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Management Practices. Lecture-29. Recap. Social Responsibility Obligation to Responsiveness Factors That Affect Employee Ethics Stages of Moral Development. Today’s Lecture. Managing in a Global Environment Four key questions : Global Perspectives

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Recap
Recap

  • Social Responsibility

    • Obligation to Responsiveness

    • Factors That Affect Employee Ethics

    • Stages of Moral Development


Today s lecture
Today’s Lecture

  • Managing in a Global Environment

  • Four key questions :

  • Global Perspectives

  • Different Types of International Organizations

  • How organizations go global (Important)

  • Managing in a global environment


Three global attitudes
Three global attitudes

  • Ethnocentric Attitude

    • The best work approaches and practices are those of the home country.

  • Polycentric Attitude

    • The host country know the best work approaches and practices for running their business.

  • Geocentric Attitude

    • A world-oriented view that focuses on using the best approaches and people from around the globe.


Reasons for engaging in international business:

  • Profits

  • Customers

  • Suppliers

  • Capital

  • Labor



Different types of international organizations
Different Types of International Organizations ?

  • Multinational Corporation (MNC)

    • Maintains operations in multiple countries

      What’s the difference?

  • Multidomestic Corporation

  • Global Company

  • Transnational Corporation (Borderless Organization)

  • Born Globals/International New Ventures (INVs)


Different types of international organizations1
Different Types of International Organizations ?

  • Multidomestic Corporation

    • Decentralizes management and other decisions to the local country.

    • Gives foreign operations more freedom to operate as separate entities

  • Global Company

    • Centralizes its management and other decisions in the home country.

    • Seeks total integration of global operations


Different types of international organizations cont d
Different Types of International Organizations (cont’d) ?

  • Transnational Corporation (Borderless Organization)

    • Eliminated structural divisions that impose artificial geographic barriers and is organized along business lines that reflect a geocentric attitude.

  • Born Globals/International New Ventures (INVs)

    • Commit resources upfront (material, people, financing) to doing business in more than one country.


Schermerhorn ?/Management, 7e

Chapter 5, Figure 05-05

Alternative multinational structures forglobal operations.



Schermerhorn/Management, 7e ?

Chapter 5, Figure 05-02

Common forms of international business–from market entry to direct investment strategies.




Summary
Summary commitments but create rights of ownership and control over foreign operations.

  • Managing in a Global Environment

  • Four key questions :

  • Global Perspectives

  • Different Types of International Organizations

  • How organizations go global (Important)

  • Managing in a global environment


Next lecture
Next Lecture commitments but create rights of ownership and control over foreign operations.

  • Global outsourcing

  • Exporting and importing

  • Licensing and Franchising

  • Foreign subsidiary

  • Managing in A Global Environment


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