...Selling Be Globalized? THE PITFALLS OF GLOBAL ACCOUNT MANAGEMENT David Arnold Julian Birkinshaw Omar Toulan T o international companies, there is something both inevitable and desirable about the trend towards globalization of the sales function, usually referred to as global account management. It is inevitable because major business customers are generally well down the road to globalization in supply chain management, and from their major suppliers worldwide they increasingly demand contracts with standardized terms in areas such as product specification, price, and service standards. It is desirable because the institution of global customer management is in line with trends like customer relationship management and building customer-centric organizations, ideas which currently hold much sway with top executives in many multinational corporations. However, vendor companies should think carefully before jumping on the global customer bandwagon. Such relationships can turn out to be quite different from expectations. In many cases, vendors find that the unanticipated costs outweigh the benefits. Over the last two years, we have conducted field research into global account management from the vendor's perspective in Europe and North America. In over half the corporations, we found management struggling to figure out how to make this system work. In many cases, the major change that resulted from classifying a customer as a global account was increased downward pressure...
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...unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. | | HRM5000-8 | S. Manlove | | | Human Resources Management | 6 | ------------------------------------------------- ------------------------------------------------- Faculty Use Only ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Identify The Elements Of Globalization To Determine Their Impact On The HR Function Marqueze Sawyers Northcentral University Introduction Human Resource mangers who want to be successful in global endeavors must posses a solid set of core...
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...1. What global attitude do you think characterized SAP prior to 2002? How do you know? What global attitude do you think most characterizes it now? Explain. Before 2002: Ethnocentric attitude. The parochialistic belief that the best work approaches and practices are those of the home country. Leo Apotheker as the second-in-command at SAP Software Company can speak several languages fluently and try to turn SAP into a dominant global player. But his perspective is not embraced by the rest of SAP, especially at company headquarters in Walldorf of Germany. Now: Geocentric attitude. A world-oriented view that focuses on using the best approaches and people from around the globe. SAP executives hired thousands of programmers in various foreign locations and SAP set eight global software labs. Besides, recruiting hundreds of foreign managers was happened in SAP Company. Top executives at SAP say that they will continue this practice. 2. Do some culture research on Germany, the United States, and India? Compare the culture characteristics of Germany and United States. What similarities and differences exist? How about with Germany and India. How might these culture differences be affecting the situation at SAP? American management style can be described as individualistic in approach, in so far as managers are accountable for the decisions made within their areas of responsibility. As has already been stated, India is an enormously hierarchical society (arguably the most...
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... Abstract Sustainability combines the principles of economic growth, environmental stewardship, governance, and social accountability. This Compare and Contrast analysis will introduce Managing Partner, David Blood's views on The Case of Sustainable Business. This review will include a brief description of what an International Manager may face in the business world and the duties of a successful International Manager. You will gain the knowledge of David's view, the International Manager, and how they relate. While corporate sustainability is not new, companies still fail to apply sustainability principals at the heart of the business. It should become part of the company's fabric and later an essential support for growth. David Blood, Managing Partner of Generation Investment Management, believes that putting together fundamental equity analysis and sustainability research throughout the process is a reasonable way to invest and provide superior returns to clients (Gresham College Lecture, 2008). He defines sustainability in both investing and business. I chose this video because it is about our future and how businesses could save the quality of life; this is what matters right now. It is very important in today's world because according to the United States Census Bureau, the population of the world as of this second is 7,080,247,340, in which one birth takes place every eight seconds (United States Census Bureau, 2013). This means we are using more and more resources...
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...become exceptional contributors. Outstanding leaders visualize success and work diligently to reach their goals. A manager is someone who oversees other employees to make sure that company goals are being met. A successful manager is not necessary a leader. Once managers learn what it takes to be a great leader, they will become exceptional managers. A manager has to plan, organize, lead, and control situations. This paper will explore the roles of management and leadership within Harrah’s Entertainment and discusses globalization and management across borders. Harrah’s Entertainment is a broad gaming corporation that owns and operates several casinos, hotels, franchise businesses, and golf courses under several brands. The company has numerous managers and great leaders that help to reach the goal of Harrah’s Entertainment. Managers in Harrah’s Casino go through numerous classes to make sure they are what the company is looking for. Managers are the backbone to Harrah’s Casino. The managers have to possess good leadership skills to be able to carry out their jobs. The managers with excellent leadership skills become directors and executives in the company. Managers that are promoted to director or executive of the casino have proven they have the skills, drive, desire, and knowledge needed to run a casino. A key factor to being an outstanding manager is the ability to listen. Being able to listen is a quality...
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...Overcoming Global Obstacles: Multicultural Management BUS600: Management Communications with Technology Tools Dr. Raj Singh April 23, 2012 Introduction As a result of globalization, the world in which we do business is increasingly becoming smaller and smaller. People are buying and selling goods, providing services, and communicating with others on a much more global scale. One hundred years ago it would have taken these people months to communicate, but today they can communicate with the press of a button. As our interactions with those from cultures much different than our own increases, communicating with one another creates obstacles we normally wouldn’t face when interacting with those from our own culture. This presents the peculiar problem for the business because it must train managers to effectively communicate within the constructs of different cultural norms and values. Communicating to others the importance of diversity in multinational corporations is a difficult task because it essentially involves asking others to reject the idea of their culture being superior to others. As O’Rourke (2010) points out, “failures in an overseas business setting most frequently result from an inability to understand and adapt to foreign ways of thinking and acting, rather than from technical or professional incompetence,” (p. 284). Regardless of difficulty, if a business...
