Inhoud
Deel 1: The Global Context ..................................................................................................................... 3
What is international management? .................................................................................................. 3
How is it different? .............................................................................................................................. 3
Why is it relevant? ............................................................................................................................... 3
Learning objectives.............................................................................................................................. 3
The rise of globalisation ......................................................................................................................... 4
Drivers of globalisation........................................................................................................................ 4
The Globalisation debate ....................................................................................................................... 6
Towards slowbaliation?....................................................................................................................... 6
Anti-globalisering en economisch nationalisme ................................................................................. 6
Developments in emerging countries ................................................................................................. 8
Technological advancements .............................................................................................................. 8
Measures to mitigate the risk of supply chain disruption ................................................................... 8
Covid .................................................................................................................................................... 8
The role of the MNE................................................................................................................................ 9
What is a Multinational Enterprise?.................................................................................................... 9
What’s different about MNE’s? (wrm zou je niet internationaal actief willen worden) .................... 9
MNE influence in the Global Economy ................................................................................................ 9
Significance of MNE’s .......................................................................................................................... 9
Kritieken op MNE’s .............................................................................................................................. 9
4 types of MNE’s................................................................................................................................ 10
Drivers of current MNE trends .......................................................................................................... 10
Deel 2: Strategy for the MNE................................................................................................................ 11
1. Introduction ...................................................................................................................................... 11
Ten school of thought ....................................................................................................................... 11
The positioning school (deliberate strategy)..................................................................................... 12
The Startegy Pyramid ........................................................................................................................ 13
2. Motivation and pre-requisites (waarom international gaan?) ....................................................... 13
Means of Internationalisation: pre-requisites (voorwaarde vooraleer het zinvol kan zijn
internationale aanwezigheid op te bouwen) .................................................................................... 14
3. Industry context and external forces ............................................................................................... 14
Three Conflicting Sets of External Forces .......................................................................................... 14
4. Strategy perspectives of the MNE .................................................................................................... 16
5. Market selection (international market due diligence) .................................................................. 17
1
, PESTEL ............................................................................................................................................... 17
CAGE .................................................................................................................................................. 17
SWOT ................................................................................................................................................. 18
6. Market Entry (mode van binnentreden binnen land) ..................................................................... 19
7. Flaws in decision making .................................................................................................................. 21
Deel 3: Execution in the MNE ............................................................................................................... 23
1. Management..................................................................................................................................... 23
Sources of power (+gevolgen) ........................................................................................................... 23
Leadership vs Management .............................................................................................................. 24
Mintzberg’s critique .......................................................................................................................... 24
Leadership styles (=strategische dimensie != over person)(Farkas & Wetlaufer)............................ 25
The Five Minds of a Manager (5 manager styles) ............................................................................. 25
Emotional Intelligence ....................................................................................................................... 26
2. Organisation...................................................................................................................................... 27
Empowerment ................................................................................................................................... 27
Organisation structure ...................................................................................................................... 27
Roles in the MNE ............................................................................................................................... 29
HRM ................................................................................................................................................... 29
Global Mobility .................................................................................................................................. 31
3. Innovation ......................................................................................................................................... 32
Why?.................................................................................................................................................. 32
What? ................................................................................................................................................ 32
How?.................................................................................................................................................. 34
4. Culture ............................................................................................................................................... 36
Comparative National Culture........................................................................................................... 36
Organisational culture ....................................................................................................................... 38
5. Diversity ............................................................................................................................................ 39
2
,Deel 1: The Global Context
What is international management?
• International Management could be described as the process of applying management
techniques in an international environment
• Many other dimensions of management remaining equal, this course will focus on what is
different for the international firm, i.e. the particular challenges that arise from
1. Operating in a global context
2. Making strategic management decisions to ensure sustained competitive advantage
3. Implementing strategies across national boundarie
How is it different?
• Managing an international firm differs in many ways from a purely domestic firm
• Emergence of international and unfamiliar political, social, legal and cultural environment
meant that international managers must deal with multinational business environment in a
way that will allow them to attain their competitive environment
• International firms also operate in an environment of a diverse workforce (religion, ethnicity,
values, language, background, culture, gender, age,...)
• International Managers must learn to work effectively with colleagues from other countries
• Firms are finding the need to engage international managers who have the skills and
expertise to interface efficiently with a broad spectrum of people and culture
Why is it relevant?
