chapter 1 intro to global business mangement

two key viewpoints for globalization

flatworld vs multidomestic

globalization

shift towards a global economy -increases opportunities for international business -occurs in market, production, and outsourcing

______ is allowing people to work across distances

technology

long distance commerce started with the

the silk road

managers need to pay attention

to domestic and international stakeholders

use stakeholder analysis

to identify and assess the importance of key people, groups, and institutions that may influence the success of your business

concept of _______ differs by country

privacy -italy and 3 google executives bullying video

multidomestic world perspective

-Pankaj Ghemawat says the world is "semiglobalized" and "multidomestic," not flat - explanation for difficulty in international business -global strategy must begin with noticing differences -Ghemawat argues for using the CAGE framework and CAGE analysis to study "barriers to cross-border economic activity"

advantages and disadvantages of globalization

-a shift towards a more integrated and interdependent world economy, in which people in one part of the world interact with people in another part as buyers, sellers, and intermediaries -it is increasingly common, easier, and faster today than in the past

strategic management

-answers questions about the development and implementation of strategies -concerned with determinants of firm performance

FRAMEWORK for ethical decision making

-ask "Is it an ethical issue?"—Differs from law and religious beliefs -get the facts—Consult with others as needed -evaluate alternative actions using one of five approaches -test your decision—Do you feel comfortable with it? -just do it—But what did you learn? Once you make the decision, implement it, and then evaluate what adjustments may be needed

forms of international business

-can be a person or organization engaged in commerce -the international portion of a firm could be involved with importing or exporting, or foreign direct investment

developing a career in global management

-develop functional skills and country, culture, language skills -ask yourself self assessment questions about talents, skills, interest

flat-word perspective

-developed by Thomas Friedman -globalization is in its third stage - 1st stage: global development, included the discovery of the new world (1492-1800) - 2nd stage: (1800-2000) disrupted by great depression, world wars shaped by emerging powers in multinational corporations & grew with euro mercantile stock companies -current stage: started in 2000 with advances in global electronic interconnectivity and outsourcing

ethical decision making

-ethics is a branch of philosophy that seeks virtue -deals with "right" and "wrong" -those interested in international business ethics and ethical behavior examine activities and ask whether global business managers are acting ethically -ethical decision making is challenging -decision-making framework can help

opportunities and challenges of globalization

-some people lose while others gain, both in absolute and relative terms -countries diminish their sovereignty -national cultures change and become diluted -governments have fewer ways to monitor companies and hold them accountable

what is the debate on globalization?

a difference of opinion on how internationalization of businesses is affecting countries' culture and identity, and whether that change is welcome

managerial choices regarding efficiency versus local responsiveness are

are a function of strategy and help determine overall performance

governmental stakeholders

as a result of paying taxes in other countries and if there is a governmental role in protecting the environment

even companies that operate domestically need to concern themselves with international business

as foreign suppliers and competitors may affect them

multinational companies require three kinds of specialists

business managers, country managers, and functioning managers -senior corporate executives also manage interactions

CAGE framework (multidomestic perspective)

culture- cultural differences reduce economic exchange administration- administratively similar countries trade more often geography- usually more distance results in less trade economics- differences in demographic and socioeconomic conditions -demand varies w/ income -economies of scale -cost differences are significant -distribution or business systems are different -organizations must be highly responsive to customers concerns

other stakeholders

include industry associations, trade groups, suppliers, labor -employees themselves are stakeholders, including contract workers

international business

international business occurs when the production or distribution of goods or services crosses borders -large multinational firms and single-person companies engage in international business

intrapreneurship

is a form of entrepreneurship that takes place in an existing business -intrapreneurship is a form of entrepreneurship that takes place in an existing business

intrapreneur

is a person who takes responsibility (often in a manager role) for turning an idea into a profitable finished product

stakeholder

is any individual or organization whose interests may be affected as a result of what another individual or organization does -have an interest in international business

entrepreneurship

is the recognition of opportunities and use of resources to implement innovative ideas for new ventures -an entrepreneur is a person engaged with entrepreneurship

global management requires a global mindset

knowing processes of international business and integrating various cultural/business perspectives into daily operations

foreign locations may offer unique advantages called

location advantages

there is no such thing as a

universal global manager

"how the world got flat" perspective

•11/9/89—Fall of Berlin Wall, end of communism/planned economies •8/8/95—Netscape went public •Work-flow software •Open-sourcing: self-organizing and collaborative communities •Outsourcing: Y2K •Offshoring: Running with gazelles, eating with lions •Supply-Chaining: Eating sushi in Arkansas •Insourcing: What the guys in funny brown shorts are really doing •Informing: Google •The Steroids: Digital, mobile, personal, and virtual

global manager

•A manager is someone responsible for controlling or administering all or part of a company or similar organization •A global manager is responsible in one or more countries •Typically, global managers had country or language expertise, but not necessarily a deep knowledge of a company's business, industry, or functions in the company

roles and functions of a global manager

•Business managers supervise and oversee day-to-day activities and employees •Country Managers oversee operations within a country/region •Functional Managers have management authority over an organizational unit •Corporate Managers oversee a range of corporate activities across multiple business units, markets, and countries

questions for self-assessment

•Do you have a background, familiarity, or interest in a particular country or language? How interested are you in developing country or language skills? •Do you have a technical skillset, such as engineering or finance, which would enable you to explore opportunities in a global industry and/or country? •Are you comfortable working across cultures with different ways of thinking, interacting, and working?

mindset: going global vs being global

•Effective management needs vary by location •Incorporate local practices into corporate culture •This involves values and behaviors in the business environment

what ethics is not

•Feelings, religion, law, science •Culturally accepted norms •Ethics may conflict with any of the above

five approaches for ethical decision making

•Utilitarian approach—Which actions lead to most good and least harm? •Rights-based approach—Which action respects everyone's rights? •Fairness or Justice approach—Which action treats people fairly? •Common good approach—Which action contributes to quality of life? •Virtue approach—Which action embodies valued character strengths?