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...Evolving Corporate Culture Report Evolving Corporate Culture Report Diversification of environment is the key to the growth in today's competitive global marketplace. No longer can America's organizations and corporations hide behind their lack of cultural intelligence. All organizations that seek global market relevancy means embracing diversity in elements such as how they perceive, think, act and innovate. Thus, they take into consideration all the factors that affect strategic planning and management. Corporate management is the process of leading, administrating and directing a company. Business tasks often performed by corporate management might include strategic planning, and managing company resources and applying them with a focus on attaining the company’s objectives. Expansion of global business space of an organization or a company can lead to amid challenges in its operations hence the need for change in corporate strategic management. For instance, the Equity Bank in Kenya was a local corporation initially but in the recent years, it has expanded its scope to other countries and states e.g. Uganda, Tanzania, Rwanda and Democratic Republic of Congo (DRC). This has led to the need for changes in its corporate operations due to large scope. Thus, it is true that its expansion has resulted in various changes; these include; change in strategic management, change in business planning, change in controlling and financial management, change in marketing management...
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...with local partners as Sweden is a fully liberalized economy that has removed obstacles preventing free flow of trade and investment. Mature investors and partners in Sweden can share similar modes of business operation, similar management style and similar accounting policies with this US retail giant. By making use of this legal form of association and partnership, Walmart can explore Swedish market without taking full risks and responsibilities and can gain new competitiveness through access to its partners’ financial resources, technical resources and other resources. By forming the mutual goals and objectives, all the participants and investors can work together to pool resources and to reduce the risk of failure. Global management skills Global managers and...
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...Proposal and Analysis of the Global Infrastructure Group Carl Grieser PJM 500 – Project Management Colorado State University – Global Campus Dr. Chiji Ohayia February 28th, 2016 Proposal and Analysis of the Global Infrastructure Group Introduction The Global Infrastructure Group, a subsidiary of the Global Financial Corporation, is an international conglomerate specializing in developing technologies and solutions for the Global Financial Corporation. This proposal for the Global Infrastructure Group will advise on what requirements the organization can best implement for a comprehensive project management system that can be used in a global organization that has small-, medium-, and large-scale projects. This proposal will address the following: The principal components of a project management system for a large-scale organization. These components will include: •Project Selection •Prioritizing Projects •Project Organization •Program Management •Planning and Scheduling •Estimating Cost •Monitoring and Controlling •Communication, Metrics, and Project Updates •Risk Management •Role of Information Technology Recommendations will include how Global Infrastructure Group can use project management principles to meet their goal of improving efficiency and empowering management to make better and informed decisions through the use of processes, tools, and standards in completing projects. Additionally, this proposal will discuss how an effective project management...
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...HOW IKEA MANAGES THE GLOBAL ENVIRONMENT Ikea is the largest furniture chain in the world, and in 2011 the Swedish company operated over 270 stores in 25 countries. In 2011 IKEA sales soared to over $35 billion, or over 20% of the global furniture market; but to its managers and employees this was just the tip of the iceberg. They believed IKEA was poised for massive growth throughout the world in the company decade because it could provide what the average customer wanted: well-designed and well-made contemporary furniture at an affordable price. IKEA’s ability to provide customers with affordable furniture is the result of the way it expands globally and operates its global store empire. In a nutshell, IKEA’s global approach focuses on simplicity, attention to detail, cost consciousness, and responsiveness in every aspect of its operation and behavior. IKEA’s global approach derives from the personal values and beliefs of its founder, Ingvar Kamprad, about how companies should treat their employees and customers. Kamprad, who is in his 80s (and in 2010 ranked as the 11th richest person in the world), was born in Smaland, a poor Swedish province whose citizens are knowns for becoming entrepreneurial, frugal, and hardworking. Kamprad definitely absorbed these values – when he entered the furniture business, he made them the core of his management approach. He teaches store managers and employees his values; his beliefs about the need to operate in a no-frills, cost-conscious...
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...Global Human Resource Management Learning Objectives After studying this chapter, you should be able to: Describe the drivers behind globalization in the early 21st century. Discuss the role that culture plays in determining the effective use of human resource management practices in a global organization. Identify critical HRM issues faced by multinational and global organizations when they conduct business in the international marketplace. Internet/Web Resources General Sites www.expatexchange.com www.ilo.org www.odei.gov/cia/publications/factbook/ index.html www.mexicomaquila.com www.gmacglobalrelocation.com www.shrm.org globalgateway.monster.com Company Sites www.globaldynamics.com www.nortel.com www.bp.com www.dell.com www.ballygaming.com www.nestle.com www.unilever.com www.fiat.com www.volvo.com Career Challenge Chapter 4 Global Human Resource Management 97 Boswell Technologies is a computer software development firm located in Akron, Ohio. Michael Carl, vice president for human resources at Boswell Technologies, has just returned from San Benedetto, Italy. It seems that Boswell is soon going to become Boswell International. The company has just acquired a successful software firm located in San Benedetto. The purpose of the acquisition was to quickly allow Boswell to become a premier supplier of new and innovative computer software in Europe. On his first day back in Ohio, Michael has been called into the office of Boswell’s president, David Randolf, to give...
