Definition of International Management International management is defined as a process of accomplishing the global objectives of a firm by: effectively coordinating the procurement, allocation, and utilization of the human, financial, intellectual, and physical resources of the firm across national boundaries effectively charting the path towards the desired organizational goals by navigating the firm through a global environment that is not only dynamic but often very hostile to the firms survival.
AMBITO DI RICERCA DEL MANAGEMENT INTERNAZIONALE ECONOMIA INTERNAZIONALE MARKETING INTERNAZIONALE tecniche di marketing e di gestione delle relazioni con i sistemi di distribuzione nazionale ed internazionale teorie e approcci per lo studio dei rapporti economici tra paesi diversi STRATEGIA AZIENDALE gestione strategica, commerciale e organizzativa nelle imprese che operano nei mercati nazionali ed internazionali MANAGEMENT INTERNAZIONALE gestione manageriale dell'impresa nei processi di internazionalizzazione e di globalizzazione
SISTEMA DI SCELTE ED AZIONI CHE CONSENTE ALLAZIENDA DI RAGIUNGERE E DI MANATENERE SIMULTANEAMENTE E DINAMICAMENTE UN POSIZIONAMENTO SUL MERCATO DI SBOCCO, SUI DIVERSI MERCATI DI APPROVVIGIONAMENTO DEI FATTORI DI PRODUZIONE E RISPETTO AI SUOI PRINCIPALI STAKEHOLDERS. TALE DA ASSICURARLE UN VANTAGGIO COMPETITIVO DIFENDIBILE ED IL CONSEGUENTE RAGGIUNGIMENTO DEI TRE ORDINI DI EQUILBRIO: ECONOMICO, FINANZIARIO, PATRIMONIALE - PRINCIPIO DI ECONOMICITA - REQUISITI DI UNA STRATEGIA EFFICACE Indicare la direzione di marcia da seguire tanto nellimmediato quanto nel medio periodo Generare un tensione alla realizzazione della stessa. E indispensabile che la strategia sia efficacemente comunicata ai diversi interlocutori della cui collaborazione e consenso limpresa ha bisogno. Strategia aziendale
Ricerca un equilibrio dinamico nelle componenti: economiche, finanziarie e patrimoniali dellazienda Ricerca lottimizzazione delle relazioni con gli Stakeholders Ricerca lequilibrio simultaneo nei diversi mercati anche attraverso la delocalizzazione spaziale della catena del valore Determina le condizioni per la sopravvivenza o per lo sviluppo dellimpresa Scelte di fondo e non contingenti Determina il posizionamento nel mercato domestico ed in quello internazionale e crea lImmagine dellazienda Sistema di scelte STRATEGIA AZIENDALE
Capacità di soddisfare i bisogni dei clienti Capacità di rispondere alle attese degli Stakeholders INNOVAZIONE Dimensione Economica Dimensione competitiva Dimensione sociale Economicità DIMENSIONI DI SVILUPPO SOSTENIBILE
FORMULA IMPRENDITORIALE PIENAMENTE VALIDA Successo Competitivo Successo economico- finanziario Successo sociale Successo organizzativo Una strategia efficace realizza lequilibrio simultaneo di tutte le variabili
Business Sustainability Social EnvironmentalEconomic
Le strategie di sviluppo dellimpresa Crescita della quota di mercato Superamento di barriere allentrata Facilità di finanziamento Convenienza Crescita interna Attuata attraverso investimenti in fattori a fecondità semplice o ripetuta, finanziati con il ricorso a mezzi di origine esterna o allautofinanziamento Attuata mediante aggregazione che si traducono in forme di integrazione (fusioni, acquisizioni) o in forme di cooperazione non competitive (alleanze ed accordi interaziendali) Crescita esterna Atmosfera di cambiamento positiva per lorganizzazione Ottimizzazione della localizzazione Acquisizione di nuova tecnologia Rapidità
Sviluppo monosettoriale Sviluppo polisettoriale Sviluppo internazionale Sviluppo verticale Sviluppo multinazionale della gestione Conglomerativa Sviluppo orizzontale Sviluppo internazionale del mercato Le strategie di sviluppo dellimpresa Economie di costo Economia di scala manageriali, organizzative e finanziarie Economie di scopo Diversificazione del rischio Integrazione a monte Integrazione a valle Nuovi prodotti per i mercati tradizionali Orizzontale Strategie di diversificazione Concentrica Costituita da società facenti capo ad unimpresa dominante la cui espansione avviene mediante la partecipazione, il controllo e la gestione di imprese operanti in altri Stati Nuovi prodotti con sinergie di marketing e/o tecnico- produttive, ingresso in nuovi mercati Sviluppo di attività non correlate con le attuali in termini di prodotti, mercati e tecnologie Espansione in altri Paesi con gusti dei consumatori omogenei
Globalization 1 the trend towards a more integrated global economic system
Globalization Effects of globalization can be seen everywhere: the cars people drive the food people eat the jobs where people work the clothes people wear
Globalization WHAT IS GLOBALIZATION? Globalization refers to the shift towards a more integrated and interdependent world economy.
