COMM1150 Week 1 Intro - Sociocultural Lens Final PDF

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6/3/2021

COMM1150 Global Business Environments

Introduction & Socio-Cultural Lens Associate Professor Hokyu Hwang

If you are online: • Please switch your microphone to mute to avoid disruption to the class • Use the chat channel to ask questions or make a comment, or raise your 'virtual' hand • If you have poor internet, turn off your video • Wait for your lecturer to start

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This week: • • • • • • •

Introducing COMM1150 Globalisation and Global Environments Significance of Borders and Boundaries Multiple Environments and Their Complexity Levels and Lenses Framing Issues and Problems using Lenses and Levels COMM1150 Logistical Matters

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This week: Learning outcomes: • Examine the many dimensions of globalisation • Appreciate the complexity of global business environments • Understand the ideas of levels and lenses as heuristic devices for making sense of global business environments • Framing contemporary issues and problems using levels and lenses

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This week’s to-do list: • Work through online learning content and activities • Please make sure to attend the tutorial this week. • For the tutorial: • Read Tsedal Neeley’s “How to Successfully Work Across Countries, Languages, and Cultures” and Gregory C. Unruh and Ángle Cabrera’s “Join the Global Elite”. • Please come to the tutorials with some questions you have about the articles. You will be discussing these questions in small groups.

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INTRODUCING COMM 1150 AND CONNECTION TO COMM1100 • Shifting focus from micro to macro • COMM1100 is about decision making, but decision making takes place in a context, which changes • COMM1150 is about context, particularly global business environments • In this course, we aim to build strengths in • Analytical approaches to addressing complex, dynamic problems and issues • Enquiry-based and activity-led teaching strategies.

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First Year BCom

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COMM1100: Decision Making

Decision

Action

Performance

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COMM1150: Global Business Environments Contexts (Environments)

Decision

Action

Performance

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Context + Decision/Action = Performance/Outcome

COMM1150

Context Performance

& Outcome COMM1100

Decision & Action

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Logis Logistic tic tical al matt matte ers • Course coordinator: Dr. Heather Crawford • Lecturers: • Associate Professo Hokyu Hwang • Dr. Scott French • Dr Jink Trevallian • Lectures and Weekly Summation Sessions: • Tuesday, 16:0 17:30 • Wednesday, 11:0 12:30 • Friday, 16:0 16:30 • Please make sure to attend your first tutorial this week. • Please direct your questions and queries to: [email protected] • We would like everyone to do well in this course. The first step is your feedback. Please don’t hesitate to let us know if there is a concern and please do it at the EARLIEST moment possible so that we can address it and improve your experience in the course.

• A few things about me… • Trained as a sociologist at the University of California, Berkeley (BA) and Stanford University (MA and PhD) in the US. • I taught at the University of Alberta Business School before joining the Business School. • The formal organization (such as governments, law firms, investment banks, high tech industries and firms, universities, and the nonprofit or no fo profit sector). • Globalization and Organisation

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Why do we need to care about global business environments? What does globalisation mean to you?

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Globalisation and Its (Many) Dimensions • Political globalisation • The basic structure of the contemporary world: the world of nation-states • An acephalous world society: the associational nature of the global world • Framework for our understanding of globalisation: borders and boundaries

• Economic globalisation • Increasing rates of cross-border transactions • Greater interdependence of countries, industries, organisations, and people

• Cultural globalisation • Diversity of cultures • Culture of globalisation (Progress and Justice)

• Climate change and sustainability • One world? • The United Nations Sustainable Development Goals

• Other dimensions/aspects of globalisation?

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How many states in the world?

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From DHL Global Connectedness Index 2020

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International Business & Multinationals • International business consists of all commercial transactions that take place between two or more countries • International business refers to business activities that straddle two or more countries • A multinational enterprise (MNE) or multinational corporation is a business that has productive activities in two or more countries. • Multinationals are “rootless cosmopolitans” (Martin Wolf in Why Globalization Works) • More of a mindset or mentality?

MNC International new ventures

MNE

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Firm internationalisation ‘transforming from a domestic to multinational firm’

❑Through internationalisation, domestic firms become multinationals expanding their geographic reach and mindsets. ❑The process by which firms establish and conduct transactions with firms and customers in other countries, and international operations have an increasing influence on their future.

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Ubiquitous and Powerful Multinationals

From https://foreignpolicy.com/2016/03/15/these-25-companies-are-more-powerful-than-manycountries-multinational-corporate-wealth-power https://theconversation.com/who-is-more-powerful-states-or-corporations-99616

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A Large Multinational Enterprise Country D

Country C Affiliate 2

Affiliate 3

Affiliate 1

Global Supplier sourcing

HQ (Parent) Affiliate 4

Country B

Country A 19

What’s in an iPhone?

The Economist, Aug 10, 2011, slicing an apple

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Toyota’s Global Presence in Manufacturing circa 2012

https://www.toyota-global.com/company/history_of_toyota/75years/data/conditions/facilities/companies/coordinating.html

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Intergovernmental and International Non-governmental Organisations • Intergovernmental organisations (IGOs) • are entities by treaties among two or more countries to cooperate on common interest. • Mechanisms for the world’s nation-states to work together for peace and security as well as economic, social, and environmental questions. • Rule setters of global orders • E.g., the United Nations (UN), the World Trade Organization (WTO), the European Union (EU), etc.

• International non-governmental organisations • International NGOs are NGOs that receive funds in more than one country (i.e., United Kingdom, Sweden, Canada, etc.) and either fund or directly manage programs in several other low and lower middle income countries.

