Management in a global environment PDF

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Management notes in global environments, international viewpoints, regional trade alliances, trade agreements, global trade organizations, as They do global business, the types of global organizations and how management is given under these scenarios. ...

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MANAGEMENT IN A GLOBAL ENVIRONMENT Zara's example illustrates that the world market presents opportunities and difficulties for the managers. With everyone as a market, and when the Borders They lose their relevance, the potential for expansion of organizations like Zara Increases markedly. In a study of 1250 very, heterogeneous American companies It was found that the sales growth of companies operating in several countries It is double and much more profitable than purely domestic companies. The Global opportunities They expect managers to exploit them. Whatever it is, and as the initial dilemma emerges, even organizations Large and successful with gifted managers face difficulties in managing the environment Global. New competitors suddenly appear in any part of the world. The most Important is that managers should deal with cultural, economic and political differences. Cultural and political differences have gained renewed importance after September 11th and have posed major problems to managers of global organizations that They have to deal with uncertainties, fears and anxieties. Managers who do not watch closely Changes in the global environment or that do not consider the peculiarities of the place Where they are when they plan, organize, manage and control they will have only one Limited global success. What is your overall point of view? It is not uncommon for Germans, Italians or Indonesians to speak three or four languages. The Japanese children begin to study English in the first grades of primary school. By On the other hand, American children only study English at school. The Americans They think that English is the only language of international trade and not They appreciate the need to learn other languages. Monolingualism is just one of the signs that a country suffers from Mentality Narrow, which is to contemplate the world only through its own Eyes and points of view. Narrow-minded people do not conceive that Others have other ways of living and working. This mentality is an obstacle Large of the managers working in a globalized business world. If managers They fall into the trap of ignoring the values and uses of others and apply rigidly to foreign cultures the idea that "ours is better than his", will have difficulty competing with other managers and organizations in the world That try to understand foreign customs and market differences. This selfsufficient and localist attitude is a of the positions that managers can take, not the only one. An Ethnocentric Posture It is the provincial idea that the best methods and practices of work are those of the country where the company's matrix is. Managers who are Adhere to this stance they think that foreigners do not have the skills, competence, Knowledge or experience than their countrymen. Would not trust foreign employees’ Fundamental decisions or technologies.

The Polycentric Posture Is the idea that the managers of the host country (the foreign country in which the organization does business) know the best methods and practices for Run their businesses. Polycentric Posture managers believe that operations Foreign are different and difficult to understand. So, they probably don't intervene in the facilities Abroad and let local employees determine the best way to do things. The last attitude to the world that managers can adopt is the Geocentric Posture, which is a cosmopolitan idea that you must take advantage of the best methods and Employees from all over the world. Managers with this stance think it's important to have A global viewpoint, both in the organization's matrix in the country and in Facilities located abroad. For example, the executive director of DecorCasa (fictitious name), fast growing home accessories factory, is an immigrant That describes the company's strategy as "combining Chinese costs With Japanese quality, European design and American marketing. " With the Posture The main topics and decisions are considered in global terms and are They look for the best methods, whatever their origin. Good global governance requires refining sensitivity to differences in National Customs and practices. The administrative practices that work in Chicago They may not serve in Bangkok or Berlin. Exposure of the GLOBAL environment LA administration is no longer constrained by national borders. Managers of organizations of all types and sizes have the opportunities and the difficulties of managing in a global environment. World trade is not new. For centuries they have traded countries and organizations. "Trade is essential for the Health, prosperity and social welfare of human beings. " Examples of trade Worldwide abound. When allowed That trade is unwrap freely, countries benefit from economic growth and productivity gains, because they specialize in producing the goods That better make and matter the ones that are made better in another side. Two forces shape To World trade: regional trade alliances and agreements negotiated through of the World Trade Organization. Regional trade Alliances Just a few years ago, global competition was rather between countries: The United States Against Japan, France against Germany, Mexico against Canada. Now the competition Has adopted a new form with the creation of regional trade agreements, Like the European Union, the Treaty North American Free Trade (NAFTA), the Association of Southeast Asian Nations (ANSA, Ansen) and others. The European Union The signing of the Maastricht Treaty, which is the name of the city The Dutch where it was signed in February 1992, created the European Union (EU), an entity Unified economic and commercial, originally of 12 Members: Germany, Belgium, Denmark, Spain, France, Greece, Holland, Great

