moduel 3 marketing management📚

Multinational management

The formulation of strategies and management systems to take advantage of international opportunities in respond to international threats

What is a multinational company?

• any company that engages in business functions beyond its domestic borders

• The companies may be large or small

• Most companies are multinational corporations

• The largest are all public corporations

Globalization

The world’s economies are becoming borderless and interlinked

• companies are no longer limited by their domestic boundaries, and may conduct any kind of business activity anywhere in the world

• Creates a changing, but not uniform, and not always stable, environment for business

What are negatives for globalization?

• not all economies, benefit or participate equally

• Terrorism war and economic stagnation have limited or reserved some aspects

• Produces a scarcity of natural resources pollution negative social impacts and increase in interdependence of economies

• May be widening the gap between rich and poor countries

What are benefits of globalization?

• Results in lower prices in mini countries as multinationals become more efficient

• Benefits, mini emerging markets, such as India and China as these countries enjoy greater availability of jobs a better access to technology

• Is the main reason why many new companies from Mexico Brazil, China India and South Korea are the new dominant competitors

Developed countries

Have mature economies with substantial per capita, gross domestic product, international trade, and investments

Transition economies

Our countries that have changed from mostly communist systems to market/capitalistic systems

Emerging markets

Are those countries whose economies are growing rapidly

Regional trade agreements

Our agreements and nations to reduce tariffs and develop similar technical and economic standards

For indirect investment (FDI)

Occurs when a multinational company from one country has an ownership position in an organizational unit located in another country

Intellectual capital

Willingness to learn and build your knowledge base regarding cultural differences, and how to adapt to such differences

Psychological capital

Ability to be respective to new ideas and experiences

Social capital

Ability to develop networks of individuals who are different from you

Culture

Pervasive and shared beliefs, norms values, and symbols that God the everyday life of a group

Cultural norms

Both perspective and prescribed behaviors

• What we can and cannot do

Cultural values

What is good what is beautiful? What is holy and what are legitimate goals for life

Cultural beliefs

Represent our understandings about what is true

Cultural symbols, stories, and rituals

Communicate the norms values and beliefs of a society or group to its members

Culture is pervasive in society

Affects all aspects of life

Culture is shared

Similarity and values, beliefs, and norms

National culture

The dominant culture within the political boundaries of the nation state

• There may be sub cultures within the national culture

Business culture

Norms values and beliefs that pertain to all aspects of doing business and a culture

• Tells people the correct acceptable ways to conduct business and a society

Occupational culture

The norms values beliefs, and expected ways of behaving for people in the same occupational group, regardless of employer

Organizational culture

The set of important understandings that members of an organization shares

Hofstede’s model of national culture

There are five dimensions of basic, cultural values:

• Power distance

• Uncertainty avoidance

• Individualism

• Masculinity

• Long-term orientation

What are the five management practices considered in the discussion of Hofstede’s model include in human resource management?

• management selection

• Training

• Evaluation and promotion

• Remuneration

What are the five management practices considered in the discussion of Hofstede’s model include in leadership styles?

how they behave

What are the five management practices considered in the discussion of Hofstede’s model include Motivational assumptions?

beliefs about how people respond to work

What are the five management practices considered in the discussion of Hofstede’s model include Decision-making an organizational design?

how managers make decisions and organize

What are the five management practices considered in the discussion of Hofstede’s model include Strategy?

effects of culture on selecting strategies

power distance

Concerns how cultures deal with inequality and focus on:

-Norms that tell superiors how much they can determine the behavior of their subordinate

The belief that superiors and subordinates are fundamentally different kinds of people

high power distance countries have norms, values, and beliefs, such as:

• inequality is fundamentally good

• Everyone has a place summer high in summer low

• Most people should be dependent on a leader

• The powerful are entitled to privileges

• The powerful should not hide their power

Uncertainty, avoidance, norms, values, and belief regarding tolerance for ambiguity:

