Salesmanship

CHAPTER 4 MANAGING IN A GLOBAL ENVIRONMENT

PREPARED BY: ANITA BENNEFIELD

COMPTEMPORARY MANAGEMENT

August 02, 2011

Chapter Objective: The emerging borderless world and concern for today’s managers, market entry strategies, to develop foreign markets, International management, differ from the management of domestic business operation. The economic, socio-cultural, and Legal political environments throughout the world can effect business operations; regional trading alliances are reshaping the international business environment. Multinational Corporation cultural intelligence and necessary for managers to working in foreign countries.

CHAPTER OUTLINES:

A BORDERLESS WORLD

The process of globalization typically passes through four distinct stages:

1. Domestic stage: market potential is limited to the home country, with all production and marketing facilities located at home. Manager may be aware of the global environment and may want to consider foreign involvement.

2. International stage: export-oriented, multi domestic- competition is handled to each country independently. Product design, marketing, and advertising are adapted to the specific needs of each country, requiring higher levels of sensitivity to local values and interests.

3. Multinational stage: the company has marketing and production facilities located in many countries with more than one-third of its sales outside the home country. Globalization meaning they focus on delivering a similar product to multiple countries. Product design, marketing and advertising strategies are standardized throughout the world.

4. Global (or stateless) stage: corporate international development transcends any single home country. These corporations operate in true global fashion, making sales and acquiring resources in whatever country offers the best opportunities and low cost. At this stage, ownership, control, and top management tend to be dispersed among several nationalities.

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