International 5 - Accounting homework help
Discuss and answer Why would multinationals be interested in setting up operations in Mexico? Give two reasons. Would cultural differences be a major stumbling block for U.S. MNCs doing business in Mexico? For European firms? For Japanese firms? Explain your answer. Why might MNCs be interested in studying the organizational culture in Mexican firms before deciding whether to locate there? Explain your logic.International Management Fred Luthans Jonathan P. Doh Ninth Edition International Management Ninth Edition Luthans | Doh Chapter 5 Managing Across Cultures International Management Fred Luthans Jonathan P. Doh Ninth Edition International Management Ninth Edition Luthans | Doh Managing Across Cultures The specific objectives of this chapter are to EXAMINE the strategic dispositions that characterize responses to different cultures. DISCUSS cross-cultural differences and similarities. REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each. International Management Ninth Edition Luthans | Doh 3 The Strategy for Managing Across Cultures There are four distinct strategic predispositions toward doing things in a particular way: Ethnocentric Polycentric Regiocentric Geocentric International Management Ninth Edition Luthans | Doh Strategic Predispositions Ethnocentric predisposition A nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions. International Management Ninth Edition Luthans | Doh Strategic Predispositions Polycentric predisposition A philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates. International Management Ninth Edition Luthans | Doh Strategic Predispositions Regiocentric predisposition A philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis. International Management Ninth Edition Luthans | Doh Strategic Predispositions Geocentric predisposition A philosophy of management whereby the company tries to integrate a global systems approach to decision making. International Management Ninth Edition Luthans | Doh Orientation of an MNC Under Different Profiles International Management Ninth Edition Luthans | Doh Meeting the Challenge The Globalization Imperative Belief that one worldwide approach to doing business is key to efficiency and effectiveness. Many factors facilitate the need to develop unique strategies for different cultures: Diversity of worldwide industry standards Continual demand by local customers for differentiated products Importance of being an insider, as in case of customers who prefer to “buy local” Difficulty of managing global organizations Need to allow subsidiaries to use own abilities and talents unconstrained by headquarters International Management Ninth Edition Luthans | Doh Meeting the Challenge Globalization vs. National Responsiveness In advertising Germans Want factual and rational advertising Typical German spot features standard family of two parents, two children, and grandmother French Avoid reasoning or logic Advertising is predominantly emotional, dramatic, symbolic Spots are viewed as cultural events―art for sake of money― and reviewed as i
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