chapter 2 modified
DESCRIPTION
gfhfgfhhfTRANSCRIPT
9/26/2013 1
Chapter 2
A Systems View of Globalization
9/26/2013 2
Demands for Businesses are the Product of the Times
Postwar years (1945–55) Growth years (1955–70) Time of Trouble (1970–80) International Era (1980–90) Now in a global era (1990–now)
9/26/2013 3
Systems Theories
Rational Economic Theories—we can analyze components to understand our world
• SWOT analysis• Industry analysis—five forces
Biological theories—nature decides• In the case of businesses, markets decide
Chaos theories—there is no order• Events occur in dynamic, nonlinear systems
9/26/2013 4Copyright © 2001 Houghton Mifflin Company. All rights reserved.
1-4
Strengths and Weaknesses Opportunities and Threats
(SWOT Analysis)
Strategic ChoiceBusiness
FunctionalGlobal
Corporate
SWOT and Strategic Choice
9/26/2013 5Copyright © 2001 Houghton Mifflin Company. All rights reserved.
1-5
Three Levels of Strategy in Organizations
Corporate-Level Strategy: What business are we in?
Corporation
Business-Level Strategy: How do we compete?
Textiles Unit Chemicals Unit Auto Parts Unit
Functional-Level Strategy: How do we support the business-level strategy?
Finance R&D Manufacturing Marketing
9/26/2013 6Copyright © 2001 Houghton Mifflin Company. All rights reserved.
1-6
Four Basic Global Strategies
FIGURE 8.2
9/26/2013 73-7
Source: Adapted and reprinted by permission of Harvard Business Review. An exhibit from “How Competitive Forces Shape Strategy” by Michael E.. Porter (March-April 1979), Copyright © 1979 by the President and Fellows of Harvard College: all rights reserved.
The Five Forces Model
9/26/2013 8
Global Businesses and Industries
Global Culture
Global Politics
Global Economics
Globalization of the Natural Environment
Global Technologies
People
Processes
Structures
The organization
buyers
sellers
NGOs
IGOs
Figure 2.0
9/26/2013 9
Global Businesses and Industries
Global Culture
Global Politics
Global Economics
Globalization of the Natural Environment
Global Technologies
People
ProcessesStructures
The organizationThe organization buyers
sellers
NGOs
IGOs
Figure 2.1
9/26/2013 10
3. Global Businesses and Industries: leads to industry exits, entries, and new dynamics
2. Global Culture and habits alter; people download music for free
5. Global Politics—companies file suits
4. Global Economics; music sales plummet, suck $ out of the global economy
6. Globalization of the Natural Environment—packaging and material use alters
1. Global Technology: File sharing for music downloads People
Processes
Structures
The organizationThe organization
buyers
Sellers (Recording artists)
NGOs (RIAA)
IGOs
Napster
9/26/2013 11
Arthur Andersen, 1999 study of the global leader (Institute for Strategic Change)
Thinks globally Recognizes opportunities Creates a shared vision by developing
and empowering people Appreciates cultural diversity Builds teamwork and partnerships Embraces changes Shows technical savvy Lives the values espoused
9/26/2013 12
Indicators of Cultural Globalization
Cultural Groupings• national• subcultures• supracultures
Global Influences Entertainment and Electronic media Travel
• Business, tourism, education, virtual Language Demographic groups, e.g., global teens Business activities
9/26/2013 13
Global Politics
Becomes important because nations allow markets to balance self/collective interests
National policies conflict with global policies • WTO
Many more than government actors attempt to shape outcomes• Intergovernmental organizations (IGOs) • Nongovernmental organizations (NGOs)• Businesses• Gangs, pirates, terrorists, rebels
9/26/2013 14
Indicators of a GLOBAL ECONOMY
Trade:• VISIBLE AND INVISIBLE TRADE
Foreign Direct Investments• Inflows and outflows
Currency and capital movements GDP and Quality of Life Measures Openness to Markets
• FISCAL & MONETARY POLICIES; orientation toward capitalism Connections to Financial Institutions
• Central Banks• IGOs like the World Bank or the IMF• Private lenders
commercial and investment bankers Microlenders Money launderers
9/26/2013 15
Global Economy, Labor
Who works; where, why and for whom? Paid and unpaid sectors Hours of work Compensation Work conditions Labor and job migration Education and knowledge factors
9/26/2013 16
Global Industries and Businesses
Defining degree of industry globalization Industry shifts:
• converge, integrate, downsize, and dissolve• Rivalry among firms (within and across industries)
worldwide Creating industry advantage
• Industry analysis• Diagnosing Industry globalization • Diagnosing Industry futures• Reshaping the organization
9/26/2013 17
Global Technologies
Products and processes Information age changes
• Telecommunications• Computerization
9/26/2013 18
Natural Environment
Global commons • Air, water, and other resources we must share• Raw materials
minerals, oil, lumber and natural resources we can share
Biodiversity Globalization of disease and its effects Global impact of natural disasters
9/26/2013 19
These are Only Some Examples for Each Global Environment
But they are illustrative more than they are exhaustive—many more examples also can be found.
Your job—find them and explain why they are reflective of a chosen global environment.