International Management #11 Looking to the Future

[samvara]

Review of last week

1. What's the difference between law and ethics? - can/can't versus should
2. Is 'business ethics' an oxymoron? - depends on the business
3. What is shariah law - Islamic law, sanctions are different and sometimes very religion specific. I pointed out Australian law is heavily influenced by Anglicans and Catholics
4. Name some areas of business law that cover business activities - tax, eeo, anti-trust
5. Three ethical theories - ethical relativism, utilitarianism, consequentialism,
6. Is there a need to distinguish between cultural relativity and ethical relativity - yes there is a need
7. What is your view of a code of ethics - good to talk about, document is only really valuable if it backs up action
8. Corporate Social Responsibility - does it have value? Yes, creates relationship and attractiveness as employer etc. Bigger corps are more visible.
9. Things that would act as red flags when considering an international partnership - requests for bribes, poor communication, transparency index

Peter O'Brian talks about Ethical Standards - video.

- Lecture on the future of international management

Forecasting

• IM is a very dynamic field of activity and study, so forecasting is risky
• Geopolitical change, demographic change, technological progress, anti-globalisation forces, terrorism, reducing trade barriers and influence of powerful countries, companies and multilateral controlling institutions all provides a formidable set of interacting forces the outcome of which can be unpredictable

Possibilities

• The MNE’s or transnationals will become more powerful as a result ofmergers, acquisitions and alliances
• US and Asian economies will decouple due to rise and rise of China and India (BRIC impact)
• Eastern Europe (soviet bloc), Latin America and Africa will become more attractive for international business (Brazil,Russia)
• Managers in all organisations will become more attuned to working in an international context - a mind set change! Diversity in workplace maybe means international manager of people if not international business
• International businesses will emphasise training managers for the international context and will select the best people regardless of gender or nationality. Would be very nice for women.
• Corporate strategy will be more important e.g. reducing overcapacity, differentiating products, exploiting the learning curve, copying what works, matching the competition, outsourcing, insourcing - more 'just in time' practices
• Uncertainty will mean more emphasis on improvisation strategy than on scripted strategy
• Countries will increase their international efforts -competition will increase, BUT they will be concerned about losing control over resources (eg Australia) - increase in Nationalism?
• International business/trade/finance will be subject to more control. World Trade Organisation, European Union etc.
• Electronic business/commerce will increase substantially
• Research on international business operation will improve understanding - challenge of turning research into usable, practical applications for people who will actually use it.
• More pressure from pressure groups – the backlash to globalization - anti-globalisation forces not going anywhere (save the whales / coral reefs etc.)
• The pressures for localisation will begin to overcome (or at least balance) the pressures for globalisation (think local act global]
• SME’s will network to become “big” – the virtual organisation - small consulting firms combine to get contracts, disband when contract ends. Austrade encourages it - get together, get big enough and we'll help you go global
• Business schools will internationalise their course offerings by incorporating an international component into every subject - happening in a few schools in the US, increases content of course,increase pressure on teachers
• The rich – poor gap will not disappear in the foreseeable future i.e. globalisation will remain an attractive myth - India, China and Africa the gap is getting bigger
• The issues of bribery and corruption will hinder the economic and social growth of many developing countries for decades to come - how do you deal with it?
• Political decisions in relation to climate change will have a significant impact on business operations - see carbon tax

Key Issues/Questions

• All the key issues and questions raised in each previous session plus:
• No one manager can master all knowledge and skill needed so how can a Company develop specialised managers who can work in groups or teams to manage the country, business and functional areas of the enterprise?
• Effect of E-commerce on business?
• Effect of terrorism, SARS, “new world order” (USA as sole superpower now but being chased by PRC)
• Others?

- video The Corporation

- break

- case study – Haier
1. What are the key features of the Haier people management system? Everyone sees the score / where they are - the relationship between
the different departments )credit /debit), KPIs are clear, not performing is addressed, promotions are not permanent (perform or lose
position), fear of repercussions, lots of training - execs off to courses
2. Which feature do you think is the most important performance improvement tool?
3. Are any of the HR features evident in your organisation? If yes, which ones? If no, in your view are any of the HR features transferable to your organisation or are the cultural differences too great for such transfer.

- Summary of unit

- Discussion of exam and requirements
Sample exam on webct
4 x short answers - one from each part of the text (1 page per answer)
Case study (open book - can bring in anything) - analyze, identify core issues, make recommendations - make sure you don't just list the
symptoms - will be an Australian company based in India and in the automotive industry.