MAN 320F Lecture 14 Outline of Last Lecture I Angel Investment II Why angels matter III Angel Organizations can help fill capital gap IV Constraints V Engaging Angels A How to find angels B Investment expectations C What attracts them you to your deal D Process Deals and implications VI Business Plans are Essential A Elevator pitch B Executive summary C Full Business Plan VII Angel Rating system VIII Fundable Management teams A CEO IX The opportunity X Closing the Deal Outline of Current Lecture XIV Flat World Realities XV Managing in a Global Environment Challenges A Sensitivity B Interdependence XVI Adopting a Global Perspective XVII Regional Trade Agreements A The EU B NAFTA XVIII How Organizations Go Global XIX Managing in A Global Environment A National Culture XX Cultural Context A High Context B Low Context XXI The GLOBE Framework for Assessing Cultures 1993 XXII Cultural intelligence XXIII Global Mind Set XXIV International Business Ethics Current Lecture Chapter 3 Managing in a Global Environment Learning Objectives o Identify the technologies and business methods flattening the world o Define outsourcing and offshoring o Discuss challenges of doing business globally and the need to be sensitive to o o o o o Global differences Contrast ethnocentric polycentric and geocentric attitudes reflected in MNCs TNCs and borderless organizations Explain role of NAFTA EuropeanUnion trade agreements in international trade regulation Describe the structures and techniques organizations use as they go international Define parochialism Explain the difference between high and low context cultures o Discuss the nine GLOBE dimensions for assessing cultures o Describe cultural intelligence and global mindset o Identify ethical issues that can arise in cross cultural management and how to deal with them Flat World Realities o Outsourcing o Offshoring o Supply Chaining o Increasing American companies selling products and or buying supplies from other countries o Increasing American managers overseeing work workers from other countries Managing in a Global Environment Challenges o Sensitivity Acknowledging cultural political and economic differences Dealing with increased uncertainty fear and anxiety Avoiding parochialism ours is better than theirs attitude o Interdependence Coping with sudden appearance of new competitors Adapting to changes in global environment Adopting a Global Perspective Ethnocentric Attitude Global MNC maintains operations in multiple countries but manages the operations from a Belief that best work approaches and practices base in the home country Sony Merrill Lynch are those of home country Polycentric Attitude Multidomestic MNC View that managers in host country know best work approaches and practices for business Adopting a Global Perspective Geocentric Attitude A world oriented view that focuses on using the best approaches and people from around the globe A firm that maintains operations in several countries but decentralizes management to the local country Nestle Transnational or Borderless MNC A firm that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines IBM Bristol Myers Squibb Regional Trade Agreements o The European Union EU 1992 Unified economic trade entity of 27 countries 30 world s economic output Eliminated barriers to travel employment investment trade 22 EU members use single currency Euro 2 Lithuania Estonia will adopt by 2011 o North American Free Trade Agreement NAFTA 1993 Good for Business Eliminated barriers to free trade tariffs import licensing requirements customs user fees United States Canada and Mexico 1993 2004 US Mexico trade up 110 US Canada trade up 101 How Organizations Go Global Read in Book o o Global Sourcing purchasing materials or labor from around the world wherever it is cheapest o Exporting making products domestically and selling them abroad o Importing acquiring products made abroad and selling them domestically o Licensing an organization gives another organization the right to make or sell its products using its technology or product specifications o Franchising an organization gives another organization the right to use its name and operating methods o Strategic Alliance a partnership between an organization and one or more foreign company partner s in which both share resources and knowledge in developing new products or building production facilities o Joint Venture a specific type of strategic alliance in which the partners agree to form a separate independent organization for some business purpose o Foreign Subsidiary directly investing in a foreign country by setting up a separate and independent production facility or office Managing in A Global Environment o National Culture Shared values and attitudes Shapes behavior and beliefs about what is important May have more influence on an organization than the organizational culture Cultural Context o How meaning is communicated Physical cues Environmental stimuli Implicit understandings o High context culture majority of message is communicated indirectly nonverbally o Low context culture majority of message is communicated directly in words o High Context and Low Context Cultures o High context cultures Japan China Arab countries relational collectivist Intuitive contemplative Video Gung Ho Highlights cultural differences between Americans Japanese Power Difference o America is low power distance expectation of equality o Japan is a high power distance country expected to treat people of higher status differently o Sports metaphors different in different cultures o Japanese ethnocentric attitude Trying to create collectivistic society but Americans are individualistic o Low context cultures North America Scandinavia Germany logical linear action oriented o High Know the Ends o Japanese Arab Latin American Spanish English Italian French North American Scandinavian German Swiss o Low The GLOBE Framework for Assessing Cultures 1993 o Assertiveness o Future orientation o Gender differentiation o Uncertainty avoidance o Power distance o Individualism collectivism o In group collectivism o Performance orientation o Humane orientation Contemporary Issues o Cultural Intelligence cultural awareness and sensitivity skills o Global Mind Set attributes that allow a leader to be effective in cross cultural environments A Global Mindset International Business Ethics o Ethical standards not universal Social and
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