INTERNATIONAL MANAGEMENT

presented by
NAWAL KISHOR SHARMA SATARUPA KABI DIGAMBER SINGH

INTRODUCTION
International management is the simply performance of management activity across the border Most U.S companies see great opportunities in the international market place, because its population growing slowly but steadily the population of other countries exploding.

US INVESTMENT IN FOREIGN COUNTRIES V/S FOREIGN INVESTMENT IN US

CATEGORIZING ORGANIZATION BY INTERNATIONAL INVOLVEMENT

DOMESTIC ORGANIZATION

INTERNATIONAL ORGANIZATION

MULTINATIONAL ORGANIZATION

TRANSNATIONAL ORGANIZATION

DOMESTIC ORGANIZATIONS
Operate within a single country Occasionally make an international sale or acquire some needed resources for a foreign suppliers

INTERNATIONAL ORGANIZTION
Based primarily within a single country
Have a continuous meaningful international transactions-makes sales or purchases from foreign suppliers Example;-nu horzions is a small company can be classified as a international organization. This distributer of electric goods made mainly by some 40 U.S manufacturers has about 5,000 customers worldwide.

SIX STAGES OF MULTINATIONALIZATION

EXPORTS ITS PRODUCTS TO FOREIGN COUNTRIES

ESTABLISHES SALES ORGANIZATI ONS ABROAD

LICENCES USE OF ITS PATTERNS AND KNOW HOW TO FOREIGN FIRMS THAT MAKE AND SELL ITS PRODUCTS

ESTABLISHES FOREIGN MANUFACTU RING FACILITIES

MULTINATIO NALIZE MGMT FROM TOP TO BOTTOM

MULTINATIO NLIZES OWNERSHIP OF CORPORATE STOCK

MULTINATIONAL ORGANIZATION
Operate in more then one countries

Complexities of managing the multinational corporation

International management differ from domestic management because it involve operating. 1. Within different national sovereignties. 2. Under widely disparate economic condition. 3. Among people living different value system and institutions. 4. In places experiencing the industrial revolution at different time. 5. Often over generate geographical distance. 6. National market varying greatly in population and area.

RISK AND THE MULTINATIONAL ORGANIZATION

For the development of multinational corporation obviously require a investment in foreign operations. Managers except that such investment will accomplish the following 1. Reduce or eliminate high transportation cost. 2. Allow participation in the rapid expansion of the market abroad. 3. Provide foreign technical design and marketing skills. 4. Earn higher profit.

THE WORKFORCE OF MULTINATIONAL ORGANIZATION

The organizational member become more diverse People of different races who speak different language and come from different part off the world.

TYPES OF ORGANIZATIONAL MEMBERS FOUND IN MULTINATIONAL CORPORATIONS

Organizational members can be divided into three types. Expatriates;-organizational members who live and work in a country where they do not have citizenship. Host country nationals;-organizational member who are citizenship of the country in which the facility of foreign based organization is located. Third country nations;-Organizational member who are citizenship of one country and who work in another country for an organization headquartered is still another country.

MANAGEMENT FUNCTION IN THE MULTINATIONAL ORGAANIZATION

Basically there is four management function in multinational organization 1. Planning 2. Organizing 3. Influencing 4. controlling

PLANNING IN THE MULTINATIONAL ORGNIZATION

Planning in the multinational organization could involve;1. Establishing a new sales force in the multinational organization. 2. Developing a new manufacturing plant in other country through purchase or construction. 3. Financing international expansion. 4. Determine which country represent the most suitable candidates for international expansion

Components of international plan;Imports/exports License agreement Direct investing Joint ventures

PLANNING AND INTERNATIONAL MARKET AGREEMENTS

THE EUROPEAN UNION(EU)- ESTABLISHED IN 1994, MEMBERS-(DENMARK,THE UK,PORTUGAL,SPAIN, FRANCE, IRELAND) NORTH AMERICAN FREE TRADE AGREEMENT(NAFTA)-ESTABLISHED IN 1994,MEMBERS(US,CANADA,MEXICO) ASIAN PACIFIC ECONOMIC CORPORATION(APEC)ESTABLISHED IN 1989,MEMBERS(21 MEMBERS INCLUDING THE PEOPLES OF REPUBLIC CHINA,US,INDONASIA AND SOME ASIA PACIFIC REGION)

ORGANIZING MULTINATIONAL CORPORATION

ORGANISATION STRUCTURE-sum of all establish relationship among resources with in the organization and the organization chart is the graphic illustration of organization structure. SELECTION OF MANAGERS-For multinational organization manager should be competent with the highly competitive environment.

