BMGT 364 Session 11 - Global Mgmt

BMGT 364 Session 11 - Global Mgmt - BMGT 364 Management and...

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© Copyright 2011 Global Management BMGT 364: Management and Organizational Theory Fall 2011; Session 13 Gosia A. Langa Department of Management & Organization
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© Copyright 2011 What international  management strategies  might companies adopt? What is societal culture and  how does it impact global  business? What issues face  expatriates and their  families? Agenda
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© Copyright 2011 It’s Easy to Operate Overseas, Right?
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© Copyright 2011 Pursuing organizational objectives in international and cross- cultural settings.” Global Management Stage 1 : Exporting –  Goods produced in one country are sold to customers  in foreign countries. Stage 2: Cooperative Contracts (i.e., licensing/franchising) – Authorizing  companies in foreign countries to produce and/or market a given product  within a specified territory in return for a fee. Stage 3: Strategic Alliances (e.g., joint venture) – Companies combine key  resources, costs, risk, technology, and people. Stage 4: Wholly Owned Affiliates – Foreign offices, facilities, and  manufacturing plants that are 100 percent owned by the parent company.
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© Copyright 2011 From Global to Transnational Companies Global Company  A multinational venture centrally managed from one country Has global strategies for product design, financing, purchasing,  manufacturing, and marketing Examples: Coca-cola, Wal-Mart, McDonalds http://www.youtube.com/watch?v=mja3b56pSmw
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© Copyright 2011 From Global to Transnational Companies Transnational Company  A global network of productive units with a decentralized authority  structure and no distinct national identity Relies on a blend of global and local strategies Examples: GM, Ericsson, MTV http://www.youtube.com/watch?v=OGA8s8PeDLA
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© Copyright 2011 “MTV in one country looks very little like MTV in another. In India MTV is  colorful, full of humor, a lot of street culture. China’s is about family values,  nurturing, a lot of love songs. In Indonesia, with our largest Islamic 
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