Globalization The Globalization of Markets Globalization of markets: the fact that in many industries historically distinct and separate national markets are merging into one huge global marketplace in which the tastes and preferences of consumers in different nations are beginning to converge upon some global norm. Examples: Sony PlaystationCiticorp credit cards Coca-ColaMcDonald's hamburgers
Globalization The Globalization of Production Globalization of production: the tendency among many firms to source goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production (such as land, labor, capital, and energy), thereby allowing them to compete more effectively against their rivals. Examples:
Globalization THE EMERGENCE OF GLOBAL INSTITUTIONS Global institutions: help manage, regulate, and police the global market place promote the establishment of multinational treaties to govern the global business system
Globalization Examples of Global Institutions: World Trade Organization (WTO): responsible for policing the world trading system and ensuring that nations adhere to the rules established in WTO treaties International Monetary Fund (IMF): maintains order in the international monetary system World Bank: promotes economic development United Nations (UN): maintains international peace and security, develops friendly relations among nations, cooperates in solving international problems and promotes respect for human rights, and is a center for harmonizing the actions of nations
Globalization DRIVERS OF GLOBALIZATION Two macro factors underlie the trend toward greater globalization: Declining trade and investment barriers The role of technological change
Globalization Declining Trade and Investment Barriers After WWII, the industrialized countries of the West began the process of removing barriers to the free flow of goods, services, and capital between nations Under GATT, over 100 nations negotiated further decreases in tariffs and made significant progress on a number of non-tariff issues
Globalization Under the WTO, a mechanism now exists for dispute resolution and the enforcement of trade laws, and there is a push to cut tariffs on industrial goods, services, and agricultural products Removal of barriers to trade has contributed to increased international trade (the export of goods or services to consumers in another country), world output, and foreign direct investment (the investing of resources and business activities outside a firms home country)
Globalization The volume of world trade and investment has accelerated since the early 1980s.
Globalization The Role of Technological Change The lowering of trade barriers made globalization of markets and production a theoretical possibility, technological change made it a tangible reality.
Globalization Microprocessors and Telecommunications: Major advances in communications and information processing have lowered the cost of global communication and therefore the cost of coordinating and controlling a global organization The Internet and the World Wide Web: Web-based transactions have grown from virtually zero in 1994 to nearly $7 trillion in 2004. In 1990 - 1 million users, by 1995 - 50 million users, by 2007 - 1,3 billion users are connected to internet. Transportation Technology: the most important developments are probably development of commercial jet aircraft and super freighters and the introduction of containerization, which greatly simplifies trans-shipment from one mode of transport to another
Globalization Implications for the Globalization of Production Improvements in transportation technology have enabled firms to better respond to international customer demands Dispersal of production to geographically separated locations became more economical
Globalization Implications for the Globalization of Markets Electronic global marketplace Managers today operate in an environment that offers more opportunities, but is also more complex and competitive than that of a generation ago Reduction of cultural distance between countries and some convergence of consumer tastes and preferences.
Globalization THE CHANGING DEMOGRAPHICS OF THE GLOBAL ECONOMY In the 1960s: the U.S. dominated the world economy and the world trade picture U.S. multinationals dominated the international business scene about half the world-- the centrally planned economies of the communist world-- was off limits to Western international business
Globalization The Changing World Output and the Changing World Trade Picture In the early 1960s, the U.S. was the world's dominant industrial power accounting for about 40.3 percent of world manufacturing output By 2007 the United States accounted for only 20.7 percent Rapid economic growth is now being experienced by countries such as China, Thailand, and Indonesia Further relative decline in the U.S. share of world output and world exports seems likely Forecasts predict a rapid rise in the share of world output accounted for by developing nations such as China, India, Indonesia, Thailand, and South Korea, and a decline in the share by industrialized countries such as Britain, Japan, and the United States
Globalization The changing picture of world output and trade
Globalization The Changing Foreign Direct Investment Picture The share of world output generated by developing countries has been steadily increasing since the 1960s The stock (total cumulative value of foreign investments) generated by rich industrial countries has been on a steady decline There has been a sustained growth in cross-border flows of foreign direct investment The flow of foreign direct investment (amounts invested across national borders each year) has been directed at developing nations especially China
Globalization The stock of FDI by the worlds six most important national sources.
