BAB. IV MANAGING ACROSS CULTURE

1. BAB. IV MANAGING ACROSS CULTURE Tujuan Bahasan 1. Membahas pengaruh globalisasi dan national responsivenes terhadap strategi manajemen internasional. 2. Mengidentifikasi dan menggambarkan 6 kunci dimensi budaya organisasi dan pengaruhnya terhadap strategi dan operasi MNC’s. 3. Mereview berbagai perbedaan budaya dalam negara dan region tertentu.

2. Definisi Globalizationis the production and distribution of product and services of a homogeneous type and quality on worldwide basis. NationalResponsiveness is the need to understand the different consumer tasted in segmented regional market and to respond to different national standard and regulations imposed by autonomous governments and agencies.

3. Globalization VS National Responsiveness National Responsiveness (differentiation) G L O B A L I Z A T I O N Low High 1 3 Globalization Strategy Mixed Strategy High 2 4 National Responsiveness Strategy Mixed Strategy Low Dikutip dari Int. Mgt , hal 92

4. Enam Kunci Dimensi Budaya Organisasi menurut Hofstede Dimension Characteristic VS Dimension Characteristic Process oriented Job Oriented Parochial Closed system Tight control Normative Concern with the way things are done. Concern with getting the job done. Employees derive Identity From the organization. Unwillingness to quickly accept new members of the work unit. Formal policies and rules and close control of time and money. Follow rules and procedures to the letter. Result Oriented Employee Oriented Professional Open System Loose Control Pragmatic Corncern with the Outcome of decisions. Concern with the well- being of employees. Employees derive identity from the type of work performed. Willingness to quickly accept new member of the work unit. Informality and lack of bureaucratic procedures. Attention given to practically and results, even if rules and procedures are violated.

5. MANAGINGDIFFERING ORGANIZATIONAL CULTURE DIMENSION OF AN MNC CULTURE HIERARCHIAL LEVEL Top Level Mgt Middle/Lower Mgt Professional Personel Others Countries Function Country 1 Country 2 Country 3 Functional Area 7 Fuctional Area8 Fuctional Area 9

6. Divisions Merger Partner Merger Partner 10 Merger partner 11 Merger Partner 12 Division 4 Division 5 Division6

7. Culturel Differences in Selected Countries and Regions Doing Business in Cultures China India France Arab Countries Indonesia Japan United States ? ? ? ? ? ? ?

8. Bab.V Strategic Planning Tujuan Bahasan 1.Mendiskusikan makna, kebutuhan, manfaat, pendekatan dan kecenderungan proses strategic planning bagi MNC. 2.Mengidentifikasi langkah-kangkah dasar dalam Strategic Planning meliputi lingkungan, analisis sumber-sumber internal ttg kekuatan dan kelemahan. 3.Menggambarkan bagaimana implmentasi Strategic Planning MNC. Seperti bagaimana memilih lokasi di LN. 4.Menjelaskan bagaimana MNC mengimplementasikan kepemilikan dan atau memasuki strategi. 5.Fungsi pemasaran, produksi dan keuangan yang digunakan dalam implementasi strategic planning.

9. Definisi Strategic Planningis the process of determining an organization’s basic mission and long-term objectives and then implementing a plan of action for accomplishing the mission and attaining the objectives. Strategic Managementis the concerned with determining the future direction of an organization and implementing decisions aimed at achieving the organization’s long and short term objectives. is applicable to all business, large or small, profit or non-profit, private or public. A strategy is a means to an end. Organization’s strategy describes The organization’s method for achieve its strategic objectives.

10. 4 Macam tingkatan dalam strategy organisasi • Societal Strategies • Corporate Strategies • Business Strategies • Functional Strategies Societal Strategiesare concerned with the role of an orga- nizations in the society of which it is a part, with the process by which that role will be defined and with the orga- nization’s involvement in thoseprocess. • Corporate Strategyis develop in response to three basic • Questions : • What business or businesses are we in ? • What business or busineeses should be we in ? • How should the business or group of businesses be • manage in order to fully enhance the organization’s • ability to achieve its strategic objectives ?

