GB 370 Unit 4

Autonomy and Entrepreneurship

Actions that foster innovation and nurture customer and product champions.

Ethical dilemmas can arise from a variety of areas such as:

Advertising Sourcing of Raw Materials Privacy Safety Pay Scales Product Pricing Policies Communications

Esprit de Corps

Harmony and team spirit across the organization builds morale and unity.

Since Brexit

Has not been the panic moment many predicted -Tory government very strong -No one can decide what they want -Might end up adopting EU rules - even after they voted to quit the body that writes them because ... trade

Future Orientation

One's expectations and the degree to which one is thoughtful about the future. A multifaceted concept that includes planning, realism, and a sense of control.

Order

Orderliness refers both to the environment and materials as well as to the policies and rules. People and materials should be in the right place at the right time.

Stability of Tenure

Organizations do best when tenure is high (i.e., turnover is low). People need time to learn their jobs, and stability promotes loyalty. High employee turnover is inefficient.

Remuneration

Workers must be fairly paid for their services.

Discipline

Workers must obey orders if the business is to run smoothly. But good discipline is the result of effective leadership: workers must understand the rules and management should use penalties judiciously if workers violate the rules.

alibaba.com

You can buy nearly anything on there You pay with PayPal You ship it to your house

You're a reseller

You sell the stock on eBay or peddle it around town

You're wal-mart

You setup an office there and buy all kinds of stuff

You're a solution provider

You talk to the customer in depth about what they want, then you buy it for them (charge a markup)

sight draft

a draft payable on presentation to the drawee

Economies of scope

broadening product lines

Line of Authority

moves from top management down to the lowest ranks. This hierarchy is necessary for unity of command, but communication can also occur laterally if the bosses are kept aware of it. The line should not be overextended or have too many levels

A successful global manager

needs to be culturally sensitive and have an understanding for how business is done in different cultures. Knowing how to best communicate with your coworkers and employees is very important.

social movement

refers to the type of group action that is focused on specific political or social issues - corporations are becoming more like social movements, and social movements are taking on more permeance

Location efficiencies

seeking lower input cost locations

Worldwide learning

the diverse operating environments of multinational corporations (MNCs) contribute to organizational learning that can be transferred to other operating environments

Subordination of Individual Interest

the interests of one person should never take precedence over what is best for the company as a whole

Specific tariffs

levied as a fixed charge for each unit of a good imported

Import quotas

limitations set by a government on the amount of a product allowed to enter or leave a country

Global efficiencies

location efficiencies economies of scale economies of scope

Brexit

-Globalization makes people upset-Britain has voted to leave the EU -All trade deals need to be renegotiated Britain doesn't have any -Not clear how the banking industry survives as it has before without EU -Manufacturing might improve Economies might be too integrated for simplistic answers like in/out

Domestic Trade Policies

-Governments can be influenced by special interest -Consequently, a government's decision to intervene in a market may appease a certain group, but not necessarily the support the interests of the country as a whole -Problem with trade: One group hurts a lot while all benefit some

Trans Pacific Partnership (every country that touches pacific except Russia and China)

-Worlds largest free trade agreement -America withdrew and everyone else went ahead -Originally, a US-leaning deal for copyrights, human rights and trade but not uncontroversial -The other countries (Japan led) are doing it without us and dumped the copyright protection

How to be an importer

-alibaba.com you're a reseller you're a solution provider you're wal-mart

Hands-On, Value-Driven

A management philosophy that guides everyday practice and shows management's commitment.

Political arguments for government intervention include

-protecting jobs -protecting industries deemed important for national security -retaliating to unfair foreign competition -protecting consumers from "dangerous" products -furthering the goals of foreign policy -protecting the human rights of individuals in exporting countries

Economic arguments for government intervention in international trade include

1. The infant industry argument 2. Strategic trade policy 3. The majority of Chicago school (modern/Free market) economics focuses on free-trade being a net positive

A Bias for Action

A culture of impatience with lethargy and inertia that otherwise leaves organizations unresponsive.

What is not essentially covered by WTO

Agriculture

Initiative

Allowing everyone in the organization the right to create plans and carry them out will make them more enthusiastic and will encourage them to work harder.

Unity of Command

An employee should receive orders only from one boss to avoid conflicting instructions.

Learning Organization

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.

Ethical Decision-Making Process:

Assess the Situation Identify the stakeholders and consider the situation from their point of view Consider the alternatives you have available to you and how they affect stakeholders. How does the action make you feel about yourself? Make a decision. Monitor Outcomes.

Transnational Strategy

Attempting to combine the benefits of scale efficiencies pursued by a global corporation, with the benefits and advantages of local responsiveness of a multi-domestic corporation.

Simultaneous Loose-Tight Properties (Peters & Waterman, 1982)

Autonomy in shop-floor activities plus centralized values.

Top 5 Solution Trends

Becoming More Connected Becoming More Global Becoming More Mobile Rise of the Creative Class Increasing Collaboration

Specialization/Division of Labor

By specializing in a limited set of activities, workers become more efficient and increase their output.

Unity of Direction

Each unit or group has only one boss and follows one plan so that work is coordinated.

Equity

Fairness (equity), dignity, and respect should pervade the organization. Bosses must treat employees well, with a "combination of kindliness and justice."

