Premium Essay

Transnational Chapter 1

In: Business and Management

Submitted By yukiliew21
Words 1350
Pages 6
TM-Chapter 1 (Motivations, Means and Mentalities)
In this chapter, a number of important questions that companies must resolve before taking the leap to operate outside their home environment. 1. What market opportunities, sourcing advantages, or strategic imperatives provide the motivation for their international expansion? 2. By what means will they expand their overseas presence-through modes such as exports, licensing, joint ventures, wholly-owned subsidiaries, or some other means? 3. How will the management mentalities – their embedded attitudes, assumptions, and beliefs- that they bring to their international ventures affect their chances of success?
Operating in an international rather than a domestic arena presents managers with many new opportunities. Having worldwide operations not only gives a company access to new markets and low-cost resources, it also opens up new sources of information and knowledge and broadens the options for strategic moves that the company might make to compete with its domestic and international rivals. However, with all these new opportunities come the challenges of managing strategy, organization, and operations that are innately more complex, diverse, and uncertain.
What is multinational enterprise? * Multinational enterprise has substantial direct investment in foreign countries (Not just the trading relationships of an import-export business), and actively manage and regard those operations as integral parts of the company, both strategically and organizationally. (They are engaged in the active management of these offshore assets rather than simply holding them in a passive investment portfolio. )
What’s different about MNE management? 1. Multiple operating environment * Diverse patterns of consumer preferences, channels, legal frameworks, etc. 2. Political demand and risks * Need to mesh corporate...

Similar Documents

Premium Essay

Managing Transnational Teams

...0 Managing transnational teams Cultural heterogeneity within a team: A value or burden? Bachelor Thesis Organization & Strategy, 2009-2010 Name : Grace Bronmans Anr : 588850 Supervisor : Miranda Stienstra E-mail : gracebronmans@gmail.com Date : 11-06-2010 Nr. of words : 7967 Management summary Globalization has become an important aspect in business the last decennia. Companies’ competitive position is challenged by a globalizing market, and globalization is a natural development for growing companies to sustain their competitive position. When a firm enters the global market, management faces the challenge to work with transnational teams. International project teams are where most of the boundary spanning works in international enterprise goes on, making them a key factor in organizational success and an important catalyst for individual and organizational development. However, little is known about the management strategies on motivation of diversity, and existing information is scattered. Motivation is a key driver of performance, therefore it is important for management to know how they can influence motivation of transnational teams. This thesis will provide an overview of the effect of culture on the motivational strategy of management on transnational team motivation. This will be guided by the following research questions: RQ 1: How is......

Words: 9807 - Pages: 40

Free Essay

Master Graduate

...FA ND OM UNB OUND —-1 —0 —+1 561-47344_ch00_1P.indd i 7/27/11 6:21 PM -1— 0— +1— 561-47344_ch00_1P.indd ii 7/27/11 6:21 PM FAN DO M U N BOUND Otaku Culture in a Connected World Edited by MIZUKO ITO DAISUKE OKABE IZUMI TSUJI —-1 —0 —+1 New Haven & London 561-47344_ch00_1P.indd iii 7/27/11 6:21 PM Published with assistance from Copyright © 2012 by Yale University. All rights reserved. Subject to the exception immediately following, this book may not be reproduced, in whole or in part, including illustrations, in any form (beyond that copying permitted by Sections 107 and 108 of the U.S. Copyright Law and except by reviewers for the public press), without written permission from the publishers. The author has made an online version of this work available under a Creative Commons Attribution-Noncommercial 3.0 License. It can be accessed through the author’s Web site at http:www.itofisher.com/mito. Yale University Press books may be purchased in quantity for educational, business, or promotional use. For information, please e-mail sales.press @ yale.edu (U.S. office) or sales @ yaleup.co.uk (U.K. office). Designed by James J. Johnson Set in Janson Roman and Helvetica type by Westchester Book Group, Danbury, CT Printed in the United States of America [[CIP info to come]] A catalogue record for this book is available from the British Library. This paper meets the requirements of ANSI/NISO Z39.48-1992 (Permanence...

