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Lecture Principles of management: Chapter 3 - Charles W.L. Hill, Steven McShane

Chapter 3 - Globalization and the manager. The goals of this chapter are: Explain what globalization is, describe the processes driving globalization, identify the implications of globalization for business enterprises, discuss different constraints limiting the pace of globalization, outline the benefits of going global for a business firm, discuss some of the challenges of managing in a global enterprise. | chapter 3 Globalization and The Manager McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. This is a test Learning Objectives Explain what globalization is. Describe the processes driving globalization. Identify the implications of globalization for business enterprises. Discuss different constraints limiting the pace of globalization. Outline the benefits of going global for a business firm. Discuss some of the challenges of managing in a global enterprise. Globalization The process whereby national economies and business systems are becoming deeply interlinked with each other. See Learning Objective 1: Explain what globalization is. See text page: 56 Accelerated Pace of Globalization Three main reasons: The spread of market-based economic systems The decline of barriers to international trade and foreign direct investment Falling costs of communication and transportation See Learning Objective 1: Explain what globalization is. See | chapter 3 Globalization and The Manager McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. This is a test Learning Objectives Explain what globalization is. Describe the processes driving globalization. Identify the implications of globalization for business enterprises. Discuss different constraints limiting the pace of globalization. Outline the benefits of going global for a business firm. Discuss some of the challenges of managing in a global enterprise. Globalization The process whereby national economies and business systems are becoming deeply interlinked with each other. See Learning Objective 1: Explain what globalization is. See text page: 56 Accelerated Pace of Globalization Three main reasons: The spread of market-based economic systems The decline of barriers to international trade and foreign direct investment Falling costs of communication and transportation See Learning Objective 1: Explain what globalization is. See text page: 56 Market Economy Most businesses are privately owned Prices are set by the interaction of supply and demand Government regulation is limited to ensuring that competition between individual enterprises is free and fair and that the system does not produce outcomes judged to be unacceptable See Learning Objective 2: Describe the processes driving globalization. See text page: 56 Socialist Economy Most businesses are owned by the state Private producers were excluded from certain industrial and commercial activities Prices were set by the state State planners decided what was produced where, in what quantity, and by whom Antithetical to globalization See Learning Objective 2: Describe the processes driving globalization. See text page: 56 Privatization in Kosovo Authorities have put another 23 firms for sale in Kosovo Hundreds of other government-owned companies have already been sold which were considered inefficient and dilapidated In 2006, the province’s economy grew 5% .