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In a recent survey of CEOs of forbes 100 largest multinationoal firms what % believed that all business majors should take a course in glbal managemtn = 80% Wat % felt graduates exoeriece in friegn languages, international aspects of international functions and business and/ or human relations outside the home country is improtant in makig hiring decision = 70% Economy tightly intergrated impact Focus: globl business environment organizations human behaviour, culture (managing, working with ppl) personality, group dynmics, leadership (factors) Look at system as whole sales go down system approach = look at whole (production, acc, Intgrate what learn and apply Managemtn different departments and houw theywork Review highlights of chapter Enhancment expantion of material Join discusson Follow simple instructions Why global mangemtn? • Flat panel tvs begin as glass panels manufactured in south korea tiwan and japan o Sent to mexico along usborders (macquiladora0 for combining with otheelectrical compantent shipped from asia and us = free trade area = don’t have to pay imprt dutys that cars they import o Finished tvs shipped to retail outlets in canada o Diff parts manactured in diff parts in world • Boeing o Major sucessful prduct o Japan : fuslage and doors o Singapore: landing gear www.notesolution.com o Italy: wings o 30% of manufactiong in terms outside the us o For 787 is as high as 65% o Walmart managed to source materials accoss globe at cheapest possible cost • International communication blunders o Dairy association from usa stared a campaign in mexico – “got milk” which translated to : are you lactating o Coors from usa campain in mexico with “turn it loose” translated: suffer from dihera o Pepsi lauched campain in china with “come alive with te pepsi genration” was translate :pepsi brings ancestiors back from grave o Shows must understand culture and their behaviour o Turn down tea offerd by japanese offer/deal died down • The changing nature of work o 1940s-1970: genreal motor Wage leader: wage formula negotiated with united auto workers: 3% plus productivity and cost living Comp compete against mad power Increaase salries Introduce pentions, health insureance, joint training funs, fma benefits Other firms forced ot to match gm rising wages Earlier company Emplys controled company High on liabilites Treat employes well but www.notesolution.com More training o Walmart largest us emplayer (1.8 million pp) Av wage 30% below naional av; 50% turnover Class action suits for gender discrimination and overstime pay Resister unionization Other firms mathch lower wages/ beniftis Gm today: went through bankrupcy Lowest cost production, cost maximaztion Kept control of company Ask for lower price less training Everyday use competative rate Treat ppl not well but doing better Globus: developing winning stratagies (overviwe, orientation) • Running a company www.notesolution.com • Competing against each other • High price • Selling camera • Online pc based excersise where you runa a digital camera company in head to head comptetitntion againster companies by other class members • Companies produce entry level and updsacle • All comp start on same equal sales volume global market share revenuse prfits • Each decision period reps a year • Comp runing began operations 5 years ago , first set of decisiton you and your co angers will make is year 6 • Your company is selling close to 800000 entry level and 20000 • How meet up, how long, • Company is sound fincaial condiiton prerfoming well, products are well regared by digital camera users • Make decisitons o Rand d camera companents and feature sand camera quality performance up to 10 decisions o Producatinon operations and workers compensation up to 15 decsions o Pricing an maketing up up to 16 dec o Corperate social repsonsiblity and citizentiship 6 dec o Finacing comp operations as many as 4 decisions o Take into consideration if working full time, overtime, partime o Labor force, cost, additional cost, produce too much longer keep = become obselete o Too high – less sell, too low – sell, not a lot of profit o Wat doing with junk – environmentally resposible www.notesolution.com o More spend = less income o Borrow money from bank (interest rate), investment (dividend) better, easier o Debt hard to pay • 10 factors o Price (affect finacial) o Camera performance/ quality (too much quality not a lot of profit Low end cam reduce cost, not too much otherwise can get b