• conflict should be avoided

• Deviant people and ideas should not be tolerated

• Laws are very important and should be followed

• Experts and authorities are usually correct

• Consensus is important

individualism

Focuses on the relationship between the individual and the group

Countries high on individual on dorms, values, and beliefs such :

• people people are responsible for themselves

• Individual achievements is ideal

• People need not be emotionally dependent on organizations or groups

collectivism

• once identity is based on a group membership

• Group decision making is best

• Groups protect individuals in exchange for their loyalty to the group

masculinity

tendency of a culture to support, traditional, masculine orientation

hi masculinity countries have beliefs:

• gender role should be clearly distinguished

• Men are assertive in dominant

• Mashima or exaggerated maleness in men is good

• People, especially men should be decisive

• Work takes priority over other duties, such as family

• Advancement success in money are important

long-term orientation

orientation towards the time that values patients

• managers are selected based on the fit of their personal and educational characteristics

• A perspective employees particular skills have less importance in the hiring decision

• Training and socialization for a long-term commitment to the organization compensate for any additional weakness and work related skills

Short term orientation

Focuses on immediately usable skills

• Western culture, which tend to have short term, orientations value logical analysis, and their approach to organizational decisions

• Designed and managed purposely to respond to immediate pressures from the environment

• Want immediate financial returns

Indulgence societies

Tend to favor, free satisfaction of human needs related to enjoying life and having fun

Restraint societies

Much more restrictive in places, strict norms on gratification of needs

Institutional context

Includes other elements of society besides national culture such as:

• Education

• The government

• The legal system

National context

Is composed of the respective national cultures and social institutions of a society

Social institutions

A complex of positions, roles, norms, and values, organizing relatively stable patterns of human resources that sustain a viable societal structures within a given environment

Regulative social institution

Constraints in regularly behaviors through its capacity to establish rules to inspect and review conformity and manipulate consequences to reinforce behaviors

Cognitive dimension

Refers to the widely shared knowledge regarding how things are done in a society

Normative dimension

Refers to the values and norms promulagated by the social institution

Economic systems

Network or systems of beliefs, activities, organizations, and relationships that provide the goods and services of a society

Capitalist/market economy

Production is decentralized to private property rights owners who act to make profits in competitive market

Socialist/command economy

Production resources are owned by the state and production decisions are centrally coordinated

Mixed economy

Commands aspects of a capitalist and socialist economy

Dominant market type

Whether the market and economic system of the country are predominantly capitalist, socialist or mixed

Index of economic freedom

The absence of government conversion or constraint on the production distribution or consumption of goods and services beyond the extent necessary for citizens to protect and maintain liberty itself

Market transitions

Changes societies experience as they move from socialism to a market based economy

Industrialization

Cultural and economic changes that occur because of how production is organized and distributed in society

Stages of industrialization

• pre-industrial

• Industrial

• Post industrial

Pre-industrial Society

• agriculture dominates the economic environment

• Religious norms, and tradition emphasized

• Provide sheet labor and untapped markets

• But poor infrastructure for businesses

• Traditional and communal values

Industrial Society

• dominance of manufacturing or secondary sector

• Technological development

• favorite innovation and individualism

• Governments provide favorable environments

• Educated labor force

Post industrial Society

• Emphasis on the service sectors

• Need highly skilled workers with specialized skills

• Dominance of server sector

• Almost complete demise of agricultural sector

• Significant decline in manufacturing sector

• Increasing emphasis on quality of life

• Non-economic incentives favored

• Post materialist values, individual expression and movement toward a Humane Society

Religion

A shared set of beliefs, activities, and institutions based on faith in supernatural forces

• Important aspect of most societies

• Differences shape how people do business in different parts of the world

Education

Organize networks of socialization experiences which prepare individuals to act in society

Social inequality

Refers to the degree to which people have privileged access to resources and positions with societies