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Assignment No 1: Submitted To
Assignment No 1: Submitted To
Principles of Management
Section MGT-201(D)
Submitted to:
Ma’am Aisha Rehman
Submitted by:
Rabia bibi
201360268
Submitted on Wednesday
Submitted on 7 July 2021
Question No 1
Write three examples for each global perspective that you studied. E.g.,
Parochialistic Attitude 1- Example 01 2- Example 02 3- Example 03 and so on
for others.
Answer
Global Perspective
Speaking only one language is one sign that the nation is suffering from depression,
looking at the world only through the human eye and his vision.
Parochialism Attitude
Ethnocentric Attitude
Polycentric Attitude
Geocentric Attitude
Parochialism Attitude
Speaking only one language is one sign that the nation is plagued by parochialism. Watching the
world is only in the eyes and man's imagination. People with parochial status don't see that others
have different ways of living and working.
They disregard the values and traditions of others and exploit the attitude that "ours is better than
theirs" in foreign cultures. This is a kind of diminished situation, determined by the one-way
managers can do it take, but not alone. There are three possible world attitudes. Let's take a look
at each close.
Parochialism is a significant obstacle for managers working around the world of business. It is
not uncommon for Germans, Italians to speak three or four languages. Probably a factor as to
why they're doing so poorly. As a general knowledge of languages, it is essential for effective
management.
An obstacle for managers in the global business world. Monolingualism should be abolished.
Managers who follow “ours is better than theirs” are complex for competing with other
managers.
Do you view the world only through your own eyes and visions? You do not know that others
have different ways of stay and work. Is it a big problem for managers working on the file the
world of global business. Falling into the trap of ignoring the values of others too culture and
firmly use the term “ours is better than theirs” in foreign cultures
Example of Parochialism
Americans
Japanese
Germans
Italians
Types of Global Attitude
Ethnocentric Attitude
Polycentric Attitude
Ethnocentric Attitude:
First, an ethnocentric condition believes that better work is approaching and practices are those
of the home country (the country where the company's headquarters are located). Managers with
an ethnocentric attitude believe that people abroad have the necessary skills, technology,
knowledge, or experience to make their best business decisions, as do people in the home
country.
They do not trust foreign workers on essential findings or technologies. Ethnocentric
approach Company markets its home country product with little or no adaptation in host
countries under the assumption that consumers’ wants and ‘market conditions are the same in
every country, called ethnocentric approach.
The example of such change in “NISSAN,” which in the first year of its existence on
international arena was following an ethnocentric approach by selling its cars abroad precisely as
they were sold in their domestic market in Japan after several years of its global trading the
company realized that ethnocentric international marketing orientation is no longer relevant for
industries including automobile industry in which they were operating and changed its approach
to polycentric Vasudeva concludes that in today global business world ethnocentric approach
appears to be one of the biggest threats for international organizations.
Philips filled significant vacancies by dutch nationals before the 1990s as it was a
Dutch company
Procter & Gamble
Philips
Samsung
NISSAN
Polycentric Attitude:
Next, the state of polycentric perception that workers in the host country (foreign country where
the organization does business) know the best ways to work habits of running their business.
Managers with this attitude view all external activities as unique and difficult to understand.
Therefore, they may let their staff see it as the best way to do things.
The view that the managers in the host country know the best work approaches and practices
for running their business. Polycentric Approach -- Company recognizes that the ‘wants’ of
customers vary from nation to nation, so it develops and produces to suit the host country's wants
and marketing conditions called the polycentric approach. For example, Mc. Donald’s serves
customized products in nations like hamburgers in U. S., Mc. Alutikki in India, Kiwiburger in
New Zealand, Mc. Arabia burgers in Arab countries to satisfy customers; thereby achieve higher
market share and profitability.
These executives formulate the strategies based on the mission and vision of the subsidiary,
design products based on the host country's environment.
A world-oriented view that focuses on using the best approaches and people from around the globe.
Geocentric Approach Company studies similarity in consumption pattern around nations, develop and
produce for universal marketing.
For example, ‘Walkman sets by Sony’; ‘Heavy-duty earthmoving types of equipment by Caterpillar,’
‘Harley-Davidson’ Motorcycles, ' produced in one country but consumed worldwide. Geocentric products
yield more significant benefits of ‘economy of scale’ through coordination of marketing mix elements.
But the geocentric approach calls for precise coordination in manufacturing and marketing to be
successful.
