International Business: Conducting Business Abroad & Hofstede's Analysis, Appunti di Economia Manageriale

Scarica International Business: Conducting Business Abroad & Hofstede's Analysis e più Appunti in PDF di Economia Manageriale solo su Docsity! Class 7 CH.4 Ways to conduct business internationally: There are firms not profitable that are international but most of the international business firm are profit oriented (ex. WWF for wildlife protection, UNICEF cares about humans, UNESCO cares about culture, monuments...  they’re not profit oriented This doesn’t mean they don’t pay workers (in this case we talk about voluntary organization) there are volunteers that work for free (like emergency) and donators who donate money to help the firm. We depend on sources coming from abroad and we sell to international markets  exporting and importing When u want to become international u have to activate different activities like when u take money in a place to do business directly as an entrepreneur in another country  legal problems (ex. How do u buy land in another country? How do u gain a contruction gai in another country? Etc.) more or less problematic. Now a lot of countries want to become attractive by making it easier to investe, they make an easy bureaucracy (ex. Easier ways to high and fire people is an element of attraction). Countries also compete bc it is also a way to advise a country around the world (if u have a lot of companies in your country than u will have high probability to been known around the world). Fiscal leverage is a way to attract business firm: ex. Less taxes for an amount of years Bureaucratic level: by removing the nationality requirement that normally get the things more complicated Environmental regulation: u have countries in which environmental rules are very restricted and so u have to be very green to operate there, for some can be an incentive but for many can be more complicated bc u have to invest to become environmentally sustainable. Org can also search for countries where u can waste whatever u want or produce the emission u want w/out problem Licensing and franchising: franchising has not to do w/ commercial things but more w/ the shops. There is an immaterial way to do international business (ex. when u give to another firm in another country the license to sell your brand) there is a difference between the franchisor (who own the brand and the technology, how to do the business → like Mc Donald’s) and the franchisee (who buy/rent property, who train people, it is under the franchisor’s power): the design of the buildings are uniform around the world so in this case is the franchisor that decide for it. Examples of licensing: when u allow a producer to do your products even if it’s not under your business firm (like Ferrari when they authorized other places to use their logo in other products and not only in cars, Tezenis that use “la casa de papel” logo to some products and this is made possible by the license made by “La casa de papel”) Joint ventures: different firms reunite to create and sell a product (firms share risks and resources) when u need a specific part of the final product then u ask for it to an expert firm and so u collaborate w/ other to create and sell a product. Joint ventures is a new firm characterize by the unition of two firms that collaborate Joint ventures is linked to innovation, bc u work/collaborate with other firms (different minds) to create a product. It is expensive to be international bc of course u have to higher people. Alternatives business: - Multinational companies: based in one country but operate in many (international), we can identify a firm nationally - Transnational companies: we can identify the point origin, it operates in many but decentralize while maintaining consistent image; if production is physical u see HQ , but when the product is immaterial it’s more difficult to understand where there are the buildings (we know just the HQ ). Facebook is transnational bc has different points of immaterial production (u can’t see it) - Global companies: those where we forgot where they’re set bc they’re everywhere (Nestlé). HOFSTEDE’S COMPARATIVE ANALYSIS: He’s very famous for managerial experiments. H distinguished 5 dimensions of working internationally which are based on usefulness in making sense to make choice and to how to behave in order to the place u’re staying: - Power distance (high or low): measures the hierarchical dimension that we are willing to accept in a society 1) High: accept inequality of wealth and power 2) Low: when we talk about equality or we don’t accept the inequality How do u measure the power distance? U have to use some tools to collect opinions/ statements of others/instruments of the survey (questionnaire = is a guided sequence of questions that can bring a result the more specific and difficult the questions are the better will be the results. Now questioners are everywhere but before they were just for researchers and now they can also be fun. The issue of comparability: to employee of the same global firm. U has to be big and to be international (u have to be the same – same products, functions, etc. - in every country even though there are different cultures around the world) IBM: the biggest multinational company, the first global computer company - Uncertainty avoidance: measure the ambiguity toleration for long periods to get a solution/result, clarity of relations (we don’t want too much equilibrium bc it would be too ambiguate) 1) High: US, Australia for ex tolerate ambiguity 2) Low : Latin America, southern Europe which is uncomfortable w/ uncertainty and prefer clarity - Individualism vs collectivism: 1) Individualist societies stress individual responsibilities and success  u emerge as an individual, individual achievement celebration (in sport/life) 2) Collectivist societies stress loyalty to group in  u win bc u belong to a group, being in a group = being clear, u have to know on who u can count, u have to move in a group, when u have to change in a group is more difficult bc u have to listen to all the options of others - Masculinity vs femininity: it has to do w/ the styles of life, the willingness to invest more in personal life instead of work life, the different level of modesty (more for women) 1) M. societies show assertive behavior 2) F. societies show modest behavior, more interest in quality of life 2