Words: 8227 - Pages: 33

Free Essay

Global Hrm

...Chapter 3: 1. What type of HR organization best fits with global, multinational, international and transnational organizations? There are many types of HR organization just like there are many types of organizations. Some types of organizations are global, multinational, international and transnational. To understand which HR organization best fits each type of organization you must know what each organization does. What they are made up of and what is the purpose and goal of each type of organization. The definition of a global organization from our text is an organization that operates on a global scale(Thomas, D.C. and Lazarova, M.B. 2014.) An example of a global organization is the World Health Organization. Which an organization which is in charge of directing health authority within countries that are part of the United Nations. The World Health Organization is an organization that operates globally and has a goal of getting aid and medical assistance to all who need it. The organization has a large number of employees that come from all over the world and also help people of many cultures. A multinational organization is one that has to do business in multiple environments and they all need to be controlled(Thomas, D.C. and Lazarova, M.B. 2014.) This usually means the organization has many subsidiaries in multiple countries. An example of a multinational organization is Coca-Cola which is headquartered in Atlanta, Georgia but has many bottling plants and...

Words: 1341 - Pages: 6

Premium Essay

Global and Transnational Business: Strategy and Management

...Global and Transnational Business: Strategy and Management Second Edition Global and Transnational Business: Strategy and Management Second Edition George Stonehouse Northumbria University David Campbell University of Newcastle-upon-Tyne Jim Hamill University of Strathclyde Tony Purdie Northumbria University Copyright # 2004 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (þ44) 1243 779777 Email (for orders and customer service enquiries): cs-books@wiley.co.uk Visit our Home Page on www.wileyeurope.com or www.wiley.com All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or emailed to permreq@wiley.co.uk, or faxed to (þ44) 1243 770620. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the Publisher is not engaged in rendering professional......

Words: 155276 - Pages: 622

Premium Essay

Globalistaion

...PART III TRANSNATIONAL CORPORATIONS 7 The role of transnational corporations in the globalisation process Grazia Ietto-Gillies1 1. Introduction Globalisation is a complex phenomenon which is more in the nature of a process than a state of affairs. There have been several attempts at definition (McGrew, 1992; Oman, 1996; Castells, 1996; Giddens, 1999; Held et al. 1999).2 Most definitions boil down to the fact that globalisation is both a process of geographical/spatial outreach and of an increased degree of interconnectedness and interdependence between people, groups and institutions based in different countries of the world. As a process of spatial outreach it is not new and has long historical antecedents (Held et al., 1999). Nonetheless it is argued in this chapter that the current process is considerably different from any previous process of outreach. One of the major differences is seen in the role that transnational corporations (TNCs) play in the globalisation process. The chapter proceeds in section 2 with an analysis of the salient characteristics of the globalisation process. The third section considers the role of TNCs in cross-border transactions. Section 4 develops the argument that the TNCs are a dominant cause of the globalisation process. Section 5 considers the wider policy implications of this perspective and the last section concludes. 2. Salient characteristics of globalisation The current globalisation process is characterised by both qualitative......

Words: 5461 - Pages: 22

Premium Essay

Servant Leadership

...Thank you for your DB post this week. You offered some good ideas on planning, fads, and the transitional model in your post. You also used your research well to support the views. While the ideas are good, the piece has many writing problems that are taking away from the ideas you are offering. Please see some example edits below and please begin using the writing center as it is a great resource. 80% DB Forum 2 Part 1 1. How do you think planning in today’s organizations compares to planning in an organization 25 years ago? Do you think planning becomes more important or less important in a world where everything quickly changes and crises are a regular part of organizational life? Why? As change is inevitable, it becomes more critical to efficiently plan. The tenets for performance planning per Brian Hill’s article in Chron magazine are: efficient use of resources, establishing goals, managing risk and uncertainty, team building, and creating competitive advantages. Management must inventory and correctly allocate resources throughout the business so that the resources assist the organization in reaching defined goals. There are many reasons for this. It is the duty of management to set aggressive yet achievable goals for his/her employees. The goals give the employee something to work for, and to never be satisfied with the status quo. Management and team leaders must develop hypothetical scenarios to deal with any unforeseen events. These could be......

Words: 1445 - Pages: 6

Free Essay

Understanding India, Globalisation and Health Care Systems

...Health 2012, 8:32 http://www.globalizationandhealth.com/content/8/1/32 REVIEW Open Access Understanding India, globalisation and health care systems: a mapping of research in the social sciences Ramila Bisht1*, Emma Pitchforth2 and Susan F Murray3 Abstract National and transnational health care systems are rapidly evolving with current processes of globalisation. What is the contribution of the social sciences to an understanding of this field? A structured scoping exercise was conducted to identify relevant literature using the lens of India – a ‘rising power’ with a rapidly expanding healthcare economy. A five step search and analysis method was employed in order to capture as wide a range of material as possible. Documents published in English that met criteria for a social science contribution were included for review. Via electronic bibliographic databases, websites and hand searches conducted in India, 113 relevant articles, books and reports were identified. These were classified according to topic area, publication date, disciplinary perspective, genre, and theoretical and methodological approaches. Topic areas were identified initially through an inductive approach, then rationalised into seven broad themes. Transnational consumption of health services; the transnational healthcare workforce; the production, consumption and trade in specific health-related commodities, and transnational diffusion of ideas and knowledge have all received......

