MGMT2101 Full Course Notes

Transcription

1 MGMT2101 Full Curse Ntes

2 Hfstede s masculinity index Hfstede s lng-term versus shrt-term Hfstede s uncertainty avidance Hall s high versus lw cntext Trmpenaars specific versus diffuse Trmpenaars internal versus external lcus f cntrl

3 WEEK 1 - Assessing the envirnment OBJECTIVES T understand the glbal business envirnment and hw it affects the strategic and peratinal decisins that managers must make T develp an appreciatin fr the ways in which plitical and ecnmic factrs and changes influence the pprtunities that cmpanies face. T recgnise the rle f the legal envirnment in internatinal business T review the technlgical envirnment arund the wrld and hw it affects the internatinal manager s decisins and peratins. The glbal business envirnment Glbalisatin Interdependence f business, plitics, trade and financial links arund the wrld Has resulted in the free mvements f gds, peple, mney and infrmatin acrss brders. Ecnmic integratin results frm the lessening f trade barriers and increased flw f what was mentined abve. Deglbalisatin is becming an issue Glbal trends This prvides bth challenges and pprtunities fr cmpanies t incrprate int their strategic planning: The changing balance f grwth tward emerging markets cmpared with develped nes, alng with the grwing number f middle-class cnsumers in thse areas. The need fr increased prductivity and cnsumptin in develped cuntries t stimulate their ecnmies. The increasing glbal intercnnectivity The increasing gap between demand and supply f natural resurces Push fr envirnmental prtectin The challenge facing gvt. t develp plicies fr ecnmic grwth and financial stability. Glbality and emerging markets Glbal trade is increasingly including develping natins judged ti have significant grwth ptential. MINT is the new BRIC Mexic Indnesia Nigeria Turkey BRIC Brazil Russia India China

4 Backlash against glbalisatin It cmes frm thse wh feel that it benefits advanced industrial natins at the expense f many ther cuntries. Incme inequality Effects f institutins n glbal trade Tw majr grups f institutins (supranatinal and natinal) play differing rles in glbalisatin. Supranatinal institutins: A supranatinal unin is a type f multinatinal plitical unin where negtiated pwer is delegated t an authrity by gvernments f member states. E.g.: Wrld Trade Organisatins (WTO) Prmtes the lwering f tariffs and a cmmn set f trade rules amng its member cuntries. Internatinal Labur Organisatin (ILO) Prmte the cnvergence f hw internatinal activities are cnducted. Supranatinal institutins frequently prmte rules r laws favurable t freign firms. Natinal institutins play a rle in creating favurable cnditins fr dmestic firms and may make it mre difficult fr freign firms t cmpete. Effects f glbalisatin n crpratins MNC's are firms that have investment, peratins, r marketing activities in several cuntries. Glbalisatins remves the restrictins f lcatin which benefits the access the varius f resurces and creates mre trade with ther natins. Increased efficiency Small and Medium-sized Enterprises (SMEs) They play a vital rle thrugh cntributin t the ecnmy: Emplyment Jb-creatin Develpment f new prducts and services Internatinal peratins --> exprting 98% are SMEs It is businesses that has <500 emplyees The glbalisatin f human capital Nearshring Cmpanies bringing prductin clser t the hme market Reshring Prductin all the way back hme t high-labur-rate cuntries The glbalisatin f Infrmatin Technlgy Allws service jbs t be perfrmed anywhere in the wrld But increased risks fr firms Cyber theft Hacking

5 Reginal Trading Blcs EU ASIA Glbal cmpetitiveness Index Glbal managers face tw tasks Strategic: hw firms utside f Eurpe can deal with the implicatins f the EU Cultural: hw t deal effectively with multiple sets f natinal cultures, traditins and custms Manufacturing Has prpelled Asia's emerging markets E.g. China has becme an exprt pwerhuse The Glbal Manager's Rle Cntingency apprach t dynamic envirnments Rules f the game as a successful glbal manager Analyse the new envirnment and create strategies based n the analysis. Understand business practices and expectatins The plitical and ecnmic envirnment

6 Plitical Risk It is any gvernmental actin r plitically mtivated event that culd adversely affect the lng-run prfitability r value f a firm. Natinalisatin: frced sale f an MNC's assets t lcal buyers, with sme cmpensatin t the firm, perhaps leaving a minrity wnership with the MNC. Exprpriatin: when a lcal gvernment seizes and prvides inadequate cmpensatin fr the freign-wned assets f an MNC. When n cmpensatin is prvided, it is cnfiscatin Macrplitical risk event: An event that affects all freign firms ding business in a cuntry r regin. Terrrism pses severe and randm plitical risk Micrplitical risk event: An event that affects ne industry r cmpany r nly a few cmpanies. Plitical risk assessment Usually takes tw types f assessments: Experts r cnsultants Develpment f internal staff and in-huse capabilities Managing plitical risk Hedging Dependency Keeping bth the subsidiary and the hst natin dependent n the parent crpratin Maintaining cntrl in key aspects f business peratins Manage plitical risk thrugh glbal strategic chices