Teste IBM PDF

1. GlobalizationDefinition: Globalization is the process of interaction and integration among people, companies, and governments worldwide. It leads to: Economic interdependence: The integration of economies across the globe. Impacts across politics, culture, ecology, trade, and c...

1. GlobalizationDefinition: Globalization is the process of interaction and integration among people, companies, and governments worldwide. It leads to: Economic interdependence: The integration of economies across the globe. Impacts across politics, culture, ecology, trade, and communication. Key Characteristics: 1. Multinational Corporations (MNCs) have a global reach and increasing power. 2. Technological advancements (e.g., faster travel and shipping) facilitate globalization. 3. Governments reduce trade barriers, promoting free trade. Globalization of Markets: National markets are merging into a single global marketplace. Companies face similar competitors globally (e.g., Coca-Cola vs. PepsiCo, Boeing vs. Airbus). “Global consumers” drive this integration, leading to shared demands. Globalization of Production: Sourcing goods/services globally to leverage cost and quality differences in labor, energy, land, and capital. Examples: ○ Boeing 777: Built from components sourced worldwide, with 30% of its value produced by foreign suppliers. ○ Apple iPhone: Components sourced globally, illustrating a complex production network. Advantages of Globalization: Encourages free trade and job creation. Reduces costs and increases competitiveness. Promotes technological advancement and innovation. Facilitates global communication and information exchange. Disadvantages: Increases social inequality (rich vs. poor) and unfair labor practices. Causes job losses in developed countries due to outsourcing. Raises security risks (e.g., terrorism, data protection issues). Contributes to ecological challenges. Role of Technology:  Innovations like microprocessors, telecommunications, the internet, and transportation have accelerated the pace of globalization. Internationalization Definition: Internationalization involves conducting business in multiple countries, often within a specific region. Unlike globalization, it may focus more on limited regional expansion. Core Aspects: International Business: Companies engaging in trade or investment across borders. Key Decision: “Stay domestic” vs. “Go global.” Barriers: ○ Insufficient finances and knowledge. ○ Lack of connections, capital, or productive capacity. Theoretical Models: 1. Uppsala Model: ○Companies expand incrementally in foreign markets. ○Four stages: Sporadic exports. Export via independent representatives. Establishing foreign sales subsidiaries. Setting up foreign manufacturing units. 2. Stopford’s Model: ○ Gradual entry into foreign markets: Initial export activities. Establishing manufacturing branches. Full ownership of foreign subsidiaries. Local Adaptation Definition: Adapting products, services, advertising, and communication strategies to align with local cultures, customs, traditions, and preferences. Key Features:  Aims to meet regional demands and leverage local expertise. Covers product design, quality, packaging, and communication. Examples: 1. Coca-Cola: Created a guarana-flavored drink for Brazil. 2. McDonald’s: Offers vegetarian menus in India and region-specific items in Mexico and Italy. 3. Nestlé: ○ Adapted product weights in Brazil to fit consumer preferences. ○ Reduced the weight of Bono cookies, leading to a 40% sales increase. Glocal Strategy: Definition: Combining global standardization with local differentiation. ○ Think Global, Act Local. Framework: ○ Global Strategy: Standardized products and promotion (e.g., Coca-Cola globally). ○ Local Strategy: Customized products and promotion (e.g., Kuat by Coca-Cola in Brazil). ○ Glocal Strategy: A mix (e.g., McDonald’s global branding with local menus). Advantages: Builds strong relationships with local customers. Establishes a stable market position. Enhances profitability and brand relevance. Case Studies ESET (Slovakia): IT security company with operations in 22 countries. Known for antivirus software like NOD 32. Core values: fairness, honesty, and innovation. Avast (Czech Republic): Cybersecurity firm localized operations in Brazil: ○ Adapted language (Portuguese), currency (Brazilian real), and payment methods (installments and cash). ○ Result: Conversion rates tripled from 1% to 3%. 3.International Business Strategies Key Types: 1. Multidomestic: High local responsiveness, low global integration. 2. Global: High integration, low local responsiveness. 3. Transnational: High integration and responsiveness. 4. International: Low integration and responsiveness. Critical Thinking Questions: 1. How do technological advances drive globalization? 2. How does the internet influence international business activities and the global economy? 3.Here's a detailed and concept-focused summary of the document on "Entry Modes and Entry Strategies" from the International Business Management course: Reasons for Expanding Internationally 1. Growth Opportunities: Gain more customers, boost sales, and increase revenues. 2. Cost Savings and Risk Diversification: Reduce operational costs and spread business risks. 3. Strategic Positioning: Enhance brand visibility and market positioning globally. 4. Reputation and Local Demand: Improve company reputation and respond to specific local needs. Key Factors in Entry Mode Decision-Making Market size, growth potential, and market share. Product type and marketing strategy. Time horizon and company involvement level. Characteristics of the target market. Entry Modes 1. Exporting: ○ Direct Exporting: The company directly manages sales. ○ Indirect Exporting: Through intermediaries like distributors or agents. ○ Advantages: Low initial costs. Avoids the need for foreign production facilities. ○ Disadvantages: High transportation costs and tariffs. Remote management of customer relationships. 