Download INTERNATIONAL BUSINESS

University Of Finance & Administration
INTERNATIONAL BUSINESS
[NA_IB]
Pavla Břečková [Ing., Ph.D.]
[email protected]
INTERNATIONAL BUSINESS – main areas
Full-time course = 12 lectures per 90 mins.
•INTERNATIONAL BUSINESS [IB], characteristics, indicators.
•WORLD BUSINESS TERRITORIES, challenges, integration, main
trading blocks [TRIAD, BRIC]
•GLOBAL BUSINESS ENVIRONMENT.
•EMERGING MARKETS, characteristics, features, selected
markets in detail
•BRICS
•Doing business in ASIA
•Foreign market analysis
•PREDISPOSITIONS for working in IB, expatriation and HR in IB
2.
EXAM terms BA_IBR
12 lectures (per 90 mins) - Finished by:
exam
Completion CONDITIONS = min. 12 points out of 30
 Active participation in the lectures
[active listening, discussing, reading, analyzing & interpreting of economic
articles or case study results, presence at lectures – 50%]
 Case study elaboration & it’s active professional prezentation
 Knowledge test
ALL BASED ON POINTS AS FOLLOW
5 points = 3/5 presence (if less = 0 points)
up to 10 points = success at CASE study
& its prezentation
up to 15 points = TEST
TOTAL max 30
12 – 14 points = E
15 – 17 = D
18 – 20 = C
21 - 23 = B
24 – 30 = A
CASE study / team project
CASE study on one of these topics:
1. BUSINESS RELATIONS
… worldwide. The world economy structuring nowadays, may be compared with the past /
possible prospects for future. Examples of certain (political) decisions => concrete influence on
business or business relations.
2. SMEs (Small & Medium Enterprises) and their role in a globalizing world
Companies up to 250 employees (acc.to European definition), their specifics, positives x
negatives, could contain some statistics or comparison in various countries. Their major role in
society, comparison of views on them in various countries or contexts.
3. FAMILY BUSINESS
…and their role in global business, positives x negatives, examples, specifics,
problem of handing over to next generations, comparisons in various countries etc.
4. PRODUCT PLACEMENT – market study
Placing of a product into a foreign market, including product description + argument
why it is suitable for export, analyses of the preferential market (why this market, structure and potential
of the target group), mapping competition, potentials + risks, argument why you think your product will
succeed.
5. NOT WIDELY KNOWN (UNUSUAL INFORMATION) about BRICS / EU / ASEAN or
another international trade grouping
CASE study - elaboration
CASE study on one of these topics:
1. Business Relations
2. SMEs and their role in a globalizing world
3. Family Business
4. PRODUCT placement – market study
5. Not widely known information about an international grouping
ELABORATION:
 Elaboration in teams per up to 8 people
 Presentation of the results
- ppt possible, cca 10 min., structured way, clear outcomes
(solutions, results)
PREZENTATION:
- up to 10 min. / all the team members should be involved
Team projects presentation - schedule
6/10/2015
introductory lesson, setting the teams, choosing
topics
20/10/2015
lecture / consulting on the team projects
4/11/2015 at 12,30 p.m.
GUEST lecture Ivan Jukl (instead of regular
session Nov 3rd- to be marked in Presence sheet), in ESTONSKA site –
Congress Centre (= hall opposite Reception)
17/11/2015
Czech bank holidays
1/12/2015
lecture / presentation of teams 1 + 2
15/12/2015
lecture / presentation of teams 3 + 4, concluding the
course (possibly the TEST)
LITERATURE SOURCES
Povinná literatura / Mandatory reading:
Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition,
2011
Doporučená literatura / Recommended reading:
Allan Sitkin, Nick Bowen: International Business, January 2010.
Stuart Wall, Dr. Bronwen Rees: International Business: A First Course,
September 2009.
Wild, J., Wild, K., Han, J.: International business: the challenges of
globalization. 4th ed. – Pearson, Upper Saddle River, 2008. ISBN: 978-013-174743-6.
Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0333-75979-6.
Griffin, R.W., Pustay, M.W.: International business: a managerial
perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, 2007. ISBN:
0-13-233532-8
7.
CULTURE DIFFERENCES
= impact of culture on relationship, employees
approach to work, business management and
negotiations
-> this impact is much > than differences coming out from:
o RACE
o SEX
o specialization [PROFESSION]
o POSITION
8.
CULTURE and it’s elements
CULTURE
= characteristic way of living
= based on ACQUIRED models of behaviour (i.e. learnt,
not inborn)
Culture ELEMENTS
 ABSTRACT (values, approaches, opinions, religion –
from generation to generation)
 MATERIAL (stage of development and types of:
technology, structure of consumption in a country /
society )
9.
CULTURE – abstract elements - impact
AESTETICS

Opinion on what is „nice“ (symbols of countries, blackwhite perception, ideal of woman’s beauty etc.)
RELIGION
 Hinduismus – way of living: cast system, common
households, worshipping/cult of animals…
 Islam
 Christianity
Way of DOING BUSINESS
 length of meeting, outcomes
 business card handling
10.
CULTURE – abstract elements - impact
EDUCATION
 characteristics and way of thinking of the consumers/
customers in a territory (illiteracy – promotion, packaging,
marking…)
LANGUAGE


impossibility to pronounce
undesirable meaning
11.
Basic elements of Culture
Language
Communi
-cation
Social
structure
CULTURE
Values &
Attitudes
Religion
12.
SOCIAL structure
= determines the roles of individuals within the society,
indiv.mobility within society, stratification of the society
 Individuals, Families, Groups
Social attitudes influence / Business:
 US descourage nepotism
 Arab countries: family ties crucial
Importance of INDIVIDUAL to the group:
 Europe culture promotes individualism (PAY = merit based)
 group focused societies (collectivism) = the IND role is to SERVE the
group (PAY = seniority-oriented, group success)
Social STRATIFICATION
Social MOBILITY
 ability of IND to MOVE within stratums of society
13.
LANGUAGE
= identified > 3.000 languages worldwide

