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2019 | Book | 2. edition

The Management of International Business Read chapter Read first chapter

International Business Management

Succeeding in a Culturally Diverse World

Authors: Kamal Fatehi, Jeongho Choi

Publisher: Springer International Publishing

Book Series : Springer Texts in Business and Economics

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

This textbook explores the theoretical and practical aspects of managing international business operations while also dealing with multi-cultural, multi-national and global issues of managing business expansion beyond the domestic market. A second, revised edition of Managing Internationally: Succeeding in a Culturally Diverse World, each chapter contains up-to-date material, in-depth coverage of topics, visual aids (i.e., charts, tables, etc.), and vignettes, making this new edition engaging, visually appealing and easily accessible for students taking International Business Management courses.

The contents of this textbook are separated into four parts. Part one offers introductory information on the scope and importance of international business management as well as the social and ethical challenges. Part two covers cultural and behavioral topics. Part three discusses the strategic and operational aspects of international business management. Part four explores human resources and labor relations. To assist students, each chapter starts a preview section which includes an outline of the chapter indicating the important aspects along with a brief description of the major issues. Following the preview is a vignette that encapsulates the crux of the chapter, often presented in an amusing and engaging manner. To further help students focus on key issues, the text includes the list of useful business cases to which students can refer. To assist professors in teaching from this book, ancillary teaching materials such as sample syllabi, slides, tests and answer keys will be available for download.

Table of Contents

Frontmatter

Introduction

Frontmatter
1. The Management of International Business
Abstract
This chapter proposes that we are in the midst of a transition period in which economic competition and international business are the new arenas for international rivalry. International business is the instrument, multinational companies (MNCs) are the force, and international managers are the strategists with which nations attempt to gain a competitive advantage. In such an environment, it is vital for us to understand and learn how to manage international business. Ten major factors underline the importance of international business and the management of such an operation. These factors are discussed in detail.
Kamal Fatehi, Jeongho Choi
2. Socio-Ethical Issues and International Management
Abstract
Businesses are expected to be socially responsible and conduct themselves ethically. While there are some emerging agreements, at least in the United States, regarding the social responsibilities of domestic firms, social responsibility and the ethical aspects of international management are being hotly debated. Disagreements arise due to the nature of international business and the different perspectives that nations hold regarding these issues. National priorities and cultural differences confound the problems further. This chapter examines these issues and highlights these differences.
Kamal Fatehi, Jeongho Choi

Cultural and Behavioral

Frontmatter
3. International Management and the Cultural Context
Abstract
To manage a business organization effectively, it is essential to understand people’s values and assumptions, which are shaped by their cultures. Cultural norms and values are not universal, although there are some similarities. Among these similarities are a desire to be helpful, respect for authority and power, and the tendency toward comfort. But even those concepts and values that at first glance appear to be universal show vast differences on closer scrutiny.
Kamal Fatehi, Jeongho Choi
4. International Communication and Negotiation
Abstract
No business transaction can be carried out without communication. International management involves communicating over national borders and dealing with cultural differences. To communicate, we use language, signs, and symbols, all determined by culture. In this chapter, we learn that effective international communication requires an understanding of cultural influences. We will learn about cultural differences in verbal and nonverbal communication. Finally, we conclude the chapter with a discussion of cultural differences in international negotiation.
Kamal Fatehi, Jeongho Choi
5. Managerial Leadership and Motivation in an International Context
Abstract
Effective managers lead and motivate their followers to perform their jobs successfully. The ability of a manager to lead and motivate affects his/her ability to manage. Organizational performance is based on the collective contribution of all members. Organizations could suffer without an effective leader to increase and combine these contributions. To attain an organization’s goals, managers must be able to guide and direct its members to perform to the best of their abilities.
Kamal Fatehi, Jeongho Choi

