罗宾斯管理学双语教学讲稿4

Four
Managing in a Global Environment
1. WHO OWNS WHAT?
You might be surprised to find that a number of companies familiar to us are foreign owned. And, you might also be surprised at the number of well-known companies that derive more than half of their revenues from global operations.
2. WHAT’S YOUR GLOBAL PERSPECTIVE?
Most U.S. children study only English in School. It’s not unusual for Germans, Italians, or Indonesians to speak three or four languages. Americans tend to think of English as the only international business language and they don't see a need to study other languages.
A. Parochialism is defined as a selfish, narrow view of the world and an
inability to recognize differences between people. Parochialism is an
obstacle for many U.S. managers and stems from monolinguism.
B. Managers might have one of three perspectives or attitudes toward
international business. (See Exhibit4.1.)
1. An ethnocentric attitude is the parochialistic belief that the
best work approaches and practices are those of the home
country (the country in which the company’s headquarters are
located).
2. A polycentric attitude is the view that the managers in the host
country (the foreign country where the organization is doing
business) know the best work approaches and practices for
running their business.
3. A geocentric attitude is a world-oriented view that focuses on
using the best approaches and people from around the globe.
4. To be a successful global manager, you need to be sensitive to
differences in national customs and practices. (See Exhibit4.2.
for cultural blunders)
3. UNDERSTANDING THE GLOBAL ENVIRONMENT.
Several significant forces are reshaping the global environment that managers face. Two important features of the global environment are regional trading alliances and the different types of global organizations.
A. Regional Trading Alliances.
Regional trading alliances are reshaping global competition. It’s no
longer country versus country, but region against region.
1. The European Union (EU) is a union of 25 European nations
created to eliminate national barriers to travel, employment,
investment, and trade. (See Exhibit4.3.)
a. The primary motivation for the creation of the EU (in
February 1992) was to allow these nations to reassert
their position against the industrial strength of the
United States and Japan.
b. The EU took an enormous step towards full unification
in 1999 when 12 of the 15 countries became part of the
EMU—the economic and monetary union, the formal
name for the system where participating countries share
the same currency, the Euro.
c.In 2004, the EU added 10 new members (Cyprus, Malta, the
Czech Republic, Estonia, Hungary, Latvia, Lithuania,
Poland, Slovakia, and Slovenia. Two other counties could
join by 2007.
2. The North American Free Trade Agreement (NAFTA) is an
agreement among the Mexican, Canadian, and U.S. governments
in which all barriers to free trade will eventually be eliminated.
a. NAFTA went into effect on January 1, 1994.
b. The signing of NAFTA had both critics and champions.
c. Eliminating the barriers to free trade (tariffs, import
licensing requirements, customs user fees) has resulted
in a strengthening of the economic power of all three
countries.
d. Colombia, Mexico, and Venezuela signed an economic
pact eliminating import duties and tariffs in 1994.
e. Now 34 countries in the Caribbean region, South
America, and Central America are negotiating a Free
Trade Area of the Americas (FTAA) trade agreement,
which will be operational no later than 2005.
3. The Association of Southeast Asian Nations (ASEAN)is a
trading alliance of 10 Asian nations (see Exhibit4.4).
a. In the future, the Asian region promises to be one of the
fastest-growing economic regions of the world.
b. The economic impact could eventually rival that of both
NAFTA and the EU.
4.Other Trade Alliances.
a.The 53-nation African Union came into existence in July
2002. Members plan to achieve greater economic
development and unity among Africa’s nations.
B.The World Trade Organization (WTO).
Formed in 1995 evolving from GATT. The only global organization dealing with the rules of trade among nations.
1.Membership consists of 145 countries as of February,
2003.
2.WTO appears to play an important role even though
there are vocal critics.
4. DOING BUSINESS GLOBALLY.
A. Different Types of Global Organizations
Although international business has been around a long time (DuPont
doing business in China in 1863; Ford set up its first overseas sales
branch in France in 1908). The popularity of multinational corporations
re ally didn’t occur until the mid-1960s. What are the various types of
global organizations?
1. A multinational corporation (MNC)is a company that
maintains significant operations in multiple countries
simultaneously but manages them all from one base in a home
country. It reflects the ethnocentric attitude.
2. A transnational corporation (TNC)is a company that
maintains significant operations in more than one country
simultaneously, but decentralizes management to the local
country. It reflects the polycentric attitude.
3. Another type of global organization is the borderless
organization that is a global type of organization in which
artificial geographical barriers are eliminated so that the
management structure can be more effectively globalized. It
reflects the geocentric attitude.