Globalization The Changing Nature of Multinational Enterprises A multinational enterprise is any business that has productive activities in two or more countries. The Rise of Mini-Multinationals The number of mini-multinationals (small and medium-sized companies) is on the rise
Globalization Expect the growth of new multinational enterprises (any business that has productive activities in two or more countries) from the world's developing nations The Rise of Mini-Multinationals The number of mini-multinationals (small and medium-sized companies) is on the rise
Globalization The Changing World Order The collapse of communism in Eastern Europe represents a host of export and investment opportunities for Western businesses The economic development of China presents huge opportunities and risks, in spite of its continued Communist control Mexico and Latin America also present tremendous new opportunities both as markets and sources of materials and production Firms must be aware that while the more integrated global economy presents new opportunities, it also could result in political and economic disruptions that may throw plans into disarray
Defining Sustainability Sustainable development is development that seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future. (WCED 1987, p.40) World Commission on Environment and Development (1987). Our common future. New York: Oxford University Press.
And yet again... Porter argues... The business of a business is to be sustainable business
Emergent sustainability challenges… SocialEnvironmental Climate ChangeGlobal Warming Loss of Ecosystem Services Child LabourHuman Rights
Sustainability and Ethics: Sustainable business, at its core is about ethical business How are resources owned? By whom are they used? To whom do the benefits flow? Does the process of using resources give rise to externalities? And whom do these externalities impact? Does the pattern of resource usage have implications for future resource usage?
Globalization THE GLOBALIZATION DEBATE Is the shift toward a more integrated and interdependent global economy a good thing? Anti-globalization Protests Anti-globalization protesters now turn up at almost every major meeting of a global institution Protesters fear that globalization is forever changing the world in a negative way
Globalization Globalization, Jobs, and Incomes Critics of globalization worry that jobs are being lost to low- wage nations Supporters of globalization argue that free trade will result in countries specializing in the production of those goods and services that they can produce most efficiently, while importing goods and services that they cannot produce as efficiently
Globalization Globalization, Labor Policies, and the Environment Critics of globalization argue that that free trade encourages firms from advanced nations to move manufacturing facilities offshore to less developed countries with lax environmental and labor regulations Supporters of free trade point out that tougher environmental regulation and stricter labor standards go hand in hand with economic progress and that foreign investment often helps a country to raise its standards
Globalization Globalization and National Sovereignty Critics of globalization worry that economic power is shifting away from national governments and toward supranational organizations such as the World Trade Organization (WTO), the European Union (EU), and the United Nations
Globalization Globalization and the Worlds Poor Critics of globalization argue that the gap between rich and poor has gotten wider and that the benefits of globalization have not been shared equally Supporters of free trade suggest that the actions of governments have made limited economic improvement in many countries
Globalization MANAGING IN THE GLOBAL MARKETPLACE Managing an international business (any firm that engages in international trade or investment) is different from managing a domestic business because: countries differ managers face a greater and more complex range of problems international companies must work within the limits imposed by governmental intervention and the global trading system international transactions require converting funds and being susceptible to exchange rate changes
Chapter 1: Globalization CRITICAL DISCUSSION QUESTIONS 7. Read the Country Focus in this chapter on the Ecuadorian rose industry, the answer the following questions: a) How has participation in the international rose trade helped Ecuadors economy and its people? How has the rise of Ecuador as a center for rose growing benefited consumers in developed nations who purchase the roses? What do the answers to these questions tell you about the benefits of international trade? b) Why do you think that Ecuadors rose industry only began to take of 20 years ago? Why do you think it has grown so rapidly? c) To what extent can the alleged health problems among workers in Ecuadors rose industry be laid at the feet of consumers in the developed world and their desire for perfect Valentines Day roses? d) Do you think governments in the developed world should place trade sanctions on Ecuador roses if reports of health issues among Ecuadorian rose workers are verified? What else might they do to improve the situation in Ecuador?