2. Licensing: ○ The licensor grants rights to a licensee to produce/sell a product. ○ Advantages: Minimal investment and risk. Rapid market entry. ○ Disadvantages: Risk of intellectual property misuse. Quality control challenges. 3. Franchising: ○ A franchisor provides a franchisee the rights to use its brand and business systems. ○ Advantages: Proven business models and support systems. Shared marketing strategies. ○ Disadvantages: High setup costs and franchise fees. Limited operational independence. 4. Joint Ventures (JV) and Strategic Alliances: ○ Joint Ventures: New legal entity formed by partners sharing resources for mutual goals. Advantages: Risk sharing. Market and technology expansion. Disadvantages: Potential conflicts between partners. ○ Strategic Alliances: Flexible partnerships to share resources without forming new entities. 5. Wholly Owned Subsidiaries: ○ 100% ownership of operations in a foreign market, via: Greenfield Investments: Building from scratch. Acquisitions: Buying an existing company. ○ Advantages: Full control over operations and brand. Solid market commitment.  ○ Disadvantages: High costs and time-intensive. Challenges with local regulations and cultural integration. Examples of Market Approaches 1. Exporting: Slovakia exports cars, electronics, and refined petroleum, with key partners being Germany and Czech Republic. 2. Joint Ventures: Examples include Fiat-Chrysler with Google for self-driving cars. 3. Greenfield Investments: High initial investments but offer full operational control. Summary of Concepts Exporting: Simplest and lowest risk but limited control. Licensing/Franchising: Leverages existing intellectual property or systems with shared risks. Joint Ventures/Alliances: Cooperative but may involve conflicts. Subsidiaries: Offers maximum control but requires significant investment. Here’s a summary of the document "Differences in Culture", focusing on details and definitions of key concepts: 4. What is Culture? Culture is the system of shared values and norms that guide the behavior of a group. It is: Values: Abstract beliefs about what is good, right, or desirable. Norms: Social rules guiding appropriate behavior. Society: A group sharing common values and norms. Notable definitions: Edward Tylor: Culture is a complex system encompassing knowledge, belief, art, morals, law, and custom. Geert Hofstede: Culture is "the collective programming of the mind" distinguishing one group from another. Culture evolves over time and influences communication and behavior. 2. Determinants of Culture 1. Social Structure: ○ Individuals vs. Groups: Western cultures emphasize individualism; Eastern cultures emphasize collectivism. ○ Social Stratification: Defined by family background, occupation, and income. Social mobility determines how individuals move within these strata. 2. Religion and Ethical Systems: ○ Religion: Shared beliefs and rituals about the sacred (e.g., Christianity, Islam, Hinduism). ○ Ethical Systems: Set of moral principles guiding behavior. 3. Language: ○ Spoken: Reflects culture; multilingual countries often have diverse cultures. ○ Unspoken: Gestures and non-verbal communication. 4. Education: ○ Teaches societal values and norms formally and indirectly, fostering obedience, respect, and punctuality. 5. Political and Economic Philosophy: ○ Political systems influence individual freedoms and rights. ○ Economic systems range from market economies (free trade) to command economies (state control). 3. Dimensions of Culture (Hofstede's Framework) Geert Hofstede identified cultural dimensions that describe societal preferences: 1. Power Distance: ○ Low: Emphasizes equality and decentralized power. ○ High: Recognizes hierarchies and centralized authority. 2. Individualism vs. Collectivism: ○Individualism: Focus on self, independence, and personal goals. ○Collectivism: Emphasis on group harmony, shared resources, and collective goals. 3. Uncertainty Avoidance: ○ High: Preference for certainty, planning, and risk aversion. ○ Low: Openness to ambiguity and risk-taking.  4. Masculinity vs. Femininity: ○Masculinity: Focus on achievement, material success, and traditional gender roles. ○ Femininity: Values harmony, quality of life, and overlapping gender roles. 5. Long-Term vs. Short-Term Orientation: ○ Long-Term: Focus on future-oriented goals, persistence, and thrift. ○ Short-Term: Emphasis on tradition, stability, and quick results. 6. Indulgence vs. Restraint: ○ Indulgent: Allows free gratification of desires, leisure, and optimism. ○ Restrained: Enforces strict norms and emphasizes discipline and work ethic. 4. Impact of Culture on Business Cultural differences shape: 1. Workplace Interactions: ○ Greetings, communication styles, and negotiations. 2. Corporate Structure: ○ Hierarchy, labor relations, and work attitudes. 3. Customer Relations: ○ Marketing and product development based on local preferences. Case Studies: Zara: Apologized for cultural insensitivity in product design. Absolut Vodka: Marketing strategy adapted to cultural norms. 5. Importance of Cross-Cultural Communication Understanding and respecting cultural differences enhances: Global workforce management. Effective negotiations and collaborations. Customer satisfaction in international markets. This summary captures the essence of the lecture while detailing key concepts for your preparation. Let me know if you'd like a deeper focus on any section!