Chapter # 1

By: Manish Gurung

INTERNATIONAL MANAGEMENT

Content:

• What is International Management?

• What is International Business?

• Environment of International Businesses

• International Companies and International Mindsets

• Evolution of International Enterprise

• Why Engage in International Business?

• Strategic Objectives and Competitive Advantages

BASIC LOGIC BEHIND IM

• Terms & meaning:

• “Business” means an organization

• “International” means being global or multinational or transnational

• “Management” the art of getting things done through people or technology.

Breaking the Terms• BUSINESS: Exchange of goods and services, buyer, seller, manufacturerand vice versa.• INTERNATIONAL: Nations, Trade, Regulations, culture, familiarity, Trend, economy and vice versa.• MANAGEMENT:Forecasting, Planning, Organizing, Commanding, Coordinatingand controlling. To sum up, management is basically combination of Marketing & Innovation

INTERNATIONAL MANAGEMENT

Combine the words and you get

“A Process of accomplishing the global objectives by the firm”

Traces of Management

• Dates back to 18th century in western countries and 6th

century in eastern countries.

• Industrial revolutions, Military Practices contributed to management.

• “The Art of War” a book containing awareness of and acting on strengths and weaknesses of both a manager’s organization and foes

• Chinese General Sun Tzu in 6th century BC

EVOLUTION

DOMESTIC

INTERNATIONAL MULTINATIONAL

GLOBAL

TRANSNATIONAL

HOW DO THEY DO IT?

• A Business is bound by their

– Vision

– Mission

– Objectives

– Business Policy

– Business Strategy

“This is what drives businesses ahead, the stronger their mission, vision goals, policy and strategy the more broader, fatter and global it becomes“

WHY DO BUSINESSES GO GLOBAL?

CULTURE

By: Kshitiz Dangol

SOCIOLIZATION

“The process of enculturation or the adoption of the behavior patterns of the surrounding culture”

CULTURE

• Defined as “the arts and other manifestations of human intellectual achievement regarded collectively.”

APPROACHING CULTURE

• There are 194 countries enlisted and inside a single country there are 10 to 20 cultures.

• Identifying culture and understanding is hard

• A Business cannot simply evade a culture in a country, it needs to adapt.

• There are strategic ways to approach a culture:

• Travel to other countries

• Read books and articles

• Study the history, religion, politics, values, customs

• Study the language

• Maintain realistic expectations

Cultural Element Categories

• Sense of space and self• Communication and language• Dress and Appearances • Food and feeding habits• Time and time consciousness• Relationships• Values and Norms• Beliefs and attitude• Mental process and learning• Work habits and Approaches

Strategy for International Management

• Country profile-

– Uncertainty avoidance

– Masculinity

– Individualism

– Power Distance

What’s in it for us?

• it covers all the issues that arise as a consequence of international and global strategies.