• International Management: not a new phenomenon... but:
o Significance has increased dramatically
o Study has become increasingly important
• Underlying reasons
o The pace of the rapid change in the global world has increased
o Economies of nations become tightly intertwined and interdependent
o International competition for goods and services has gone beyond national
boundaries
o Nature of doing business has gone international and global, bringing managers from
one country into ongoing contact with those in others, creating the need for efficient
and effective international management
Learning objectives
• Understand the evolving global context in which MNEs operate
• Understand how strategic choices are formulated within the international firm, i.e. When to
go international, which strategy to persue, how to make selection and entry decisions and
how to remain relevant and innovative in a fast changing world
• Understand how strategies are implemented withing the international firm, and the role of
Management, Organisation, Culture and Diversity in that context
• Be able to critically reflect on all the above, and connect them with each other
3
, The rise of globalisation
Views: (heavily connected and reinforce each other, vb FIFA)
• Economisch = internationale handel + kapitaal
o Economists focus on the growth of interntional trade and capital flows, and the shift
towards a more interdependent and integrated global economy
• Politiek = nieuwe bestuursorganen + proces ondermijnen nationale staten
o Political scientists view globalisation as a process that leads to the undermining of the
nation state and the emergence of new forms of governance (control).
• Sociologisch = nieuwe culturen
o Sociologists view globalisation in terms of the rise of a global culture and the
domination of the media by global companies.
• Internationale relaties = globale conflicten + instituties
o International Relations experts tend to focus on the emergence of global conflicts and
global institutions.
Oorzaken:
De globalisatie is pas echt in een stroomversnelling gekomen sinds de 1945 tot 1995 met
een grote opkomst van handelsakkoorden. Bijvoorbeeld in 1952: European community of
coal and steel + 1994: Treaty of Maastricht. Waarbij er in Europa eigenlijk een hele interne
markt werd gecreëerd met het vrije verkeer van G&D, personen en kapitaal. Dit zorgde
voor een hele explosie van handel over de grenzen heen.
• Handelsakkoorden
• Meer Tech
• Invloed van Multinationals
België: 10de grootste export land, 2de meest globaliserend in de wereld.
Drivers of globalisation
1. Transport en communicatiekosten
2. Verandering in politieke landschap
3. Handelsbelemmeringen die verdwijnen
4. Snelle groei in technologie en digitalisatie
Marktomstandigheden: bedrijven gaan erop inspelen en versterken trends die er al waren.
1. Transport en communicatiekosten
a. Uitvinding van de container (boten). Handelskost enorm doen dalen omdat er één
standaard was voor die schepen.
b. Air travel (minder dan
container)
c. Communicatiekost
4
Deel 1: The Global Context ..................................................................................................................... 3
What is international management? .................................................................................................. 3
How is it different? .............................................................................................................................. 3
Why is it relevant? ............................................................................................................................... 3
Learning objectives.............................................................................................................................. 3
The rise of globalisation ......................................................................................................................... 4
Drivers of globalisation........................................................................................................................ 4
The Globalisation debate ....................................................................................................................... 6
Towards slowbaliation?....................................................................................................................... 6
Anti-globalisering en economisch nationalisme ................................................................................. 6
Developments in emerging countries ................................................................................................. 8
Technological advancements .............................................................................................................. 8
Measures to mitigate the risk of supply chain disruption ................................................................... 8
Covid .................................................................................................................................................... 8
The role of the MNE................................................................................................................................ 9
What is a Multinational Enterprise?.................................................................................................... 9
What’s different about MNE’s? (wrm zou je niet internationaal actief willen worden) .................... 9
MNE influence in the Global Economy ................................................................................................ 9
Significance of MNE’s .......................................................................................................................... 9
Kritieken op MNE’s .............................................................................................................................. 9
4 types of MNE’s................................................................................................................................ 10
Drivers of current MNE trends .......................................................................................................... 10
Deel 2: Strategy for the MNE................................................................................................................ 11
1. Introduction ...................................................................................................................................... 11
Ten school of thought ....................................................................................................................... 11
The positioning school (deliberate strategy)..................................................................................... 12
The Startegy Pyramid ........................................................................................................................ 13
2. Motivation and pre-requisites (waarom international gaan?) ....................................................... 13
Means of Internationalisation: pre-requisites (voorwaarde vooraleer het zinvol kan zijn
internationale aanwezigheid op te bouwen) .................................................................................... 14
3. Industry context and external forces ............................................................................................... 14
Three Conflicting Sets of External Forces .......................................................................................... 14
4. Strategy perspectives of the MNE .................................................................................................... 16
5. Market selection (international market due diligence) .................................................................. 17
1
, PESTEL ............................................................................................................................................... 17
CAGE .................................................................................................................................................. 17
SWOT ................................................................................................................................................. 18
6. Market Entry (mode van binnentreden binnen land) ..................................................................... 19
7. Flaws in decision making .................................................................................................................. 21
Deel 3: Execution in the MNE ............................................................................................................... 23
1. Management..................................................................................................................................... 23
Sources of power (+gevolgen) ........................................................................................................... 23
Leadership vs Management .............................................................................................................. 24
Mintzberg’s critique .......................................................................................................................... 24
Leadership styles (=strategische dimensie != over person)(Farkas & Wetlaufer)............................ 25
The Five Minds of a Manager (5 manager styles) ............................................................................. 25
Emotional Intelligence ....................................................................................................................... 26
2. Organisation...................................................................................................................................... 27
Empowerment ................................................................................................................................... 27
Organisation structure ...................................................................................................................... 27
Roles in the MNE ............................................................................................................................... 29
HRM ................................................................................................................................................... 29
Global Mobility .................................................................................................................................. 31
3. Innovation ......................................................................................................................................... 32
Why?.................................................................................................................................................. 32
What? ................................................................................................................................................ 32
How?.................................................................................................................................................. 34
4. Culture ............................................................................................................................................... 36
Comparative National Culture........................................................................................................... 36
Organisational culture ....................................................................................................................... 38
5. Diversity ............................................................................................................................................ 39
2
,Deel 1: The Global Context
What is international management?
