Copyright © Universidad San Ignacio de Loyola. Todos los derechos reservados. M.B.A. and Master in Energy Management
B. Sc. Chemical Engineering Juan Carlos Romaní Bravo
INTERNATIONAL BUSINESS
Introductions
:
1. Who am I? 2. Who are you?
3. Why are you here?
4. Where do you want to be in five years? 5. How are you going to get there?
2
To expose the students to the multicultural challenges of global leadership according to the demands of the current international markets.
To provide the students understanding of theory and concepts on these subjects and improve their ability to perform successfully across cultures while developing global management skills.
To contribute in the development and education of global managers who will lead their organizations adapting to the future and constant changes with high tolerance to unfamiliar situations and respect to diverse cultures.
3
Introduction
Course learning outcomes
:
4
Introduction
General Learning Outcomes N° Specific Learning Outcomes
1. Identify and analyze the challenges for global managers in modern markets.
1.1 .
Identify the differences between a local and a global manager.
1.2 .
Recognize the characteristics of the new global manager in order to succeed
internationally.
2. Develop global understanding and analyze different environments.
2.1 .
Identify and differenciate culture and subcultures as well as culture
complexities. 2.2
.
Define global strategy. Identify cultural, organizational and situational
environments.
3. Identify and implement global management skills.
3.1 .
Improve communication and negotiation skills.
3.2 .
Course grades
:
5
Introduction
Type Evaluation %Weight Observation
Week Assess ment
Rezag.
Evaluación Permanente 65%
Promedio 1 35%
Actividad 01 60% 13va No
Actividad 02 40% 13va No
Promedio de Prácticas 30%
Práctica 1 25% 3ra Si
Práctica 2 25% 6ta Si
Práctica 3 25% 10ma Si
Práctica 4 25% 13va Si
Trabajo 35% No
Examen Parcial 20%
Examen Final 15%
(*) Dates for each evaluation are available on INFOSIL, menu Información Académica, option Evaluaciones.
Course requirements
:
Total Percentage of Absences Permitted: 30%
The students who reach or exceed the total percentage of absences permitted for the course, defined by the total of effective hours, will not be able to take the final exam or the equivalent evaluation defined by the course coordination and therefore will get zero (00) as the score.
Read textbook and additional material before class
Active participation
6
Course textbook
:
Textbook structure
:
8
The management challenge:
“
Understanding and managing the new global
realities”
No one said being a manager is easy. With increasing globalization comes increased pressure for both change and competitiveness.
Understanding this changing environment is our first challenge.
The second is building mutually beneficial interpersonal and multicultural relationships with people in different parts of the globe in order to overcome these challenges and take advantages of the opportunities presented by the turbulent global environment.
Topics for today
1.
Globalization, change, and
competitiveness
2.
The emerging global landscape
3.
Management and multicultural
competence
The new global manager
•
Managers are responsible for utilizing human,
financial, informational, and physical resources in
ways that facilitate their organization
’
s overall
objectives in turbulent and sometimes hostile
environments about which they often understand
very little.
•
These challenges can be particularly problematic
when operations cross national boundaries.
Ask the experts:
A competitive world offers two possibilities.
You can lose. Or, if you want to win, you can change.
-- Lester Thurow
Sloan School of Management, MIT USA
Ask the experts:
In the future, the ability to learn faster than your
competitors may be the only sustainable competitive advantage.
-- Arie de Gues
Corporate Planning Director Royal Dutch Shell Netherlands
Topics for today
1.
Globalization, change, and
competitiveness
2.
The emerging global landscape
3.
Management and multicultural competence
What is globalization?
Globalization
is
the
inexorable
integration
of
markets, capital, nation-states, and technologies in
ways that allow individuals, groups, corporations,
and countries to reach around the world farther,
faster, deeper, and cheaper than ever before.
Application 1.1:
Canada Post
What is your opinion?
1.Canada Post is not the only national postal service having serious troubles in today’s new electronic
marketplace. What is the future of such national postal services?
2.Is there a similar problem in your own home country? 3.What, if anything, can postal services do to regain markets and their competitive edge?
