part 4 b – 1 v3.0 the iia’s cia learning system tm 1.cultural/legal/political environments...
TRANSCRIPT
Part 4 B – 1V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
1. Cultural/legal/political environments
2. Economic/financial environments
Section Topics
Part 4, Section B
Part 4 B – 2V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Orientation and Controls
Ethnocentric: Home-country-oriented with home-country controls
Polycentric: Host-country-oriented with local controls
Regiocentric: Host-country-orientedwith regional and third-country controls
Reference: Howard V. Perlmutter.
Geocentric: World-oriented withstrong interdependence between home and host countries
Part 4, Section B, Topic 1
Part 4 B – 3V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Influences and Pressures
Political environment• Ownership risk• Operational risk• Transfer risk• Terrorism
Economic environment• Currency exchange rates• Business restrictions• Investment restrictions• Privatization
Legal and regulatoryenvironment• Legal systems• Trade restrictions• Accounting standards• International auditing concerns
Technological environment• Varied resources• Varied capabilities• Information explosion• Privacy/security issues
Part 4, Section B, Topic 1
Part 4 B – 4V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
What are techniques for anticipating and balancing these pressures and influences?
Possible answers: • Global strategy • Risk assessments • Country risk profiles • Accounting for local technical issues
such as transportation, language barriers, etc.
Discussion Question
Part 4, Section B, Topic 1
Part 4 B – 5V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Global Mindset
Developing cultural awareness and a global perspective
Leadership and management
Cultural intelligence
Cultural dimensions
Cross-cultural communication
Employee development
Part 4, Section B, Topic 1
Part 4 B – 6V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Cultural Dimensions
Reference: Hofstede™ Cultural Dimensions.
Dimensions(Low to High)
Power
Individualism
Masculinity
Uncertainty avoidance
Long-term orientation
Part 4, Section B, Topic 1
Part 4 B – 7V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
• Assumptions and attitudes
• Body language• Use of space• Time• Language (high-
and low-context)
• Authority• Country profiles
Cross-Cultural Communication
Part 4, Section B, Topic 1
Part 4 B – 8V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
I. A limp handshake and no eye contact
II. Interviewee backs off when you move physically closer
III. Long periods of silence in interviews and group meetings
Discussion QuestionYou are sent to conduct internal audit interviews at the organization’s foreign location. How might you interpret the following interviewee responses?
Possible answers:I. These may be normal greetings in the culture.II. In some cultures people like to keep physical space
distance.III. Silence may be natural and expected in conversations.
Part 4, Section B, Topic 1
Part 4 B – 9V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
• Develop a clear global strategy.• Foster a global mindset.• Operate as both a centralized and
decentralized organization.• Sponsor a flexible business structure for
adaptability.• Disperse knowledge widely.• Train international managers well.• Hire employees with diverse backgrounds.
Managing Complexities
Part 4, Section B, Topic 1
Part 4 B – 10V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
• Break down language barriers.• Maximize technology for production and
service efficiencies.• Use cultural informants for understanding,
negotiation, and coalition building.• Continue to forecast and assess risks.• Develop crisis management plans and exit
strategies.• Foster creativity and innovation.
Managing Complexities (continued)
Part 4, Section B, Topic 1
Part 4 B – 11V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
• Legitimize differences; build trust.
• Agree upon values and expectations.
• Agree on team leadership style.
• Encourage participation, recognizing status/authority perceptions.
Effective Multicultural Teams
• Select the best communication modes.
• Produce the appropriate outcomes.
Part 4, Section B, Topic 1
Part 4 B – 12V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Answers: 1 = B; 2 = D; 3 = C; 4 = A
Discussion Question
Strategic Orientation
Characteristics
1. International
2. Global
3. Multilocal
4. Multinational
A. Centralized and decentralized; high integration and coordination
B. Home-country headquarters and value chain with headquarters
C. Local products and standards; differentiation
D. Standardization, economies of scale, value chains anywhere
Match the orientation to the characteristics.
Part 4, Section B, Topic 2
Part 4 B – 13V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Global strategy readiness
Organizational culture readiness
Global expansion readiness
Global Marketplace Entry Checklist
Has the organization met the necessary requirements to enter the global marketplace?
Part 4, Section B, Topic 2
Part 4 B – 14V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Managing Training and Development in International Organizations
• Disperse training in home and host countries.
• Use the Web for distance and 24/7 course access.
• Use translators and produce materials in the related foreign languages.
• Assess knowledge and performance gaps to determine training needs.
• Offer strong orientation programs and acclimation to the related cultures.
• Sponsor expatriate assignments for managers.
• Use a variety of learning approaches, such as field experiences, coaching and mentoring, and multicultural team participation.
Part 4, Section B, Topic 2
Part 4 B – 15V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Reinforcing Activity 4-2Part 4, Section B, Topics 1 and 2 Global Business Environments
Part 4, Section B, Topics 1 and 2
Part 4 B – 16V3.0
THE IIA’S CIA LEARNING SYSTEMTM
www.LearnCia.com
Questions?
End of Section B
Part 4, Section B