of globalization in an industry
• Globalization drivers: conditions in a industry that favor transnational or international strategies
• Four categories of global drivers: markets, costs, governments, and competition

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Topic: Various Trends that shaping globalization:
World trade is rapidly changing. Increasing globalization, the emergence of new markets, the impact of the
global economy, natural disasters and political turmoil are all making world trade more volatile, complex
and less predictable than in the past when it centered around the US and Europe. WWL pinpoints some of
the key trends shaping world trade patterns, and their impact.
- Increased globalization
New emerging markets and the increased mobility of goods have led to the development of new trade
routes. For example, in 1985 around 85 percent of deep-sea light vehicle trade was out of Japan and 10
percent out of Europe. But by 2015, Japan’s share will shrink to 30 percent while light vehicle trade out of
other Asian markets will be around 40 percent. As a result, trade routes are becoming increasingly
fragmented.
- Growing trade imbalances
The emergence of new production centers in Asia, Brazil, India and Russia – and the increasing wealth of
other emerging markets – means trade imbalances between mature and developing markets are growing.
- Trade volatility
Natural disasters like the recent earthquake in Japan, the volatility in the global economy fluctuating
exchange rates; and political instability are all having a serious impact on world trade. The latest political
upheaval in the Middle East and North Africa resulted in oil supplies from Libya being cut off and reduced
shipments of other goods to and from the region.
- Heightened political interference
The current economic uncertainty is causing countries to implement local trade barriers such as tariffs,
quotas, subsidies and trade bans which impact trade volumes. For example, when Russia increased tariffs
on tractor imports in 2009, shipments dropped by almost 80 percent
- Changing global economy
The economic power balance is shifting, towards Asia and away from the “old” developed world. Markets
such as China which were largely ignored in the 1980s have become a source of supply today and are
increasingly becoming a strong source of demand. Today, China is the world’s fastest-growing exporter and
market. In the future, over half of global exports are expected to come from the BRIC countries (Brazil,
Russia, India and China). This is having a direct impact on shipping and logistics companies’ strategies when
developing service networks and allocating vessel capacity.

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Topic: Compare and contrast between US and Japanese leadership styles:
In a number of ways, Japanese leadership styles differ from those in the United States. A number of reasons
have been cited for these differences. One of the most common is that Japanese and U.S. managers have a
basically different philosophy of managing people.
Philosophical Dimension Japanese Approach U.S. Approach
Employment Often for life; layoffs are
rare
Usually short-term; layoffs
are common
Evaluation and promotion Very slow; big promotions
may not come for the first
10 years
Very fast: those not quickly
promoted often seek
employment elsewhere
Career paths Very general; people rotate
from one area to another
and become familiar with
all areas of operations
Very specialized; people
tend to stay in one area
(accounting, sales, etc.) for
their entire careers
Decision making Carried out via group
decision making
Carried out by the
individual manager
Control mechanism Very implicit and informal;
people rely heavily on trust
and goodwill
Very explicit; people know
exactly what to control and
how to do it
Responsibility Shared collectively Assigned to individuals
Concern for employees Management’s concern
extends to the whole life,
business and social, of the
worker
Management concerned
basically with the
individual’s work life only

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Choosing the participation strategy:
- General Strategic Considerations:
Once a multinational manager considers the general merits of each possible participation strategy several
borders strategic issues should be considered as part of formulating a participation strategy. In particular
multinational managers must consider the followings:
- Strategic Intend:
Strategic intent is a high-level statement of the means by which your organization will achieve its vision. It is
a statement of design for creating a desirable future (stated in present terms). Simply put, a strategic intent
is your company's vision of what it wants to achieve in the long term.
- Company Capabilities:
What can a company afford? This fundamental question governs entry choice. For many companies,
exporting is the only viable internationalization option. Companies should also consider human resource
issues. Do they have the necessary managers to run a wholly owned subsidiary, to transfer to a joint
venture, or even to supervise an export department?
- Local Government Regulations:
Dealing with the complexities of the legal system and government regulations often challenges
many firms in their own countries. A company that decides to go international confronts a whole new set of
regulations in the target market countries. Many questions must be considered, what kinds of import or
export tariffs, duties, or a restriction exists. Excessive import tariffs, for example may inflate the price of a
company's products to a noncompetitive level.
- Characteristics of the Target Product and Its Markets:
Factors related Lathe product targeted for the international market affect the participation decision in
several ways. For example, products that spoil quickly or are difficult to transport might be poor candidates
for exporting, whereas products that need little adaptation to local conditions might be good candidates for
licensing, joint ventures, or direct investment.
- Geographic and Cultural Distance
A great distance between two countries, either in geography or culture, affects the participation decision.
Physical distance raises several issues. When the producing country a great distance from the consuming
country, exporting may be limited by excessive transportation costs: Even with direct investment for
production, it is sometimes necessary to ship components or raw material from another country to the
producing country. Distance also makes it more difficult for managers to communicate face to face, and
local managers may feel out of the loop in corporate decision making.
BEST OF LUCK


International management

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