...• How does an understanding of local culture give managers an advantage in working in business competition? Which operational, managerial, or organizational processes are most affected by cultural differences? How might cultural differences affect the cost of doing business? It is imperative for any organization that is operating outside of its home country to understand the local culture of the country where it is operating. The true is that business involves people( Daniels& al, 2010) and in order to operate and to compete effectively in today’s competitive global market; it is important for an international firm doing business in another country to avoid cultural collision by understanding how that nation’s culture and business practice differ from its own. Understanding a local culture gives managers competitive advantage because culture affects business practice (). Thus, understanding the local culture gives them the knowledge such as how to communicate effectively with their direct reports, which management style to adopt and how to distribute work responsibility. It helps them avoid the major problem of culture collision. Due to differences in value, culture and religion; operational, managerial and organization processes are affected by culture differences. Several Muslims countries around the world use religion as a guide on how businesses are operated. For example, in a Muslim country such as Saudi Arabia, Friday is not a working day because it is...
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...34.Concept of Globalization Why does the concept of GLOBALIZATION excite so much interest? We are beginning to think about the world in new ways. The importance of borders between different countries is reduced, and cross-border structures are strengthened. The power of organizations operating only within the nation state is weakened. Individuals who possess the necessary skills find it easier and faster than before to implement complex interactions. By pushing computer keys a banker can almost instantaneously transfer sums of money between London and New York, between New York and Bangkok, between Bangkok and Paris, and so on. The political and legal institutions of these different countries no longer present insurmountable obstacles to doing business between them. The problems of predicting the effects of globalization in part stem from uncertainties about how the notion should be defined. These uncertainties arise because the terms are used in many different ways. Gowan (1999) reflects on this ambiguity in the introduction to his text: The 1990s have been the decade of globalization. We see its effects everywhere: in economic, social and political life, around the world. Yet the more all-pervasive are these effects, the more elusive is the animal itself. An enormous outpouring of academic literature has failed to provide an agreed view of its physiognomy or its location and some reputable academics of Right and Left even question its very existence. It is not necessary to...
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...Review GMS200 Chapter 1 1. What does the term Global Management mean? Global management is the management of operations in more than one country 2. Define Global Economy (See Text) In the global economy, resources, markets, and competition are worldwide in scope. It pretty much means how well all the countries are doing as one in terms of economy, resources, markets and competition. 3. In a competitive global business landscape, the increasing demand for talented knowledge workers is primarily due to the increasing use of low cost production.?????? 4. The age gap in today's workplaces is one of the diversity issues that may create major challenges for managers. (true) The age gap in today's workplace is one of the diversity issues that may create major challenges for managers. 5 The recruitment and retention of talented workers is one of the major challenges faced by mangers in a globally competitive economy. ??????? 6. According to Katz's framework on essential managerial skills, low-level managers need to develop more conceptual skills then top-level managers. (false). Lower level managers need to consist of a lower level of conceptual skills then top-level managers, equivalent human skills and lower level managers need to consist of a higher level of technical skills then the top level managers. 7. What are the key conditions that describe the general business environment? The key conditions that describe the general business environment are: 1. Economic...
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...A large percentage carry on their international business with only limited facilities and representation in foreign countries. Others, particularly Fortune 500 corporations, have extensive facilities, and personnel in various countries of the world. Managing these resources effectively, and integrating their activities to achieve global advantage, is a challenge to the leadership of these companies. We are quickly moving toward a global economy. While estimates vary widely, approximately 70 to 85 percent of the U.S. economy today is affected by international competition. Recent popular books have suggested that many U.S. companies need to reassess their approach to doing business overseas, particularly in the area of managing human resources. To a large degree, the challenge of managing across borders boils down to the philosophies and systems we use for managing people. In this chapter we will observe that much of what is discussed throughout this text can be applied to foreign operations, provided one is sensitive to the requirements of a particular international setting. The first part of this chapter presents a brief introduction to international business firms. In many important respects, the way a company organizes its international operations influences the type of managerial and human resources issues it faces. In additioft1 we briefly describe some of the environmental factors that also affect the work of managers in a global setting. Just as with domestic operations...
