mnc khsu week 1, 2012
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Kenneth [email protected]
Telephone: 03-666-8120
mailto:[email protected]:[email protected] -
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National Tsing-Hua University, B.S. , Materials Science,1977Wharton School, University of Pennsylvania, MBA 1983 Corporate Financial Manager, Marine Midland Bank (NY, NY) AVP, Canadian Imperial Bank of Commerce USA (NY, NY)
Founder & Vice President, Hexawave, Inc. (Hsinchu, Taiwan) CEO, Sumtel Communications (Hsinchu, Taiwan)Worked with top 5 global telecom equipment providersVisited over 30 countries in five continentsSenior Consultant, Atelligent Global Consulting Specialized in SME Management, Executive Coaching
Organizational Behaviors, Venture Investment & PE,Transformation & Changes Management in MNCs
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Knowledge
Pick-Up %Active vs Passive Learning Process
90% Active Learning Doing or Simulating the real thing70%
Giving a talk or Participating in a
discussion50%
Passive LearningSeeing it actually done
30% Looking at pictures
20% Hearing words
10% Reading
Source: Dr. Hyrly Myers, Medical School, South Illinois University
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Week Topics
Luthan's
Book
Chapter #
Assignment or
Case for
Discussion
1 Introduction & MNCs 1
2 Organization Culture of MNCs 4,6 DreamMNC
3 MNC Management Decision and Control 11Philips vs
Matsushita
4 Cross Culture Communication and Negotiation 7 TM:1-1,1-2,1-3
5 Managing Across Culture 5 P&G Japan
6 Human Resources Selection and Development 12,14 TM:3-1,3-2,3-3
7 Leadership Across Culture 13 Siemens AG
8 Managing Your Boss TM:4-1.4-2.4-3
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Week Topics
Luthan's
Book
Chapter #
Case for
Discussion
9 Competition in World Wide Market 2Global Wine War
200910 Strategy Formulation and Implementation 8 TM: 2-1,5-3,8-2
11 Entry Strategies and Organizational Structures 9 McKinsey & Co.
12 Managing Government Relations & Alliances 10 TM: 6-1,6-2,7-2
13 Post M&AMahindra &
Mahindra14 Take the Fall TM:8-1,8-2,7-1
15 East vs West 3 Nike
16 Final Presentation2012
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F. Luthans and J.P. Doh, International ManagementCulture, Strategy, and Behavior, 8th EditionC.A. Bartlett and P.W. Beamish, TransnationalManagement, 6th Edition (cases book)
Roberta Chinsky Matuson, Suddenly in ChargeManaging Up, Managing Down, Succeeding AllAround
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Kenneth HsuMNC Management
http://www.amazon.com/gp/reader/1857885619/ref=sib_dp_pthttp://www.amazon.com/gp/product/images/0078112575/ref=dp_image_0?ie=UTF8&n=283155&s=books -
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Simulating real-world experience of OrganizationalBehaviors within MNCsApply textbook and integrate knowledge intobusiness case study
Sensitive to real world challengesIdentify your dream MNC and learn more aboutthemPlay Roles of Managers and Executives in promotion
Practice group discussions and team works
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Each Student should identify a Dream MNCSix teams with Maximum of 4 students each, eachteam must be composed of students from differentcountries, no more than two different Industries of
their Dream MNCsCompete on Bi-Weekly Base, from 4th Week for sixrounds of competition. The first of Bi-weekly will beOne-on-One on team base competition to select the
better team and MVP of the winning team. The MVPwill be promoted to lead the combined team in thesecond week competition of three teams. Thewinning team will be all promoted one level up.
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Week 4 (Level 1 to level 2)Week 5 (Level 1 to level 3)Week 6 (Level 1 to level 3)Week 7 (Level 1 to level 4)Week 8 (Level 1 to level 4)Week 9 (Level 1 to level 5)Week 10 (Level 1 to level 5)Week 11 (Level 1 to level 6)Week 12 (Level 1 to level 6)
Week 13 (Level 1 to level 7)Week 14 and 15 will focus on Level 1 to Level 3, if anyStaff(1), Assistant Manager(2), Manager(3), Senor Manager(4), Director(5),Deputy G.M./Senior Director(6), General Manager(7)
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Level 6-7 will be graded A+Level 5..ALevel 4..A-Level 3..B+
Level 2......BLevel 1..B-Final Presentation is also time to get extra credit
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International management involves Applying management concepts and techniques
in a multinational environment and
Adapting management practices to different
economic, political, and cultural environments.
Multinational corporation (MNC) Operations in more than one country
International sales Nationality mix of managers and owners
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1. Wal-Marts2. Royal Dutch Shell3. Exxon Mobile4. BP5. Sinopec6. China National Petroleum7. State Grid8. Toyota9. Japan Post10. Chevron.
16. General Electric22. Samsung28. Hewlett Packard60. Hon Hai Precision
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Globalization Process of social, political, economic, cultural,
and technological integration among countriesaround the world.
Hastened by Offshoring
Process by which companies undertake someactivities at offshore locations instead of theircountries of origin.
Outsourcing Subcontracting or contracting out of activities
to external organizations that had previouslybeen performed by the firm.