Strategic and Operational

Frontmatter
6. International Environment and Strategy
Abstract
International strategic planning as a response to environmental changes and challenges, in pursuit of organizational goals, is the subject of this chapter. In general, domestic and international strategic processes are very similar, differing only in specifics. The differences are due to forces governing the international business environment. These forces include the host government, political, and legal issues; currency exchange rates; competition from local business, government-supported firms, and other multinational companies (MNCs); and cultural variations among nations. Cultural differences result in variations in the strategic planning process among MNCs. For example, similar to the American and European firms, Japanese MNCs prepare strategies to respond to changing environmental forces. They have, however, a different concept of strategy.
Kamal Fatehi, Jeongho Choi
7. International Strategic Alliance
Abstract
Because of globalization and increasingly intertwined global business environments, international business operations have become an expensive complex process. It has necessitated many firms to appropriately adjust and coordinate value-creation activities (e.g., manufacturing, R&D, marketing, and distribution) depending upon the host country environments (e.g., regulations and local market competition). Before firms take the plunge into a global business, they estimate the cost of adjustment and coordination. During this process, firms may discover that they don’t encompass all the necessary capabilities internally to make the adjustment and perform their activities. To overcome this, firms may seek partners and form an alliance to share resources, technology, and even the risk of operations.
Kamal Fatehi, Jeongho Choi
8. Organization of Multinational Operations
Abstract
In this chapter, we present the various organizational structures of MNCs, and we will learn about the many factors that influence an MNC’s selection of the proper organizational structure. Some of these factors are external forces and demands, such as economic conditions at home and abroad, host government policies, product-market characteristics, and information technology. Factors related to the firm itself are the history of the company, top management philosophy, nationality, corporate strategy, and degree of internationalization. We first discuss the development of an organizational structure designed to deal with the export of products to foreign markets. The subsequent major structural designs for MNCs, including the autonomous foreign subsidiary, the international division, the geographic and product divisions, and the matrix structure, are explained in this chapter. Finally, we describe the newer forms of organization, such as market-based and strategic business unit organizations, virtual corporations, and networks.
Kamal Fatehi, Jeongho Choi
9. Control of International Operations
Abstract
No organization can accomplish its goals without proper control. The imperative of organizational control is heightened when firms cross national borders and expand into unfamiliar foreign markets. This chapter is all about how international operations and foreign subsidiaries are controlled. We first look at various control mechanisms and discuss, in detail, three approaches to control. The cultural aspects of MNC control, which is effective in dealing with the uncertainty and complexity of the international market, are elaborated. Finally, within the context of the historical evolution of the international environment, the corresponding MNC coordination and control mechanisms are summarized. There are differences between the control of an MNC and that of a domestic firm. These differences are due to the complexity of and uncertainties surrounding the MNC environment, with a resulting potential for difficulty. The relationship with the host government creates additional problems. Following a discussion of control problems of the MNCs, the influence of host government actions on MNC control is analyzed.
Kamal Fatehi, Jeongho Choi
10. International Information Systems Management
Abstract
In this chapter, the basic issues of international information systems (IS) management are introduced. The chapter discusses the characteristics of computer-based information systems (CBIS) and the benefits they will bring to the firm. It elaborates on the IS applications that enable the firm to link with its suppliers, customers, and other organizations, including the government. These include supply chain management (SCM), enterprise resource planning (ERP), and electronic data interchange (EDI), as well as the use of the Internet. The chapter explores the ramifications of internationalization on the IS function in the firm. It examines various IS options and suggests the alternatives available to MNCs. Also, in this chapter, we learn about the impact of information technology (IT) on MNC operations. Based on the MNCs’ requirements and the environmental limitations that they experience, this chapter makes several suggestions for the deployment of specific IS. Finally, the impact of the internationalization of the firm on the chief information officer’s (CIO’s) responsibilities and duties is discussed.
Kamal Fatehi, Jeongho Choi

Human Resources

Frontmatter
11. International Human Resource Management
Abstract
In this chapter, we see that when a firm expands into international markets, intelligent changes must be made in its human resource management (HRM) practices. This begins with changes in managerial attitudes and corporate culture to accommodate the cultural diversity of multinational company personnel.
Kamal Fatehi, Jeongho Choi
12. International Labor Relations
Abstract
In this chapter we address major problems the expansion of international business creates for both the multinational companies (MNCs) and national labor unions. The chapter opens with a discussion on how MNCs divide international industrial decisions between the headquarters and subsidiaries. One of the major issues of international industrial relations is the power and flexibility of the MNCs. Because of the power and flexibility of MNCs, workers are handicapped when dealing with them. Often, national labor unions face a dilemma in negotiating with MNCs because the unions cannot cross national borders, but the MNCs are not restricted to a particular location. This puts labor unions at a disadvantage against the MNCs. Labor unions complain that while they are forced to negotiate with the local subsidiary, the real decision-maker is the headquarters. There is some truth in this contention. While the subsidiary is assigned most operational decision-making for local industrial relations, strategic decisions such as locating a plant and increasing employment levels at various sites are made from headquarters.
Kamal Fatehi, Jeongho Choi
Backmatter
Metadata
Title
International Business Management
Authors
Kamal Fatehi
Jeongho Choi
Copyright Year
2019
Publisher
Springer International Publishing
Electronic ISBN
978-3-319-96622-9
Print ISBN
978-3-319-96621-2
DOI
https://doi.org/10.1007/978-3-319-96622-9