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...Topic 1 Before starting your conference read “How to read and use a case study” posted in Content. View the video “Impact of Culture on Business: Spotlight on China.” Then read “Shifting Sands of Saudi Society,” DRS, pp. 46-50 and “Charles Martin in Uganda,” DRS pp. 79-82. Based on the video and the Saudi Arabia and Uganda cases, discuss: * How does an understanding of local culture give managers an advantage in working in business competition? * Which operational, managerial, or organizational processes are most affected by cultural differences (social structures and control systems, language and aesthetics, religion and other belief systems, education systems, etc.)? * How might the cultural differences you identified affect the cost of doing business? * What industries tend to be particularly subject to cultural differences? Why? Be specific. Support your views with references to the required course materials. Provide concrete examples of both cultural elements and specific countries. Topic 2 1. Read DRS, “Anglo American PLC in South Africa: What Do You Do When Costs Reach Epidemic Proportions,” pp.207-211. 2. View the Michael Porter and World Economic Forum videos. 3. Select two multinational corporations where the MNCs are different industries (e.g., manufacturing/Ford and pharmaceutical/Merck). The choice of MNCs is yours. It is first-come, first-served. “Reserve” your two MNCs quickly. Post a response in Conferences to Topic 2. In the “Subject”...
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...UPS Diversity Audit HR582 - Managing Global Diversity image Table of Contents Executive Summary Businesses as a rule consist of various structures, whether in its people, customers, or board members. With that being said, I have chosen to audit the diversity within the global organization: United Parcel Service (UPS). The diverse makeup of this company shows the assorted roles within each department from corporate management down to the actual labor force doing the work. Conversely, without proper management skills, managers could neglect to acknowledge the role of each part of the corporate structure. Consequently, a distinctive form of audit is necessary, an audit that can deliver information of how well UPS manages the diversity of its resources. In order to perform this audit properly, a set of sound quantitative and qualitative criteria is required. I will be evaluating the diversity initiatives of UPS, one of the most prolific package delivery service companies in the world. The assessment will indicated whether or not UPS has a sound ability of diversity management. Diversity Audit UPS Organizational Background I.1. Corporate History Currently, United Parcel Services Inc. is the largest package delivery company and leading universal provider of specialized shipping and logistics services in the world in terms of delivery scale. UPS delivered more than 10 million packages to millions of destinations in 200 countries, with over 462,000 employees...
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...1. Discuss the advantages and drawbacks of going international using Tata Group’s experiences. Based on Tata Group’s experience, we can see the advantages and drawbacks of going international as follows: Advantages of going international; ① The first advantages of going international for Tata is to achieve benefits of economies of scale; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. Its two largest businesses are Tata Steel and Tata Motors. Its Tata Tea, which owns the valued Tetley brand, also is one of the largest tea producers in the world. It ranked 6 on the list of the world’s most admired companies in the steel industry. With the economies of scale in the domestic and international market, Tata can lower operational costs potentially and become a stronger competitor, both domestically and internationally; Tata controls many businesses ranging from Eight O’clock Coffee Co. in the United States to the Taj Group of hotels, which took over management of the landmark Pierre Hotel on Central Park in New York City. Through international bold moves like these, Tata have the opportunity to learn more about a particular market or world region and to supplement or strengthen domestic growth; The Tata Group is the largest conglomerate in India. Its latest revenues are estimated at $67.4 billion, of which...
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...Module #1, Case Assignment Doing Business Abroad Doctor Ken Myers April 11, 2005 INTRODUCTION: PURPOSE: The purpose of this paper is to answer the assigned questions within this module. By answering these questions, I will gain a better understanding of the important aspects surrounding conducting business abroad. BACKGROUND: This is the first case assignment for MGT501, Management and Organizational Behavior during the spring semester at Touro University International. COVERAGE: I will use background information, combined with outside research to strengthen this paper. I will begin by identifying at least three specific ways that cultural differences would affect doing business internationally. Next, I will discuss some specific skills that global managers need to address the cultural differences. I will then discuss my views regarding expatriate and foreign-national managers by stating the reasons why a combination of managers is the most effective way to deal with these challenges. Finally, I will conclude with a brief summary that highlights the key points made throughout the paper. DISCUSSION: Many foreign markets are considered an untapped resource. The potential for growth in these markets is very high; however the potential can not be fulfilled without strong human resource applications, effective organizational structure, and efficient cultural understanding. The company’s corporate culture has to be modified to take cultural...
