Scribd
Upload
5 views

Chapter 11

Uploaded by

lyvo.010404
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
5 views

Chapter 11

Uploaded by

lyvo.010404
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Chapter 11

Global / International Issues Global Issues

 Global considerations impact


virtually all strategic decisions
 A world market has emerged

 It is difficult for a firm to survive

relying solely on domestic markets

Copyright © 2011 Pearson Education, Inc. Ch 11 -1


Publishing as Prentice Hall
Multinational Organizations
 International firms or multinational
corporations face many complex variables:
 Social
 Cultural
 Demographic
 Environmental
 Political
 Governmental
 Legal
 Technological
 Competitive opportunities and threats
Copyright © 2011 Pearson Education, Inc. Ch 11 -2
Publishing as Prentice Hall
Potential Advantages of International
Operations
 Gain new customers
 Absorb excess capacity, reduce unit

costs, and spread economic risks


 Allow firms to establish low-cost

production facilities
 Competition may be less intense

Copyright © 2011 Pearson Education, Inc. Ch 11 -3


Publishing as Prentice Hall
Potential Advantages of International
Operations (continued)
 Reduced tariffs, lower taxes, and
favorable political treatment
 Joint ventures can enable firms to learn

new technology, culture, and business


practices
 Economies of scale

 Power and prestige in domestic markets

may be significantly enhanced


Copyright © 2011 Pearson Education, Inc. Ch 11 -4
Publishing as Prentice Hall
Potential Disadvantages of
International Operations
 Foreign operations could be seized
 Different and often little-understood social,
cultural, demographic, environmental, political,
governmental, legal, technological, economic,
and competitive forces
 Weakness of competitors overestimated
 Different language, culture, and value systems
 Understanding of regional organizations needed
 Dealing with two or money systems
Copyright © 2011 Pearson Education, Inc. Ch 11 -5
Publishing as Prentice Hall
Reasons for Global Expansion

 Advancements in
telecommunications
 Growth in demand for goods and

services outside the U.S. is


considerably higher than inside
 95% of the world's population lives

outside the U.S.


Copyright © 2011 Pearson Education, Inc. Ch 11 -6
Publishing as Prentice Hall
Globalization

 Globalization:
 The process of doing business worldwide
 Global strategy includes
considering global needs during
 Design
 Production
 Marketing
Copyright © 2011 Pearson Education, Inc. Ch 11 -7
Publishing as Prentice Hall
Cultural Differences
 Time
 Space
 Family roles
 Religious factors
 Family time
 Values
 Eating
 Rules of etiquette
 Importance of relationships
Copyright © 2011 Pearson Education, Inc. Ch 11 -8
Publishing as Prentice Hall
European Business Cultures

 Participatory management
 Most workers are unionized

 More frequent vacations and holidays

 Guaranteed permanent employment

common
 Workers often resent pay for performance,

commissions, and objective measurement


and reward systems
Copyright © 2011 Pearson Education, Inc. Ch 11 -9
Publishing as Prentice Hall
Asian Business Cultures

 First names are not generally used in


business
 Extended periods of silence are

important
 A sale is the beginning, not the end of a

relationship
 Resting, listening, meditating, and

thinking are considered productive


Copyright © 2011 Pearson Education, Inc. Ch 11 -10
Publishing as Prentice Hall
Mexican Business Culture

 Low tolerance for adversarial relations or friction


at work
 Employers are paternalistic
 Workers do not expect self-expression or
initiative at work
 Businesses stress collectivism, continuity,
cooperation, belongingness, formality, and
doing exactly what you are told
 Rarely entertain business associates at homes
Copyright © 2011 Pearson Education, Inc. Ch 11 -11
Publishing as Prentice Hall
Mexican Business Culture
(continued)
 Preserving one’s honor, saving face, and
looking important are valued
 Opinions expressed by employees are often
regarded as back talk
 Supervisors are viewed as weak if they
explain the rationale for their orders to
workers
 Mexicans often do not follow rules
 Life is slower in Mexico, tardiness is common
Copyright © 2011 Pearson Education, Inc. Ch 11 -12
Publishing as Prentice Hall
Japanese Business Culture

 Importance of group loyalty and consensus


called “Wa”
 Constant discussion and compromise
 Silence is a plus in formal meetings
 When confronted with disturbing questions,
managers often remain silent
 Managers are reserved, quiet, distant,
introspective, and other oriented

Copyright © 2011 Pearson Education, Inc. Ch 11 -13


Publishing as Prentice Hall
Communication Differences Across
Cultures
 Italians, Germans, and French do not soften
up executives with praise before a criticism
 Israelis are accustomed to fast paced
meetings
 British executives complain that Americans
chatter too much
 Europeans feel that they are being treated
like children when asked to wear nametags

Copyright © 2011 Pearson Education, Inc. Ch 11 -14


Publishing as Prentice Hall
Communication Differences Across
Cultures (continued)
 Executives in India are used to
interrupting each other
 In Malaysia and Japan periods of silence

are appropriate, no silence is needed in


Israel
 “How was your weekend?” is considered

intrusive by many business people

Copyright © 2011 Pearson Education, Inc. Ch 11 -15


Publishing as Prentice Hall
Worldwide Tax Rates

 US and Japan 38%


 Asia-Pacific Region 30%
 Germany 30%
 Great Britain 28%
 France 27%
 Europe 26%
 Ireland near 0%
 Former Soviet-Bloc nations near 0%
Copyright © 2011 Pearson Education, Inc. Ch 11 -16
Publishing as Prentice Hall

You might also like