11. Business Strategy is designed to achieve the corporate strategy of the firm. Functional Strategy is concerned with the formulation of strategies in each of functional are of the business (production, marketing, finance and so on ) which, when properly implemented, collectively should achieve the business strategy. Mengapa Strategic Planning penting ? • Competition (persaingan). • Merespon barang/jasa baru yang ditawarkan. • Mengawasi kenaikan operasi yang berbeda.

12. Manfaat Strategic Planning bagi MNCs • SP penting untuk keberhasilan. • Membantu MNC dlm mengkordinasi dan memonitor operasi • yang dipandang menguntungkan. • Untuk membantu mengatasi masalah resiko politik, persaingan • dan ketidakstabilan. Pendekatan dlm menformulasikan dan mengimplementasikanStrategic Planning : 1.Menitikberatkan pada kepentingan ekonomi. 2.Political imperative 3.Quality imperative 4.implementing and admnistrative coordination strategy.

13. Strategic Predispositions • Berkaitan dengan pendekatan ekonomi, politik, kualitas, • Dan administratif, sebagian besar MNC juga memiliki • A strategic predispositions (orientasi) dalam melakukan • cara khusus. • 4 perbedaan predisposition strategi adalah : • An ethnocentric predisposition. • Perush mengikuti ninai-nilai dan kepentingan perush induk • dalam keputusan strateginya. • 2. A polycentric predisposition • Perush. Dlm membuat strategi menyesuaikan budaya dimana • MNC beroperasi. • 3. A regiocentric predisposition • MNC memadukan kepentingan strategi home dan subsidiary dengan • dasar regional. • 4. A geocentric predisposition • MNC mencoba mengintegrasikan sistem global dlm pengambilan • keputusannya.

14. Orientation of an MNC under different profile Etnocentric Polycentric Regiocentric Geocentric Mission Governance Strategy Structure Culture Technology Marketing Finance Personel practices Profitability (viability Public acceptance Both Both Top-down Botton-up Mutually nego Mutually nego region & subdryall level of coop. Global Integration National Resp. Both Both Product devision area devision Product & regional Network of orgs. orgs. Tied to matrix Home country Host country Regional Global Mass production Batch production Flexible manufac. Flexible manufac. Product developmt local product devp. Standarize within Global product region not acrosswith local variation Repatriation to pro- Retention of pro- Redistribution Redistribution Fit to home country fit in hostcountry within region globaly People of HC devp. People of local Regional people Best people every For key position nationality for key devp. For key post. Where in the world Everywhere in the W post. In their own anywhere in regiondevp. For KP

15. Langkah-langkah dalam menformulasi Strategy • Scanning the external environment for opportunities • threats. • 2. Conducting an internal resources analysis of company • strengths and weaknesses • 3. Formulating goals in light of external scanning and • internal analysis.

16. Elemen-elemen dasar Strategic Planning bagi Manajemen Internasional External Environmental scanning for MNC Opportunities and Threats Internal Resources Analysis of MNC Strengths and Weaknesses Strategic Planning GOALS IMPLEMENTATION

17. Environmental Scanning Menyediakan manajemen tentang akurasi perkiraan/peramalan dan kecenderungan yang berkaitan dengan perubahan-perubahan dalam wilayah geografis dimana perusahaan (MNC) sedang melakukan bisnis dan atau mempertim- bangkan suatu operasi bisnis. Perubahan-perubahan tersebut antara lain tentang ekonomi, persaingan, kestabilan politik, teknologi dan data demografi konsumen. Gambar berikut adalah contoh proses Pengamatan lingkungan didasarkan atas pemasaran

18. The environmental scanning process in Marketing – based corporation Adoption of global strategic planning perspective General scan of all market First scan : Macro Omit closed market and insignificant markets Remaining coutries’entry concern; can a firm gain entry Under reasonable conditions ? If not, eliminate Second scan : grater detail

