Professional Documents
Culture Documents
Mcgraw-Hill © 2003 The Mcgraw-Hill Companies, Inc. All Rights Reserved. Mcgraw-Hill © 2003 The Mcgraw-Hill Companies, Inc. All Rights Reserved
Mcgraw-Hill © 2003 The Mcgraw-Hill Companies, Inc. All Rights Reserved. Mcgraw-Hill © 2003 The Mcgraw-Hill Companies, Inc. All Rights Reserved
Mcgraw-Hill © 2003 The Mcgraw-Hill Companies, Inc. All Rights Reserved. Mcgraw-Hill © 2003 The Mcgraw-Hill Companies, Inc. All Rights Reserved
McGraw-Hill
6-2
Chapter
6
McGraw-Hill
International
Management
6-3
Learning Objectives
After
why
McGraw-Hill
6-4
how
McGraw-Hill
6-5
environment
becoming
International
McGraw-Hill
6-6
unification
European
Union (EU)
McGraw-Hill
Rim
important
Asia-Pacific
McGraw-Hill
trying to:
6-7
6-8
America
North
McGraw-Hill
6-9
of the world
globalization
Middle East
Africa
Latin America
these
McGraw-Hill
6 - 10
the
foreign
major investments have been among the U.S., Europe, and Japan
imports
companies
McGraw-Hill
8,000
6,000
Billion $
6 - 11
Net
4,000
2,000
0
-2,000
2001
1982
McGraw-Hill
Years
6 - 12
United States
investment abroad
Foreign direct
Investment in U.S.
$1,381,674
$1,321,063
Canada
139,031
108,600
Europe
725,793
946,758
269,556
58,881
Africa
15,872
3,264
Middle East
12,643
6,039
216,501
197,522
All countries
6 - 13
opportunities
the
environment is more competitive - must deal with costefficient overseas competitors in addition to domestic
competition
an increasing number of medium-size and small firms also
engage in international trade
McGraw-Hill
6 - 14
Global Strategy
Pressures
universal
pressures
global
threats
McGraw-Hill
6 - 15
consumer
countries
differences
McGraw-Hill
6 - 16
Organizational Models
High
Global
Views the world as a single market.
Operations are controlled centrally
from the corporate office.
Transnational
Specialized facilities permit local
responsiveness. Complex
coordination mechanisms provide
global integration.
Low
International
Uses existing capabilities to
expand into foreign markets.
Multinational
Several subsidiaries operating as
stand-alone business units in
multiple countries.
McGraw-Hill
Low
High
Pressures for local responsiveness
2003 The McGraw-Hill Companies, Inc. All rights reserved.
6 - 17
a global strategy
international
McGraw-Hill
6 - 18
multinational
McGraw-Hill
6 - 19
global
McGraw-Hill
6 - 20
transnational
McGraw-Hill
6 - 21
Entry Mode
Exporting
most
disadvantages
McGraw-Hill
6 - 22
advantage
market
disadvantage - may lose control of technological expertise to
the overseas company
McGraw-Hill
6 - 23
to licensing
used primarily by service companies
company sells limited rights to use its brand name
franchisee
franchisor
advantage - similar to that of licensing
disadvantage - quality control may suffer
McGraw-Hill
6 - 24
ventures
formal
disadvantages
McGraw-Hill
6 - 25
owned subsidiaries
an
disadvantages
McGraw-Hill
6 - 26
Disadvantages
Advantages
Wholly
owned
subsidiary
Exporting
Licensing
Scale
economies
Lower
development
costs
Lower
development
costs
Local
knowledge
Consistent
with pure
global strategy
Lower political
risk
Lower political
risk
Loss of control
over technology
Loss of control
over quality
No low-cost
sites
High transportation costs
Franchising
Joint
Venture
Loss of control
over technology
Maintains
control over
technology
High cost
Tariff barriers
McGraw-Hill
6 - 27
expatriates
host-country
third-country
McGraw-Hill
6 - 28
shortage
technical capability
personal and social issues
spouses inability to adjust to new surroundings
adjustment
McGraw-Hill
6 - 29
expatriates
Anticipate repatriation to facilitate reentry when they
6 - 30
cultural issues
represents
McGraw-Hill
6 - 31
Meetings
Feedback
Easing
Adjustment
Fast-trackers
McGraw-Hill
Work(aholic)
schedules
E-mail
2003 The McGraw-Hill Companies, Inc. All rights reserved.
6 - 32
issues
codes
core
McGraw-Hill
6 - 33
Train employees
to apply values
Establishing
And
Reinforcing
Code
Evaluate ethical
performance
McGraw-Hill
Inform business
partners of
standards
2003 The McGraw-Hill Companies, Inc. All rights reserved.
6 - 34
Ethical Dilemma
A company paid a $350,000 consulting fee to a foreign official. In
return, the official promised assistance in obtaining a contract that should
produce a $10 million profit for the contracting company. The
percentage of respondents who said the payments were:
Always acceptable
18.5%
Never acceptable
49%
32.5%
Sometimes acceptable
McGraw-Hill