CHAPTER 1 Globalization and Worldwide De-velopments 2
Objectives of the Chapter 2
The World of BusinessWeek:Software 2
Introduction 6
Globalization and Internationalization 7
Globalization,Antiglobalization,and Global Pressures 7
Global and Regional Integration 9
Trends in International Investment and Trade 12
Economic Performance and Issues of the Major Regions 15
North America 15
South America 18
Europe 19
Asia 23
Other Developing and Emerging Countries 27
The World of BusinessWeek—Revisited 29
Summary of Key Points 30
Key Terms 30
Review and Discussion Questions 31
Answers to the In-Chapter Quiz 31
Internet Exercise:Franchise Opportunities at McDonald's 31
In the International Spotlight:India 32
You Be the International Management Consultant:Here Comes the Competition 33
CHAPTER 2 Strategy Formulation and Imple-mentation 34
Objectives of the Chapter 34
The World of Business Week:Ford Learns the Lessons of Luxury 34
Strategic Management 36
The Growing Need for Strategic Management 37
Benefits of Strategic Planning 38
Approaches to Formulating and Implementing Strategy 38
Global vs. Regional Strategies 42
The Basic Steps in Formulating Strategy 44
Environmental Scanning 45
Internal Resource Analysis 46
Goal Setting for Strategy Formulation 46
Strategy Implementation 47
Location Considerations for Implementation 48
The Role of the Functional Areas in Implementation 50
Specialized Strategies 52
Strategies for Emerging Markets 52
Entrepreneurial Strategy and New Ventures 54
The World of Business Week—Revisited 55
Summary of Key Points 56
Key Terms 56
Review and Discussion Questions 56
Internet Exercise:Dropping In on Dell Computer 57
In the International Spotlight:Poland 58
You Be the International Management Consultant:Go East,Young People,Go East 59
CHAPTER 3 Entry Strategies and Organiza-tional Structures 60
Objectives of the Chapter 60
The World of Business Week:Intel Inside—Russia,That Is 60
Entry Strategies and Ownership Structures 61
Wholly Owned Subsidiary 62
Mergers and Acquisitions 63
Alliances and Joint Ventures 63
Licensing 65
Franchising 66
Export/Import 66
The Organizational Challenge 68
Basic Organizational Structures 69
Initial Division Structure 70
International Division Structure 70
Global Structural Arrangements 71
Transnational Network Structures 76
Nontraditional Organizational Arrangements 77
Organizational Arrangements from Mergers and Acquisitions 78
Organizational Arrangements from Joint Ventures and Strategic Alliances 78
Organizational Arrangements from Keiretsus 78
The Emergence of the Electronic Network Form of Organization 80
Organizing for Product Integration 81
The Changing Role of Information Technology in Organizing 82
Organizational Characteristics of MNCs 83
Formalization 83
Specialization 85
Centralization 86
Putting Organizational Characteristics in Perspective 86
The World of BusinessWeek—Revisited 88
Summary of Key Points 88
Key Terms 89
Review and Discussion Questions 89
Internet Exercise:Organizing for Effectiveness 89
In the International Spotlight:Australia 90
You Be the International Management Consultant:Getting In on the Ground Floor 91
CHAPTER 4 Managing Political Risk,Govern-ment Relations,and Alliances 92
Objectives of the Chapter 92
The World of Business Week:Oil Shortage? 92
The Nature and Analysis of Political Risk 95
Macro and Micro Analysis of Political Risk 97
Analyzing the Expropriation Risk 100
The Role of Operational Profitability in Risk Analysis 101
Managing Political Risk and Government Relations 102
Developing a Comprehensive Framework or Quantitative Analysis 102
Formulating and Implementing Responses to Political Risk:Corporate Political Strategies 104
Managing Alliances 108
The Alliance Challenge 109
The Role of Host Governments in Alliances 110
Examples of Challenges and Opportunities in Alliance Management 110
The World of BusinessWeek--Revisited 112
Summary of Key Points 112
Key Terms 112
Review and Discussion Questions 113
Internet Exercise:Motorola in China 113
In the International Spotlight:Peru 114
You Be the International Management Consultant:Going to Gdansk 115
CHAPTER 5 Management Decision and Con-trol 116
Objectives of the Chapter 116
The World of BusinessWeek:BMW 116
Decision and Control Linkages 119
Decision-Making Process and Challenges 120
Comparative Examples of Decision Making 121
Factors Affecting Decision-Making Authority 122
Total Quality Management Decisions 124
Decisions for Attacking the Competition 126
The Controlling Process 128
Types of Control 129
Approaches to Control 131
Control Techniques 135
Financial Performance 135
Quality Performance 136
Personnel Performance 138
The World of BusinessWeek—Revisited 141
Summary of Key Points 341
Key Terms 142
Review and Discussion Questions 142
Internet Exercises:Looking at the Best 142
In the International Spotlight:Spain 143
You Be the International Management Consultant:Expansion Plans 144
Brief Integrative Case 1:KNP,N.V. 145
Brief Integrative Case 2:Can Reliance Compete? 150
In-Depth Integrative Case 1:The HP-Compaq Merger and Its Global Implications 152
In-Depth Integrative Case 2:Can the Budget Airline Model Succeed in Asia? The Story of AirAsia 158
Endnotes 165
Glossary 174