Transcript NA_IB lecture 5

University Of Finance & Administration
INTERNATIONAL BUSINESS
[NA_IB]
Ing. Pavla Břečková, Ph.D.
[email protected]
BMCF I TM I Prague
INTERNATIONAL BUSINESS
Full-time course = 12 sessions á 90 mins.
1-2/ What is international business (IB). IB basic indicators - balance of trade / payment.
International business importance and influences, differences from domestic trading. Territorial / commodity structure of IB.
Global business environment. Comparative advantage, free trade / economy. The main regional trading blocks.
3-4/ Internationalization and Globalization. Drivers of Internationalization. Categories of goods traded internationally (primary,
low/high value, capital intensive).
FACTORS influencing the IB environment (Political, Economic, Technological).
Motives for foreign expansion (microeconomic view). Entry modes and business activities in IB (export, import, contractual,
investment activities, FDI).
Team work on the semestral project.
5-6/ Culture and its role in international business. Cultural elements and multi-culture communication (verbal, non-verbal,
role of eyes, silence etc.). Hofstede’s five dimensions of culture differences.
Negotiation and successful presentation of business results in the international environment.
Team work on the semestral project.
7-8/ World business territories, Euro / Dollar zones. Emerging markets, newly industrialized countries.
International market research (PEST/STEEP), and linkage to Competition analysis (Porter) and SWOT. Data collection and their
selection in the international environment.
Team work on the semestral project and prezentations.
9-10/ International trade barriers and their assessing. Forms of economic integration, international unions, free trade areas
and multilateral agreements The main regional trading blocks (TRIAD). WTO, GATT. Impact of economic integration on micro
environment (companies). IB policy instruments (autonomous, contractual)
Team work on the semestral project and prezentations.
11-12/ Prerequisites and personal preconditions for working in international business.
European Union principles of IB. Opportunities and threats of CZ membership in the EU.
SWOT of Czech companies in the international business environment. Topical international business challenges and trends.
International Business knowledge summary and evaluation, presentation of team business work results.
2.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
EXAM terms NA_IB
12 lectures (per 90 mins)
Completion: exam / 6 credits
Completion CONDITIONS:
 Active participation in the guided consultations
[active listening, discussing, reading, analyzing & interpreting of
economic articles or case study results, presence at lectures – 50%]
 Semestral study elaboration & it’s successful prezentation
Based on the above you’ll be offered a grade.
If unfulfilled / or if unhappy with the offered grade => written exam to prove the
knowledge in IB
3.
SEMESTRAL study / team work
CASE study on one of these topics:
1. BUSINESS TRENDS / opportunities in the next 10 years
Largest threats & opportunities from the point of view of
international business, where it (IB) is going. Areas where it is likely to
find the business opportunities during next 10 years + explain what
brought you to such results.
2. EXPORT STRATEGY
Mid term view (3-5 years). What it should lie in, generally - how
to support export (of CZ enterprises), concrete forms + in which business
and industry areas (if in any / if not in all of them) + explain why
3. Finding the COMPETITIVE ADVANTAGE for the Czech Republic
(and of the CZ businesses). Competitive advantage +
consequently what areas of business and industry should be preferential (if
any) + what to do for succeeding in international business from the point of
view of competitive advantage (micro and macro view). Possibly also what
kind of business environment (or changes in the present one) would help
developing the CZ businesses competitive advantage?
SEMESTRAL study - elaboration
CASE study on one of these topics:
1. BUSINESS TRENDS / opportunities in the next 10 years
2. EXPORT STRATEGY
3. Finding the COMPETITIVE ADVANTAGE for the Czech Republic
ELABORATION:
 Elaboration in teams per 4-5 people
 Presentation of the results
- ppt possible, cca 10 min., structured way, clear outcomes
(solutions, results)
PREZENTATION:
- Date – TBC
- up to 10 min. / all the team members should be involved
LITERATURE SOURCES
Mandatory:
Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition,
2011
Optional / Recommended:
Allan Sitkin, Nick Bowen: International Business, January 2010.
Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0333-75979-6.
Wild, J., Wild, K., Han, J.: International business: the challenges of
globalization. 4th ed. – Pearson, Upper Saddle River, 2008. ISBN: 978-013-174743-6.
Griffin, R.W., Pustay, M.W.: International business: a managerial
perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, 2007. ISBN:
0-13-233532-8
6.
CULTURE DIFFERENCES
= impact of culture on relationship, employees approach to work,
business management and negotiations
-> this impact is much > than differences coming out from:
o RACE
o SEX
o specialization [PROFESSION]
o POSITION
7.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
CULTURE and it’s elements
CULTURE
= characteristic way of living
= based on ACQUIRED models of behaviour (i.e. learnt,
not inborn)
Culture ELEMENTS
 ABSTRACT (values, approaches, opinions, religion – from generation
to generation)
 MATERIAL (stage of development and types of: technology, structure
of consumption in a country / society )
8.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Characteristics of Culture [relevant to IB]
Culture = collection of values, beliefs, behaviors, customs and
attitudes that distinguish one society from another
 society culture determines how firms operates in the society
Culture reflects LEARNED behavior
• Transmission from one member of society to another
Elements of culture are INTERRELATED
• e.g.: hierarchical society => stress on loyalty & harmony => results
in life-time employment & minimal job switching (Japan)
Behavior is ADAPTIVE
• Because cultural is LEARNED behavior, it’s ADAPTIVE
• i.e. culture change in response to external forces that affects society
Culture is SHARED
• Defines the membership of the society
• i.e. who shares the culture ‘proves’ to be a member / who does not
=> outside of boundaries of society
INTERNATIONAL BUSINESS [B_IB]
9.
