'Course Notes on Principles of Management\r'

'The Global surround In the past, managers get under ones skin public opinioned the global sector as unappealing. Each country or mart place was assumed to be isolated from others. Firms did not consider global contender, exports. Today’s environment is very different. Managers need to view it as an open market. Organizations buy and exchange around the world. Managers need to learn to fight globally. Tariff Barriers A tariff is a barriers to mass. Tariffs atomic number 18 taxes levied upon imports. These seek to protect pathetic ins in the home country. Other countries usually retaliate. unaffectionate slew: in a free trade agreement, individually country seeks to specialize in things they harbor most streamlinedly. If India is more efficient in making textiles, and the USA in making computer software, then each country should focus on these. outgo & Culture Barriers The second jumper cable understanding of trade barriers. aloofness closed the markets as far as approximately managers were concerned. Communications could be fractious. Languages and cultures were different. During the last 50 years, communications and transportation technology has dramatically improved.Jet aircraft, fiber optics, satellites throw provided fast, secure communications and transportation. These have also reduced ethnic differences. Effects on Managers Declining barriers have unfastened great opportunities for managers. Managers can not alone sell goods and go that also buy resources and components globally. Managers now event a more dynamic and exciting job ascribable to global competition. Free tidy sum NAFTA: North American Free pile Agreement. Abolishes most tariffs on goods traded between Mexico, Canada and the U. S. Allows nonsensitive cross-border flows of resources.M any U. S. sozzleds have now invested in Mexico. This is a manufacturing opportunity. Wage be are humiliate in Mexico. Can serve Mexico with a plant in Mexico and r educe freight. Managers face new opportunities and threats. Global Task Environment Suppliers & Distributors Managers buy products from global suppliers or make items abroad and supply themselves. unwrap is to keep quality spicy and costs low. Global outsourcing: degradeds buy inputs from throughout the world. GM might build engines in Mexico, transmissions in Korea, and seats in the U. S. Finished goods befit global products.Distributors: each country very much has a unique schema of distribution. Managers mustinessiness identify all the issues. Customers & Competitors erst distinct national markets are merge into a huge global market. received for both consumer and business goods. Creates large opportunities. Still, managers oft must customize products to fit the culture. McDonalds sells a local soft drink in Brazil. Global competitors present new threats. Increases competition abroad as well as at home. Forces in the Global ordinary Environment Political-Lega l ForcesResults from diverse and changing record of each countries’ political system. Representative democracies: such(prenominal) as the U. S. , Britain, Canada. Citizens elect leaders who make decisions for electorate. Usually has a number of safeguards such as freedom of expression, a graceful court system, regular elections, and limited scathe for officials. Well defined legal system and economic freedom. Totalitarian regimes: a undivided political party or individual monopolize power in a country. Typically do not have it aside or permit opposition. just about safeguards open up in a democracy do not exist.Examples include Iran, Iraq, and China. These are difficult to do business with given the overlook of economic freedom. Further, human rights issues also ca routine managers to avoid dealing with these countries. Economic Systems Free market miserliness: payoff of goods and services is in private ownership. Production is rigid by supply and demand. Comman d economy: decisions on what to produce, how much, done by the government. Most command economies are moving away from the command economy. Mixed economy: certain economic sectors controlled by private business, others are government controlled.Many mixed countries are moving toward a free enterprise system. novel Trends Current shift away from totalistic dictators toward democratic regimes. Very dramatic illustration seen in the collapse of the former Soviet Republic. Also very pronounced in Latin America and Africa. With this shift, has come a strong movement toward free market systems. This provides great opportunities to business managers on a global level. Many businesses are investment millions in former totalitarian countries to absorb these opportunities. Changing Political and Economic Forces sociocultural ForcesNational culture: includes the shelter, norms, knowledge, beliefs, and other practices that unite a country. Values: abstract ideas about what a society belie ves to be good, desirable and beautiful. Provides attitudes for democracy, truth, usurp roles for men, and women. Usually not static but very slow to change. Norms: social rules prescribing appearance in a given situation. Folkways: custom social conventions including dress codes and manners. Mores: Norms that are primal to functioning of society. much more probatory that folkways. More examples include theft, adultery, and are a good deal enacted into law.Norms vary from country to country. Hofstede’s form of National Culture Individualism v. fabianism Individualism: world view that pass judgments individual freedom and self-expression. Usually has a strong belief in ain rights and need to be judged by achievements. sovietism: world view that values the concourse over the individual. Widespread in Communism. dominant in Japan as well. Managers must understand how their workers relate to this issue. Power Distance A society’s acceptation of differences in the well being of citizens due to differences in heritage, and physical and intellectual capabilities.In tall power remoteness societies, the gap between rich and myopic gets very simple. In low power distance societies, any gap between rich and unforesightful is reduced by taxation and eudaimonia programs. Most western cultures (U. S. , Germany, United Kingdom) have relatively low power distance and senior high school individualism. Many economically poor countries such as Panama, Malaysia have high power distance and low individualism. deed vs Nurture Achievement oriented societies value assertiveness, performance, success. The society is results-oriented. Nurturing-oriented value quality of life, ad hominem relationships, service.The U. S. and Japan are achievement-oriented while Sweden, Denmark are more nurturing-oriented. Uncertainty Avoidance Societies and good deal differ on their willingness to take on risk. Low uncertainty dodging (U. S. , Hong Kong), value divers ity, and tolerate differences. Tolerate a wide range of opinions and beliefs. High uncertainty avoidance (Japan and France) are more rigid and do not tolerate people performing differently. High conformity to norms is expected. Long term Outlook Long-term picket is found on values of saving, and persistence.Taiwan and Hong Kong are cultures that are long -term in outlook. Short-term outlook seeks the maintenance of personal stability or happiness right now. France and the U. S. are examples of this approach. world(prenominal) Expansion Importing and Exporting: the to the lowest degree complex method of expansion. Exporting: degenerate makes products and sells abroad. Importing: firm sells products made abroad. Licensing: firm allows exotic organization to make and dust goods for a fee. Helps the home firm since it does not have to set up a complete production and distribution network.Franchising: fraternity sells a abroad organization the rights to use brand name and know- how in extend for payment and profit percentage. International Options strategic Alliances: managers pool resources with a foreign firm and both organizations share the rewards and risks. Allows firm to carry on control which is a problem with exporting, licensing, and franchising. Wholly-owned foreign subsidiary: firm invests in production operations in a foreign country. Many Japanese auto firms have done this in the U. S. This is very dearly-won but can yield high returns. International Expansion\r\n'