4. Keep in mind, however, that a company’s national origin is no
longer a good measure of where it does business or of the
national origin of its employees.
5. HOW ORGANIZATIONS GO GLOBAL.
An organization evolves into a global one by typically proceeding through three stages. These three stages are illustrated in Exhibit4.5.
A. Stage 1 is a passive response stage, which involves exporting products
to other countries or importing products to sell at home.
B. Stage 2 involves managers making more of an investment by committing
to sell products in foreign countries or to having them made in foreign
factories. However, there is still no physical presence of company
employees outside the comp any’s home country.
C. Stage 3 involves establishing global operations either through
licensing/franchising, joint ventures, strategic alliances, or foreign
subsidiaries.
6. MANAGING IN A GLOBAL ENVIRONMENT.
There are many challenges associated with managing in a global environment.
A. The Legal-Political Environment.
The legal-political environment doesn’t have to be unstable or
revolutionary to be a challenge to managers. The fact that a country’s
political system differs from that of the United States is important to
recognize.
B. The Economic Environment.
The economic environment also presents many challenges to foreign-
based managers. Obviously, currency rate fluctuations, inflation, and
diverse tax policies are economic challenges to managers.
1.Market economy– resources are primarily owned by the private
sector
mand economy where all economic decisions are planned by a
central government.
C. The Cultural Environment.
The cultural environment involves cultural differences between nations.
National culture is the values and attitudes shared by individuals from a
specific country that shape their behavior and their beliefs about what is
important. A framework developed by Geert Hofstede has proved to be a
valuable framework for understanding differences between national
cultures.
1. One cultural dimension Hofstede looked at was individualism
versus collectivism. Individualism refers to a loosely knit social
framework in which people are supposed to look after their own
interests and those of their immediate family. In collectivism,
people in a tighter social framework expect others in groups of
which they are a part (such as a family or an organization) to
look after them and protect them when they are in trouble.
2. Another cultural dimension is power distance, which describes
the extent to which a society accepts the fact that power in
institutions and organizations is distributed unequally.
3. Uncertainty avoidance describes a cultural measure of the
degree to which people tolerate risk and unconventional
behavior.
4. Hofstede identified attributes of quantity versus quality of life.
Quantity of life refers to the extent to which societal values are
characterized by assertiveness and materialism. Quality of life
reflects the emphasis placed on relationships and showing
sensitivity and concern for the welfare of others.
5. Long-term and short-term orientation. Hofstede’s final cultural
attribute. Long-term orientation cultures are characterized by
looking to the future and valuing thrift and persistence. Short-
term orientation values the past and present and respect for
tradition.
6. Countries have different rankings on Hofstede’s cultural
dimensions, and managers should be aware of the cultural
differences present in countries in which they do business. (See
Exhibit4.7)
7. The GLOBE Framework for Assessing Cultures. Updated
assessment on Hofstede’s work.
a. Global Leadership and Organizational Behavior
Effectiveness began in 1993. Identified nine dimensions
on which national cultures differ:
b. Assertiveness, Future orientation, Gender
differentiation, Uncertainty avoidance, Power distance,
Individualism/collectivism, In-group collectivism,
Performance orientation, and Humane orientation.
c. Exhibit4.8 shows how different countries rank on these nine dimensions.
D. Global Management in Today’s World.
Uncertainty after 9/11 has had a profound impact on business. Managers
face serious challenges arising from globalization and from significant
cultural differences.
1.Intense underlying and fundamental cultural differences create a
very complicated environment in which to manage.
2.Successful global managers will have incredible sensitivity and
understanding.
3.Need to adjust leadership styles and management approaches to
accommodate culturally diverse views.
1. What are the managerial implications of a borderless organization?
In a borderless organization, artificial geographic borders do not separate functions, divisions, or activities. The managerial implications of such an organizat ion are that it’s infinitely more flexible in being able to respond to changing marketplace conditions. However, this type of organization would also be much more difficult to control.
2. Can the GLOBE framework presented in this chapter be used to guide managers
in a Thai hospital or a government agency in Venezuela? Explain.
Yes, the GLOBE framework from this chapter would be applicable to both situations. As a manager, you need to understand the unique cultural characteristics of each country and then modify management decisions and practices accordingly.
3. Compare the advantages and drawbacks of the various approaches to going
global.
In Stage 1, management makes its first push at going international by exporting its products to other countries. It involves minimal risk and provides more control over the company’s product(s).
In Stage 2, management hires foreign representation or contracts with foreign firms to perform work. The level of risk becomes greater in this stage because the firm is giving up more control, but the potential for sales gains is also greater.
