Professional Documents
Culture Documents
Chap3 PDF
Chap3 PDF
Chap3 PDF
Chapter 3
Ethnocentric, polycentric
and geocentric attitudes toward
global business
Discuss the importance of regional
trading alliances and global trade
machines
Describe
the
structures
and
techniques organizations use as they
go international
Explain
the
relevance
of
the
political/legal, economic and cultural
environments to global business.
Ethnocentric Attitude
Belief that home country has the best work
approaches and practices (Parochialism)
Polycentric Attitude
View that managers in host country know the
best approaches and practices
Geocentric Attitude
A world-oriented view that focuses on using
the best approaches and people from around the
globe
2. Global
A firm that centralizes its management
and other decisions in the home country.
Ethnocentric Attitude Parochilistic
Exporting to
or importing
from foreign
countries
Low
Hiring foreign
representation
or contracting
with foreign
managers
Licensing/
Franchising
Strategic
Alliances
Foreign
Subsidiary
High
EXPORTING
LICENSING
IMPORTING
FRANCHISING
STRATEGIC ALLIANCE
FOREIGN SUBSIDIARY
JOINT VENTURE
Exporting
Making products at home and selling them
overseas
Relatively low-investment strategy
Importing
Selling products at home that are made
overseas
Both exporting and importing are small steps
toward being a global business and involve
minimal investment and minimal risk.
and Franchising
Licensing (manufacturing
organizations)
Franchising (service organizations)
Foreign Subsidiaries
Direct investment in a foreign country by setting up
a foreign subsidiary, a separate and independent
production facility or office.
National Culture
Values and attitudes shared by individuals
from a specific country that shape their
behavior and their beliefs about what is
important
May have more influence on an organization
than the organization culture
Individualistic/Collectivistic
Achievement/
Nurturing
High/ Low Uncertainty avoidance
High/ Low Power distance
Long Term Orientation/ Short Term
Orientation
THE CHALLENGE
MANAGEMENT
OF
GLOBAL