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Benefits of Globalization WealthJobs Technology Lower prices
Criticisms of Globalization off-shoring of business service jobs to lower-
wage countries
growing trade deficits slow wage growth environmental and social impacts
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Global Agreements World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT)
Regional Agreements North American Free Trade Agreement (NAFTA) U.S.-Central American Free Trade Agreement
(CAFTA) European Union (EU)
Association of Southeast Asian Nations (ASEAN) Free Trade Agreement of the Americas (FTAA)
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Shifting landscape due to Economic integration
Economic potential of emerging markets
BRIC countries (Brazil, Russia, India, and China)
could be among the four most dominanteconomies by 2050
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Collectively, the G-20 economies account for more than 80 percent of theglobal gross national product (GNP), 80 percent of world trade(including EU intra-trade) and two-thirds of the world population
1. Argentina2. Australia3. Brazil4. China5. India6. Indonesia7. Mexico8. Russia9. Saudi Arabia10. South Africa
11. South Korea12. Turkey13. European UnionNote: G7: Canada, France, Germany, Italy, Japan, U.K., and U.S.A.
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International Trade In 2009 merchandise and commercial services
exports declined
Foreign direct investment (FDI) Investment in property, plant, or equipment in
another country Growing at healthy rate Outpacing domestic growth in most countries Declined in 2009 due to the global recession
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Established Economies North America European Union Japan
Emerging Economies
Central and Eastern Europe China Other Emerging Markets of Asia India
Developing Economies on the Verge South America Middle East and Central Asia Africa
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North America One of the four largest trading blocs in the world
Combined purchasing power of U.S., Canadaand Mexico approaches $12 trillion
Free-market-based economy is attractive to
private firms
United States Foreign MNCs find U.S. a lucrative expansion
market Foreign firms welcomed as investors in U.S.
market U.S. firms hold market dominance in many
European markets; gaining market share in Asia
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Canada U.S.s largest trading partner Most of the largest foreign-owned Canadian
companies are totally or heavily U.S.-owned Legal and business environment in Canada is
similar to that in U.S.
Mexico Strongest Latin American economy
Very strong maquiladora industry Trade with both Europe and Asia has increased Now competitive with Asia for the U.S. market
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European Union Ultimate objective
Eliminate all trade barriers among member countries Emergence of the EU as an operational economic union
A unified Europe could become the largest economic market
in terms of purchasing power in the world Foreign MNCs trying to gain foothold in EU
Acquisitions, alliances, cooperative R&D efforts Economic linkages between the EU and newly
emerging Central and Eastern European countries
Challenge is to absorb former communist bloc countries Financial crises in Greece and Ireland putting
pressure on the euro
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Japan Huge economic success in 1970s and 1980s Ministry of International Trade and Industry (MITI) Keiretsus
Vertically integrated industries Holdings provide assistance needed in providing goods
and services to end users
Decade long recession in 1990s More competition from emerging economies
Poor management decisions Remains a formidable competitor in the Pacific
Rim, North America, and Europe
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Central and Eastern Europe Russia
Dismantling of price controls and privatization
Membership in International Monetary Fund
(IMF) controlling inflation Crime and political uncertainty
Czech Republic, Hungary, Poland
Privatization
Inflation
Political uncertainty
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China Real economic growth of 12 percent in 2007, 9
percent in 2008, and 11.5 percent in 2009
Savings glut in corporate sector
Vast developmental needs Unemployment concerns
Attractive to investors despite political risk
Product pirating is a major problem
Currency value
Government policies favor domestic firms
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South Korea Chaebols
Very large family-held conglomerates
Solid economy, moderate growth and inflation,
low unemployment
Hong Kong Part of Peoples Republic of China
Uncertainty about the role the Chinesegovernment
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Singapore Success story
Leader and financial center for region
Taiwan Progressed from labor-intensive economy to one
dominated by technologically sophisticatedindustries banking, electricity generation, semiconductors and
computers
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Thailand, Malaysia, Indonesia Large population base
Inexpensive labor
Considerable natural resources
Attractive to outside investors
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India Large population
Recent trend of locating software and high value-added services to this country boosting middle-
and upper-class market for goods and services Attractive to U.S. and British investors
well educated, English speaking, technologicallysophisticated workers
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South America Hampered by foreign debt and severe inflation
But, intercountry trade is increasing Countries looking to do business with U.S.
Brazil Economy is now flourishing and attracting
investment from MNCs Privatization and stable government
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Chile Uncertain future, but helped by trade agreements
Argentina Abundant natural resources
Economic problems persist
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Middle East and Central Asia Large oil reserves
Highly unstable geopolitical and religious forces
Plagued by continuing economic problems
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Africa Considerable natural resources African nations remain very poor and
undeveloped International trade is not a major sources of
income Populace divided into 3,000 tribes that speak
1,000 languages and dialects Major political instability
Poverty, starvation, illiteracy, corruption,overcrowding among many social problemsnegatively affecting economic sector
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1. Identify Your Idea MNC, and prepare a 3-minutepresentation about the company and whichdivision in which (G20-G7) country you would liketo start your career
2. Organize a group of four, if you can
1. Make sure you have the Case Book ofTransnational Management before end of the
second week