SUBMITTED BY:GROUP IV

SOMA THAKUR JYOTI BHATIA NEERAJ BAJPAI HIMANSU KUMAWAT SAURABH ARORA UMESH CHANDRA

INTRODUCTION

INTERNATIONAL MANAGEMENT
International Management refers to the particular type of skills, knowledge & understanding needed by managers who are in charge of operations that involves people from different countries & cultures.

In Indian Context
Before 1991 Comprehensive approach to development More Emphasis to Public Sector Policies of Import Substitution

In 1991
Liberalization Privatization Globalization

In Present Context
World A Global Village No Tariff Barriers Free Trade Doctrine Declining of Barriers of distances and culture.

POLITICAL ENVIRONMENT
Political ideologies and economics systems are

interwoven Trend towards privatization Economic integrations NGOs and MNCs Strategies of MNCs

CULTURAL ENVIRONMENT
Different country has different culture
Understanding culture helps Hofstedes research

MNCs should take special concern for local culture

TRADE BARRIERS
Tariff barriers
Non tariff barriers Counter trade

Trade of services
Free trade zone

SOUTH AFRICAS CONCEPT OF UBUNTU

UBUNTU: Ancient African word meaning humanity to others IT PREACHES: - Human interdependence - Reciprocity suppression of self interest and the virtue of symbiosis - Umntu ngumntu ngabanye MANAGERS CAN USE THE CONCEPT IN : - Placement, promotion, transfer, reward discipline - Improve efficiency - Solving disputes - Striking similar to Chesterd Bernard

CHINESE NEGOTIATING STYLE

PRE NEGOTIATION: Lobbying, presentation, informal, discussion, trust THE PING PONG MODEL
building

FORMAL NEGOTIATION: Task related exchange of information,

persuasion, concession , argument

POST NEGOTIATION: Implementation and new rounds of discussion

HOW THIS MODEL CAN HELP: Give managers systematic way to negotiate Help in long term relation building

STUDYING AMERICAN AND JAPANESE CULTURE

JAPANESE CULTURE
PATIENCE

AMERICAN CULTURE
ACTION

HARMONY

HEIRARCHY

MAN WITHIN NATURE OUTSPOKEN CAUTION CONFRONTING SILENCE RISK TAKING GROUP CONTENTION PERSONAL PRINCIPLE HUMBLE CO-OPERATION PROVING ONESELF REWARDING SOCIETY BEING HEARD LOYALTY REWARDING PERFORMANCE UNTIRING EFFORT OPPORTUNITY DEPENDANCY FAIR EFFORT

FREEDOM

EQUALITY

HOW MANAGERS CAN USE THIS:

Expatriate can use these two different styles estimate the needs of people in different cultures and act accordingly

Authors/Thinkers of International Management Theories

Heckscher and Ohlin:- Differences In factor endowments determine differences in comparative advantage , which themselves shape the pattern of international trade.

M.E.Porter:Propositions:(a)Diminishing Importance of work costs and competencies (b)Easy shifting of operations (c) Independence of MNC from one international bases for resources. (d)Comparability of workforces and capital market arrangements.

Conclusion:1. Firms need to constantly to seek new sources of competitive advantage. 2. Need to operate internationally in order to fine-tune their competitive strengths and to identify and then remove weaknesses. 3. The key determinant of contemporary national advantage is product and process innovation.-not cheap labour or an abundance of national resources.

More Authors/Thinkers of International Management Theories

John Dunning:- Eclectic Theory

Likelihood of a firms investing abroad essentially on firm-specific factors ,location-specific factors that make it advantageous to invest in a particular country, and Internalization Advantages which cause the internal transfer of labour,capital and technical knowledge.

Geert Hofstede:- Four Dimensions of a culture:1. Power Distance:-The extent to which less powerful members of institutions and organizations

accept that power is distributed unequally.

2. Uncertainty avoidance:-The extent to which people feel threatened by ambiguous situations,

and have created beliefs and institutions that avoid these.

3. Individualism:-Tendency of people to look after themselves and their immediate family only. 4. Masculinity:-A situation in which the dominant values in society are success ,money and

material things.

Global market offers large opportunities and threats

Limited resources want for optimization Effective production-produce that commodity that you

can produce most effectively Benefits of cheap labour-outsourcing Quality services at economical prices

ANALYSIS BEFORE ENTERING A NEW COUNTRY

PESTEL-political, ecological, social,

technological, economical, logical SWOT strength , weakness , opportunities , threats Dynamic management Involving the locals Synergy of cultural ideas and managerial practices

PRODUCT PORTFOLIO ANALYSIS USE OF BOSTON GRID HIGH GROWTH PROBLEM STARS RATE

CHILDREN

LOW GROWTH RATE

CASH COWS
HIGH MARKET SHARE

DOGS
LOW MARKET SHARE

Strategies
Joint ventures
Technology sharing Franchising

licensing
Copyrights

SUMMARY
No Demographic boundaries, as corporate became

transnational corporate. Increasing its efficiency by reducing overcapacity, differentiating product offerings. Allowing for the rapid exploitation of the learning curve. An important change is of training managers in the customs and cultures of those geographic areas where they will be working and being willing to pay the price to hire and retain the best possible talent.

Contd...
The joint venture became a way for TNCs to effectively

compete in the global economy and continued international research is needed to learn and innovate for the future success.TNCs form a VIRTUAL CORPORATION, defined as a network of companies that came together to exploit fast-changing opportunities and share cost ,skills and access to global markets.

THANK YOU