Export Credit Insurance

In the U.S., export credit insurance is provided by the Foreign Credit Insurance Association (FICA) FICA provides coverage against commercial risks and political risks

Top 5 Challenge Trends

Increasing Concern for the Environment Greater Personalization and Customization Faster Pace Innovation Increasing Complexity Increasing Competition for Talent

Leading

Leadership Decision Making communications groups/teams Motivation

Authority/Responsibility

Managers must have the authority to issue commands, but with that authority comes the responsibility to ensure that the work gets done.

Multi-Domestic Strategy

Managing a corporation as a collection of independent operating subsidiaries frees a firm to customize its products, its marketing campaigns, and operating techniques to meet local customer needs.

How is payment made in an export transaction?

Most export transactions involve a draft, also called a bill of exchange

The main reasons for a lapse of ethics are:

Pressure to meet unrealistic business objectives/deadlines A desire to further one's career A desire to protect one's livelihood

Uncertainty Avoidance:

Reflects the extent to which members of a society attempt to cope with anxiety by minimizing uncertainty.

Power Distance

Reflects the extent to which the less powerful members of institutions and organizations expect and accept that power is distributed unequally.

Sarbanes Oxley Act:

Requires companies to write a code of ethics. Leaders must set an example and uphold the code of ethics' values and standards.

1995 World Trade Organization

Since its establishment, the WTO has served as advocate and facilitator of future trade deals, particularly in such areas as services To date, most countries have adopted WTO recommendations for trade disputes- The WTO has brokered negotiations to reform the global telecommunications and financial services industries

Stick to the Knitting

Stay with what you do well and the businesses you know best.

Close to the Customer

Staying close to the customer to understand and anticipate customer needs and wants.

Five Building Blocks of Learning Organizations:

Systematic Problem Solving Experimentation Learning from Past Experience Learning from Others Transferring Knowledge

Social Networking

Systems that allow members of a specific site to learn about other members' skills, talents, knowledge, or preferences. Companies use these systems internally to help identify experts.

Controlling

Systems/Processes Strategic Human Resources

Seven main instruments of trade policy

Tariffs Subsidies Import quotas Voluntary export restraints Local content requirements Antidumping policies Administrative policies

Managing Ambiguity and Paradox

The ability of managers to hold two opposing ideas in mind at the same time and still be able to function effectively.

Simple Form, Lean Staff

The best companies have very minimal, lean headquarters staff.

Virtual Organization

The company relies on computer and telecommunications technologies instead of physical presence for communication between employees.

Productivity through People

Treating rank-and-file employees as a source of quality.

Global Strategy

Viewing the world as a single marketplace and having as a primary goal the creation of standardized goods and services that will address the needs of customers worldwide.

Subsidies

a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

Trade growth

about a little less than 4% increase year on year (whole world)

time draft

allows for a delay in payment - normally 30, 60, 90, or 120 days

Administrative policies

are bureaucratic rules that are designed to make it difficult for imports to enter a country These polices hurt consumers by denying access to possibly superior foreign products

Ad valorem tariffs

are levied as a proportion of the value of the imported good

How is Letter of Credit system attractive

because both parties are likely to trust a reputable bank even if they do not trust each other

Local content requirements

demands that some specific fraction of a good be produced domestically The requirement can be in physical terms or in value terms One of the big changes in the renegotiated NAFTA benefit domestic producers and jobs, but consumers face higher prices

Antidumping policies

designed to punish foreign firms that engage in dumping and thus protect domestic producers from unfair foreign competition

Ethics

doesn't just mean following the law but acting in accordance of basic values.

Multimarket flexibility

international businesses may respond to a change in one country by implementing a change in another country

Management

involves decision making, and decisions often have an ethical component. Beyond personal ethics or a moral code, managers face making decisions that reflect the company as a whole, affecting its future success and vitality.

Tariffs

is a tax levied on imports that effectively raises the cost of imported products relative to domestic products

The Export Import Bank

is an independent agency of the U.S. government (similar institutions lots of places)

A draft

is an order written by an exporter instructing an importer, or an importer's agent, to pay a specified amount of money at a specified time

Technological connectivity

is bringing the world closer together and enabling people to work from anywhere.

Letter of Credit

is issued by a bank at the request of an importer and states the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of, specified documents

Bill of Lading

is issued to the exporter by the common carrier transporting the merchandise

What is the mission of The Export Import Bank

is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the U.S. and other countries

Bob gives jim the exporter a Bill of Lading. What are the 3 purposes of a Bill of Lading

it is a receiptit is a contract is a document of title

Economies of scale

larger facilities result in lower costs

Centralization

refers to decision making: specifically, whether decisions are centralized (made by management) or decentralized (made by employees). Fayol believed that whether a company should centralize or decentralize its decision making depended on the company's situation and the quality of its workers.

Institutional Collectivism

refers to the extent to which people act predominately as a member of a lifelong group or organization.

U.S. exporters can draw on two forms of government-backed assistance to help their export programs

they can get financing aid from the Export-Import Bank they can get export credit insurance from the Foreign Credit Insurance Association

Home Replication

utilizing a core competency or a firm-specific advantage developed at home as a main competitive weapon in foreign markets

Voluntary export restraints

voluntarily imposed limits on the number or volume of products exported to a particular country

Communications technologies and the Web let employees

work form anywhere and require special attention to managing communications.