Words: 11974 - Pages: 48

Premium Essay

Strategy Management

...OUTLINE AND AIMS This course provides the student with an understanding of how international business strategy fits into the organisation and running of a company or multi-company corporation. The course consists of 8x three-hour sessions of lectures and case studies. The aim of the module is to introduce the student to the way in which a firm can achieve sustainable competitive advantage through strategy. LEARNIING OUTCOMES By the end of the course students should be able to (1) understand the concepts of strategic management, (2) evaluate the factors that need to be considered in analysing a firm’s external environment, (3) evaluate the internal core competences of a firm, (4) formulate strategy for the firm, (5) understand the nature of corporate strategy, and (6) understand the nature of international strategy. Additional learning outcomes are specified for each session. COURSE CONTENT The course consists of nine sessions: (1) What is strategy? (2) The Market Positioning Approach (3) The Resource Based View of Strategy (4) The Institution Based View of Strategy (5) Diversifications and Acquisitions (6) Strategic Alliances and Networks (7) International Strategy (8) Globalisation and MNC organisation structures (9) Conclusion The course will be taught over nine sessions of 3hrs, namely a lecture of 2hrs and a seminar of 1hr. The lectures are used to illustrate the key points under each topic as well as real business examples. Seminars will be used...

Words: 1703 - Pages: 7

Premium Essay

Business Strategy

...Chapter 12 – The Strategy of International Business Key Points of the chapter Strategy – is the actions managers take to attain the goals of the business (usually to maximize value for the shareholders/stakeholders). Value Chain – The operations of the firm compose the value chain which are the series of value creating activities that occur to create value. These actions include sales, production, IT, accounting etc. These activities are divided into support and primary activities. Primary Activities – Design, creation and delivery of the product. They are: 1. R&D 2. Production 3. Marketing 4. Sales Support Activities – Inputs that allow the primary activities to occur 1. Information Systems 2. Logistics 3. Human Resources Global Expansion Practices 1. Expand the market for your domestic products by selling internationally (Export) • Requires a company to tap into their core competencies 2. Move production to the most efficient countries to realize location economies • Some countries have a comparative advantage of production • Transportation costs and trade barriers must not be an issue • Location Economies is the value created by finding the most competitive place to produce product, therefore adding value i. Competitive can mean cheapest or best • Creates a global value web as opposed to a value chain 3. Serve expanded......

Words: 4808 - Pages: 20

Premium Essay

Organizational Design and Structure

...•Ch. 4: How do you think planning in today’s organizations compares to planning twenty-five years ago? Do you think planning becomes more important or less important in a world where everything is changing fast and crises are a regular part of organizational life? Why? The planning process is not very different however the steps involved have likely increased from twenty-five years ago. Problems that occur in today’s organizations are much more complex and require complex solutions and complex risk assessments. This is evident in the increased number of departments needed within an organization to handle the vast amount of work such as marketing, procurement, legal and E-business departments. Planning is much more important in a world that is constantly changing and crises are a regular occurrence. It is imperative that organizations select managers that are as diverse as the departments within the company. In a fast paced, changing world there are so many more levels of uncertainty and planning is a huge factor in the success of a business. “Frequent changes require more information processing to achieve horizontal coordination.” (Daft, 2010, p. 153) •Ch. 4: Is changing the organization's domain a feasible strategy for coping with a threatening environment? Can you think of an organization in the recent news that has changed its domain? Explain. Changing an organization’s domain is probably not the best idea. This is especially true for an organization that operates......

Words: 1017 - Pages: 5

Premium Essay

Business and Management

...strategy. • Understand how firms can profit from expanding globally. • Understand how pressures for cost reductions and pressures for local responsiveness influence strategic choice. • Be familiar with different strategies for competing globally and their pros and cons. In this chapter the focus shifts from the environment to the firm itself and, in particular, to the actions managers can take to compete more effectively as an international business. This chapter looks at how firms can increase their profitability by expanding their operations in foreign markets, the different strategies that firms pursue when competing internationally, and the various factors that affect a firm’s choice of strategy. Subsequent chapters build on the framework established here to discuss a variety of topics including the design of organization structures and control systems for international businesses, strategies for entering foreign markets, the use and misuse of strategic alliances, strategies for exporting, and the various manufacturing, marketing, R&D, human resource, accounting, and financial strategies that international businesses pursue. OUTLINE OF CHAPTER 12: THE STRATEGY OF INTERNATIONAL BUSINESS Opening Case: MTV Networks Introduction Strategy and the Firm Value Creation Strategic Positioning Operations: The Firm as a Value Chain Global Expansion, Profitability and Growth Expanding the Market: Leveraging Products and......

