Download Managing in the Global Environment

Managing in
the Global
Environment
chapter six
lecture 2
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
The General Environment
• Economic Forces
– Interest rates, inflation, unemployment, economic
growth, and other factors that affect the general
health and well-being of a nation or the regional
economy of an organization.
6-2
The General Environment
• Technology
– The combination of skills and equipment that
managers use in designing, producing, and
distributing goods and services.
• Technological Forces
– Outcomes of changes in the technology that
managers use to design, produce, or distribute
goods and services
6-3
The General Environment
• Sociocultural Forces
– Pressures emanating from the social structure of a
country or society or from the national culture
6-4
Sociocultural Forces
• Social structure
• National culture
– the arrangement of
relationships between
individuals and groups in
society
– the set of values that a
society considers
important and the
norms of behavior that
are approved or
sanctioned in that
society.
6-5
The General Environment
• Demographic Forces
– Outcomes of change in, or changing attitudes
toward, the characteristics of a population, such
as age, gender, ethnic origin, race, sexual
orientation, and social class
6-6
The General Environment
• Political and Legal Forces
– Outcomes of changes in laws and regulations,
such as deregulation of industries, privatization of
organizations, and increased emphasis on
environmental protection.
6-7
The Global Environment
Figure 6.3
6-8
Process of Globalization
• Globalization
– The set of specific and general forces that work
together to integrate and connect economic,
political, and social systems across countries,
cultures, or geographical regions so that nations
become increasingly interdependent and similar.
6-9
Principal Forms of Capital that Flow
Between Countries
Human capital
Financial
capital
Resource
capital
Political
capital
6-10
Declining Barriers to Trade and
Investment
• Tariff
– A tax that government imposes on imported or,
occasionally, exported goods.
– Intended to protect domestic industry and jobs
from foreign competition
6-11
USITC
• The United States International Trade
Commission is an “independent, quasi-judicial
Federal agency with broad investigative
responsibilities on matters of trade.”
• The Commission also serves as a Federal
resource where trade data and other trade
policy-related information are gathered and
analyzed.
7-12
GATT and the Rise of Free Trade
• Free-Trade Doctrine
– The idea that if each country specializes in the
production of the goods and services that it can
produce most efficiently, this will make the best
use of global resources and will result in lower
prices
– General Agreement on Tariffs and Trade
6-13
Declining Barriers of Distance and
Culture - Unilever
• Distance
– Markets were essentially closed because of the
slowness of communications over long distances.
• Culture
– Language barriers and cultural practices made
managing overseas businesses difficult
• Changes in Distance and Communication
– Improvement in transportation technology and fast,
secure communications have greatly reduced the
barriers of physical and cultural distances.
6-14
Effects of Free Trade on Managers
• Declining Trade Barriers
– Opened enormous opportunities for managers to
expand the market for their goods and services.
– Allowed managers to now both buy and sell goods
and services globally.
– Increased intensity of global competition such
that managers now have a more dynamic and
exciting job of managing.
6-15