Managing Global Systems: International Business Strategies
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Questions and Answers

3M has separate information systems for its many divisions and local operations.

True

Hewlett-Packard laptop computers are produced in a single country.

False

SAP's Business Suite Applications was used to replace all legacy software at 3M.

True

International information systems are not important for global firms.

<p>False</p> Signup and view all the answers

Cisco and Microsoft were used by Monsanto to manage globally.

<p>True</p> Signup and view all the answers

Daum runs Oracle Apps on Windows.

<p>False</p> Signup and view all the answers

The growth of international information systems is driven by general cultural factors, specific business globalization factors, and technological advancements.

<p>True</p> Signup and view all the answers

Cultural particularism is a general cultural factor that leads to internationalization.

<p>False</p> Signup and view all the answers

Brand-name expectations are a specific business factor that drives globalization.

<p>False</p> Signup and view all the answers

Different EDI standards are a challenge to global business systems.

<p>True</p> Signup and view all the answers

Phone networks are uniformly reliable across the globe.

<p>False</p> Signup and view all the answers

Data transfer speeds are uniformly fast across the globe.

<p>False</p> Signup and view all the answers

Most companies have state-of-the-art international systems with online control and communication.

<p>False</p> Signup and view all the answers

There are only two main kinds of organizational structures for international information systems.

<p>False</p> Signup and view all the answers

The four main global strategies are domestic, multinational, franchiser, and transnational.

<p>True</p> Signup and view all the answers

The configuration, management, and development of systems do not follow the global strategy chosen.

<p>False</p> Signup and view all the answers

There are only two types of systems configuration.

<p>False</p> Signup and view all the answers

Building international architectures is a straightforward process.

<p>False</p> Signup and view all the answers

A multinational consumer-goods company based in the U.S. would not expand into Asian markets.

<p>False</p> Signup and view all the answers

There is only one main challenge in developing global systems.

<p>False</p> Signup and view all the answers

A single office is responsible for the development of international systems.

<p>True</p> Signup and view all the answers

Coordinating software releases is not a challenge in developing global systems.

<p>False</p> Signup and view all the answers

Introducing changes in business processes is not a challenge in developing global systems.

<p>False</p> Signup and view all the answers

Fonterra has separate information systems for its many divisions and local operations.

<p>True</p> Signup and view all the answers

Hewlett-Packard laptop computers are produced in multiple countries.

<p>True</p> Signup and view all the answers

Standardization of data interfaces is a technology challenge for global systems.

<p>True</p> Signup and view all the answers

Coordinating software releases is not important for global systems.

<p>False</p> Signup and view all the answers

Cooptation involves excluding local users from the design and implementation process.

<p>False</p> Signup and view all the answers

Developing new transnational centers of excellence is not a strategy for managing global systems.

<p>False</p> Signup and view all the answers

Study Notes

Managing Global Systems

The Growth of International Information Systems

  • The global economic system and global world order are driven by advanced networks and information systems.
  • The growth of international trade has radically altered domestic economies around the globe.
  • For example, the production of high-end electronic products, such as Hewlett-Packard laptops, is parceled out to multiple countries.

Global Business Drivers

  • General cultural factors: • Global communication and transportation technologies • Development of global culture • Emergence of global social norms • Political stability • Global knowledge base
  • Specific business factors: • Global markets • Global production and operations • Global coordination • Global workforce • Global economies of scale

Challenges and Obstacles to Global Business Systems

  • General cultural challenges: • Cultural particularism • Regionalism and nationalism • Language differences • Social expectations (brand-name expectations, work hours) • Political laws
  • Specific challenges: • Standards (different EDI, email, telecommunication standards) • Reliability (phone networks not uniformly reliable) • Speed (different data transfer speeds, many slower than in the US) • Personnel (shortages of skilled consultants)

Organizing International Information Systems

  • Global strategies and business organization: • Three main kinds of organizational structure:
    • Centralized (in the home country)
    • Decentralized/dispersed (to local foreign units)
    • Coordinated (all units participate as equals) • Four main global strategies:
    • Domestic exporter
    • Multinational
    • Franchiser
    • Transnational
  • Global systems to fit the strategy: • Configuration, management, and development of systems tend to follow the global strategy chosen • Four main types of systems configuration:
    • Establish at world headquarters
    • Regional centers
    • Local units
    • Hybrid approach

Managing Global Systems

  • Principle management challenges: • Agreeing on common user requirements • Introducing changes in business processes • Coordinating application development • Coordinating software releases • Encouraging local users to support global systems
  • The management solution: • Coordinating software releases (institute procedures to ensure all operating units update at the same time) • Encouraging local users to support global systems (cooptation: bringing the opposition into design and implementation process without giving up control)

Technology Issues and Opportunities for Global Value Chains

  • Technology challenges of global systems: • Computing platforms and systems integration • Standardization (data standards, interfaces, software, etc.) • How new core systems will fit in with existing suite of applications developed around the globe by different divisions

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Description

Explore the key factors driving international business, alternative strategies for global expansion, and the role of information systems in supporting global business strategies. Learn about the challenges and solutions for managing global information systems.

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