Britain, Ireland, Italy, Luxembourg and Portugal. Three other countries: Austria, Finland and Sweden joined the group in 1995. In 2004, another 10 members were joined: Cyprus, Slovakia, Estonia, Hungary, Latvia, Lithuania, Malta, Poland and the Czech Republic. Two other countries (Romania and Bulgaria) could be added in 2007. The economic power it represents The EU is considerable. In its present dimensions, it covers a basic population of 375 million persons and 450 million when the 25 members are considered Current. Before the creation of the EU each country had customs, taxes and subsidies, political Nationalists and protected industries. Now, as a single market, there are no obstacles to Transit of people, employment, investment and trade. The EU took a huge step Towards total unification when 12 of the member countries became part of the Union The formal system in charge of the institution of the Economic and monetary Euro, the currency European. The main reason for the Union of these European nations was to reaffirm their position Economic versus the powers of the United States and Japan. European industries do not Could achieve the efficiency of Japanese and American companies working in Separated countries with barriers between each other. With its evolution, the EU ratifies its power Economy in one of the richest markets in the world. European companies will comply an important role in the global economy. For example, Unilever PLC, from England, it is a powerful force in consumer goods (return to questionnaire "Who has what?"), DaimlerChrysler AG, Germany, is a solid competitor in the sector Car, and Nokia, from Finland, is among those who dominate the market Cell phones. North American Free Trade Agreement (NAFTA) When the 12th August 1992 the Governments of Mexico, Canada and the United States established agreements in the key points of the North American Free Trade Agreement (NAFTA), A vast economic bloc was created. Between 1994, when NAFTA came into force, and 2001 (the Last year of which we have complete statistics), Canada and Mexico had become in the first and second trading partners of the United States, respectively. The Distant Third place was occupied by Japan. Eliminating barriers to free trade (tariffs, requirements for import licenses, customs tariffs) has strengthened economic power of the three countries. Other Latin American nations are forming free-trade blocs. Colombia Mexico and Venezuela led the trend when they signed a pact in 1994 Economical to eliminate tariffs and Tariffs. Now, 34 countries in the Caribbean region, South America and Central America negotiate a free trade area of America, which must Enter into force by 2005 at the latest. Another free trade bloc already works, the Common Market of the Southern Cone, or Mercosur. However, it faces serious problems, because many of the participating countries opt for the free trade Area of America, Bigger and more powerful. Association of Southeast Asian Nations (ANSA or ASEAN for their Acronym in English) The Ansa It is a trade alliance of 10 Southeast Asian nations. In the

coming years the region of South Asia promises to be one of the areas of the world's fastest growing. It will be an economic and political regional alliance whose impact It would rival that of NAFTA and the European Union. Other business Alliances In other parts of the world there are also alliances Regional commercials. For example, the African Union of 53 countries came into existence in July of 2002. The members of the Alliance intend to draw up a development plan and promote the union between the nations of Africa. As members of other business alliances, these countries hope to obtain from the association economic, Social, cultural and Commercial. The World Trade Organization Global growth and trade among nations do not occur alone. Systems are required and mechanisms for establishing viable business relationships. Indeed, one of the realities of globalization is that countries are interdependent, i.e. what happens in one affects other, be positive or negative. For example, the serious economic crisis of Asia in the late 1990 could have disrupted economic growth Around the world and have originated a recession, but it did not. Why? Because he had Mechanisms to prevent it, mechanisms that promoted world trade and prevented the crisis. One of the most important mechanisms is the multilateral system called Organization World Trade (WTO). The WTO was formed in 1995, as an evolution of the General Agreement on Tariffs and Tariffs (GATT), agreement that was in force since the Second World War. At present, The WTO is the only organization World That deals with the rules of trade Among the nations. Until April 4, 2003 it was made up of 146 countries. Understand Its core several trade agreements, negotiated and ratified by the vast Most of the nations that trade in the world. The goal of the WTO is to help Companies (importers and exporters) to do their business. Although noisy critics They have staged visible protests and have beaten the organization, stating that End jobs and the natural environment, the WTO plays an important role of surveillance and promotion of world trade. How global Business is done At two o'clock on Saturday afternoon, in the north of Moscow, a hypermarket opened by the French shop group Auchan is crowded with buyers. The McDonald's Corporation He says he's on the way to expand vigorously in China, though he already has More than 500 locales in 70 cities. Fabián Gómez, associate auditor of the Mexican brand of Deloitte Touche Tohmasu, a global accounting and service organization Business It says that "a good part of our business is to serve the subsidiaries International companies and executives come from elsewhere. "

As seen in these examples, organizations from different industries and different countries They look for opportunities all over the world. How do organizations do global business? Types of global organizations Organizations that trade around the world are nothing new. DuPont began to Doing business in China in 1863. H.J. Heinz Company made food products In England in 1908. For the decade of 1920 other companies, such as Fiat, Unilever and Royal Dutch/Shell, they had become multinational. But until the middle of the decade of 1960 the Multinational corporations (CMN) They became common place. These organizations, that maintain significant operations in several, Countries But they are directed from one single, they inaugurated the rapid growth of international trade. With his Method of control from the original country, the CMN is characteristic of the ethnocentric posture. Examples of companies that can be considered CMN are Sony, Deutsche Bank AG and Merrill Lynch. Although these companies have properties Considerable in the world, administrative decisions with implications for the entire Company are taken in the headquarters in the original country. Another form of global organization is the Transnational Corporation (CTN)Company Which maintains significant operations in more than one country, with decentralized direction in each one. This organization is not intended to repeat internal success by directing the Foreign operations from the matrix. On the contrary, it hires local employees to direct the company and marketing strategies adapt to the characteristics of each country. This global organization adheres to a polycentric stance. For example, the company Swiss Nestle is a transnational. With operations in virtually every country in the world, its managers make the products correspond with customers. In parts of Europe, nestle sells products that are not achieved in the United States or Latin America. Another example of transnational is Frito-Lay, a division of PepsiCo, which sells a brand Dorito In the English market, which tastes different and has a different texture than the versions Americans and Canadians. Many consumer goods companies manage their businesses Globally as a CTN because they must adapt their products and services to the needs of local markets. Many companies are globalized to eliminate structural divisions that impose barriers Artificial geographical. This is the Organizations Without Borders, which undertake Global business with a geocentric stance. For example, IBM abandoned its structure National organizational and was reorganized in industrial groups. Bristol-Myers Squibb changed Their consumer company to become more energetic in international sales and created a Directive position in charge of consumer medicines worldwide, such as Bufferin and Excedrin. The Spanish Telefónica eliminated the geographical divisions between the matrix of Madrid and its dispersed telephone companies. The company will organize according to lines such as Internet services, cell phones and mass media operations. Management Without Borders is an attempt by organizations to increase the Efficiency and efficiency in a competitive world market.