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...Ola abiola 11634 Business strategy INTRODUCTION Marks and Special background M&S otherwise known as Marks and spencer was founded in 1884 by Michael Marks was born in 1859 in Slonim, Belarus. In 1882 ,he moved to England to escape anti-Semitic discriminate , but had few friends and little money. He came to Leeds, a growing industrial town with a population of over 160,000. He was attracted by its large Jewish community and job opportunities in the thriving clothing trade. At the time Marks couldn't speak English and had no money or particular skill but had a very sharp mind for business and understood what customers wanted and needed . Initially he travelled the towns and villages of West Yorkshire, selling wares from his bag. He later set up a permanent market stall in Leeds, the latter which developed into a successful retail business. Unusually, he always displayed all his goods with clearly priced labels. He started hiring sales assistants to run the stalls. , Selling simple stock such as haberdashery and hardware goods, he adopted the slogan 'Don't ask the price, it's a penny'. This fixed price system and the open display of goods made him very popular. In Leeds as Customers liked being able to inspect the goods and knowing exactly the cost, with no need for haggling. In 1890 Dewhirst a cloth manufacturer offered Marks a £5 loan with this Michael Marks was able to buy his first stock for...
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...International Business - Environments and Operations Part One Background For International Business Chapter 1 Globalization and International Business Introduction Globalization is the ongoing process that deepens and broadens the relationships and interdependence among countries. International Business is a mechanism to bring about globalization. (The term sometimes refers to the integration of world economies through the reduction of barriers to the movement of trade, capital, technology, and people. Throughout recorded history, human contacts over ever-wider geographic areas have expanded the variety of available resources, products, services, and markets. Today, so many different components, ingredients, and specialized business activities go into products that we’re often challenged to say exactly where they were made. Example: Japanese firm Matsushita furnishes the CD player in the Korean-manufactured Kia Sorento.) International business consists of all commercial transactions—including sales, investments, and transportation—that take place between two or more countries Increasingly foreign countries are a source of both production and sales for domestic companies (These global activities enable us to get more variety, better quality, or lower prices. Private companies undertake such transactions for profit while governments may undertake them either for profit or for political reasons.) Studying International Business is Important * Most companies are either...
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...NO-60 Q1. What is meant by the term culture? In what way can measuring attitudes about the following help to differentiate between cultures: centralized or decentralized decision making, safety or risk, individual or group rewards, high or low organizational loyalty, cooperation or competition? Use these attitudes to compare the United States, Germany, and Japan. Based on your comparisons, what conclusions can you draw regarding the impact of culture on behavior? Ans:- culture is defined as the shared patterns of behaviors and interactions, cognitive constructs, and affective understanding that are learned through a process of socialization. Culture is the acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior (Hodges, 2005). Centralized versus decentralized cultures are different in which the top managers or leaders make all the important decisions in a centralized culture and in a decentralized culture, the decisions are made throughout the levels. Safety and risk in some cultures are frowned upon because the results are unpredictable yet other cultures are “riskier” and encourage risk taking on all levels. The same can be said about individual versus group rewards. Some societies or organizations reward individually and other only based on the group effort. High or low organizational loyalty in cultures are different in which the high loyalty in an organization...