19. Check environmental constraints;educational, legal, Behavioral, social political. Eliminate countries with Undesirable key constraints, or put them aside for Lower priority conciderations Remaining countires : Detailed micro scanning Data on all key constrains affecting the firm Visits by key personel Get good local legal advice Competitive analysis Check out competition (MNC as well as local) Can the firm compete effectively ? Data, analysis on firm and industries

20. Product Line Which product shall we use as leader ? Product adaptations necessary ? Demand pattern Serious entry planning Functional specialists begin detailed work Staff specialists in action .Linkages with country begins: Zoning, tax questions, Negotiations on special arrangements, supplier commitments,ect Entry

21. Internal Resource Analysis Dalam memformulasi strategi, beberapa perusahaan menunggu sampai mereka memiliki pengamatan lingkungan yang lengkap sebelum melakukan analisis sumberdaya internal. Lainnya melakukan kedua langkah tersebut bersamaan. Analisis sumberdaya internal membantu perusahaan untuk mengevaluasi keadaan manajerial, teknik, material dan kekuatan/kelemahan keuangan saat ini. Kemudian informasi tersebut digunakan oleh MNC untuk menentukan kemampuan memperoleh peluang pasar internasional. Kebenaran analisis ini perlu mempertemukan antara peluang eksternal (diperoleh melalui pengamatan lingkungan) dengan kemampuan internal (diperoleh dari analisis sumberdaya internal).

22. Analisis internal mengidentifikasi faktor- faktor kunci keberhasilan yg mengarahkan bagaimana sebaiknya yang harus dikerjakan MNC. Faktor-faktor kunci keberhasilan (key factors for success/KFS) merupakan faktor penting bagi perusahaan untuk berkompetsi secara efektif dalam celah pasar (market niche). Contoh : KFS airline adalah Price, Safety, Quality service meliputi jadwal kedatangan, pemberangkatan, keramahan dan kemudahan personel.

23. Matrik evaluasi negara Eropa timur Country Economic Receptiveness to Speed of potential foreign investment reform Most promising Czechoslovakia Hungary Promising Poland Least Promising Bulgatia Romania Albania B+ B C+ C D+ D- B A A B C- F C- A A C+ F F

24. Strategy Implementation • The MNC must decide where to • locate operations, • 2. The MNC must carry out entry and • ownership strategy • 3. Management must implement functional • strategies in area such as marketing, • production and finance.

25. Pertimbangan Lokasi dalam Implementasi • Ada dua pertimbangan dalam memilih tempat yaitu : • Negara • Tempat khusus dalam negara terpilih Contoh : Pada tahun 1980-1990 sebagian besar investasi Asing Amerika terdapat di negara industri, Di eropa dan Kanada. Hanya sebagian kecil saja Ada di negara berkembang (mining) bukan Industri manufaktur. Lokasi khusus yang dipilih dalam suatu negara mempertimbang Kan beberapa faktor antara lain Akses pasar, pesaing, keterse- Diaan transportasi, listrik dan keinginan masyarakat setempat.

26. Pertimbangan Masuk dan kepemilikan • Ada berbagai macam bentuk kepemilikan • Yaitu : • Fully owned Subsidiary • Joint Venture • Licensing • Franchising • Export/Import

27. Fully Owned Subsidiary • Merupakan operasi luar negeri yang secara total dimiliki dan dikendalikan oleh MNC. • Subsidiary mrpkn bagian struktur formal organisasi termasuk investasi langsung atas modal dan personel perusahaan. Joint Venture • Merupakan sebuah perjanjian antara dua pihak atau lebih memiliki dan mengendalikan bisnis luar negeri. • Lokasi bisnis biasanya di home country salah satu pihak. • Ada dua macam joint venture : 1. nonequity venture dan 2. equity joint venture

28. The Benefits of Joint Venture • Technological Innovation • Emergence new technology • High investment • High Risk • Rapidity of innovation • Rent of returns’period • reduce • Convergence of technology • Mastering simultaneously several tech. • New Borders of industrial activities • New structure of the market • Advantages • Ownership • Rapidity of new O-advs’ development • Rapidity of existing o-Advs’Exploitation • Higher Flexibility • O advs’ based on the combination of complemen- • Tary but non similar assets • O Advs’ based on suplly of a complate range • Of systemic and compatible product • O Advs’ based on product with a dominant • standards