• International Management could be described as the process of applying management
techniques in an international environment
• Many other dimensions of management remaining equal, this course will focus on what is
different for the international firm, i.e. the particular challenges that arise from
1. Operating in a global context
2. Making strategic management decisions to ensure sustained competitive advantage
3. Implementing strategies across national boundarie
How is it different?
• Managing an international firm differs in many ways from a purely domestic firm
• Emergence of international and unfamiliar political, social, legal and cultural environment
meant that international managers must deal with multinational business environment in a
way that will allow them to attain their competitive environment
• International firms also operate in an environment of a diverse workforce (religion, ethnicity,
values, language, background, culture, gender, age,...)
• International Managers must learn to work effectively with colleagues from other countries
• Firms are finding the need to engage international managers who have the skills and
expertise to interface efficiently with a broad spectrum of people and culture
Why is it relevant?
• International Management: not a new phenomenon... but:
o Significance has increased dramatically
o Study has become increasingly important
• Underlying reasons
o The pace of the rapid change in the global world has increased
o Economies of nations become tightly intertwined and interdependent
o International competition for goods and services has gone beyond national
boundaries
o Nature of doing business has gone international and global, bringing managers from
one country into ongoing contact with those in others, creating the need for efficient
and effective international management
Learning objectives
• Understand the evolving global context in which MNEs operate
• Understand how strategic choices are formulated within the international firm, i.e. When to
go international, which strategy to persue, how to make selection and entry decisions and
how to remain relevant and innovative in a fast changing world
• Understand how strategies are implemented withing the international firm, and the role of
Management, Organisation, Culture and Diversity in that context
• Be able to critically reflect on all the above, and connect them with each other
3
, The rise of globalisation
Views: (heavily connected and reinforce each other, vb FIFA)
• Economisch = internationale handel + kapitaal
o Economists focus on the growth of interntional trade and capital flows, and the shift
towards a more interdependent and integrated global economy
• Politiek = nieuwe bestuursorganen + proces ondermijnen nationale staten
o Political scientists view globalisation as a process that leads to the undermining of the
nation state and the emergence of new forms of governance (control).
• Sociologisch = nieuwe culturen
o Sociologists view globalisation in terms of the rise of a global culture and the
domination of the media by global companies.
• Internationale relaties = globale conflicten + instituties
o International Relations experts tend to focus on the emergence of global conflicts and
global institutions.
Oorzaken:
De globalisatie is pas echt in een stroomversnelling gekomen sinds de 1945 tot 1995 met
een grote opkomst van handelsakkoorden. Bijvoorbeeld in 1952: European community of
coal and steel + 1994: Treaty of Maastricht. Waarbij er in Europa eigenlijk een hele interne
markt werd gecreëerd met het vrije verkeer van G&D, personen en kapitaal. Dit zorgde
voor een hele explosie van handel over de grenzen heen.
• Handelsakkoorden
• Meer Tech
• Invloed van Multinationals
België: 10de grootste export land, 2de meest globaliserend in de wereld.
Drivers of globalisation
1. Transport en communicatiekosten
2. Verandering in politieke landschap
3. Handelsbelemmeringen die verdwijnen
4. Snelle groei in technologie en digitalisatie
Marktomstandigheden: bedrijven gaan erop inspelen en versterken trends die er al waren.
1. Transport en communicatiekosten
a. Uitvinding van de container (boten). Handelskost enorm doen dalen omdat er één
standaard was voor die schepen.
b. Air travel (minder dan
container)
c. Communicatiekost
4