How organizations become global Organizations go through three phases when they are globalized. Each successive phase It requires more investment, and it entails more dangers. In the first phase, to take the first step towards globalization, directors decide Export The organization's products to other countries; Manufacture the products in the country and sell them abroad. The organization can also opt first By Import Products, which is to sell in the country products manufactured in the Foreign. Both export and import are small steps in the direction of the global company. Investment and risks are minimal. Most of the organizations They start their global businesses this way. Many, particularly companies Persist in export and import activities such as the way in which the that do global business. For example, the Haribhai's spices Emporium, a small Durban Company, South Africa, exports spices and rice to buyers from all over Africa, Europe and the United States. Other organizations have erected multi-million-dollar companies from Import and export. For example, what the gift company did Pier 1: Import Exotic products to sell in stores around the world. In the second phase, managers invest more in the sense that they are committed to selling Products abroad or make them in foreign factories, but still without their employees leaving the country. On the other hand, what is done on the sales side is to send employees on business trips to visit foreign customers or hire agents or Foreign corridors that represent the product line of the organization. Or, from the Manufacturing side, directors hire a foreign company that manufactures the Organization's products. The third phase represents the most intense effort of the directors to participate en World markets. LDirectors get it from several ways. The Licenses and the Franchises are methods sEmejantes, while the two Is that the organization grants the right to exploit its brand, technology or Product specifications in exchange for a full payment or a sales-based fee. The only difference is that the license is given by the Manufacturing organizations and the franchise Services. For example, Thai consumers can eat burgers Bob Big Boy, Filipinos can snack on a pizza from Shakey and the Malays You can eat a deli-sandwich from Scholtzky, all thanks to the franchises in those Countries. Anheuser-Busch decided to grant the right to distill and market beer Budweiser to other breweries, such as Canada's Labatt, Mexico's model or Japan's Kirin. LAs Strategic Alliances are partnerships between an organization and a foreign company in which the two share resources and knowledge to develop products New or build manufacturing facilities. Partners also share the risks and rewards of the alliance. For example, IBM from United States, Toshiba from Japan and Siemens Germany formed an association to create new generations of chip Computer. A joint venture It is a form of strategic alliance in which partners They agree to form a separate and independent organization for some commercial purpose.

For example, Hewlett-Packard has numerous Joint ventures with various suppliers of Everyone to develop components for their computer equipment. These associations Give companies a way to compete globally, easier and cheaper, than Do it on your own. Finally, in the third phase directors can make an investment in another country by establishing a Foreign subsidiary, an office or installation Separate and independent manufacturing plant. This subsidiary is managed as CMN (national control), CTN (foreign control) or as an organization without Frontiers (global control). As you can imagine, this scheme requires the greatest commitment of resources and poses the greatest risks. By example, United plastics Group, from Westmont, Illinois, built three injection facilities of molds in Suzhou, China, and plans to build another three. Chuck Villa, Vice President Business development executive, says that this amount of investment is necessary Because "it fulfills our mission to be a global provider for our accounts World ". Management in a GLOBAL environment Imagine that he is a manager who goes to his job at the overseas branch of A global organization. You know that the environment will be different from your country. But different, How? What should you attend? Any manager who is abroad faces new difficulties. Although Our exhibition is presented through the eyes of an American manager, our analytical theoretical framework serves every manager who must manage in a strange way, whatever their nationality. The legal and political environment American managers are accustomed to legal systems and Stable politicians. Changes are slow and political procedures and legal are well established. Elections are held periodically. Changes in political parties after an election Do not produce transformations Radical or fast. The stability of the laws governing the acts of individuals and institutions allow Accurate forecasts. The same can be said of other countries. The Global organization managers should be kept informed of the Relevant laws in countries where they do business. Other countries have a history of unstable governments. There, the Business managers face great uncertainties by Cause of political instability. For example, political interference It is a fact in the life of some Asian countries. Many companies have postponed their business in China because the government It controls what organizations do and how they do it. However, To the extent that Chinese consumers gain more power it is to expect this situation to change. The legal and ...