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...corporation (MNC) or transnational company (TNC). MNC as beauty - Potential contribution to economic growth and national welfare. - Important agent of change. - Increases competitive pressures on domestic firms. - Demonstrates and diffuses new technology. - Upgrades the quality of indigenous resources and capabilities. - Governments (in general) praise FDI. MNC as beast - Negative impact on the environment, labor and human rights. - MNCs’ and national state goals are not always compatible - MNCs out-compete local firms. MNCs have immense political power. 51 of the 100 biggest economies in the world are now MNCs. Business is in the driver’s seat, corporations determine the rules of the game and governments have become referees, only enforcing rules. Are MNCs really agents of technological change? Some scholars question the efficiency of MNCs, suggesting that they have become too large and bureaucratic to compete against more nimble and innovative smaller firms that are rapidly gaining advantage in highly competitive global markets. What is the three primary states of mind / attitudes toward the MBC? Ethnocentric (home-country oriented) - Home nationals are the best person to do the job - What works at home must work in the host country Costs: Fewer Innovations, lack of flexibility and responsiveness Benefits: Simple Organization, greater communication and control Polycentric (host-country oriented) - Foreigners are different and hard to understand. Polycentrism often associated with the MNC...
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...similarities of Perkins and Antony James. I will be talking about job roles from different functional areas from each business, comparing the roles and responsibilities within each role and talking about the similarities and differences. The second part of this report will be analyzing how the structure of each job roles affects the job roles within the business. Why I chose these businesses: I chose Perkins engines because it had a hierarchical structure and I knew if I chose a contrasting business that had a flat structure (Antony James) I would have a good comparison of Jobs and functional areas. What Perkins is: Perkins Engines are a PLC company which make Engines, they are owned by Caterpillar which is also a PLC company (CAT). The purpose of Perkins is to provide a service to customers, make a profit and expand. PLC is a company with shares, PLC stands for Public Liability Company and at the age of 18 a person can buy a share and be a share holder. Advantages of having a PLC company is that it can raise a lot of money by selling on the stock market and they have a limited liability. CAT is a arcadia and umbrella company, being an umbrella company means that the they are the owners of very small businesses e.g Rapisarda and X part are call sister companies (A company which is owned by the same parent company as another company) to Perkins. There are no local competitors for Perkins in Peterborough, but the national competitors are Cummins Marine and Detroit Diesel Corp....
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...also build ownership and alignment within their organisation to implement change. [edit] Processes Building prepared minds on a large scale is critical for companies needing to reset the strategic direction and transform the organization. Getting employees pointed in the right direction with the ability to learn and adapt concurrently helps ensure the strategy will deliver what leaders are looking for. Success requires a different way of thinking about how to marshal the resources of the organization to formulate and execute strategy. This way of thinking balances a focused analytical perspective with the human dimension of strategy making (as documented by the Park Li Group). These practices, coupled with a commitment of management time to engage the entire business in a strategy dialogue, lay the foundation for building winning organizations that can define, commit, adjust and adapt strategy quickly[3]. [edit] Strategy execution The analytical dimension and the human dimension Leaders face the continuing challenge of how they can meet the expectations of those who placed them there. Addressing these expectations usually takes the form of strategic decisions and actions. For a strategy to succeed, the leader must be able to adjust it as conditions require. But leaders cannot learn enough, fast enough, and do enough on their own to effectively adapt the strategy and then define, shape and execute the organizational response. If leaders are to win they must rely on the prepared...
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...world when doing global business, and according to our research the economic size of hotel industry is 600 billion which is quite tremendous. So we choose a global hotel brand which mainly target at travelling merchants to give you a more legible picture about how to succeed in competition. The hotel brand our group choose is crown plaza, an upscale hotel brand belongs to InterContinental Hotels group. Positioning in the international luxury brand in the high-end market, Crown Plaza offers guests spacious and elegant spaces for daily social and business interactions to be the ideal choice for business and exhibition. In order to have a deep understanding about the brand, we actually did an interview with Michelle Cai, who is the HR training manager of Crown Plaza in northwest greater China. Their ambition is to be the best hotel in the minds of guests, employees and proprietors, wh. Now let us stretch those viewpoints amply. The brand slogan of Crowne Plaza is traveling for success. As business type brand, crown plaza’s target customers are successful business people, different from intercontinental hotel, whose target customers are the CEOs of large group, crown plaza’s level is a little lower, mainly for companies’ general manager. For this part of people, their feature is not at the carrier peak, but is on the pursuit road, the journey is quite hard, what they care about is whether the hotel can provide professional support for their work or business. Crowne plaza has the...
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