Chapter 11 - International Management

DOMESTIC & INTERNATIONAL ENTERPRISE: 

DOMESTIC & INTERNATIONAL ENTERPRISE Environment Domestic International 1. Educational Environment i ) Language (Spoken, Written, Official) One Multiple ii) Education System No or Little Constraint Great Constraint (Quality, Level, Extent) 2. Socio-Cultural Environment i ) Values, attitudes (toward Achievement, Homogeneous Heterogeneous Risk-taking, Scientific Method, Work) 3. Political-Legal Environment i ) Political orientation (Power, Ideologies) Country-Centered Transnational ii) Legal Environment Fairly uniform Different (Laws, Codes, Regulations) iii) National Sovereignties One Many iv) Government Policies, Regulations Same Different 4. Economic Environment Development (Under developed, industrialized) At similar stages At different stages ii) Economic System Similar Different (Capitalistic, Mixed, Marxist)

Managerial Domestic International Functions Enterprise Enterprise: 

Managerial Domestic International Functions Enterprise Enterprise 1. Planning: i ) Scanning the environment National Markets Worldwide Markets for threats And opportunities 2. Organising: i ) Organisation Structure Structure for Global Structure Domestic Operations ii) View of Authority Similar Different 3. Staffing: i ) Sources of Managerial Talent National Labour Pool Worldwide Labour Pool ii) Manager Orientation Often ethnocentric Geocentric 4. Leading: i ) Leadership and Motivation Influenced by Similar Influenced by many Structure different culture ii) Communication lines Relatively short Network with Long distances 5. Controlling: i ) Reporting System Similar requirement Many different requirements

Forms of International Business: 

Forms of International Business Exportation Licensing Agreement Management Contracts Joint Ventures Subsidiaries

Role of Global Managers: 

Role of Global Managers According to Stephen Rhinesmith following competencies essential to become global managers:- 1. Managing Competiveness 2. Managing Complexity 3. Managing Adaptability 4. Managing Teams 5. Managing Uncertainty

Traits of Successful Leaders in India : 

Traits of Successful Leaders in India 1. Professionalism 2. Innovative Thinking 3. High Knowledge 4. Quality Consciousness I. Lakshmibhai & Ramachandrabhai R.Gandhi – Vadilal Ice Cream- http://www.vadilalgroup.com/ (Affordable price, smart pricing strategy, developing mass market) II. Karsanbhai K.Patel – Nirma Chemical Works- http://www.nirma.co.in (Fair Price, Strong marketing strategies)- Better Products. Better Value. Better Living. III. Aspi R Balsara – Balsara Hygiene Products- Dabur (Promise, Babool , Meswak , Odomos , Odonil , Sani Fresh, Odopic ) (Pursuit of Excellence, grow or perish policy, internationalism) IV. Chandramohan – Punjab Tractors – Swaraj - http://www.swarajenterprise.com (Satisfying customer, employing women) V. Satya Prakash Mathur – Sumeet Mixie - http://sumeetmixie.in/ (service to society through industry, sacrificing-nature)

Qualities for Best Chief Executives: 

Qualities for Best Chief Executives Leadership Ability Profit Orientation Ability to attract talent and retain talent Having best industrial relations policies Honesty Ability to establish an international presence. Like – Ratan Tata-Tata Sons, R.Bajaj -Bajaj Auto, A.Birla -Indian Rayon, A.B.Godrej , L.M.Thapar -Crompton Greaves, H.V.Goenka -RPG Enterprises, Nusli Wadia -Bombay Dyeing, Vijay Mallya -UB Group, M.R.Chhabria -Shaw Wallace, S.M.Datta-HindLever , Ambani -Reliance, J.J.Irani -Tata Steel, D.Setha -Tata Chemicals, K.L.Chugh -ITC