Business language
 Form of language
 Competitive weapon
 Translations
 Meaning YES / NO
14.
COMMUNICATION
= VERBAL x NON-VERBAL
 Contact zone
 Gestures & their impact on business
 Role of silence
 Role of eyes
 Gift giving & hospitality
 Business practice
 Role of education in a society
15.
Ad COMMUNICATION - other culture aspects
Time perception
• Timing accuracy
• Politeness
Contact zone
• cca 80 cm in
Europe
• cca 30 cm in e.g.
Arabic countries
Role of eyes
• Importance in
Europe X could be
perceived as a sign
of agression in other
parts of world (Asia,
Japan)
16.
RELIGION
 Christianity
European traditions
 Hinduismus
way of living (life style): castes (privileged groups of
society), common household of a few families,
worship (cult) of cow
 Islam
men preference in business
17.
Characteristics of Culture [relevant to IB]
Culture = collection of values, beliefs, behaviors, customs and
attitudes that distinguish one society from another
 society culture determines how firms operates in the society
Culture reflects LEARNED behavior
• Transmission from one member of society to another
Elements of culture are INTERRELATED
• e.g.: hierarchical society => stress on loyalty & harmony => results
in life-time employment & minimal job switching (Japan)
Behavior is ADAPTIVE
• Because cultural is LEARNED behavior, it’s ADAPTIVE
• i.e. culture change in response to external forces that affects society
Culture is SHARED
• Defines the membership of the society
• i.e. who shares the culture ‘proves’ to be a member / who does not
=> outside of boundaries of society
18.
Hofstede’s 5 dimensions of cult.differencies
SOCIAL orientation
• Person’s beliefs about the relative importance of the
individual & groups to which that person belongs
• INDIVIDUALISM x COLLECTIVISM
POWER orientation
• Power RESPECT x TOLERANCE
UNCERTAINTY orientation
• Uncertainty ACCEPTANCE x AVOIDANCE
GOAL orientation (Masculinity x Femininity)
• AGGRESSIVE x PASSIVE goal behavior
TIME orientation
• LONG-TERM x SHORT-TERM outlook
19.
Hofstede’s 5 dimensions
SOCIAL ORIENTATION
= person’s beliefs about the relative importance of the
individual & groups to which that person belongs
INDIVIDUALISM
COLLECTIVISM
• Cultural belief that the person
comes first
• Key values: high degree of
self-respect & independence
• Belief that group comes first
• Typically: well-defined social
networks, extended
families, tribes, co-workers
20.
Hofstede’s 5 dimensions
POWER ORIENTATION
= refers to beliefs that people in a culture hold about
the appropriateness of power and authority dif. in
hierarchies
RESPECT
TOLERANCE
• People tend to accept the
power & authority of
superiors
• People at all levels in firm
accept decisions of superiors
• People are more willing to
question / refuse a decision
or mandate from sb at a
higher position
21.
Hofstede’s 5 dimensions
UNCERTAINTY ORIENTATION
= is the feeling people have regarding uncertain an
ambiguous situations
ACCEPTANCE
AVOIDANCE
• Stimulated by change and
thrive on new opportunities
• Ambiguity is seen as a context
one can grow, develop, carve
out new opp.
• Positive response to change
• People dislike ambiguity and will
avid it whenever possible
• Amb. & change seen as
undesirable
• Preference of routine, structured
& consistent ways of doing
22.
Hofstede’s 5 dimensions
GOAL ORIENTATION / Masculine x Feminine
= is manner in which people are motivated to work
toward different kinds of goals
AGGRESSIVE g.behavior
(Masculinity)
PASSIVE g. behavior
(Femininity)
• People tend to place a high
premium on material
possessions, money &
assertiveness
• People place a higher value on
social relationships, quality of life
and concern for others
23.
Ad GOAL ORIENTATION
Masculinity x Femininity (VALUES & ATTITUDES)
MASCULINITY x FEMININITY (Hofstede’s 1 of 5 dimensions):
= is manner in which people are motivated to work toward different
kinds of goals
Masculinity
People tend to place a high premium on material
possessions, money & assertiveness
The cultures that are more masculine, such as Japan, value competitiveness,
assertiveness, ambition, and the accumulation of wealth.
Femininity
People place a higher value on social relationships,
quality of life and concern for others
On the other hand, feminine cultures, such as Sweden, place more emphasis on
relationships, compassion, and the general quality of life.
24.
Hofstede’s 5 dimensions
TIME ORIENTATION
= is extent to which members of a culture adopt a longterm vs. short-term outlook on work, life etc.
LONG-term
outlook
SHORT-term
outlook
• Value: dedication,
hard work, and thrift
• Value: traditions,
social obligations
25.
KEY terms
- Culture and its impact on International Business
- Characteristics of culture
- Five dimensions of culture differences
-
Social orientation (individualism x collectivism)
Power orientation
Uncertainty orientation
Goal orientation (masculine x feminine)
Time orientation
- Social stratification
- Communication: verbal x non-verbal
- Other culture aspects [time perception, contact zone,
role of eyes, gift-giving, hospitality]
26.
INTERNATIONAL BUSINESS
Thank you for your attention
Ing. Pavla Břečková, Ph.D.
[email protected]