Chapter 4 Managing Globally Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002

Chapter 4

Managing GloballyManaging Globally

Hellriegel, Jackson, and SlocumMANAGEMENT: A Competency-Based ApproachSouth-Western College PublishingCopyright © 2002


Learning Objectives

After reading this chapter, you should be able

to: State several characteristics of the global economy

Describe six strategies used by organizations in

international business

Explain the impact of political-legal forces on

international business

Discuss how three major trade agreements affect

global competition

Describe how a country’s culture can affect an

organization’s business practices

4.1


Global Economic Trends

Increased competition

Shortened product life-cycles

Importance of exports and imports

Worldwide communication

New countries emerge

Borderless organizations

Worldwide labor pool

4.2

Adapted from Table 4.1


Strategies for International OperationsStrategies for International Operations

High

High

Low

LowResource CommitmentResource Commitment

CCoommpplleexxiittyy

Adapted from Figure 4.1

Exporting

Licensing

FranchisingAlliances

Multidomestic

Global

4.3


Assessing Political Risk

Domestic InstabilityDomestic InstabilityLow High

Foreign ConflictForeign ConflictLow High

Political ClimatePolitical ClimateStable Unstable

Economic ClimateEconomic ClimateStable Unstable

Adapted from Figure 4.2

4.4

CorruptionCorruptionNoncorrupt Corrupt


Goals of the World Trade Organization (WTO)

Administer WTO trade agreements

Provide a forum for trade negotiations

Handle trade disputes between nations

Monitor national trade policies

Provide technical assistance and training for

people in developing countries

Cooperate with other international

organizations

4.5


Goals of NAFTA

Create a U.S., Canadian,

and Mexican trade zone

Promote liberalized trade, not free trade

Retain some protectionist elements

Increase efficiency and customer satisfaction

4.6


Goals of the European Union Create a single market

among the 15 member countries

Eliminate existing barriers between countries

Implement the Euro as a common currency

4.7


Tendencies of Many U.S. and Japanese Organizations

Employment

Salary and promotion

Attitudetoward work

Short term on average, but varies widely;unstable and insecure

Merit pay based onindividual contribution;rapid promotion in career

Individual responsibilities

Many (Not All) MajorMany (Not All) MajorU.S. OrganizationsU.S. Organizations

Many (Not All) Major Many (Not All) Major Japanese Japanese OrganizationsOrganizations


DimensionsDimensions

Long-term for males (recentdecline in lifetime employment),moderately secure and stable

Seniority-based early in career; more merit pay later

Collective responsibilities;group loyalty, duty-oriented

4.8


Tendencies of Many U.S. and Japanese Organizations (cont.)

Decision making

Relationship with employees

Competition

Individual-oriented;relatively top-downemphasis

Depersonalized;emphasis on formal contacts

Relatively free andopen among individuals

Consultation oriented;bottom-up emphasis

Personalized; employeetreated more as a familymember; paternalism

Low among individuals within groups; high among groups


Many (Not All) MajorMany (Not All) MajorU.S. OrganizationsU.S. Organizations

Many (Not All) Major Many (Not All) Major Japanese Japanese OrganizationsOrganizationsDimensionsDimensions

4.9

Documents

Chapter 4 Managing Globally Hellriegel, Jackson, and Slocum MANAGEMENT: A Competency-Based Approach South-Western College Publishing Copyright © 2002