rational for globalization part -2

8/9/2019 RATIONAL FOR GLOBALIZATION part -2

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RATIONAL FOR GLOBALIZATIONPART - 2

Presented by:

RAJAN BASAK : BBA03110


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Challenges of International

Business (Four Areas):

The country must maintaincompetitiveness

It must influence trade regulators sothat other countries open their doorsfor its goods and services, beingwilling to buy from as wellas sell to

the country


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Challenges of International

Business (Four Areas):

The countrys business must developa global outlook that allows them to

operate true MNCs, not just local firmdoing business overseas, and

An MNC should know how to managediversity in the global business

canvas.


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Maint

aining

Competitiveness:

Many factors contribute to thecompetitiveness ofa nation. Factors

labor costs, interest rates, exchangerates, and economies of scale make anation competitive. Others quality,costs and services.


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Factors (According to Michael

Porter): Competitive advantage ofa nation

depends on the following factors:

1. Factor Conditions: A nationwill export these goods that makebest use of the factor conditions withwhich the country will relatively well

endowed. These factor conditionsincludes Land, labor and capital.


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Porter):2. Demand Conditions: A nations competitive

advantage, according to porter, isstrengthened if there is a strong local

demand for its goods and services. Ex-Water pollution control equipment.

3. Related and Supporting Industry: Accordingto porter the related and support industry

must be nearby to the business org. It willcreate more competitive situations for theglobal market place.


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Porter): 4. Environment: According to the

environment of the market place the

organiz

ations concentr

ate to t

he sizeof the business organizations.


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Porter):

Environment

Factor Condition

Related and supporting industry

Demand Condition


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Managing Diversity:

Diversity is the outcome ofglobalization. Workforce ofany MNC

comprises people from differentcountries. Within this diversity of

national origins, there is even widerdiversity of cultures, religions,

languages, educationalattainment,skill, values, races, ages, genders andother differentiating variables.


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Managing Diversity:

Mgt of CulturalDiversity

Mind set about

diversity

Cultural

Differences

Education Problems

HR MGMT System

Higher careerinvolvement of

Women

Heterogeneity

Org. Culture


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Managing Diversity:

OrganizationalCulture:

Valuing Differences

Prevailing Systems Cultural Inclusion

Mind Set about Diversity:

Problem or opportunity Challenge men or barely addressed


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Managing Diversity:

Cultural Differences:

Promoting Knowledge and

Acceptance,

Taking advantage of the opportunitiesthat diversity provides

Education Problem:

Improve government schools Educate management on valuing

differences


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Managing Diversity:

HR Management System:

Recruitment

Training and Development Performance Appraisal

Compensation and Benefits

Promotion


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Managing Diversity:

Higher Career Involvement of Woman:

DualCareer

Sexu

alHarassment

Work Family Conflict

Heterogeneity in Race:

Effect on cohesiveness., communication,

conflict moral Effect of group identify on interaction

Prejudices.


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~~~

The End

Thank You~~~

rational for globalization part -2

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