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1、Chapter 1Management: process of completing activities efficiently andeffectively with and through other people.Globalization: the process of social, political, economic, cultural, andtechnological integration among countries around the world. NAFTA:North American Free Trade Agreement.FTAA: Free Trad

2、e Agreement of the Americas.FDI: foreign direct investmentGlobal economic systems:1. Market economy2. Command economy3. Mixed economyCHAPTER 2Ideologies:1. Individualism: the political philosophy that people should befree to pursue economic and political endeavors withoutconstraint.2. Collectivism:

3、the political philosophy that views the needs orgoals of society as a whole as more important than individualdesires.3. Socialism: a moderate form of collectivism in which there isgovernment ownership of institutions, and profit is not theultimate goal.Legal and regulatory environmentThere are three

4、 foundations on which laws are based around theworld. Briefly summarized, these are:1. Islamic law: law that is derived from interpretation of the Quran and the teachings of the Prophet Muhammad and is foundin most Islamic countries.2. Common law: law that derives from English law and is thefoundati

5、ons of legislation in the United States, Canada, andEngland, among other nations.3. Civil or code law: law that is derived from Roman law and isfound in the non-Islamic and nonsocialist countries. The lawChina used is civil or code law.Basic principles of international law:1. Sovereignty and soverei

6、gn immunity:principle ofsovereignty: an international principle of law which holdsthat governments have the right to rule themselves as theysee fit.2. International jurisdiction: which includes nationality principle,territoriality principle, protective principle. Nationality principle:a jurisdiction

7、al principle of international law which holds thatevery country has jurisdiction over its citizens no matter wherethey are located.Territoriality principle: a principle which holds that every nationhas the right of jurisdiction within its legal territory.Protective principle: a jurisdictional princi

8、ple of law which holdsthat every country has jurisdiction over behavior that adverselyaffects its national security, even if the conduct occurredoutside that country.3. Doctrine of comity: a jurisdictional principle of law which holdsthat there must be mutual respect for the laws, institutions, andg

9、overnments of other countries in the matter of jurisdictionover their own citizens.4. Act of state doctrine: a principle which holds that all acts ofother governments are considered to be valid by U.S. counts,even if such acts are illegal or inappropriate under U.S. law.5. Treatment and rights of al

10、iens:countries have the legalright to refuse admission of foreign citizens and to imposespecial restrictions on their conduct, their right of travel, wherethey can stay, and what business they may conduct.6. Forum for hearing and settling disputes: this is a principle ofU.S. as it applies t internat

11、ional law. U.S. courts can dismisscases brought before them by foreigners.Examples of legal and regulatory issues:1. Financial services regulation.2. Foreign corrupt practices act (FCPA): an act that makes itillegal to influence foreign officials through personal paymentor political contributions.3.

12、 BureaucratizationChapter 4Culture:acquired knowledge that people use to interpretexperience and generate social behavior. This knowledge formsvalues, creates attitudes, and influences behavior.Characteristics of culture:1. Learned. Culture is not inherited or biologicallybased; it is acquired by le

13、arning and experience.2. Shared: people as members of q group, organization, or societyshare culture; it is not specific to single individuals.3. Transgenerational: culture is cumulative, passed down from onegeneration to the next.4. Symbolic: culture is based on the human capacity to symbolize orus

14、e one thing to represent another.5. Patterned: culture has structure and is integrated; a change in onepart will bring changes in another.6. Adaptive: Culture is based on the human capacity to change oradapt, as opposed to the more genetically driven adaptive processof animals.Cultural diversityIn o

15、verall terms, the cultural impact on international management isreflected by basic beliefs and behaviors. Here are some specificexamples where the culture of a society can directly affect managementapproaches:1. Centralized vs. decentralized2. Safety vs. risk3. Individual vs. group4. Informal vs. fo

16、rmal5. High vs. low organizational loyalty6. Cooperation vs. competition7. Stability vs. innovationThe model of culture:There are three layers of culture:1. The implicit, basic, assumptions that guide peoplesbehavior;2. The norms and values that guide the society;3. The explicit artifacts and produc

