International-Business-and-Management-国际商务管理.doc

Jilin University of Finance and Economics International Finance0922International Management Managing Across Borders and Culture MGT387International Business and ManagementName:Wu Kefei CSU ID:11504424Lecture: Robert Herriot&Ms.Wang SuyuDue Date:06-Apr-2012Contact Method:sakura_Introduction In this essay, the mainly idea is the international management and the culture.PART AIn this part I mainly expound the challenges and the problems the managers and the MNCs should face.We can consider the managers and the MNCs as an entirety. So the problem will be easy to find.Since the 1990 s, because of the collapse of the Soviet Union and the push over of the Berlin wall .The countries all over the world turn the military competition to the economic competition.So the globalisation is the trend of the world.Globalization can be defined as “the inexorable integration of markets, nation-states, and technologiesin a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before”(p 1).Firstly, we should think about the characteristics and the qualities of the MNCs. It based on the strongly and large company; it has a complete decision-making system and the highest decision-making system, it sarted from the global strategy of business activities; it has the strongly economic and technical power; for certain products or in some areas; it has the different degrees of monopoly. Then we can know that to solve the challenges, MNCs make the “global strategy”. This can help us to understand what the problem is.a) The environment of the company. It can be divided into two parts: internal environment and the external environment. The environment is very important element for the company. Lin Kang (2000) gives the point that “the purpose of the analysis is to know the advantages and the disadvantages” (p71).b) Financial management. Cut the cost, gain market share and maximize the profit. The foreign exchange risk is the biggest problem for the company to solve. Because of multinational companys decentralization of production and business operation, manage many countries and regions enterprise.It must raise capital or all kinds of money funds from different capital market . The currency of choice between various monetary, exchange rate fluctuation, which convert the profits and losses of the risks of is inevitable.c) Human resource management. Manage the diversity of employees, set up different competitive advantage, preserve different moral standards, enhance the management of information technology and electronic commerce. Global economic integration trend of the development makes numerous of the group facing unprecedented fierce competition, also put forward the managers rethink the global environment, and how to improve the organizational performance level and looking for better organization resources. The appearance of the global organization is facing more powerful pressure of competition. In regard to the managers of global competition environment, if the managers not make the self-adjust, the company will be in a passive position. The influence of globalization on enterprise is very big. It not only makes the enterprise facing a greater range of market, also can bring many benefits to the enterprise. It put forward the new requirements of competitive advantages for the enterprise, at the same time the change of the inner staff structure of the enterprise organization also put forward the new challenges.PART BTopic 1 International Business EnvironmentGenerally speaking, the international business environment includes the “Legal, Technological, Accounting, and Political”. (Ricky W.Griffin.p76).Virtually all decisions facing international managers-whom to hire, how to market their companys goods in the host market, which technologies to adopt, and so forth-are affected by the national environment of the country in which the transaction occurs.The requirement of the international business environment: the smaller risk, higher of the safety, the loss (threat)is small, earn more opportunities. But in fact, high investment income often occurred with bigger risk. Even so, we want to compare the returns and risks, only the earning is enough to offset the cost of risk, international business activities can be undertaken.We should think over the environment in these methods:First, consider the comparison of the countries. Second, evaluation of operating environment level method .Third, use the opportunity, threat analysis method.In a broad sense, the international business environment of the enterprise has been divided into two parts: the environment of the host countries and the international management environment. “The international business is provided with similarity, regularity and the extensive conditionality”, said the Xue Qiuzhi(2002). Helen Deresky (2011.p15)make the conclusion that: “at the present situation, the financial crisis is hitting the world of work “.A) We should consider the global business environment .In this part we should think over the Globality and Emerging Markets, Effects of Institutions on Global Trade, Effects of Globalization of Corporations, Regional Trading Blocs, and the Global Managers role.B) The political and economic environment. Proactive globally-oriented firms maintain an up-to-date profile of the countries on which they maintain operations (or have plans for future investment). In this part, we can see the political risk, political risk assessment , managing political risk and managing terrorism risk ,economic risk. C) The legal environment. The prudent global manager consults with legal services, both locally and at headquarters, to comply with host-country regulations and to maintain cooperative long-term relationships in the local area. In this part, the contract law, other regulatory issues are the important views. D) The technological environment. The effects of technology around the world are pervasiveboth in business and in private lives. In many parts of the world, whole generations of technological development are being skipped over. In this part the global e-business is the key point. A skillful global manager cannot develop a suitable strategic plan or consider an investment abroad within these elements. Case: From the first KFC setting up in Beijing, there are 2000 