CHAPTER 18 INTERNATIONAL MANAGEMENT © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 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 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 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 Nature of international management Orientations towards international management: • Ethnocentric • Polycentric • Regiocentric • Geocentric © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Nature of international management Orientations towards international management: Ethnocentric Ethnocentric (home-country) (home-country) orientation orientation Polycentric Polycentric (host-country) (host-country) orientation orientation Regiocentric Regiocentric (regional) (regional) orientation orientation Geocentric Geocentric (world) (world) orientation orientation © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Assessing the international environment 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 Assessing the international environment Less developed Developed countries countries (LCDs) Newly industrialised countries (NICs) Exchange Rate Balance of Trade Economic Element Infrastructure Balance of payments © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Assessing the international environment Expropriation Political risk Indigenisation laws Legal-Political Element Administrative protections Import quotas Tariffs © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Assessing the international Power distance environment Cultural differences Individualismcollectivism Sociocultural element Technological element Long-term orientation Achievementnurturing orientation Short-term orientation Technological transfer © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 10 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 11 Gauging strategic issues Methods of international Entry Exporting Licensing Strategic alliance Whollyowned subsidiary Methods of international entry Globalisation National responsiveness Regional responsiveness Multifocal emphasis © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 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 13 Adapting to cultural differences Assignment policies Repatriation Managing international human resources Selection & training Recruitment Adjusting Leadership styles © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 14 Social responsibility & ethical issues Questionable payment issues political payments bribes extortion International Social responsibility sales commissions expediting payments © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 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 16 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 17 [...]... expediting payments © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 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... Australia Pty Ltd PowerPoint 16 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 17 ... McGraw-Hill Australia Pty Ltd PowerPoint 13 Adapting to cultural differences Assignment policies Repatriation Managing international human resources Selection & training Recruitment Adjusting Leadership styles © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 14 Social responsibility & ethical issues Questionable payment issues political payments bribes extortion International Social responsibility sales commissions... Strategic alliance Whollyowned subsidiary Methods of international entry Globalisation National responsiveness Regional responsiveness Multifocal emphasis © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 Organising international business • • • • • • World-wide functional divisions World-wide product divisions International divisions Geographic regions Global matrix Networked structure © 2003 McGraw-Hill Australia...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 11 Gauging strategic issues Methods of international Entry Exporting Licensing Strategic