4.In what other ways is the global economy changing in directions that threaten other businesses?
Globalization drivers
Increased customer demands & access
to competing products & services
• Customers around the world are increasingly demanding more for less.
• They are putting increased pressure on prices and quality.
• Customers increasingly prefer global brands over local products.
Technological innovation and
application
• Improved ICTs facilitate increased access to global networks, markets, partners and customers.
Increased power an influence of
emerging markets and economies
• Differences between haves and have-nots have tended to become accentuated.
• Emerging markets present traditional corporations with a particular challenge
• Emerging economies are demanding greater respect and access to global markets.
Shared research and development
(R&D) and global sourcing
•
Many companies are going
global in order to spread
their research and product
development costs across
multiple regional markets.
•
Outsourcing is now the
rule, not the exception
•
Global supply chains are
becoming increasingly
efficient.
•
Transportation and
Increased interdependence of
financial markets
• Global economies and financial markets have become more and more interdependent.
• Access to capital markets is becoming increasingly globalized.
Evolving government trade policies
• Governments are increasingly supporting local economic development initiatives to atract new and often foreign investments and create local employment.
• They are also increasingly supporting aggressive trade initiatives to support the global expansion of local
companies.
Consider
:
What are the
consequences of globalization?
1. In general, what are some of the positive
consequences of globalization?
2. What are some of the negative consequences? 3. How can managers and their companies work to
build on these positive consequences and/or mitigate these negative consequences?
Positive Consequences of
Globalization
1. Higher growth rates in poor countries
2. Developing world population living on less tan $1.50
per day is half what it was in 1981.
3. In 2009, 29% of Global Foreign Direct Investment
(FDI) was absorbed by developing countries.
4. Trade expansion. Ex. China
5. Bigger markets
6. Diversificated products
7. Competitive prices
8. Access to product and services that otherwise will
be imposible or expensive.
Negative Consequences of
Globalization
1. Threatens national sovereignty: excessive dependance on large countries.
2. Increased economic growth not
necessarily lead to major social improvements
3. Increased negative environmental
impact: e.g. air and water polution and deforestation
4. Non sustainability of the process,
unrestricted exploitaition of the planet´s resources. For ex. Climate change.
5. Growing inequality in the distribution of money there are winners and losers in the transfer of resources and production from one country to another
6. The growth of exports not necessarily lead to poverty reduction
Topics for today
1.
Globalization, change, and competitiveness
2.
The emerging global landscape
3.
Management and multicultural competence
Consider
: International joint
ventures
Over 50% of international joint ventures fail within the first five years of operation. The principal reason cited for these failures is cultural differences and conflicts between partners.
1. Is the problem here that managers don’t understand the cultures of their partners or that they choose not to understand them? Why?
2. Knowing this failure rate, why haven’t more companies
initiated steps to reduce it? Explain.
The emerging global landscape
Chapter 1 -- Global realities, p. 19 32
From biculturalism to multiculturalism
From isolation to interconnectedness
Application 1.3:
Apple
iPhone
What is your opinion?
1.How is it possible for two companies to work closely together in a global strategic alliance when they are not only direct competitors in the marketplace, but also suing one another in court?
2.What does this global alliance tell you about the future of global strategies and competitiveness in highly dynamic industries?
3.What are the management challenges for Apple and Samsung in making this long-term relationship work?
4.Are there lessons from this strategic alliance for other global companies?
5.Is it easier or more difficult for companies to work with firms from other cultures (e.g., US and Korea)? Why? What are the management implications of such differences?
From intermittent to continual
change
1. Change is everywhere.
2. Companies, product, and managers come and go. 3. Details have become more important.
4. Personal relationships remain on of the last safe havens in an otherwise unpredictable world.
5. Application of new technology:
• Principal driver of globalization
• Key to national economic development and competitiveness
• “Global business as we know it today would not be posible without technology”
From isolation to
interconnectedness
1. Globalization has always been a major part of commerce
2. What is new: the magnitude of globalization today and its impact on standards of living, international trade, social welfare, and environmental sustainability.
