Global Business Environments MNI 3701 Revision Slides (Part Three)

Contents Basic overview of Chapters 9 & 10 of the prescribed book - Global Management, Strategies and Structures. 9 – International Management and Leadership 10 – Global competitive and collaborative strategies and structures

Chapter 9 - International Management and Leadership Key concepts you should know: Characteristics of a traditional mindset vs a global mindset. The difference between international; multi- domestic; global; transnational and multinational. The difference between international; global and worldwide.

Chapter 9 (contd.) The key issues and environmental forces that have a direct impact on MNEs’ opportunities and threats. The definition of Competitive Intelligence; Competitive Intelligence analysis framework; Risks in the international environment; Groups of Competing Factors; Character traits of international managers; Issues that managers face in diversified MNEs. How do managers cope with these issues ?

Chapter 9 (contd.) Personal characteristics and competencies of a leader with a global mindset. What is emotional intelligence ? International leadership in developing countries; What are the characteristics of the global economy ?

Chapter 9 (contd.) Reasons why leaders should develop a global mindset; How is leadership influenced by cultural differences ? Charismatic; transformational and transactional leadership. Why is a global mindset important ? Personal characteristics and competencies of a leader with a traditional mindset;

10 – Global competitive and collaborative strategies and structures How is competitive advantage achieved in an international environment ? (location economies; economies of scale and scope; experience effects; core competencies; leveraging subsidiary skills; government incentives). Goals of an MNE What are the sources of global competitive advantage?

Chapter 10 (contd.) National competitive advantage – factor endowments; demand conditions; related and supporting industries; firm strategy, structure and rivalry; government and chance events. International competitive strategies – Strategic orientation of global firms (ethnocentric, polycentric, regiocentric and geocentric); Pressures for cost reduction and local responsiveness;

Chapter 10 (contd.) When to use, characteristics, advantages, disadvantages, key organising principles, types of industries the following strategies: 1. International strategy 2. Multidomestic or multilocal strategy 3. Global strategy 4. Transnational strategy

Chapter 10 (contd.) Foreign market entry: Which markets; timing of entry; scale; mode of entry. Advantages, disadvantages and key success factors of: 1- exporting, 2 - turnkey projects, 3 – licensing, 4 - franchising, 5 - contract manufacturing,

Chapter 10 (contd.) 6 - service sector outsourcing, 7 - strategic alliances, 8 - management contracts, 9 - joint ventures, 10 – wholly owned subsidiary Guidelines for entry modes Guidelines for strategic alliances

Goodluck with your studies!! Chapter 10 (contd.) Developing an international strategic management framework (8 steps); Relationship between international strategies and structure. Chapters 11 – 13 will be covered in the next set of slides. Goodluck with your studies!!