Equipo 3

Integrantes:
1966293 Lesly Michelle González Bravo
1962700 Gabriela Elizondo Rodríguez
207935 Noelia Lucia Castellanos Figueroa
1918530 José Antonio Calva Hernández
1953610 Mariana Garza Orozco
 International Management and
Multinational Corporations

The study of international management focuses on the

operation of international firms in host countries.

It is concerned with managerial issues related to the flow of people:

goods, and money, with the ultimate aim of managing better in situations
that involve crossing national boundaries.

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 The Nature and Purpose of International
Business.
International businesses engage in transactions across
national boundries , the transactions include the transfer of
goods, services, technology, managerial knowledge and
capital to other countries.

The interaction of a firm with the host country can take many
forms.
• One is the exportation of goods and services.
• Another is a licensing agreement for producing goods in
another country.

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 Unifying effects

Unifying influences occur when the

parent company provides and shares
technical and managerial know-
how, thus assisting the local
company in the development of
human and material resources.
 Potentials for conflict

Many factors can cause conflicts

between the parent firm and the host
country. Nationalistic self-interest
may overshadow the benefits
obtained. through cooperation.
Similarly, sociocultural differences
can lead to breakdown in
communication and subsequent
misunderstandings.

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 Multinational corporations

Multinational corporations (MNCs) have their headquarters

in one country hut operate in many countries.

The polycentric attitude, on the other hand, is based on the notion

that it is best to give the foreign subsidiaries, staffed by local
nationals, a great deal of managerial freedom It is assumed that
local nationals understand the local environment best.

A regiocentric orientation favors the staffing of foreign

operations on a regional basis

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 Advantages of multinational

The multinational corporation can take advantage of

business opportunities in mint different countries, it can
also raise money form its operations throughout the
world, it benefits by being able to establish production
facilities in countries where its products can be
produced most cost-effectively and efficiently.

Companies with worldwide operations sometimes have

better access to natural resources and materials that
may not be available to domestic firms.

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 From multinational to global, or
transnational, corporations

Domestic markets have become too small. Developing a

drug may cost several hundred million dollars and may take
more tan ten years. To recover the costs requires selling the
drug in a world market. Moreover, global companies have to
keep abreast of technological developments around the
world.

For example, Ford motor Company decided in the latter half

of the 1980s to become a global corporation. Previous
attempts to build the world car (named the Escort) were not
very successful. However, the use of modern communication
technology, establishes now a much closer link between Ford
´s headquarters and its European Operations

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 Country alliances and economic blocs

In one time, countries in a region were competing

against each other. But now, countries are forming
regional alliances that have regions compete with each
other.

Examples are the European Union, the North American

Free Trade Agreement (NAFTA), the Association of
Southeast Asian Nations (ASEAN), and Mercosur.

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 European Union

Europe 1992 marked the completion of the first stage of

European economic ties.
The European Commission worked on some 300 legislative
actions for removing trade barriers and creating an internal
market. The objective of Europe 1992 was to create a single
market through the removal of trade barriers and trough free
movement of goods, people, service, and capital. The
changes go beyond economic interests and encompass many
social changes as well.
Original EC 1992 (which later became the European Union)
consisted of 12 member nations, Belgium, Denmark, France,
Germany, Greece, Ireland, Portugal, Spain, and the United
Kingdom.

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 North American Free Trade Agreement and other
Latin American Trade Blocs

In 1994, NAFTA, which included agreements among the

United States, Canada, and Mexico, went into effect. Since
then, trade among those countries has increased greatly. The
objectives of NAFTA are to eliminate trade barriers and
facility cross-border movements of goods and services.
The agreement covers a variety of areas, such as market
Access, rules governing the origin of goods, customs
procedures, energy, agriculture, and measures, to be taken in
emergencies.

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Association of Southeast Asian Nations (ASEAN): The ten countries of Brunei
Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippine,
Singapore, Thailand and Vietnam formed a trading bloc that will increasingly
counter NAFTA and the European Union.

International Management Cultural and Country Differences: A compressive study

by Geert Hofstede provides a good framework for studying cultural differences
between countries. We must bear in mind that there are, for example, great
differences between the managers in the country.

Behaviors in Different Cultures: Gert Hofstede identified four dimensions and

lather added a fifth.
1. Individualism versus collectivism
2. Large versus small power
3. Uncertainty tolerance versus avoidance
4. Masculinity versus femineity
5. Short versus long term orientation.

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 France: Le plan the cadre

In France, government planning on a national scale

helps coordinate the plans of individual industries and
companies. The governments aim is to utilize most
effectively the countries resources and to avoid
expansion in uneconomic areas.

At times, the plan becomes a global strategy helping

specific industries.
For example: the government attempts to integrate the
electronics industry into a whole so that it can
overcome its weakness in information processing,
consumer electronics, microelectronics and
automation.

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 There isn’t just one European Management
model:

• European managers think of themselves as being

more people-oriented than Americansmanagers
are. They also have developed great skills in
managing international diversity. And they operate
between the extremes of short-term profit
orientation.

• But on the other hand, they have adopted many

managerial techniques from the Americans.

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 Other quality approaches and awards

The Deming Prize is the longest-running and one of the

highest awards on TQM (Total Quality Management) in the
world. It recognizes both individuals for their contributions
to the field of Total Quality Management (TQM) and
businesses that have successfully implemented TQM

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 The Malcolm Baldrige National Quality Award (MBNQA)

The MBNQA award is named after the

late Secretary of Commerce Malcolm
Baldrige, a proponent of quality
management. The U.S. Commerce
Department’s National Institute of
Standards and Technology manages
the award, and ASQ administers it.
It is an award established by the U.S.
Congress in 1987 to raise awareness of
quality management and recognize U.S.
companies that have implemented
successful quality management systems. The
award is the nation's highest presidential
honor for performance excellence.

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 ISO 9000

The ISO 9000 family of quality

management systems is a set of
standards that helps
organizations ensure they meet
customer and other stakeholder
needs within statutory and
regulatory requirements related to
a product or service.

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Differences between the Malcom Baldrige award
and ISSO 9000
The Baldrige Award and ISO
9000 registration differ fundamentally in focus,
purpose, and content. The focus of the Baldrige Award
is on enhanced competitiveness either not addressed
in ISO 9000 registration or addressed differently.

These factors include a customer and market focus,

results orientation, continuous improvement,
competitive comparisons, a tie to business strategy,
cycle time and responsiveness, integration via
analysis, public responsibility, human resource
development, and information sharing By contrast, the
focus of ISO 9000 registration is on conformity to
practices specified in the registrant's
own quality systems.

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 European Foundation for Quality Management

EFQM was founded in 1988 with the
objective to create a platform where
organizations can learn from each other
to continuously improve their
performance. Benchmarking with other
European organizations will lead to
sustainable economic growth.
They want to support managers and
directors in training, sharing ideas and
innovating with the aid of the so-called
EFQM model as a common framework.
The EFQM Model or EFQM business
excellence model is the most popular
quality management tool in Europe.

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