Managing in a Global Environment.ppt

8/9/2019 Managing in a Global Environment.ppt

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Managements responsibilities n

challenges in global environmentNeed for lifelong learningResponsiveness

Adaptability

Having global perspective and developing local

knowledge

Understand diversity management

Understand ethical differences around the world

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Globalization of production

The globalization of production means that the world hasbecome the global village and now the producers can

get the benefit from the different countries+ cheap labors

and high technological knowledge!

"ample, Honda who is making the spare parts in china&

assembling the products in -akistan and designing the

engine in the .apan so the production is distributed into

three common places

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Different Types of Global Organizations

#ultinational corporations 1$ #ulti%domestic !orporation

/hich decentralizes management and other decisions

to local country!

2. Global company

Which centralizes its management and other decisions

in the home country.

3. Transnational Corporation (TNC) or BorderlessOrganization

! firm that has eliminated structural divisions that impose

artificial geographic barriers.


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4&

'o rgani*ations +o +lo,al (process of glo,ali*ation)


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"rocess of globalization#

Globalization approaches1$ glo,al outsourcing-

-urchasing material and labour from around the world

wherever it is cheapest!

2$ e.porting and importing(aking products domestically and selling them abroad

0etting products made abroad and selling them domestically

"$ /icensing and franchising

1icensing manufacturing and franchising services to foreignfirms to use the brand name& technology& or product

specifications developed by the firm!

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$ontd

4$Strategic Alliances

-artnerships between an organization and a foreigncompany in which both share resources and knowledge

in developing new products or building new productionfacilities!

e!g!& .oint 2enture

&$ Foreign Su,sidiar

3irectly investing in a foreign country by setting up aseparate and independent production facility or office!

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$onstraints on Globalization1$ The /egal Enironment

%tability or instability of legal and political systems

2$ Economic Sstems

(arket economy

An economy in which resources are primarily owned and

controlled by the private sector!'ommand economy

An economy in which all economic decisions are planned by a

central government!

"$ #onetar and Financial Factors

'urrency echange rates

4nflation rates

ta policies


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%contd&

4. Cultural dierences 'ational $ulture may have more influence on an organization

than the organization culture.

Working (ith multicultural (ork teams.

Beneits o Globalization! )ncreased Wealth %cheap labor n more profits&

!vailability of *oreign Goods

$ompetitive prices of products

Documents

Managing in a Global Environment.ppt