CHAPTER 18 INTERNATIONAL MANAGEMENT

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CHAPTER 18 INTERNATIONAL MANAGEMENT © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Lecture outline Nature of international management Assessing the international environment Gauging strategic issues Organising international business Adapting to cultural differences Social responsibility & ethical issues © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Nature of international management International business Profit related activities conducted across international boundaries. International management Process of planning, leading, organising and controlling in organisations engaged in international business. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Nature of international management Organisations engaging in international management: MULTINATIONAL CORPORATION (MNC) ‘Organisations engaging in international management vary in size and the extent that their business activities cross international boundaries’. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Nature of international management Orientations towards international management: Ethnocentric Polycentric Regiocentric Geocentric © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Nature of international management Orientations towards international management: Ethnocentric (home-country) orientation Polycentric (host-country) orientation Regiocentric (regional) orientation Geocentric (world) orientation © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Assessing the international environment Environmental elements Economic Legal-political Socio-cultural Technological. Competitive advantage of nations Concept that environmental elements within a nation can foster innovation in certain industries, thereby increasing prospects for the success of home-based companies operating internationally. © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Assessing the international environment Less developed countries (LCDs) Developed countries Newly industrialised countries (NICs) Exchange Rate Economic Element Infrastructure Balance of Trade Balance of payments © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Assessing the international environment Expropriation Political risk Legal-Political Element Indigenisation laws Administrative protections Tariffs Import quotas © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Assessing the international environment Power distance Cultural differences Sociocultural element Individualism- collectivism Achievement- nurturing orientation Technological element Short-term orientation Long-term orientation Technological transfer © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Gauging strategic issues Methods of international entry Exporting, licensing, strategic alliances, wholly-owned subsidiaries Multinational corporation strategies World-wide integration National responsiveness Regional responsiveness Multifocal emphasis © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Gauging strategic issues Methods of international Entry Exporting Globalisation Methods of international entry Licensing National responsiveness Strategic alliance Regional responsiveness Wholly- owned subsidiary Multifocal emphasis © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Organising international business World-wide functional divisions World-wide product divisions International divisions Geographic regions Global matrix Networked structure © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Adapting to cultural differences Assignment policies Managing international human resources Repatriation Recruitment Adjusting Leadership styles Selection & training © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Social responsibility & ethical issues political payments Questionable payment issues bribes extortion International Social responsibility sales commissions expediting payments © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Lecture summary Nature of international management Orientations: ethnocentric, polycentric, geocentric, regiocentric Assessing the international environment Environmental elements, competitive advantage of nations Gauging strategic issues Methods of international entry, multinational strategies © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.

Lecture summary Organising international business Divisions: functional, product, international Global matrix, network structure Adapting to cultural differences International human resources Adjusting leadership style Social responsibility & ethical issues International social responsibility Questionable payments © 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.