17、ts of the society.Values in cultureValues: basic convictions that people have regarding what is right and wrong,good and bad, important and unimportant.Hofstedes cultural dimensions:1. Power distance : the extent to which less powerful members of institutions andorganizations accept that power is di

18、stributed unequally.Lower-power-distance: generally be decentralized and have flatterorganization structure;High-power-distance: have a large proportion of supervisory personnel,centralized and have a thinner structure.2. Uncertainty avoidance: the extent to which people feel threatened byambiguous

19、situations and have created beliefs and institution that try to avoidthese.High-uncertainty-avoidance:have a great deal of structuring oforganizational activities, more written rules, less risk taking by managers, lowerlabor turnover, and less ambitious employees. Low-uncertainty-avoidance:less stru

20、cturing of activities, fewer written rules, more risk taking by managers,higher labor turnover, and ambitious employees.3. Individualism; the tendency of people to look after themselves and theirimmediate family only.Hofstede found that wealthy countries have higher individualism scores andpoorer co

21、untries and regions higher collectivism.4. Masculinity: a cultural characteristic in which the dominant values in society aresuccess, money, and things.Femininity: a cultural characteristic in which the dominant valuesin society are caring for others and the quality of life.5. Time orientation: pres

22、ent vs. future6. Indulgence restraintTrompenaars cultural dimensions1. universalism vs. particularismuniversalism: the belief that ideas and practices can be applied everywherein the world without modification.Particularism: the belief that circumstance dictate how ideas and practicesshould be appli

23、ed and that something cannot be done the sameeverywhere.2. Individualism vs. communitarianismCommunitarianism: refers to people regarding themselves as part of agroup.3. Neutral vs. emotional:Neutral culture: culture which emotions are held in check.Emotional culture: culture in which emotions are e

24、xpressed openly andnaturally.4. Specific vs. diffuse:Specific culture: culture which individuals have a large public space theyreadily share with others and a small private space they guard closely andshare with only close friends and associates.Diffuse culture: culture which public space and privat

25、e space are similar insize and individuals guard their public space carefully, because entry intopublic space affords entryinto private space as well.5. Achievement vs. ascription:Achievement culture; culture which people are accorded status based onhow well they perform their functions. Ascription

26、culture: culture whichstatus is attributed based on who or what a person is.6. Time: present vs. future.7. The environment: inner-directed environment vs. outer-directedenvironment.8. Cultural patterns or clusters.Globes cultural dimensions:1. Uncertainty avoidance2. Power distance3. Societal collec

27、tivism4. In-group collectivism5. Gender egalitarianism6. Assertiveness7. Future orientation8. Performance orientation9. Human orientationChapter 6Organizational culture: shared values and beliefs that enable members tounderstand their soles in and the norms of the organization.Characteristic:1. Obse

28、rved behavioral regularities2. Norms3. Dominant values4. Philosophy5. Rules6. Organizational climateDimensions of corporate culture:1. Motivation: activities vs. outputs2. Relationship: job vs. person3. Identity: corporate vs. professional4. Communication: open vs. closed5. Control: tight vs. loose6

29、. Conduct: conventional vs. pragmaticFour steps that are used in the process of mergers or acquisition:1. The two groups have to establish the purpose, goal, and focuson their merger;2. Develop mechanism to identify the most important organizational structureand management roles;3. Determin e who ha

30、s the authority over the resources need for getting thingsdone.4. Identify the expectations of all involved parties and facilitate communicationbetween both departments.Three aspects of organizational functioning that seem to be especially importantin determining MNC organizational culture:1. The ge

31、neral relationship between the employees and their organization;2. The hierarchical system of authority that defines the roles of manager andsubordinates;3. The general views that employees hold about the MNCSpurpose, destiny, goals, and their place in them.Four types of organizational culture:1. Fa