29. LOCATION • Accses to complementary assets based on nations’ • Competitive adv,originated in the partners’home • Countries. Acces to main world’s markets for the • Inputs and outputs when a go-it-alone solution is • Not possible because of the high capacities • Needed to exploit them alone. • INTERNATIONALIZATION • Sharing of the cost and spreading of the risks in high • Uncertainty situation.Transaction costs less important • Because of technological diffusion rapidity.Benefits • From scale economies. The launching of project with • High sunk costs. New oligopolisticreaction to replace • Traditinal oligopolistic strategies that are in adequate • Because of the concentration, instability and • Asymetrry of oligopolies Globalization Concentrated, asymetrical and unstable oligopoly. World’s product adapted to local demand. System product. Products based on world’s accepted standards.

30. Licensing • Merupakan suatu perjanjian yang mengijinkan salah satu pihak untuk menggunakan hak kekayaan perusahaan dalam rangka pertukaran pembayaran dengan pihak lain. • Pihak yang memberi lisensi disebut licensor • pemakai lisensi disebut the licensee. • Pihak licensor akan mengijinkan licensee dalam menggunakan patent, trademark atau proprietary information dengan menukarkan fee tertentu yang biasanya ditetapkan berdasarkan penjualan. • Digunakan menurut beberapa keadaan : 1. Produk berada pada tahap kematangan dlm daur hidup produk, persaingan kuat, Profit margin menurun 2.Jika pemerintah asing menghendaki masuknya investasi dalam negaranya. 3. Jika licensor kekurangan sumberdana dan manajerial.

31. Franchising • Merupakan sebuah usaha dimana salah satu pihak (franchisor) mengijinkan pihak lain (franchisee) untuk menjalankan usaha dengan menggunakan tademark, logo, produk line dan metode produksinya sebagai dengan imbalan fee. • umum digunakan dalam bisnis fast-food, hotel/motel • Konsepnya adalah mudah beradaptasi dalam arena internasional dengan sedikit penyesuaian dengan pasar lokal tapi dapat menguntungkan. • Fee didasarkan pada persentase revenue Export/Import • Merupakan salah satu pilihan bagi perusahaan kecil yang ingin go internasional. • Bagi perusahaan besar merupakan salah satu bentuk ekspansi internasionalnya dengan investasi minimum. • Segala sesuatu mengenai dokumentasi dan nilai tukar uang dapat diurus perusahaan yang menangani ekspor.

32. Partial Comparison of global stategic lliances Strategy Organization Benefits Costs Critical success Strategic HRM design factors New competitors Created Possible eventual Exit from industry Possible depen- Dence on licensee Quality control Trademark pro- Tection Excessive depen- Dence on partnes For skill Deterrent to inter- Nal investment High switching Cost Inability to limit Partner’s across to information Technologies Geography Fuction Product or Line of business Early standardiza- Tion of design Ability to capitali- Ze on innovations Access to new tech. Fast market entry Low capital cost Learning a part- Ner’s skills Economics of scale Quasi-vertical inte- Gration Faster learning Strengths of both Partners pooled Faster learning Along value chain Technical knowledge Training of local Manager Socialization of franchisees and Licensees with core values Management development and training. Negotiation skill Managerial rotation Team-building Accuturation Flexible skill for implicit commu. Selection of licensee Unlikely to become Competitor Enforcement of par- Ners and licencing Agreement Partners compatible In philosophies/ Values. Tight performance Standars. Tight and specific Performance criteria. Entering a venture as “student” rathen than Teacher to learn skill From partner. Decentralization and Autonomy from coo- Perate parent. Licensing- manufac.ind. Licensing- Servicing ang Franchises Joint ventr- Specialization Across partner Joint ventr- Share-value adding