In Stage 3, the company has made a strong commitment to pursue global markets aggressively. This type of involvement creates the most risk because control is less, but again the advantage is that the sales potential is much greater.
4. What challenges might confront a Mexican manager transferred to the United
States to manage a manufacturing plant in Tucson, Arizona? Will these be the same for a U.S. manager transferred to Guadalajara? Explain.
The Mexican manager would have to become familiar with the legal-political, economic, and cultural environments of the United States. The cultural environment would be particularly challenging as the national culture of Mexico is the polar opposite of the national culture of the United States on three of four Hofstede’s dimensions. On the individualism-collectivism dimension, Mexico is more of a collective society whereas the United States is more individualistic.
On the power distance dimension, Mexico rates large whereas the United States rates small. On the uncertainty avoidance dimension, Mexico rates high while the United States rates low. Only on the quantity of life dimension are the two countries similar.
The adjustments required of the Mexican manager would also be required of a U.S. manager being transferred to Guadalajara, however, just simply in the reverse.
5. In what ways do you think global factors have changed the way organizations
select and train managers? What impact will the Internet have on this? Explain.
Business organizations probably will look for managers who have an appreciation of national differences, expanded exposure to different cultures, and the ability to speak foreign languages; that is, managers with more of a geocentric attitude. Training programs will emphasize developing these abilities where they are deficient. Organizations also increasingly may hire nationals to run operations in specific countries and then socialize them in the company’s corporate culture.
The Internet will impact training and development of managers because of an increased amount of cultural materials available. Individuals have so much more access to information about other countries and cultures that the world is figuratively ―shrinking,‖ in terms of exposure to other cultures. Also, once an executive is sent on a global assignment, the Internet will provide tremendous opportunities for communication with corporate and personal contacts at ―home,‖ as well as to purchase familia r products via e-business that might not be available in the global assignment setting.
6. How might a continued war on terrorism impact U.S. managers and companies
doing business globally?
Since 9/11 many organizations are critically evaluating their global operations as environments can change rather quickly. Deep seated cultural, religious, and societal beliefs will create significant challenges for the U.S. manager going abroad. Globalization is meant to open up trade and to break down the geographical barriers. It does just that—opens up the country both good and bad. U.S. firms may be reluctant to assign their U.S. managers to certain countries. More care will have to be taken with regard to the safety and security of U.S. managers assigned in overseas operations.
Shooting for Overseas Success
1. What global attitude do you think the NBA and its member teams exhibit?
Explain why this attitude has or hasn’t contributed to the NBA’s global success.
The NBA and its member teams appear to exhibit the geocentric attitude, a world-oriented view that focuses on using the best approaches and people from around the globe. From this perspective, major issues and decisions are viewed globally by looking for the best approaches and people regardless of country origin. This attitude has contributed to the NBA’s success because the decision makers recognized that, in order to successfully transplant the NBA, they would have to use the best approaches and people no matter where they were from.
They also tailored their product to best meet the needs of the various markets they were looking at.
2. What legal-political, economic, and cultural differences might be significant to
an NBA team recruiting a player from a foreign country? How would you deal with these differences? As NBA teams start playing in other countries, would these differences change? Explain.
Legal-political differences could arise in terms of contractual terms and conditions. Economic differences probably wouldn’t be as significant becaus e a player from a foreign country would probably want to be paid in U.S. dollars.
However, currency exchange rates might present a challenge. Cultural differences could arise in terms of how a player adapted to the realities and expectations of team members, coaches, and audiences. Most likely as each country has a different set of norms and cultural values.
3. How has the NBA exhibited effective and efficient managing in the global
environment?
The NBA has capitalized on its inherent popularity around the world. In addition, David J. Stern, NBA’s commissioner, has been instrumental in marketing both the game of basketball and Michael Jordan (one of the game’s most influential players) globally. He understood the similarities and differences between the domestic (U.S.) and foreign markets. In addition, the league itself reflects a geocentric attitude in that it has been willing to showcase talent from around the globe.
(For another assessment of the NBA’s success in global markets, look at: William Ech ikson, ―Michael, the NBA, and the Slam-Dunking of Paris,‖ Business Week, November 3, 1997, p. 82.)
4. What could other organizations learn from the NBA’s global experience?
Physical presence of the corporation is necessary. It is not sufficient to just ―sell‖ the product (or the play games as in the NBA). It is necessary to develop a ―relationship‖ with consumers in different countries in which you are doing business. Developing a truly international web presence can also be effective.
Understanding and being sensitive to different cultural values is a key to success as well.。