32、mily culture: culture that is characterized by a strong emphasis onhierarchy and orientation to the person;2. Eiffel Tower culture: culture that is characterized by strong emphasis onhierarchy and orientation to the task;3. Guided missile culture: culture that is characterized by strong emphasison q

33、uality in the workplace and orientation to the task;4. Incubator culture : culture that is characterized by strong emphasis onquality and orientation to the person.Phases of multicultural development:1. Domestic firms2. International firms3. Multinational firms4. Global firmsTypes of group multicult

34、uralism:1. Homogeneous group2. Token group3. Bicultural group4. Multicultural groupPotential problems associated with diversity:1. Lack of cohesion2. Perceptual (可感知的) problem3. Stereotypes4. Inaccurate biases5. Miscommunicate6. Misinterpreted7. Communicational problems because of different percepti

35、ons fo time.Advantages of diversity:1. Generation of more and better ideas2. Prevent groupthink3. Enhances more than the internal operations but relationships to customers aswell.Chapter 8Strategic management: the process of determining an organizations basicmission, and lon-tgerm objectives, then i

36、mplementing a plan of action for attainingthese goals. Approaches to formulating and implementing strategy:1. Economic imperative: a worldwide strategy based on cost leadership,differentiation, and segmentation.2. Political imperativ e: strategic formulation and implementation utilizingstrategies th

37、at are country-responsive and designed to protect local marketniches.3. Quality imperative: strategy formulation and implementation utilizing strategicof total quality management to meet or exceed customersexpectations andcontinuously improve products or services.4. Administrative coordination : MNC

38、 makes strategic decisions based on themerits of the individual situation rather than using a predetermined economically orpolitically driven strategy.The basic steps in formulating strategy:1. External environmental scanning:the process of providingmanagement with accurate forecasts of trends relat

39、ed to external changes ingeographic areas where the firm currently is doing business or is consideringsetting up operations.2. Inter resources analysis: helps the firms to evaluate its current managerial,technical, material, and financial resources and capabilities to better assess itsstrengths and

40、weakness; KSF: key success factor: factor necessary for a firmto effectively compete in a market niche.3. Goal setting for strategy formulation:Areas for formulation of MNC goals:1. profitability2. marketing3. operations4. finance5. human resources4. strategy implementationtwo steps to implement the

41、 strategy:1. chose the country2. local issuesstrategies for the“base of the Pyramid”: strategy targetinglow-income customers in developing countries.Chapter 9Strategies for firms to entry international market:1. export/import:AD:1. less risk2. less investment3. easy to entry marketDISAD:It is transi

42、tional (过渡性的) in nature2. wholly owned subsidiary:AD:1. total control2. better efficiency without outside partners;3. higher profit4. clearer communication and shared visionsDISAD:1. high risk2. low international integration or multinational involvement3. host countries may try to gain economic cont

43、rol and require it to cooperatewith local organization4. home-country sometimes oppose the creation of foreign subsidiaries3. mergers/acquisitionsAD:1. quickly expand resources or construct high-profit product in a newmarket2. cost saving3. avoid the home- countrys interpretationDISAD:1. cultural di

44、fferences2. time constraints3. managers need to be wary of such common complications andattempt t move forward by enhancing communication and operationalefficiency4.alliances and joint ventures:AD:1. improvement of efficiency2. access to knowledge3. mitigating political factors4. overcoming collusio

45、n or restriction in competition suggestions thatapplied in strategic alliances include:1. know your partners well2. expect difference in alliance objectives among potential partnersheadquartered in different countries3. realize that having the desired resource profiles does notguarantee that they ar

46、e complementary t your firms resources4. be sensitive t your alliance partners needs5. work on developing a relationship that built on trust, 5.licensing:AD:1. provides the licensor with a source of additional revenues2. low-cost way of gaining and exploiting foreign markets6.franchisingBasic organizational structures:1. initial division structure2. international division structureAD:1. focus receives top managements attention2. allows the company to develop an overall, unified approac

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