Words: 4615 - Pages: 19

Premium Essay

Strategic Ihrm

...Chapter 2 Strategic International Human Resource Management CHAPTER OVERVIEW This chapter is about Strategic International Human Resource Management (SIHRM). While the first chapter described the new global business realities and introduced IHRM, this chapter describes international business strategy and how IHRM supports and enhances the international business strategies of the firm. The chapter starts with a general description of the process of international strategic management and then follows with an explanation of the evolution of international business strategy and describes how IHRM fits into the overall strategic management of the MNE. This includes describing the links of global business strategy to the performance of HR responsibilities in international business and discussing the outcomes that a strategically managed international business might expect from effectively tying together an international business strategy and SIHRM. The chapter then summarizes the findings of research studies on the nature and role of strategic IHRM. LEARNING OBJECTIVES * Describe the development of SIHRM and the process of international strategic management. * Describe the evolution of the MNE in terms of various stages of internationalization and the methods firms use to enter international markets. * Describe the process for developing MNE strategy and IHRM strategy and the relationship between the two. * The extent and nature of research into...

Words: 2870 - Pages: 12

Premium Essay

Global Strategy Implementation

...Part Five GLOBAL STRATEGY, STRUCTURE, AND IMPLEMENTATION Chapter Eleven The Strategy of International Business OBJECTIVES • To identify how managers develop strategy • To examine industry structure, firm strategy, and value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business Chapter Overview Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented. CHAPTER OUTLINE OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.] Zara, a large clothing retailer headquartered in northwest Spain, has used an......

Words: 5816 - Pages: 24

Free Essay

Fratenity

...MECHANISM FOR THE GOVERNMENT’S COMPREHENSIVE PROGRAM ON COMBATING TRANSNATIONAL CRIME* WHEREAS; the globalization of the world’s economies and advances in information technology have significantly contributed to the growing sophistication of transnational crimes and their continuing threat to our nation’s political, economic and socio-cultural stability and security; WHEREAS, the United Nationals Convention against Transnational Organized Crime, which the Philippines signed on 14 December 2000 and ratified on 28 May 2002 encourages the formulation of coordinated national policy, legislative, administrative, and law enforcement approaches to prevent and combat transnational crime more effectively; WHEREAS, The ASEAN Declaration on Transnational Organized Crime and its implementing instruments, the ASEAN Plan of Action to Combat Transnational Organized Crime and its Work Programme, call on all Member-States of the ASEAN to solidify governmental efforts in areas of information exchange, training, legislation, law enforcement, institution-building, and extraregional cooperation; WHEREAS, to address the range of transnational crimes affecting our country, Executive Order No. 62 issued on 15 January 1999 creating the Philippine Center on Transnational Crime to formulate and implement a concerted program of action of all law enforcement intelligence and other agencies for the prevention and control of transnational crime; WHEREAS, current realties demand a comprehensive, focused......

Words: 1422 - Pages: 6

Premium Essay

Ikea Case Keegan and Green

...CHAPTER 1 : PREFACE 1.1 Background According to (Kampard, 1999) It all started in 1920, when 5 years old Ingvar Kampard starts selling matches to his nearby neighbors and by the time he was seven, he starts selling further afield, using his bicycle. He finds that he can buy matches in bulk for a cheap price in Stockholm and re-sell them individually at a very low price, but still make a good profit. From matches he expands to selling greeting cards, flower seeds, Christmas tree decorations, and later pencils and ball-point pens. When he was 17, his father gives him money as a reward for finishing his studies. The name “IKEA” itself derived from his name (the word “I”), the first letter of the village he grew up, Elmytard (the letter “E”), and Agunnaryd, his hometown in Småland, south Sweden. Ingvar’s strategy was to sell his wares in a reduced price. Since then, IKEA grows more rapidly in the following years. From rural area in North Sweden, IKEA grows as one of the most-renown furniture company in the world. Ingvar released his first advertisement in 1945 when his business outgrows even his own ability to make individual sales calls. In 1948 was a significant year for IKEA. In this year, Ingvard introduced the first furniture in his product range. Unbeknownst to him, the furniture business will be the hallmark of IKEA. The first furniture showroom opens in Älmhult, IKEA to prove its superiority against its competitor who sells low-price products. In the site......

Words: 5859 - Pages: 24