Chapter 1 Lecture 2

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Chapter 1Lecture 2

• Globalization What you should
• look for to assess activities in each
• global environment.

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Managing Organizations in Global Environments
Political/Legal Environment
Economic Environment
PEOPLE
PROCESSES
F I T
Organizational Level
Cultural Environment Global and Internal
STRUCTURE
Natural Environment
Technological Environment
Task Environment Global and Internal
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Indicators of Cultural Globalization

• Cultural Groupings
• national
• subcultures
• supracultures
• civilizations
• Global Influences
• Entertainment and Electronic media
• Travel
• Business, tourism, education, virtual
• Language
• Demographic groups, e.g., global teens
• Business activities

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Indicators of a Global Economy

• Trade
• VISIBLE AND INVISIBLE TRADE
• Foreign Direct Investments
• Inflows and outflows
• Currency and capital movements
• GDP and Quality of Life Measures
• Openness to Markets
• FISCAL MONETARY POLICIES orientation toward
  capitalism
• Connections to Financial Institutions
• Central Banks
• IGOs like the World Bank or the IMF
• Private lenders
• commercial and investment bankers
• Microlenders
• Informal networks
• Halawal
• Money launderers

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Global Economy, Labor

• Paid and unpaid sectors
• Hours of work
• Compensation
• Work conditions
• Labor and job migration, immigration
• Education and knowledge factors

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Indicators for a Globalizing Natural Environment

• Global commons
• air, water, and other resources we must share
• Raw materials
• minerals, oil, lumber and natural resources we
  can share
• Biodiversity
• Globalization of disease and its effects
• Global impact of natural disasters

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Global Industries and Businesses

• Defining degree of industry globalization
• Industry shifts
• Converge, disintermediate, integrate, downsize,
  and dissolve
• Rivalry among firms (within and across
  industries) worldwide.
• Creating industry advantage
• Industry analysis
• Diagnosing Industry globalization
• Diagnosing Industry futures
• Reshaping the organization.

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Global Technologies

• Products and processes
• Information age changes
• Telecommunications
• Computerization

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Global Politics

• Becomes important because nations increasingly
  allow markets to balance self/collective
  interests
• National policies conflict with global policies
• Many more than government actors attempt to shape
  outcomes
• Intergovernmental organizations (IGOs)
• Nongovernmental organizations (NGOs)
• Businesses
• Gangs, pirates, terrorists, rebels.

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These are only some examples for each global
environment

• But they are illustrative more than they are
• exhaustivemany more examples also can be
• found.
• Your jobfind them and explain why they are
• reflective of a chosen global environment for a
• firm and/or industry how do they shape
• organizations, particularly people, processes,
• and structures?