1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.