The final type of global attitude managers might have a geocentric attitude, a world-oriented view that
focuses on using the best approaches and people from around the globe. Managers with this attitude have
a global perspective and look for the best practices and people regardless of origin.
For instance, Carlos Ghosn, CEO of Nissan and Renault, was born in Brazil to Lebanese parents,
educated in France, and speaks four languages fluently. He could very well be the “model of the modern
major corporate leader in a globalized world bestraddled by multinational companies.”8 Ghosn’s
background and perspective have given him a much broader understanding of what it takes to manage in a
global environment, which is characteristic of the geocentric attitude.
A geocentric attitude requires eliminating parochial attitudes and developing an understanding of cross-
cultural differences. That’s the type of successful approach managers will need in today’s global
environment.
Global competition once was considered country against country the United States ver- sus
Japan, France versus Germany, Mexico versus Canada, and so on. Now, global compe- tition is
shaped by regional trading agreements including the European Union (EU), North American
Free Trade Agreement (NAFTA), the Association of Southeast Asian Nations (ASEAN), and
others.
The most significant free “Trade zones are the European Union” (EU), the “North American”
Free “Trade Agreement (NAFTA)”, and the Association of “Southeast Asian Nations”
(ASEAN).
European Union (EU) a union of 28 European nations created as a unified economic and trade
Entity. The Euro (sign: €; code: EUR) is the official currency of 19 of the 28 member states of
the European Union.
This group of states is known as the Eurozone or euro area, and counts about 343 million citizens
as of 2019. The euro, which is divided into 100 cents, is the second-largest and second-most
traded currency in the foreign exchange market after the United States dollar.
The World Bank Group is a group of five closely associated institutions, all owned by its
member countries, that provides vital financial and technical assistance to developing countries
around the world.
The World Bank was created in 1944. There founders are John Maynard and Harry Dexter
White.
A global organization of 153 countries that deals with the rules of trade among nations. Formed
in 1995 and evolving from GATT, the WTO is the only globa organization dealing with the
rules of trade among nations. a. Membership consists of 153 countries and 30 observer
governments as of 2008. The WTO appears to play an important role even though critics are
vocal and highly visible.
The World Trade Organization (WTO) is the only worldwide global association managing the
standards of exchange between countries. At its heart are the WTO arrangements, arranged and
endorsed by the majority of the world's exchanging countries and confirmed in their parliaments.
The objective is to guarantee that exchange flows as easily, typically and uninhibitedly as could
be expected.
Membership of WTO
The WTO has over 160 members representing 98 per cent of world trade. Over
20 countries are seeking to join the WTO.
An international economic organization that helps its 30 member countries achieve sustainable
economic growth and employment.
The Organization for European Economic Cooperation, formed 194, is a Paris-based
international economic organization whose mission is to help its 30 member countries achieve
sustainable economic growth and employment and raise the standard of living in member
countries while maintaining financial stability in order to contribute to the development of the
world economy.
Question No 4
studied about MNCs and their types. Write three examples for each type,
preferable from Pakistani context.
Answer
A multinational corporation (MNC) has facilities and other assets in at least one country other
than its home country. A multinational company generally has offices and/or factories in
different countries and a centralized head office where they coordinate global management.
These companies, also known as international, stateless, or transnational corporate organizations
tend to have budgets that exceed those of many small countries.
However, critics of these enterprises believe these corporations have undue political influence
over governments, exploit developing nations, and create job losses in their own home countries.
Types of MNCs
Global Corporation
The organizational structure of a centralized global corporation has a chief administrative and
management office or head office. The corporation may outsource production to developing
economies to lower costs. For example, These businesses may also develop production
infrastructure in these countries to optimize affordable resources and acquire cost advantages.
An MNC in which artificial geographical barriers are eliminated. NAFTA The North
American Free Trade agreement is an agreement among the Mexican, Canadian, and U.S.
governments in which barriers to trade have been eliminated.
Examples of Transnational Or Borderless Enterprise:
A transnational corporation (TNC), sometimes called a borderless organization, is a
type of international company in which artificial geographical barriers are
eliminated.
Question No 5
Write two examples for each of these terms. Strategic Alliance, Joint Venture
and Foreign Subsidiary
Answer
Strategic Alliance:
Joint Venture
A joint venture (JV) is a business arrangement in which two or more parties agree to pool
their resources for the purpose of accomplishing a specific task. This task can be a new project or
any other business activity.
Kapoor industries and Raaz trade industries are examples of joint venture.
Hulu
Foreign Subsidiary
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