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• Manager


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


  Leads the team itself, inspires and motivates teams, setting direction and fostering innovation
• Managers


  Excel at organizing and coordinating
• Leaders


  Excel at influencing and empowering
• 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 include any group of people with a common purpose, including non-profit entities, governmental bodies, and informal groups
• All companies are organizations, but not all organizations are companies
• Types of organizations


  • Economic purpose
  • Non-economic purpose
  • Private
  • Public (e.g. universities, hospitals)
• Organization life cycle


  1. Need manifestation

  2. Birth

  3. Growth

  4. Maturity

  5. Decline (death) or transformation
• Mission


  Defines the organization's value, usually well advertised
• Examples of organizational missions

  • Ferrari
  • Unicef
  • Patagonia
  • LV
  • Ryanair
• Stakeholders


  Those who have interest in the existence of the company, including external (suppliers, other companies, customers, banks, institutions) and internal (employees, shareholders)
• Value creation


  The process of transforming resources into something that has greater utility to people than the original resources
• Productive process


  1. Input (cost, resources: work, capital, technology, natural resources, culture)

  2. Productive process

  3. Output (income, products/services)

  4. Outcome (satisfaction)
• Management


  The professional figure responsible for controlling resources (efficiency) to reach given objectives (effectiveness)
• International management


  The branch of management that studies how to be efficient and effective beyond a system's boundaries, focusing on cultural aspects
• Being an international manager requires the ability to understand cultural issues within the company and in the targeted market
• Globalization


  The flow of goods, services, capital and knowledge across country borders
• Types of international companies

  • International companies
  • Multinational companies
  • Global companies
  • Transnational companies
• International company


  Firms that transfer products between countries without any direct foreign investment, typically taking their first step into international expansion
• Multinational company


  Firms with foreign direct investments (FDIs) located in countries outside their home countries, studying customer behavior and culture to enter markets
• Global company


  Firms with strong FDI in other countries, focusing on using their global market share position to develop standardized products sold globally
• Transnational company


  Firms able to fully integrate their resources into their global operations, catering to local market needs while capturing cost reductions through economies of scale
• 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 interest
• Absolute advantage


  Ability to produce more goods than another producer with the same quantity of inputs
• 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
  • Emerging economies
  • Developing economies
• Culture


  A learned set of assumptions, values and behaviors that are accepted and successful, passed onto newcomers, and evolve over time
• Hofstede's cultural dimensions


  • Power Distance Index
  • Individualism vs. collectivism
  • Uncertainty avoidance index
  • Masculinity vs. femininity
  • Long-term vs. short-term orientation
  • Indulgence vs. restraint
• Power Distance Index


  The extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally
• Individualism vs. collectivism


  The degree to which people in a society are integrated into groups
• Uncertainty avoidance index


  A society's tolerance for ambiguity and the unknown
• Masculinity vs. femininity


  A preference in society for achievement, heroism, assertiveness and material rewards for success vs. cooperation, modesty, caring for the weak and quality of life
• Long-term vs. short-term orientation


  The connection of the past with current and future actions/challenges
• Indulgence vs. restraint


  A measure of happiness and the degree to which simple joys are fulfilled