Globalization:
7 trends:
disintegrating borders,
growing cross-border trade & investment
rise of global products and global customers
privatizations
new competitors in the world market
rise of global standards of quality and production
Internet and IT
WTF is Hofstede?
PD: expectations regarding equality among people
UA: typical reactions to dangerous situations
ID/CLTV: relationship btw individual and the group in the society
Masculinity/Femininity: expectations regarding gender roles
LTO: basic orientation toward time
Hofstede application:
-HRM:
mgt selection, (educational achievement/social class; elite education)
training, (For autonomy/for conformity)
eval & promo, (Performance/Compliance)
remuneration (Small wage differences/Large wage diff)
-leadership styles (Participative; less direct supervision/Theory X; authoritarian, close supervision)
-motivational assumptions (Ppl likework; extrinsic and intrinsic rewards/ppl dislike work)
-decision making & org design (Decentralized; flat pyramids/Tall pyramids; more supervisors)
-strategy (Varied/Crafted to support the power elite or govt)
Individualistic culture:
-Ppl are responsible for themselves
-Individual achievement is ideal.
-Ppl need not be emotionally dependent on organizations or groups
Collectivist culture:
-One's identity is based on group membership
-Group decision making is best.
-Groups protect individuals in exchange for their loyalty to the group.
Value-chain: all the activities that the firms uses to design, produce, market, deliver, and support its product.
Upstream: early activties (RD, suppliers...) Downstream: later value chain activities (sales, distrib channel)
Negotiation steps: preparation, building the relationship, exchangeing info-first offer, persuasion, concessions, agrement, and post agreement
Chapter 5 keypoints:
Multidomestic strategy: top priority goes to local responsiveness (respond to diffs in the market in all operating countries)
In essence, is a differentiation approach.
Transnational strategy: 2 top priorities: seeking location advantages (dispersing value-chain around the world where they can do it best)
gaining economic efficiencies from operating worldwide
--> views any country as a global platform (location when a firm can best perform some, but not necessarily all of its value-chain activities)