VICE PRESIDENT INTERNATIONAL DEVISION

PRODUCTION

MARKETING

FINANCE

STRUCTURE BASED INTERNATIONAL FUNCTION

VICE PRESIDENT PRODUCTION

BRAKE DEVISION MEXICO

DIESEL MOTOR DEVISION FRANCE

ELECTRIC PARTS DEVISION BRAZIL

STRUCTURE BASED ON COMPANY PRODUCTS

PRESIDENT

VICE PRESIDENT NORTH AMERICA

VICE PRESIDENT SOUTH AMERICA

VICE PRESIDENT EUROPE

STRUCTURE BASED ON TERRITORY SERVED

INFLUENCING PEOPLE IN MULTINATIONAL CORPORATION

INFLUENCING IS GENERALLY GUIDING THE ACTIVITY OF ORGANIZATIONAL MEMBERS IN APPROPRIATE DIRECTION THROUGH COMMUNICATING,LEADING,MOTIVATING AND MANAGING GROUPS.

CULTURE- CULTURE IS SET OF CHARACTERISTICS OF A GIVEN GROUPOF PEOPLEAND THEIR ENVIRONMENT.

AQUIRING A WORKING KNOWLEDGEOF LANGUAGES UNDERSTAND THE ATTITUDE OF PEOPLE UNDERSTAND THE NEEDS THAT MOTIVATE PEOPLE

CONTROLLING MULTINATIONAL CORPORATIONS

CONTROLLING IS GENERALLY DEFINED AS SOMETHING HAPPEN THE WAY IT WAS PLANNED TO HAPPEN. CONTROL IN SUCH AREAS AS LABOUR COST,PRODUCT QUALITY AND INVENTORY IS IMPORTANT TO ORGANIZATIONAL SUCCESS. SPECIAL DIFFICULTIES1.DIFFERENCE IN CURRENCIES 2.CULTURE DIFFERENCE 3.GEOGRAPHICAL SEPERATION 4.COMMUNICATION

TRANSNATIONAL ORGANISATION
ALSO CALLED GLOBAL ORGANISATION. TAKE THE ENTIRE WORLD AS THEIR BUSINESS ARENA IT REPRESENT THE FOURTH, AND MAXIMUM LEVEL OF INTERNATIONAL ACTIVITY. EG- NESTLE HEADQUARTER INVENEY, SWITZERLAND. NO. OF EMPLYEES ARE MORE THAN 2,10,000 OPERATES 494 FACTORIES IN 71 COUNTRIES

INTERNATIONAL MANAGEMENT:SPECIAL ISSUES

1. 2. 3. MAINTAINING ETHICS IN INTERNATIONAL MANAGEMENT RESPECTING CORE HUMAN RIGHTS RESPECTING LOCAL TRADITIONS DETERMENING RIGHT FROM WRONG BY EXAMING CONTEXT EG-WHIRLPOOLS DIRECTOR(ERRICO BIONDI) IN SLOVAKIA WON BEST PRIZEFOR PROVIDING EQUAL OPPORTUNITIES FOR WOMEN AND MEN IN BUSINESS ENVIRONMENT. PREPARING EXPATRIATES FOR FOREIGN ASSIGNMENTS 1.CULTURE PROFILES 2.CULTURAL ADAPTATION 3.LOGISTIC INFORMATION 4.APPLICATION

CONCLUSION
INTERNATIONAL MANAGEMENT IS NECESSITY TODAY BECAUSE COMPANIES SEE GREAT OPPORTUNITIES IN THE INTERNATIONAL MARKETPLACE TODAY! ROLE OF FOREIGN SALES OF TOTAL EXXON MOBBIL-69% IBM-58% INTEL-59%

BIBILIOGRAPHY
MODERN MANAGEMENT-SAMUEL C. CERTO & S. TREVIS CERTO

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