Managing in the Global Environment PDF

Managing in the Global Environment chapter six McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.  Global Organizations Global Organizations └ Organizations that operate and compete not only d...

Managing in the Global Environment chapter six McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.  Global Organizations Global Organizations └ Organizations that operate and compete not only domestically, but also globally └ Uncertain and unpredictable 6-4  What Is the Global Environment? Global Environment └ Set of forces and conditions in the world outside the organization’s boundaries that affect the way it operates and shape its behavior └ Changes over time └ Presents managers with opportunities and threats 6-5 Forces in the Global Environment Figure 6.1 6-6  What Is the Global Environment?  Task Environment └ Set of forces and conditions that originate with suppliers, distributors, customers, and competitors └ Affects an organization’s ability to obtain inputs and dispose of its outputs └ Most immediate and direct effect on managers  General environment └ The wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect an organization and its task environment. 6-7  The Task Environment Suppliers └ Individuals and organizations that provide an organization with the input resources that it needs to produce goods and services Raw materials, component parts, labor (employees) Global Outsourcing └ The purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design. 6-8  The Task Environment  Customers  Identifying an └ Individuals and groups organization’s main that buy goods and customers and services that an producing the goods organization produces and services they want is crucial to organizational and managerial success. 6-10  The Task Environment Competitors └ Organizations that produce goods and services that are similar to a particular organization’s goods and services Rivalry between competitors is potentially the most threatening force that managers deal with Potential Competitors -- Organizations that presently are not in the task environment but could enter if they so choose 6-11  The Task Environment  Barriers to Entry └ Factors that make it difficult and costly for the organization to enter a particular task environment or industry  Economies of scale └ Cost advantages associated with large operations  Brand loyalty └ Customers’ preference for the products of organizations currently existing in the task environment.  Government regulations that impede entry 6-12  The General Environment Economic Forces └ Interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization. 6-13  The General Environment Technology └ The combination of skills and equipment that managers use in designing, producing, and distributing goods and services. Technological Forces └ Outcomes of changes in the technology that managers use to design, produce, or distribute goods and services 6-14  The General Environment Sociocultural Forces └ Pressures emanating from the social structure of a country or society or from the national culture 6-15  Declining Barriers to Trade and Investment Tariff └ A tax that government imposes on imported or, occasionally, exported goods. └ Intended to protect domestic industry and jobs from foreign competition http://www.youtube.com/watch?v=j_32DiftUUw 6-19  Rise of Free Trade Free-Trade Doctrine └ The idea that if each country specializes in the production of the goods and services that it can produce most efficiently, this will make the best use of global resources and will result in lower prices 6-20