Management and the Economy

Overview Management and the changing economy The global marketplace Management and technology Chapter 3 Lesson 1

Quick Write What evidence do you see of the global economy around you in your local community? Chapter 3 Lesson 1 Courtesy of Comstock Images

Management and the Changing Economy Chapter 3 Lesson 1 Courtesy of Photos.com

Toffler’s Three Waves of Modern Civilization First Wave ~ Agriculture As late as the 1890s, about 90 percent of the workforce was involved in farming and related work Second Wave ~ Industry Workers left the fields and went to work in places of mass production, job specialization, and lines of authority producing steel, autos, rubber, and industrial equipment Third Wave ~ Information Workers moved from the production floor to clerical, technical, and professional jobs Chapter 3 Lesson 1

New Jobs in Knowledge Work Knowledge workers are workers whose jobs involve getting and using information Chapter 3 Lesson 1 Courtesy of BanannaStocck, Comstock Images

Knowledge Workers One third of the US workforce Include technologists Professionals such as nurses, accountants, teachers, lawyers, engineers Include technologists Professionals who work with their hands and information ~ computer programmers, software designers, systems analysts Chapter 3 Lesson 1

The Rise of Dot-Com Business The most important technological innovation in business over the past decade has been the rise of the dot-com business The ability of ordinary customers to do business over the Internet has revolutionized many sectors Think of people at home in front of their computers, renting movies, booking airline tickets, or scoping out houses for sale hundreds of miles away Chapter 3 Lesson 1

Dot-Com Challenge Write down as many dot-com businesses as you can in two minutes The group that identifies the most actual dot-com businesses wins Chapter 3 Lesson 1

The Global Marketplace Chapter 3 Lesson 1 Courtesy of Photos.com

The Global Village The global village is the world seen as without borders, with goods and services marketed and sold freely between countries To be effective in this world without borders, managers need to be able to adapt to other people’s cultures, systems, and techniques Chapter 3 Lesson 1

Multinational Corporation A multinational corporation (MNC) is a corporation with a home base in one country but significant operations in one or more other countries as well Chapter 3 Lesson 1 Courtesy of Comstock Images

Transnational Corporation A transnational corporation (TNC) maintains operations in more than one country at a time and decentralizes decision making in each operation to the local country Chapter 3 Lesson 1

Borderless Organization A management structure that breaks down artificial geographic barriers Organize by product line rather than the map Chapter 3 Lesson 1

Three Stages of Globalization I Respond to orders from international customers II Decide to sell abroad sending its own sales staff to the target country hiring foreign agents to represent them III Launch foreign operations building a factory designing new products to meet local needs and desires in the target market Chapter 3 Lesson 1

Strategic Alliances Companies that reach the third stage of launching foreign operations are likely to form a strategic alliance – a partnership in which firms based in two different countries share the cost of developing new products or building new plants Chapter 3 Lesson 1 Courtesy of Comstock Images

How Globalization Affects Managers Cope with suppliers, employees, and customers in different countries and different cultures See where there are differences and figure out how to communicate or otherwise interact in spite of those differences Avoid parochialism – the narrow frame of mind typical of people who see the world from only their own perspective Chapter 3 Lesson 1

How Globalization Affects Managers Learn to appreciate that people in other places have other ways of doing things Understand the cultural contexts of different countries’ management practices Chapter 3 Lesson 1

Management and Technology Chapter 3 Lesson 1 Courtesy of Comstock Images

What is Technology Technology is equipment, tools, or operating methods that are designed to make work more efficient Tools that help businesses create and maintain an edge against their competitors Chapter 3 Lesson 1 Courtesy of Liquidlibrary Images

Examples of Technology Automated offices Manufacturing robots Computer-aided design software Electronic meetings Chapter 3 Lesson 1 Courtesy of Comstock Images

Benefits from Information Technology Notebook computers, cell phones, fax machines, high-speed modems, organizational intranets, and other forms of IT allow millions of people to work anywhere, anytime Levels the playing field in many sectors Small business with a clear focus and a well-designed website can compete against a much bigger company Chapter 3 Lesson 1

Technologies Challenge Write down as many technologies found in the school as you can in two minutes The group that identifies the most school-based technologies wins Chapter 3 Lesson 1

E-Organizations E-commerce is any computer transaction that occurs when data are processed and transmitted over the Internet About 90 percent of e-commerce sales are actually business-to-business sales: Goodyear tires selling to Ford, for example Chapter 3 Lesson 1

E-Organizations E-business is a term that encompasses the full breadth of activities included in a successful Internet-based enterprise Business strategy, communication between and among employees, customers, and suppliers, and collaboration with partners on design and production Chapter 3 Lesson 1

E-Organizations Three Underlying Concepts Internet ~ a network of interconnected computers Intranet ~ an organization’s private Internet Extranet ~ an extended intranet Network the organization uses to connect its remote employees, contractors, and other collaborators Chapter 3 Lesson 1 Courtesy of Comstock Images

How Technology Alters a Manager’s Job Use e-mail, cell phones, fax machines, and other technology to perform the same four basic functions of a manager’s job – planning, organizing, leading, and controlling Use telecommuting ~ a system that allows employees to work at home on a computer linked to the office Chapter 3 Lesson 1

Technology Challenges for Managers Communicating with employees in remote locations Ensuring employees are meeting their work goals when located externally Chapter 3 Lesson 1 Courtesy of Thinkstock Images

Review Alvin Toffler outlined three waves of modern civilization – agriculture wave (farming), the industrial wave (manufacturing and production), and the information age (technology and service) Knowledge workers are workers whose jobs involve getting and using information Chapter 3 Lesson 1

Review The most important technological innovation in business over the past decade has been the rise of the dot-com business – the ability of ordinary customers to do business over the Internet The global village is the world seen as without borders, with goods and services marketed and sold freely between countries Chapter 3 Lesson 1

Review A multinational corporation (MNC) is a corporation with a home base in one country but significant operations in one or more other countries as well A transnational corporation (TNC) maintains operations in more than one country at a time and decentralizes decision making in each operation to the local country Chapter 3 Lesson 1

Review The first stage of globalization for a company is responding to orders from international customers The second stage of globalization for a company is deciding to sell abroad The third stage of globalization comes when the company actually launches foreign operations Chapter 3 Lesson 1

Review Managers in a global environment have to avoid parochialism – the narrow frame of mind typical of people who see the world from only their own perspective – and learn to appreciate that people in other cultures have other ways of doing things Technology is equipment, tools, or operating methods that are designed to make work more efficient Chapter 3 Lesson 1

Review E-commerce is any computer transaction that occurs when data are processed and transmitted over the Internet E-business is a term that encompasses the full breadth of activities included in a successful Internet-based enterprise Chapter 3 Lesson 1

Review Telecommuting is a system that allows employees to work at home on a computer linked to the office Communicating with employees in remote locations and ensuring they are meeting their work goals are the two big challenges facing a manager of telecommuters Chapter 3 Lesson 1

Summary Management and the changing economy The global marketplace Management and technology Chapter 3 Lesson 1

What’s Next… Management and Society Chapter 3 Lesson 1 Courtesy of Comstock Images