Professional Documents
Culture Documents
Ch 11 -1
Ch 11 -2
Global/International Issues
Sad but true, U.S. businesspeople have the lowest foreign language proficiency of any major trading nation. U.S. business schools do not emphasize foreign languages, and students traditionally avoid them. - Ronald Dulek
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 11 -3
Global Issues
Global considerations impact virtually all strategic decisions A world market has emerged It is difficult for a firm to survive relying solely on domestic markets
Multinational Organizations
Social Cultural Demographic Environmental Political Governmental Legal Technological Competitive opportunities and threats
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Gain new customers Absorb excess capacity, reduce unit costs, and spread economic risks Allow firms to establish low-cost production facilities Competition may be less intense
Ch 11 -6
Reduced tariffs, lower taxes, and favorable political treatment Joint ventures can enable firms to learn new technology, culture, and business practices Economies of scale Power and prestige in domestic markets may be significantly enhanced
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Foreign operations could be seized Different and often little-understood social, cultural, demographic, environmental, political, governmental, legal, technological, economic, and competitive forces Weakness of competitors overestimated Different language, culture, and value systems Understanding of regional organizations needed Dealing with two or money systems
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How
Corporations are obtaining customers globally Markets are shifting rapidly and converging in tastes, trends, and prices Innovative transport systems are accelerating transfer of technology Nature and location of production systems are shifting
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Protectionism
Countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people
Ch 11 -11
Globalization
Globalization:
A Weak Economy
Recession
Many countries have recently experienced a recession Unemployment rates are high across the U.S. and around the world
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Cultural Differences
Time Space Family roles Religious factors Family time Values Eating Rules of etiquette Importance of relationships
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Participatory management Most workers are unionized More frequent vacations and holidays Guaranteed permanent employment common Workers often resent pay for performance, commissions, and objective measurement and reward systems
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First names are not generally used in business Extended periods of silence are important A sale is the beginning, not the end of a relationship Resting, listening, meditating, and thinking are considered productive
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Low tolerance for adversarial relations or friction at work Employers are paternalistic Workers do not expect self-expression or initiative at work Businesses stress collectivism, continuity, cooperation, belongingness, formality, and doing exactly what you are told Rarely entertain business associates at homes
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Preserving ones honor, saving face, and looking important are valued Opinions expressed by employees are often regarded as back talk Supervisors are viewed as weak if they explain the rationale for their orders to workers Mexicans often do not follow rules Life is slower in Mexico, tardiness is common
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Importance of group loyalty and consensus called Wa Constant discussion and compromise Silence is a plus in formal meetings When confronted with disturbing questions, managers often remain silent Managers are reserved, quiet, distant, introspective, and other oriented
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Italians, Germans, and French do not soften up executives with praise before a criticism Israelis are accustomed to fast paced meetings British executives complain that Americans chatter too much Europeans feel that they are being treated like children when asked to wear nametags
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Executives in India are used to interrupting each other In Malaysia and Japan periods of silence are appropriate, no silence is needed in Israel How was your weekend? is considered intrusive by many business people
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US and Japan 38% Asia-Pacific Region 30% Germany 30% Great Britain 28% France 27% Europe 26% Ireland near 0% Former Soviet-Bloc nations near 0%
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India
Debt is 80% of GDP Gap between rich and poor widening Middle class is growing
Ch 11 -24
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Ch 11 -26