3. Global FDI:
1975 US$ 23 billion 1998 US$ 644 billion 2008 US$ 1.5 trillion
2020 more than US$ 3 trillion
From biculturalism to
multiculturalism
1. Today’s global business environment requires managers who can be able to succeed simultaneously in multiple cultures, not just one.
2. The timeline for developing business relationships has decline from years to months and sometimes weeks.
3. New challenges in adapting to realities on the ground:
• It is sometimes unclear to which culture we should adapt.
• Many multicultural encounters happen on short notice, leaving little time to learn about the other culture.
• Multicultural meetings increasingly occur virtually by way of computers or video conferencing instead of through more traditional face-to-face
The changing global economy
Topics for today
1.
Globalization, change, and competitiveness
2.The emerging global landscape
3.
Management and multicultural
competence
So, what do managers need to
know to work successfully
across cultures?
Multicultural competence
An increasing group of management experts are directing their attention to the need for managers to develop perspectives that stretch beyond domestic borders.
This concept is identified in many ways (e.g., ‘global mindset,’ ‘cultural intelligence,’ ‘global leadership’), but we refer to it simply as multicultural
competence.
Whatever it is called, its characteristics and skills are in increasing demand as large and small, established and entrepreneurial firms strive for global
competitiveness.
Application 1.5:
Launching a new venture in India
What is your opinion?
1.Many countries have strong and complex government bureaucracies that often serve to inhibit new investment—especially by foreigners. As an entrepreneur interested in foreign investment, how might you prepare yourself for dealing with such bureaucracies?
2.It is said that all countries have corruption; it is just the magnitude or nature that is different. Do you believe this is correct? If so, how would you determine what level of corruption is ‘acceptable’for you to continue pursuing business affairs in that country?
3.How might an understanding of multicultural competence better prepare both entrepreneurs and global managers for the ‘realities on the ground’in international ventures?
4.As an entrepreneur looking to invest in developing economies, what steps might you take to protect yourself and your firm against the consequences of local
corruption?
Challenges facing global
managers
/1
1. Develop a learning strategy to guide both short and long-term professional development as a global
manager.
2. Develop a basic knowledge of how different cultures work, what makes them unique, and how managers can work successfully across such environments. 3. Develop effective strategies for working with
managers from other cultures who may process information differently and view their roles and responsibilities in unfamiliar ways.
Challenges facing global
managers
/2
4. Develop an understanding of the competing interests and demands of various stakeholders in an
organization, as well as the organizational processes necessary for achieving targeted outcomes.
5. Develop an understanding of how business enterprise can be organized differently across cultures, as well as the implications of these differences for
management, cooperation, and competition.
Challenges facing global
managers
/3
6. Develop effective cross-cultural communication skills. 7. Develop an understanding of leadership processes
across cultures, and how managers can work with others to achieve synergistic outcomes.
8. Develop a knowledge of how cultural differences can influence the nature and scope of employee motivation, as well as what global managers might do to enhance on-the-job participation and performance.
Challenges facing global
managers
/4
9. Develop effective negotiating skills and an ability to use these skills to build and sustain global partnerships. 10. Develop an understanding of how ethical and legal
conflicts relate to managerial and organizational
effectiveness, as well as how managers can work and manage in an ethical, fair, and socially responsible
manner.
Global management dilemma 1
Singapore Investment Bank
Assignment:
1.Managerial qualities: In your view (and for this company), what are the five most important managerial qualities or characteristics of a successful junior global manager?
2.Training goals: What are your training objectives? Why? 3.Participant selection: What criteria would you use to select employees into (or out of) your development program?
4.Training mechanisms: Roughly, what kinds of training activities would you concentrate on (e.g., lectures, team exercises, site visits, language training, etc.)? Why are these the best training techniques for your objectives? Can this be done within SIB’s training budget? 5.Evaluation criteria: How will you know if you are successful?
Next class:
The new global managers . . .
Copyright © Universidad San Ignacio de Loyola. Todos los derechos reservados. M.B.A. and Master in Energy Management
B.Sc. Chemical Enginnering Juan Carlos Romaní Bravo