Ing. Pavla Břečková, Ph.D. / [email protected]
Basic elements of Culture
Language
Communi
-cation
Social
structure
CULTURE
Values &
Attitudes
Religion
10.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
SOCIAL structure
= determines the roles of individuals within the society,
indiv.mobility within society, stratification of the society
 Individuals, Families, Groups
Social attitudes influence / Business:
 US descourage nepotism
 Arab countries: family ties crucial
Importance of INDIVIDUAL to the group:
 Europe culture promotes individualism (PAY = merit based)
 group focused societies = the IND role is to SERVE the group (PAY =
seniority-oriented, group success)
Social STRATIFICATION
Social MOBILITY
 ability of IND to MOVE within stratums of society
11.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
LANGUAGE
= identified > 3.000 languages worldwide
 Business language
 Form of language
 Competitive weapon
 Translations
 Meaning YES / NO
12.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
COMMUNICATION
= VERBAL x NON-VERBAL
 Contact zone
 Gestures & their impact on business
 Role of silence
 Role of eyes
 Gift giving & hospitality
 Business practice
 Role of education in a society
13.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
RELIGION
 Christianity
European traditions
 Hinduismus
way of living (life style): castes (privileged groups of society),
common household of a few families, worship (cult) of cow
 Islam
men preference in business
14.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
VALUES & ATTITUDES
MASCULINITY x FEMININITY (Hofstede’s 1 of 5 dimensions):
= is manner in which people are motivated to work toward different kinds
of goals
Masculinity
People tend to place a high premium on material possessions, money
& assertiveness
The cultures that are more masculine, such as Japan, value competitiveness,
assertiveness, ambition, and the accumulation of wealth.
Femininity
People place a higher value on social relationships, quality of life and
concern for others
On the other hand, feminine cultures, such as Sweden, place more emphasis on
relationships, compassion, and the general quality of life.
15.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Other culture aspects
Time perception
• Timing accuracy
• Politeness
Contact zone
• cca 80 cm in
Europe
• cca 30 cm in e.g.
Arabic countries
Role of eyes
• Importance in
Europe X could be
perceived as a sign
of agression in other
parts of world (Asia,
Japan)
16.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Hofstede’s 5 dimensions of cult.differencies
SOCIAL orientation
• Person’s beliefs about the relative importance of the
individual & groups to which that person belongs
• INDIVIDUALISM x COLLECTIVISM
POWER orientation
• Power RESPECT x TOLERANCE
UNCERTAINTY orientation
• Uncertainty ACCEPTANCE x AVOIDANCE
GOAL orientation (Masculinity x Femininity)
• AGGRESSIVE x PASSIVE goal behavior
TIME orientation
• LONG-TERM x SHORT-TERM outlook
17.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Hofstede’s 5 dimensions
SOCIAL ORIENTATION
= person’s beliefs about the relative importance of the
individual & groups to which that person belongs
INDIVIDUALISM
COLLECTIVISM
• Cultural belief that the person
comes first
• Key values: high degree of
self-respect & independence
• Belief that group comes first
• Typically: well-defined social
networks, extended
families, tribes, co-workers
18.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Hofstede’s 5 dimensions
POWER ORIENTATION
= refers to beliefs that people in a culture hold about the
appropriateness of power and authority dif. in hierarchies
RESPECT
TOLERANCE
• People tend to accept the
power & authority of
superiors
• People at all levels in firm
accept decisions of superiors
• People are more willing to
question / refuse a decision
or mandate from sb at a
higher position
19.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Hofstede’s 5 dimensions
UNCERTAINTY ORIENTATION
= is the feeling people have regarding uncertain an
ambiguous situations
ACCEPTANCE
AVOIDANCE
• Stimulated by change and
thrive on new opportunities
• Ambiguity is seen as a context
one can grow, develop, carve
out new opp.
• Positive response to change
• People dislike ambiguity and will
avid it whenever possible
• Amb. & change seen as
undesirable
• Preference of routine, structured
& consistent ways of doing
20.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Hofstede’s 5 dimensions
GOAL ORIENTATION / Masculine x Feminine
= is manner in which people are motivated to work toward
different kinds of goals
AGGRESSIVE g.behavior
(Masculinity)
PASSIVE g. behavior
(Femininity)
• People tend to place a high
premium on material
possessions, money &
assertiveness
• People place a higher value on
social relationships, quality of life
and concern for others
21.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
Hofstede’s 5 dimensions
TIME ORIENTATION
= is extent to which members of a culture adopt a long-term
vs. short-term outlook on work, life etc.
LONG-term
outlook
SHORT-term
outlook
• Value: dedication,
hard work, and thrift
• Value: traditions,
social obligations
22.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
KEY terms
- Culture and its impact on International Business
- Characteristics of culture
- Five dimensions of culture differences
-
Social orientation (individualism x collectivism)
Power orientation
Uncertainty orientation
Goal orientation (masculine x feminine)
Time orientation
- Social stratification
- Communication: verbal x non-verbal
- Other culture aspects [time perception, contact zone,
role of eyes, gift-giving, hospitality]
23.
INTERNATIONAL BUSINESS [B_IB]
Ing. Pavla Břečková, Ph.D. / [email protected]
INTERNATIONAL BUSINESS - BMCF / TM - winter term 2012
Thank you for your attention
Ing. Pavla Břečková, Ph.D.
[email protected]