Chapter 4 takes a look at the growing power of China and India in today’s global business environment and what this means for managers around the world. The chapter discusses the need for cultural intelligence, and a new section looks at understanding communication differences as an important aspect of learning to manage internationally or work with people from different cultures. | Managing in a Global Environment Chapter 4 Importance of International Business If you are not thinking international, you are not thinking business management Global Environment and International Managers Difficulties Operating in Borderless World Challenges Economic Legal-political Socio-cultural Multinational Corporations Foreign Markets - Entrance Chapter 4 Topics Managers’ Challenge: Wal-Mart Managers A Borderless World Business is becoming a unified, global field Companies that think globally have a competitive edge Domestic markets are saturated for many companies Consumers can no longer tell from which country they are buying Four Stages of Globalization Domestic stage: market potential is limited to the home country production and marketing facilities located at home International stage: exports increase company usually adopts a multi-domestic approach Multinational stage: marketing and production facilities located in many countries more than 1/3 of its sales . | Managing in a Global Environment Chapter 4 Importance of International Business If you are not thinking international, you are not thinking business management Global Environment and International Managers Difficulties Operating in Borderless World Challenges Economic Legal-political Socio-cultural Multinational Corporations Foreign Markets - Entrance Chapter 4 Topics Managers’ Challenge: Wal-Mart Managers A Borderless World Business is becoming a unified, global field Companies that think globally have a competitive edge Domestic markets are saturated for many companies Consumers can no longer tell from which country they are buying Four Stages of Globalization Domestic stage: market potential is limited to the home country production and marketing facilities located at home International stage: exports increase company usually adopts a multi-domestic approach Multinational stage: marketing and production facilities located in many countries more than 1/3 of its sales outside the home country Global (or stateless) stage: making sales and acquiring resources in whatever country offers the best opportunities and lowest cost ownership, control, and top management tend to be dispersed 4 Stages of Globalization 1. Domestic 2. International 3. Multinational 4. Global Strategic Orientation Stage of Development Cultural Sensitivity Manager Assumptions Domestically Oriented Export- Oriented multi-domestic Multinational Global Global Initial foreign involvement Competitive positioning Explosion of international operations Of little importance “One best way” Very important “Many good ways” Somewhat important “The least-cost way” Critically important “Many good ways” SOURCE: Based on Nancy J. Adler, International Dimensions of Organizational Behavior, 4th ed. (Cincinnati, Ohio: South-Western, 2002), 8-9. Global (stateless) Corporations Number is increasing Awareness of national borders decreasing Rising managers expected to know a 2nd or 3rd language .
