CHAPTER 2

International Management and Cultural Diversity

Andrew J. DuBrin Essentials of Management, 6/e
South-Western College Publishing Copyright 2003

Screen graphics created by: Jana F. Kuzmicki, PhD, Christian Brothers University

After reading this chapter, you should be able to:

1 2 3 4 5 6 7 8

PPT

2.1

Appreciate the importance of multinational corporations markets in international business. Recognize the importance of sensitivity to cultural differences in international enterprise. Identify major challenges facing the global managerial worker. Explain various methods of entry into world markets. Pinpoint success factors in the global marketplace. Explain the importance of valuing demographic and cultural diversity in the workplace. Present an overview of how information technology influences a managers job. Explain how the Internet influences the managers job.

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2.2

Cultural Mistakes to Avoid

Country
Great Britain Spain

Cultural Mistake Asking personal questions. The British protect their privacy.

Expecting punctuality. Your appointments will usually arrive 20-30 minutes late. Being overly rank conscious in these countries. Little attention is Scandinavia paid to a persons place in the hierarchy. Pressuring an Asian employee to brag about his or her All Asian countries accomplishments. They prefer to let the record speak for itself. Shaking hands or hugging in public. Japanese consider the practices Japan to be offensive. Telling Indians you prefer not to eat with your hands. If they are India not using cutlery when eating, they expect you to do likewise. Flying into a Mexican city in the morning, expecting to close a deal Mexico by lunch. They build business relationships slowly. Attempting to impress them by speaking a few words of Spanish. Brazil Portuguese is the official language. Wearing elegant jewelry during a business meeting. They feel Latin America people should appear conservative during business meetings.
Adapted from Exhibit 2.1

Challenges Facing the Global Managerial Worker

Economic crises in other countries Collecting money Human rights violations Culture shock Balance of trade problems Liability of being a foreigner Differences in negotiating style

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2.3

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2.4

Exporting

Licensing

1
Global startup

2 3

Local warehousing & selling

7
Global merger

Methods of Entry into World Markets

6
Direct foreign investment

Local assembly & packaging

5
Strategic Alliance(joint venture)

How to Succeed in the Global Marketplace

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2.5

Think globally, act locally Diversify into similar product markets Be familiar with local business concepts, laws, and customs Recruit talented nationals Research and assess potential markets Hire or develop multicultural workers Adopt Environmentally Friendly Policies Understand your Competitors Potential partners Members of the management team

The Competitive Advantages of Diversity

Leads to better rapport with culturally diverse customers Facilitates recruiting and retaining talented individuals

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2.6

Improves productivity and profits

Improves customer service

Reduces possible cultural bloopers

Organizational Practices for Improving the Management of Diversity

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2.7

Establish corporate policies favoring diversity Encourage employees to form network groups Conduct valuing diversity training programs

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CHAPTER 3
Information Technology and the Internet
Andrew J. DuBrin Essentials of Management, 6/e
South-Western College Publishing Copyright 2003

Screen graphics created by: Jana F. Kuzmicki, PhD, Christian Brothers University

After reading this chapter, you should be able to:

1 2 3 4 5

PPT

3.1

Summarize the demands information technology places on the managers job. Describe positive and negative consequences of information technology for the manager. Discuss the impact of the Internet on customer and other external relationships. Explain the effects of the Internet on internal company operations. Pinpoint factors associated with success in e-business.

PPT

3.2

Wireless Communication Environment

Personal Digital Assistant (handheld PC).

The Wireless Environment:

Constant Access to Office and to Customers.

Web-enhanced cell phones.

E-mail pager.

Information Technology: Positive and Negative Consequences

Positive Consequences
u

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3.3

Negative Consequences
u

u u

Improves productivity and teamwork Promotes gaining a competitive advantage Improves customer service and supplier relationships Enhances communication and coordination Provides quick access to vast information Enhances analysis of data and decision making Facilitates empowerment and flatter organizations

Can lead to employees becoming computer goof-offs May lead to on-line addiction (excessive surfing of the Net) May lead to people becoming

techno-obsessive

Can contribute to repetitive stress disorders Potential deterioration of customer service Employers expect managers to be available at all times

Impact of the Internet on Customers and External Relationships

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3.4

The Marketing Side of E-Commerce The Purchasing Side of E-Commerce Integrating the New Economy with the Old Economy Living with Increased Visibility

u u

Revamping Operations.

The Effects of the Internet on Internal Operations

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3.5

Squeeze on Profits and Pressure Towards Cost Controls. Monitoring Work and Employee Surveillance. Dealing with Instability and Chaos. Data Mining. Outsourcing Information Technology.

u u u

E-Business Essentials
Digital Imaging Enterprise Servers

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3.6

Broadband Access

Hosting

Small Business Servers

Site Analysis M-Commerce

Nonstop Service

Success Factors in an E-Business

Develop an Excellent Call Center Keep Customers Informed about Order Status Mix Bricks and Clicks Constantly Monitor and Update the E-Business System Develop a Global Presence

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3.7

Adopt a Positive Attitude Towards Change