TOWARDS INTERNATIONAL AND TRANSNATIONAL MANAGEMENT
While universal advice cannot be given , every country has to face dilemas: - in relation to time - in relationships with people - in relation to natural environment
The reserach in this book shows that there are different ways to approach these dilemmas in different countries because each country has its own culture .
The managers examined to make up the data base of this reaserch have two different ways of building the moral edifice: universalism ( to give priority to universal rule) or particularism ( to give priority to your affection for particular people).
It is important to give status to achieveres but it is also important to back people who are not
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Although new technologies are a good way of communication they also have problems.
Time zone differences must be taken into account as also cultural characteristics.
A company will be centralized and global while information is used for advantage and power.
In the international and transnational companies, national operating companies communicate because the activities of other companies in near markets are opportunities and resources. It is very important that the network remains informed of everyting, of every action taken by subsidiaries.
A good software for keeping networks informed is the highlight system.
There will be in the future a software to facilitate cross cultural communication.
Implication of business strategy
Universalism creates global structures with the values of the home country for all of them, while individualism creates multinational structures in which individuality of each country is taken into account.
Depending on the culture of every country internationalization can work in their countries of origin but fail in other nations.A foreign culture has values that are neglected in our culture and to find them is very important for the company.
It is very good to synthesize the advantages of all cultures.
The author speaks about strategic
International organizations will have to integrate the culture’s values in which they are working in. Other countries norms may not fall under the assumption that employees can seek responsibility. There are countries who view their leadership as royalty and that norm carries over to their business. Management and employees may not be able to socialize as easily as American based business. This would create a gap in the employee’s ability to integrate their creativity and use their imagination. Countries like China, who have multiple factory “sweatshop”
It also requires more of an investment and commitment by the international company which creates a higher risk. There is also the down side of having difficulty managing local resources.
The internationalisation process of the firm has been a subject, which has been motive of study for a number of
The business internationalise means a company’s production and business activity are not only confined to one country, but also integrate the different countries’ raw material and labour and technologies to
Challenge of Globalization W. L. GORE & ASSOCIATE had been expending their business in more than 30 over country; there are Asia Pacific, Europe and the Middle East, Central America, North America and South America, leading manufacturer of thousands of advanced technology products for the electronics, industrial, fabrics and medical markets. With the employees of 9.500 people around the world, managing the people also bring along the trouble as well. With the diversity of culture, people, background, language and norms, challenges and problems occur within the company and beyond the boundaries of the company. This is the major problems that will occur when a company goes global and expanding to the world. This challenge of globalization
Transnational organizations also have flexible and ever-changing structures. Their managers incorporate innovation and strategies for the corporation as a whole. Unification and coordination goals are achieved by corporate culture, shared values, vision, and management style. It offers a high level of differentiation, while ensuring that a global organization can coordinate activities and transfer knowledge across various functional areas and geographies (Daft, 2010).
Considering the conducted research and analysis, it can be clearly seen that the international strategy is not effective, that is why, needs to be fixed. Moreover, the company has a success in the local market, so it may be reasonable to put the efforts to promote inside the country.
Communication is such an important part of everyone’s daily life, not only in one’s personal life but also in organizations. Also now a day, we are becoming every year more and more global and working with different countries and cultures around the world. Henceforward, globalization is increasing, which makes communication a very important part of doing business internationally.
Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.
If the product is not doing good in the home country, why we should try to go global? May be some boss may think the foreign country will be adopting the product better compare to the home country, and I think this is wrong. The Product is the company’s core.
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)
INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited
The most challenging decision that a company may face in internationalization is the degree of standardization or adaptation in its operations. The question of standardization or adaptation affects all avenues of a business’ operations, such as R&D, finance, production, organizational structure, procurement, and the marketing mix. Whether a company chooses to standardize or adapt its operations depends on its attitudes toward different cultures. These attitudes are defined by three orientations toward foreign culture: ethnocentric, polycentric, and geocentric.
Increase Sales: - if a business succeeds in the US, going international will likely improve the overall revenue. Approximately 96% of the world’s population lives outside of the United State and 90% of the world’s population do not speak English, that suggest that customer is global and if a business has to look beyond the end of the domestic market, you have real upside potentials
The practical studies focus on identifying that internationalization was regular or incremental process .The internationalization process is study focusing on attitudes and behaviors of firms in market that are in the process of internationalization. The practical studies focus on identifying that internationalization was regular or incremental process. Some observations are also made on de-internationalization that point towards the flexibility seen in the duration of the internationalization process.