Student Version

How Organizations and Environments Interact

Environments

Change and Competitive Turbulence

Complexity Forces

Organization Environment Interface

Information Strategic Mergers, Organizatio Direct

Manageme Response Takeovers, n Design Influence
nt Acquisition and
s, Alliances Flexibility

Organizations

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–2
 Five-Forces Analysis (Porter)

Level of
Rivalry

Power of Power of
Buyers Suppliers

Performance of
organizations in
an industry

Threat of Threat of
Substitute Products New Entrants

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–3
 Determinants of Individual Ethics

Family Situational Values and Peer

Experiences
Influences Factors Morals Influences

Individual Ethics

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–4
 • Conflicts of interest
• Secrecy
Managerial and
confidentiality
• Honesty

Ethics Employee Organizatio

s n
• Hiring and firing
• Wages and working
conditions
• Privacy and
Areas of concern for respect

managerial ethics:
Subject to ethical ambiguities
•How the firm treats the • Advertising and promotions
• Ordering and purchasing
employee. • Bargaining and negotiation
• Financial disclosure
•How the employee • Shipping and solicitation
treats the firm. • Other business relationships

•How the firm treats

other economic Economic Agents
agents. • Customer
s
• Competitor
•How the firm handles s
• Stockholder
s
• Suppliers
its financial reporting • Dealer
s
• Unions

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 Fostering Ethical Organization Behavior

Managing Ethical
Behavior

Top Management Train Written Code

Involvement Employees of Ethics

Individual Issues:
Behavior, Conscience, Privacy

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–6
 Emerging Ethical Issues

Ethical Leadership Corporate Governance

(Integrity) (Sarbanes-Oxley)

Ethical Issues in
Organizations

Ethics and Information

Technology (Privacy)

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–7
 Social Responsibility

The Stakeholders The Environment

Social Responsibility
of Organizations

The General Social

Welfare

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–8
 Approaches to Social Responsibility

Highest Degree of Social Responsibility

Proactive Stance

Accommodative Stance

Defensive Stance

Obstructionist Stance

Lowest Degree of Social Responsibility

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–9
 How Business and Government
Influence Each Other

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 Managing Social Responsibility

Formal Organizational Informal Organizational

Dimensions Dimensions

Organization leadership
Legal compliance
and culture

Ethical compliance Whistle Blowing

Philanthropic giving

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–11
 Trends in International Business

International
Business
Trends

Economic recovery from WWII

Decreasing isolation from competition

Increasing globalization of markets

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–12
 International Business Activity

Exporting

Types of
International
Business
Activity
Importing

Licensing

Direct Investment Alliances and Joint

Ventures

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 The Context of International Management

Political/Legal Economic Cultural

Environment Environment Environment
Government stability Economic system Values, symbols,
Incentives for Natural resources beliefs, and language
international trade Individual differences
Infrastructure
Controls on across cultures
international trade
Economic
communities

International Management Functions

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–14
 International Trade Controls

Tariffs

Controls on
International Quotas
Trade
Export restraint
agreements

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–15
 The Structure of the Global Economy

Economic
Communities

North American
European Latin American Caribbean
Free Trade
Union Integration Common
Agreement
(EU) Association Market
(NAFTA)

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 Determinants of Organization Culture

Organization
Culture

Organization Symbolic stories Corporate Shared

founder and ceremonies success experiences

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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–17