International Management and Globalization

Jared Houghton,Tanner Pearson, Christie Jacinto, Cara Christensen, McKay Perry, Amy Christensen, Cody Eddington

! Economic Development Institution ! Political-Legal Institution ! Physical Infrastructure Institution ! Importance of Institutional Environment

Institutional Environment

Culture

International Market-Entry Strategies

1. 2. 3. 4. 5. Export product/service License product/service Create strategic alliances Purchase a local firm Create wholly-owned subsidiary

! Cost/benefit analysis

Exporting

! Manufacture inside, send out ! New messaging ! Low cost, Low benefit

Licensing

! Sell manufacture and marketing rights ! Medium Cost , Variable (Medium) Benefit

Strategic Alliances

! Joining of two firms ! Shared costs and benefits ! "Joint venture" ! Medium/High Cost, Medium/High Benefit

Acquisitions

! Cross-border
acquisitions
o!

! Quick
o!

40-50% of acquisitions Lenovo-IBM success

! Controversy

Establishing New, Wholly Owned Subsidiaries

! Greenfield Venture
o!

100% ownership

! eBay EachNet
o!

failure in China

! Starbucks
o!

successful brand presence

Managing International Operations

Taking a Global Focus

-Managing a company in the same way for every location Examples: Cemex, Apple

Taking a Region/Country Focus

-Managing a company depending on its location Examples: Carrefour, Walmart

Taking a Transnational Focus

-Doing most of the management from the home base but letting region managers have some say depending on the location Examples: McDonalds, H&M, Most chain food companies

Managing Across Cultures

https://www.youtube.com/watch?v=pkdfIwx5NFI

Cultures Influence:
1.!Behavior 1.!Perceptions

of Appropriateness

Largest Impact:
Trust Effectiveness

Calling All Future Managers!

Develop global mindset Learn collaborative skills Gain experience with multicultural situations