Int management

• Leader


  Leads the team itself
• Manager


  Responsible for a whole organization, manages resources to reach objectives (defines strategies, sets up goals and implements actions to reach goals)
• Organization


  A group of people that have an agreement and there is some sort of coordination between them (hierarchy) to reach a goal (human need)
• Example of organization


  • WhatsApp group
• Company


  A business entity formed for profit-making purposes
• Organization


  Can have economic purpose or not, can be private or public (e.g. university, hospital), private organizations can be profitable or non-profit
• Organization life cycle


  1. Need manifestation

  2. Birth

  3. Growth

  4. Maturity

  5. Decline (death of organization) or transformation
• Manager


  Should be able to respond to what (mission), how (strategy) and who (stakeholders) questions
• Mission


  Defines the organization's value, usually well advertised
• Stakeholders


  • External environment (suppliers, customers, banks, institutions)
  • Internal (employees)
• Organization


  Value creation
• Productive process


  Production factors (cost, input) -> Work, capital, technology, natural resources, culture -> Productive process -> Income, output (number of things sold) -> Remuneration of productive factors, outcome (percentage of satisfaction)
• Management


  In charge of the process that transforms input into output and outcomes
• International management


  Branch of the same discipline that studies how to be efficient and effective beyond a system's boundaries, requires the ability to understand cultural issues of the targeted market
• Internationalization


  Can be a competitive advantage but can also represent a double-edged weapon
• International company


  Firms that transfer products between countries without any direct foreign investment, typically taking their first step into international expansion, have low investment, less control and less risk
• Multinational company


  Have more direct investment in foreign operations, study customer behaviour and culture to enter markets, have larger investment, cultural adaptation, entry barriers, risk of demand contraction
• Global company


  Have strong foreign direct investment but focus is on using global market share to develop standardized products, use economies of scale, have market share and brand reputation as entry barriers, less risk of demand contraction
• Transnational company


  Fully integrate resources into global operations, able to cater to local market needs while capturing cost reductions through economies of scale, any stage of internationalization can be suitable
• Globalization


  The flow of goods, services, capital and knowledge across the world
• Advantages of globalization


  • Enhances economic interdependence among countries and organizations
  • Allows both small and large firms to compete
• Disadvantages of globalization


  • Those unable to compete are left behind
  • Governments may struggle in enhancing strategic companies for their interests
• Absolute advantage


  Ability to produce more goods than another producer with the same quantity of inputs, different countries have different resources
• Comparative advantage


  Producers should produce products they are more efficient at producing and purchase goods they are less efficient at producing
• Excess of imports


  Affects GDP (GDP = C + I + P(X-IM))
• Inflation


  General increase in the prices of goods and services, measured using CPI
• Types of economies


  • Developed economies (large economies with effective capital market)
  • Emerging economies (rapidly growing, with underdeveloped capital market)
  • Developing economies (weak economies with little capital to grow)
• Culture


  A learned set of assumptions, values and behaviors that are accepted and successful, passed on to newcomers, evolves and changes over time but this change is difficult to force
• Hofstede's cultural dimensions


  Power distance index, individualism vs collectivism, uncertainty avoidance, masculinity vs femininity, long-term vs short-term orientation, indulgence vs restraint
• Power distance index (PDI)

  Extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally
• Individualism vs collectivism (IDV)

  Degree to which people in a society are integrated into groups, individualistic societies have loose ties, collectivist societies have tightly-integrated relationships
• Uncertainty avoidance index (UAI)


  Society's tolerance for ambiguity, high UAI means strict codes of behavior, guidelines, laws and reliance on absolute truth
• Masculinity vs femininity (MAS)


  Preference in society for achievement, heroism, assertiveness and material rewards for success (masculinity) vs cooperation, modesty, caring for the weak and quality of life (femininity)
• Long-term vs short-term orientation (LTO)

  Connection of the past with current and future actions/challenges, short-term orientation honors traditions and values steadfastness, long-term orientation views adaptation and pragmatic problem-solving as necessary
• Indulgence vs restraint (IND)

  Measure of happiness, indulgence allows relatively free gratification of basic human desires, restraint controls gratification through strict social norms
• Drivers of becoming global

  • Lower trade barriers
  • Lower transportation costs
  • Spread of technologies
• Lower trade barriers


  • Some countries benefit from unrestricted movement of financial resources
  • Reduction of trade barriers increases incentive for firms to transfer technology resources
• Lower trade barriers


  May damage local companies, increasing unemployment
• Lower transportation costs


  Enable products made in one country to be produced and distributed internationally at lower cost, increasing product's competitive position
• Lower transportation costs


  Produce more competition among firms