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https://www.oecd.org/gov/r egulatory-policy/irc4.htm

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UNDP, Working with Civil Society Organizations in Foreign Aid

(Paxton et al. 2015)

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Globalisation involves the multiplication of players or actors in global ”space” (States, MNEs, IGOs, and INGS) and their activities and engagement in an increasing array of areas….

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Global Business Environments

https://www.economist.com/graphic-detail/2021/02/02/global-democracy-has-a-very-bad-year

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Zooming in: Significance of Boundaries

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Global Business Environments: Levels, Lenses & Complexity

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• COMM1150 shifts your attention from an immediate decision-making context to the complexity that exists in (increasingly) global business environments. • As we imagine ourselves working and operating in a global environment, two notions become particularly salient and useful: Levels and Lenses. • We can think of phenomena as occurring at different levels of reality. • We can think of the main feature of levels as the scope of phenomena encompassed. • For example, a car accident on Anzac Parade is a local phenomenon, but a ship blocking the Suez canal, in certain ways, is a global phenomenon. • Global environments consist of several dimensions requiring different lenses to see and understand them. • Socio-cultural Lens • Political-legal Lens • Economic Lens • Sustainability Lens 29

Macro

The World

Global Zooming out

Phenomenon

Levels

International Regional Blocs (e.g., the European Union)

National

Climate Change

Brexit

Your examples? _________

_________

Nation-state (Country)

Official Cash (Interest) rate

_________

States/Provinces

State border control during COVID

_________

Regions within States/Provinces

Rural development

_________

Cities

Sydney real estate market

_________

Group/Organisation

# of Women in Leadership at UNSW

_________

Zooming in Local Micro

Individual

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• Global business environments are complex. • Heterogeneity: as we move from one locale to another, we are more likely to experience different environments (e.g., moving from South Korea to Papua New Guinea). • In an inter-connected world, phenomena could move across levels and involve several dimensions. • A Suez canal accident could have been a local incident, but the length of time meant that everyone in the globe felt the effect of the accident. And the effect was probably more than economic.

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Different Notions of “Environment” or Context at Different Levels

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The Complexity of Macro-environment(s)

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Even More Complexity: An Multinational Enterprise’s environment(s)

Host country

Host country

Domestic environment

Home country (Ball et al. 2008)

Foreign environment International environment

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The Global Environment

Host Country

Host Country

Region1

Home Country

Host Country

Host Country

Region 2

Host Country

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Global Operation across Levels of “Environment” Different Kinds/Levels of Environment • Domestic Environment • Foreign Environment • International/Transnational Environment • Global Environment

https://www.ibm.com/blogs/think/2017/05/41097/

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Complexity in International Business: Coca-Cola in Japan

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Zooming in and out of Levels and across Lenses Let’s start with a few questions….

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Zooming out: Human Progress in One Chart

Social development: “a group’s ability to mater its physical and intellectual environment to get things done”: Energy capture, organization, war-making capacity, and information technology. From Ian Morris, Why the West Rules… for Now.

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Zooming in: Differences and Inequality across Income Levels

https://www.gapminder.org/

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Zooming out: Environmental Costs of Development?

https://www.economist.com/graphic-detail/2020/09/28/human-beingsare-wreaking-havoc-on-the-earths-biodiversity

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Zooming in: Environmental Costs of Development?

https://www.economist.com/graphic-detail/2020/09/18/thebusiness-of-climate-change

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Sustainability and Zooming out: The United Nations Sustainable Development Goals • Targets for global development adopted in September 2015 as part of the 2030 Agenda for sustainable development • A blueprint for shared prosperity in a sustainable world: “a world where all people can live productive, vibrant and peaceful lives on a healthy planet.” • Agreed by all members of the United Nations • “17 Goals for People, for Planet” • Defined in 169 SDG Targets • Progress toward these goals are tracked by 232 unique indicators • 10 years leading up to 2030 is declared “Decade of Action”-10 years to transform our world.

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SDG 14: Conserve and sustainably use the oceans, seas, and marine resources •Targets •14.1 Reduce marine pollution •14.2 Protect and restore ecosystems •14.3 Reduce ocean acidification •14.4. Sustainable fishing •14.5 Conserve coastal and marine areas •14.6 End subsidies contributing to overfishing •14.7 Increase the economic benefits from sustainable use of marine resources •14. A: Increase scientific knowledge, research and technology for ocean health •14. B: Support small scale fishers •14. C: Implement and enforce international sea law •Some of these targets are explicitly global (ecosystems, ocean acidification, etc.) while others are local and global. Many touch on several dimensions (political, economic, cultural, etc.)

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The Globalisation of Sushi: Zooming in and out

https://foreignpolicy.com/2009/11/19/how-sushi-wentglobal/#:~:text=The%20tuna%20trade%20is%20a,regulation%3B%20shifting%20markets%3B%20and%20the

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The Globalisation of Canned Tuna: Zooming in and out

https://www.usp.org/sites/default/files/usp/document/ourwork/foods/food_auth_whitepaper.pdf

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Levels and Lenses

A few more questions?

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Re-cap • Global Business Environments:From decision making to the context of decision making • Globalisation • Many dimensions • Complex • Dynamic

• "Levels" and "lenses" as heuristic devices to: • Make sense of complex global business environments • Frame problems and issues

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Next week: • Next week, we will discuss the socio-cultural lens--the first of the four lenses we will be exploring this term. • Lecturer: • Weeks 1-4: Associate Professor Hokyu Hwang

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Thank you If you have any questions about the course, please contact the Course Coordinator. If you have any questions about the lecture, please contact the Lecturer. The lecture recording will be available in your Moodle course site. Contact details: Course Coordinator: Dr Heather Crawford, [email protected] Lecturer: A/Prof Hokyu Hwang, [email protected] Course site: https://moodle.telt.unsw.edu.au/course/view.php?id=60105

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