KFC restaurants in China.1, Localization innovation.KFC has been developed as the speed of opening one restaurant a day in China. It shows the internal environment of the international business. In fact, KFC purchased the material at the local areas. As their three basic foods (bread, chicken, and vegetables) has been purchased all from China. As we know, people widely acclaimed “menu location”. They improve the hamburgers towards Chinese taste. And they provided the Beijing roll-chicken and the new rice-set-meal. KFC doesnt be a stickler for their own product created many new localizational food. In this point, KFC is a superior.2. Nonzero start. This is only for franchisee. As a franchisee, they dont need to choose the place where it open, recruit employee, trains itself. KFC give the franchisee operating, mature and profitable restaurants. This can increase the success rate and the quality of the operation. Also help themselves expand quickly.3.Go to third-class city.KFC decline the expense for franchisee in second-third class city. This can ct the cost of management and the operating risk. From the above, KFC has analyze the environment thorough. This makes KFC in a good development in China.Topic 2 Ethics and Social ResponsibilityThe present situation of the management ethics: the most prominent of the lack of moral performance is fake, bribery, lack of credit. We all know the Sanlu Milk Powder Incident. As many as 10, 000 infants may have drunk the contaminated Sanlu milk powder,” vice health minister Ma Shaowei warned. (online) Melamine, also known as C3H6N6, is common plastic chemical raw materials, but also can be used as rodent poisons. For adults, renal function is completely, has the metabolism ability, so the melamine doesnt do harm to adults. But for children, it is easy to cause kidney stones. According to medical experts, melamine is a low toxic chemical products, infant intake can cause urinary tract diseases. At present with the infant of urinary stone, is mainly caused by eating contains a large number of melamine caused SanLuPai baby formula milk powder, most children through the water more, frequently urinating and other methods, the stones can pass spontaneously.The cause of moral dilemma: Information: buy buyers than pure, information advantage, information asymmetry; Human nature problem: rational limited, benefit driving, advance speculative phenomenon.Moral dilemma caused the concept of management review. The several related of morality: utilitarianism; right highest; fair; social contract; do as you would be done by.Influence factors of management ethics: 1. moral development stage. Moral development has three stages: Lowest level-former practices levels: only in its personal interests are affected until circumstances will make the moral judgment; Middle level-practice levels: moral judgment standard is a person is to maintain normal order and meet the expectations of others; The highest level-the level principle: men attempt to the authority of society in the organization or outside to establish the moral standards. 2. personal characteristics. Managers of the personal characteristics of the organizations management have direct influence on ethics: Managers of personal values (including morality), self-confidence, and self-control. Managers of individual self-confidence and self-control and management also has a moral relationship.3. Organization structure. Organization the internal organization of responsibilities and have the necessary power in check, monitoring, inspection and audit the mechanism, is there any external masses and the supervision of public opinion.4. organizational culture. Have the good faith, the tolerance of organizational culture5. problems strength. The so-called problem strength, it is to point to this problem, if take immoral behavior could have consequences of processing the severity.Moral problems strength will directly influence the managers decision. Enterprise values: Values are about the value of certain beliefs, attitudes, and proposal. Do good to enterprise, make the enterprise stronger and larger. All business enterprise management should be fit for ethical behavior.Topic 3 Understanding the Role of CultureNow, I set up a example of this topic: To separate the other MNCs with the LG company. The Chinese R&D center (research and development center) set up in 2000.The R&D center has three functions: 1. Its the only centre for developing cellphone.2. Its the center of developing cellphone for the world.3. The knowledge forum is very successful. LG has founded the communication system in-group. LG has combined the culture of Korea and China.The differences between the Korean culture and Chinese culture is a big problem for LG. In order to solve it, the staff in the company communicates with each other through heart-to-heart, and the view of the problem. At present, LG electricity has emphasized the “open communication”. The spread the English as the daily language.So, under the situation of the globalization, LG has show the important role of culture. First, we should know the culture and its effects on organizations.1.The social culture. As generally understood, the culture of a society comprises the shared values, understandings, assumptions, and goals that learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations. It includes many aspects: material culture, the language and communication, religion, education and appreciation of the beauty.2. Organizational Culture. The organizational culture is different from social culture. It often widely held within a region or nation. Kennedy and Deere summarize the system and the theory for five elements: The enterprise environment, values, heroes, cultural ceremonies and cultural network. (Online) 3.Cultures effects on management. Management as a coordinate activities activities, has a close connection to the culture. It defines the value scale culture in constructing cultural value concept and scale system ,described on the basis of the influence of culture on management practice, including the influence of the culture of the organization, culture for strategic management, and the influence of culture on the influence of the human resource management. This for our country in the new historical conditions improving all kinds of