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mgt alli

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  1. Chapter 2 • Responding to Conflicting Environmental Forces

  2. Causes of Change • Pressure: remain competitive • Forces: respond to local, regional, national levels to meet demands • Adaptations: adapt and diffuse problems quickly to capture a knowledge-based competitive advantage • Political, social, economic and technology changes have forced MNE managers to rethink their businesses and go global.

  3. Theodore Levitt’s Globalization • Drives companies to develop globally standardized products to be sold world wide • Good or bad? http://www.youtube.com/watch?v=HvUCCCm99UQ&feature=related

  4. Globalization • What causes globalization? • Economies of scale, economies of scope and factor costs

  5. Economies of Scale • Average cost/unit decrease as output increase • Bulk buying, marketing, specialization-cut out the middle man.

  6. Economies of Scope • Lower average cost of a firm producing two or more products.

  7. Factor Costs • Total costs of a company • Turn internationally to find cheap labor

  8. The Expanding Spiral of Globalization • Globalization has a domino effect • Standardization of parts and generalization of products

  9. Lost in Translation

  10. Sources http://cdn1.beeffco.com/files/poll-images/normal/globalization_5271.jpg http://alidavies.com/wp-content/uploads/2010/02/Time-for-change.jpg http://3.bp.blogspot.com/_2z9nKHWoL4Q/TB4S15J7aCI/AAAAAAAAAFw/Bn7dH310F3k/s320/globalization.gif http://static.arstechnica.com/vintage_computers/Perkin_Elmer.JPG http://shouhda.files.wordpress.com/2009/11/old_cell_phone.jpg http://farm1.static.flickr.com/39/119197856_fbc73ae2c7.jpg?v=0 http://2.bp.blogspot.com/_6hK1nwXMjWw/SfwbDKVfBqI/AAAAAAAAAEA/wSzGfkE9vUc/s320/globalization.jpg http://chrispie.punt.nl/upload/dominoeffect.jpg http://www.rodekruis.nl/actueel/Nieuws/PublishingImages/euro-money-geld.jpg http://s2.hubimg.com/u/1445861_f520.jpg http://www.suu.edu/faculty/aton/3220images/woodamericangothic.jpg http://whatnowtoons.com/images/exporting-jobs-what-now-296.jpg http://s2.hubimg.com/u/1445861_f520.jpg http://www.etftrends.com/wp-content/uploads/2010/09/Changes_next_exit.jpg http://hywelsbiglog.files.wordpress.com/2008/06/image38-d-front1.jpg http://onceuponacream.at/wp-content/uploads/2010/12/milk.jpg

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