INST 335
Organizational ecosystem
An organizational ecosystem is a system formed by the interaction among a community of organizations in the environment. The ecosystem includes the task (customers, competitors, suppliers) and general environments (sectors that have an indirect influence on the...
INST 335
Organizational ecosystem
An organizational ecosystem is a system formed by the interaction among a community
of organizations in the environment. The ecosystem includes the task (customers,
competitors, suppliers) and general environments (sectors that have an indirect
influence on the organization- technology, politics, international laws)
Corporate culture
Corporate culture: set of key values, beliefs, understandings, and norms that members
of an organization share: Symbols, Stories, Heroes, Slogans, Ceremonies
Invisible vs visible corporate culture
-Visible culture: culture that can be seen at the surface level (artifacts, such as dress,
office layout, symbols, slogans, ceremonies)
-Invisible: Deeper values are shared understandings held by organization members
(expressed values, such as "The HP way", underlying assumptions and deep beliefs,
such as 'people here care about one another like a family'
Porter's 5 forces:
A framework for analyzing competition of a business
1. Threat of entry
2. Bargaining power of customers
3. Rivalry among existing competitors
4. Threat of substitutes
5. Bargaining power of suppliers
Define a cultural leader and explain the tools that a cultural leader uses to create
a high-performance culture.
High performance culture is based on a solid mission/ purpose.
Leader example: Steve Jobs??
Openness and trust- gain trust of followers, manage differences- if issues arise then to
handle it efficiently, focus on goals/culture/beliefs
Define globalization
Globalization: the extent to which trade and investments, info, social and cultural ideas,
political cooperation flow between countries.
How is Globalization creating a borderless world for today's managers.
Globalization is creating a borderless world because countries, businesses, and people
become increasingly interdependent
Discuss how the international landscape is changing, including the growing
power of China, India, and Brazil.
-Managers look at China, India, and Brazil as sources of lower cost technological and
scientific brain power. This is why many companies try to expand to these countries first
when going international.
-China: Outsourcing is probably the most widespread approach to international
involvement in China and China is strong in manufacturing
, -India:India is a rising power in software design, services, and precision engineering.
-Brazil:The Brazilian government has initiated major investments in the development of
infrastructure such as highways, ports, and electricity projects
Describe the characteristics of a multinational corporation.
Multinational corporations have the resources to reach and serve the world's poorest
people who cannot afford the typical products and services offered by big companies.
A multinational corporation (MNC) is an organization
that receives more than
25% of its total sales
revenues from operations outside the parent company's
home country and has a number of distinctive managerial
characteristics.
Explain the bottom of the pyramid concept.
-The bottom of the pyramid (BOP) concept
proposes that corporations can alleviate poverty and
other social ills, as well as make significant profits,
by selling to the world's poor.
-Multinational corporations have the resources to reach and serve the world's poorest
people who cannot afford the typical products and services offered by big companies.
-Nestlé SA is a good example of a multinational corporation
Define outsourcing and the three common market entry strategies: exporting,
licensing, and direct investing.
-Exporting : is a strategy in which the corporation maintains its production facilities
within the home nation and transfers its products for sale in foreign countries.
-Outsourcing : means engaging in the international division of labor so that work
activities can be done in countries with the cheapest sources of labor and supplies.
-Licensing: which the corporation (the licensor) in one country makes certain resources
available to companies in another country (the licensees).
-Direct investing: (also called greenfield venture) market-entry strategy in which the
organization is directly involved in managing its production facilities in a foreign country
Indicate how dissimilarities in the economic, sociocultural, and legal political
environments throughout the world can affect business operations.
-Economic: Infrastructure, resource and product markets, and economic
interdependence
-Sociocultural: social values, power distance, uncertainty avoidance, individualism and
collectivism, masculinity and femininity, short/long term orientation
-Legal-political: political risk, government takeovers, tariffs, quotas taxes, terrorism,
political instability, laws and regulations.
Define cultural intelligence
Cultural intelligence is a person's ability to use reasoning and observation skills to
interpret unfamiliar gestures and situations to devise appropriate behavioral responses.
why is it important for managers to develop their cultural intelligence?
It is necessary for managers working in foreign countries to have cultural intelligence so
that they are culturally flexible and able to adapt easily to new situations and ways of
doing things
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