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...increased each quarter along with gross profits. Analyzing just that data would presume that Global Business Solutions was doing fine. A product was brought to market and did sell earning the company money and market share. However, a closer look would find my excess capacity costs at upwards of 40% of the operating expenses. This expense cannot be sustained and must be lowered. Also, the cost of carrying unsold inventory of approximately $25,000 must be addressed. Although the company didn’t lose a sale to lack of inventory the cost of carrying inventory far out weighed the potential loss if we didn’t fill a customers order on time. There are many marketing tools that could be incorporated to pacify a customer. In the real world analysis of the budgets and pro-forma performance must be accomplished daily. During this simulation we experienced quarterly data changes unlike the real world where changes occur daily. Due to this fact, any adjustments made were in the rears ultimately costing the company money. Although, the company ended with a substantial cash balance and a small profit, sustainability, is crucial when looking forward at the broader picture. Who, what, where and how should be the rallying cry going forward. In this highly competitive marketplace the company must decide who is it’s ultimate customer, what it wants to be, a big, intermediate or small company and what it wants to produce, where it wants to sell and lastly how is this product going to manufactured...
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...Chapter 6 1. What is strategy? What is strategic planning? a. List the reasons a company would have if it wants to operate internationally. b. List the seven steps in the strategic management process. 2. What is environmental scanning? What areas are most commonly focused in environmental scanning? a. What is the difference between environmental scanning at the multinational level and the regional level? b. Describe the various sources of information that are available to managers. 3. What is a SWOT analysis? How is it used in strategic planning? a. What are the two levels of strategic alternatives that a firm must consider when competing internationally? b. Compare and contrast globalization and regionalization. 4. Describe the strategies of globalization and regionalization. When can each strategy be used most effectively? Chapter 7 1. What is global alliance and why should a company seek a global alliance over other forms of market entry? a. What motivates a company to develop a cross-border alliance? . b. Briefly explain FIVE (5) challenges in implementing global alliances? 2. What is the "dual nature" of strategic alliances? a. What are the benefits of outsourcing abroad? What should firms do when implementing a global sourcing strategy? 3. What is international joint venture control? Why is it important? a. Describe the process of knowledge management in international joint ventures. b. What are some of the complexities...
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...Johnson whose domestic market is in USA now generate more revenue globally than its domestic revenue. The increase in its global business revenue has lead the company building factories strategically in different part of the world so that it will be able to streamline its logistic reaching target market. This can be said to many companies increasing their global business by building plants in other countries away from their local market especially in an undeveloped countries that are poor and corruption are high. All these factories that are been built around the world have led to mangers communicating with one another which can cause cultural conflict. The reason for the conflict is examines in an article called the cultural roots of ethical conflicts in global business. I grew up in Nigeria where the author wrote is far more corrupt than Finland. “Many of the people inhabiting poorer countries are more concerned with survival than success, the argument goes, and higher ethical standards are often considered a luxury people cannot afford" (Sanchez-Runde, Nardon and Steers 2013). For example, in Nigeria it is highly unlikely to import a product into the country without paying some kind of bribe to officials at the port authority who are paid low wages, and have to supplement their income with bribery for survival. A manger in Nigeria who works for a global industry will factor the cost of the bribery, and add the cost to the clearing of the product from the port authority despite...
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...Cross-Cultural Etiquette and Communication in Global Business: Toward a Strategic Framework for Managing Corporate Expansion Ephraim Okoro1 1 School of Business, Howard University, Washington, USA Correspondence: Ephraim A. Okoro, Department of Marketing, School of Business, Howard University, 2600–Sixth Street, NW, Washington, D.C. 20059, USA. Tel: 1-202-806-1545. E-mail: eaokoro@howard.edu Received: March 22, 2012 doi:10.5539/ijbm.v7n16p130 Abstract The expanding scope of business corporations in the first decade of the twenty-first century is drawing much scholarly attention, and the trend has been described as a fact of life that defies the stretch of human imagination. The concept of global economy has expanded consumer awareness, defined new standards and rules of operations, and increased the need for national and corporate interdependence. Multinational organizations are exploring opportunities around the world, demonstrating sensitivity towards cultural differences in order to gain from the proliferation and growth of international enterprise. Recent studies indicate that while some corporations compete successfully in the global marketplace, others have failed to sustain their competitive advantage because of cultural imperialism or inadequate acculturation of their managers on international assignment. Corporate analysts argued that the key to global business success depends on effective cross-cultural etiquette and global workforce diversity management. Other significant...
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