Professional Documents
Culture Documents
the Global
Environment
chapter six
Learning Objectives
1. Explain why the ability to perceive, interpret, and
respond appropriately to the global environment is
crucial for managerial success
2. Differentiate between the global task and global
general environments
3. Identify the main forces in both the global task and
general environments, and describe the challenges
that each force presents to managers
6-2
Global Organizations
Global Organizations
Organizations that operate and compete not only
domestically, but also globally
Uncertain and
unpredictable
6-4
6-5
Figure 6.1
6-6
6-7
6-8
6-9
Global Outsourcing
Global Outsourcing
The purchase or production of inputs or final
products from overseas suppliers to lower costs
and improve product quality or design.
6-10
6-11
Identifying an
organizations main
customers and
producing the goods
and services they want
is crucial to
organizational and
managerial success.
6-12
6-13
6-14
Barriers to Entry
Economies of scale
Cost advantages associated with large operations
Brand loyalty
Customers preference for the products of
organizations currently existing in the task
environment.
6-15
Figure 6.2
16
6-17
6-18
6-19
6-20
Sociocultural Forces
Social structure
the traditional system
of relationships
established between
people and groups in
society
National culture
the set of values that a
society considers
important and the
norms of behavior
that are approved or
sanctioned in that
society.
6-21
6-22
6-23
Figure 6.3
6-24
Process of Globalization
Globalization
The set of specific and general forces that work
together to integrate and connect economic,
political, and social systems across countries,
cultures, or geographical regions so that nations
become increasingly interdependent and similar.
6-25
Financial
capital
Resource
capital
Political
capital
6-26
6-27
Example - WTO
The World Trade Organization (WTO) is the only
global international organization dealing with the
rules of trade between nations.
At its heart are the WTO agreements, negotiated and
signed by the bulk of the worlds trading nations and
ratified in their parliaments.
The goal is to help producers of goods and services,
exporters, and importers conduct their business.
6-28
6-29
Culture
Language barriers and cultural practices made
managing overseas businesses difficult
6-31
6-32
6-33
Figure 6.4
6-34
Collectivism
A worldview that values subordination of the
individual to the goals of the group and adherence to
the principle that people should be judged by their
contribution to the group
6-35
6-36
Nurturing orientation
A worldview that values the quality of life, warm
personal friendships, and services and care for
the weak.
6-37
Short-term orientation
A worldview that values personal stability or
happiness and living for the present.
6-39
6-40