Management

GLOBAL ATTITUDES

To protect free trade, we have several organizations:

WTO: World Trade Organization.

IMF (FMI): International monetary firm

World Bank Group

OECD: Organization for Economic Corporation and Development.  

MNC: A Multinational Company organization, which maintains operations in 2 or more countries.

Questions to be answered: which countries should be in? What products or service should we offer? How do we enter the selected market?

Global Organization has is Ethnocentric,

Multidomestic Organization has a polycentric attitude

Transnational or Borderless Organization  has a Geocentric attitude (their best people are travelling)

What are the different ways to go global for a company?

When you’re a company in Spain, and you find that buying some things from India is less expensive than when you buy it locally, that’s when you go global.

Also, when you export a product, you’re going global. When you import products as well.

Also, a License or Franchise is a way to go global.

Joint Venture*: Company A has the money, Company B has the technology, and they form Company C, and they are both shareholders of this new company.

Environmental Factors:

• Politics:

• Governmental attitudes- greatly help or hurt;
•  Efficiency of government judicial system;
•  Government stability → Greatest impact on MNC’s

• Economics

• Income levels,
• Economic growth
• Inflations…

• Social:

• Levels of needs and means
• Attitudes of individuals regarding-work
• Hofstede’s 5 dimensions of National Culture Analysis

•Technology

Global Mind-set

1. Intellectual Capital : Knowledge of international business and the capacity to understand how business works on a global scale
2. Psychological Capital: openness to new ideas and experiences
3. Social Capital

What is organizational culture?

• Perception

• Descriptive

• Shared

The shared values and traditions, and the way things are done in an organization that influence the way their members behave.

Why have a strong culture?

• Employee performance

• Employee loyalty

• Employee satisfaction

The stronger the culture, the more it affects how managers plan, organize, lead and control.

8 dimensions that describe an Organization’s Culture: