Submitted by: Submitted by beeail
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Category: Business and Industry
Date Submitted: 05/17/2016 09:09 AM
Chapter 1 -The global manager’s environment
Sources of Risk for International Managers
-Exogenous- General environmental factors, industry-related uncertainties and some firm-specific uncertainties.
-Endogenous- Uncertainties that arise from within the firm, and include managerial perceptions, attitudes and organizational perspectives.
-Top two exogenous risks facing business leaders and policy makers for 2012 and the next decade would be severe income disparity (The unequal distribution of household or individual income across the various participants in the economy) and chronic fiscal imbalances (situation where all of the future debt obligations of a government are different from the future income streams)
-Other issues: natural disasters such as 2011 earthquake in Japan, flood in Thailand, Political uncertainty in China and Middle East
-Globalization has compounded the types and level of business risks.
*Typical challenges that managers face involve politics, cultural differences, global competition, Terrorism and Technology. Managers in companies are struggling to find ways to balance their social responsibilities, their images, and their competitive strategies.
-PESTEL- An analytical tool to develop and understanding of exogenous risk
-Pestel analysis- Political, Ethical, Social, Technological, Environmental and legal understanding or environmental scanning that is CRITICAL if we are to strategically plan and develop our value proposition.
-> Exogenous creates Endogenous RISK
SWOT Analysis- an analytical tool that helps you develop an understanding of how exogenous risks influences endogenous risks for the firm
The Global Business environment
Globalisation- Global competition characterized by networks of international linkages between countries, institutions, and people in an independent global economy.
Five key global trends:
1. Changing balance of growth toward emerging markets compared with developed ones, along with the growing number...