Modern Management, 10e (Certo)

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Objectives

• 1. An understanding of international management
  and its importance to modern managers
• 2. An understanding of what constitutes a
  multinational corporation
• 3. Insights concerning the risk involved in
  investing in international operations
• 4. Insights into those who work in multinational
  corporations
• 5. Knowledge about managing multinational
  corporations
• 6. Knowledge about managing multinational
  organizations versus transnational organizations
• 7. An understanding of how ethics and the
  preparation of expatriates relate to managing
  internationally

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Managing Across the Globe Why?

• Great opportunities in the international
  marketplace today
• U.S. population growth slow but steady
• Other countries having population explosions
• Strong profit potential has serious risk
• Some challenges are
• Cultural differences
• Different technology levels
• Laws and political systems

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Fundamentals of International Management
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Categorizing Organizations by International
Involvement
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Categorizing Organizations by International
Involvement

• Domestic Organizations
• International Organizations
• Multinational Organizations The Multinational
  Corporation
• Defining the Multinational Corporation

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Categorizing Organizations by International
Involvement
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Categorizing Organizations by International
Involvement

• Complexities of Managing the Multinational
  Corporation
• 1. Within different national sovereignties
• 2. Under widely disparate economic conditions
• 3. Among people living within different value
  systems and institutions
• 4. In places experiencing the industrial
  revolution at different times
• 5. Often over greater geographical distance
• 6. In national markets varying greatly in
  population and area

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Categorizing Organizations by International
Involvement
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Categorizing Organizations by International
Involvement

• Risk and the Multinational Corporation
• 1. Reduce or eliminate high transportation costs
• 2. Allow participation in the rapid expansion of
  a market abroad
• 3. Provide foreign technical, design, and
  marketing skills
• 4. Earn higher profits
• The Workforce of Multinational Corporations
• Types of Organization Members Found in
  Multinational Corporations
• Expatriates
• Host-Country Nationals
• Third-Country Nationals
• Workforce Adjustments
• Adjusting to a New Culture
• Repatriation

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Management Functions and Multinational
Corporations

• Planning in Multinational Corporations
• Plans for multinational organizations could
  include
• 1. Establishing a new sales force in a foreign
  country
• 2. Developing new manufacturing plants in other
  countries
• 3. Financing international expansion
• 4. Determining which countries are most suitable
• Components of International Plans
• Imports/Exports
• License Agreements
• Direct Investing
• Joint Ventures
• Planning and International Market Agreements
• The European Union (EU)
• North American Free Trade Agreement (NAFTA)
• Asian-Pacific Economic Cooperation (APEC)

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Management Functions and Multinational
Corporations
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Management Functions and Multinational
Corporations
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Management Functions and Multinational
Corporations

• Organizing Multinational Corporations
• Organization Structure
• Selection of Managers
• Managerial Attitudes Toward Foreign Operations
• Advantages and Disadvantages of Each Management
  Attitude
• Influencing People in Multinational Corporations
• Culture
• 1. Acquire a working knowledge of the languages
• 2. Understand the attitudes of people
• 3. Understand the needs that motivate people
• Controlling Multinational Corporations
• Special Difficulties
• Improving Communication
• Transnational Organizations

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Management Functions and Multinational
Corporations
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International Management Special Issues

• Maintaining Ethics in International Management
• Respecting Core Human Rights
• Respecting Local Traditions
• Determining Right from Wrong by Examining Context
• Preparing Expatriates for Foreign Assignments
• Culture profiles
• Cultural adaptation
• Logistical information
• Application