MNB3702
GLOBAL
BUSINESS
MANAGEMENT
Summarized notes as per prescribed textbook
, TABLE OF CONTENT
PG#
STUDY UNIT 1: CHAPTER 1: GLOBAL BUSINESS OPERATIONS............................................ 2
STUDY UNIT 2: CHAPTER 2: GLOBAL DIVERSITY MANAGEMENT AND LEADERSHIP ................... 7
STUDY UNIT 3: CHAPTER 3: BUILDING STRATEGIES FOR GLOBAL COMPETETIVE ADVANTAGE .... 15
STUDY UNIT 4: CHAPTER 4: STRUCTURING GLOBAL ENTERPRISES AND OPERATIONS .............. 20
STUDY UNIT 5: CHAPTER 5: THE POLITICAL ECONOMY OF FOREIGN EXPANSION ................... 27
STUDY UNIT 6: CHAPTER 6: COUNTRY ATTRACTIVENESS ................................................ 34
STUDY UNIT 7: CHAPTER 7: FOREIGN MARKET ENTRY STRATEGIES & ALLIANCES (P 110 – 117) ... 41
STUDY UNIT 8: CHAPTER 8: EXPANSION STRATEGIES IN EMERGING MARKETS: .................... 49
STUDY UNIT 9: CHAPTER 9: GLOBAL OPERATIONS AND SUPPLY CHAIN MANAGEMENT: .......... 58
STUDY UNIT 10: CHAPTER 10: GLOBAL MARKETING STRATEGIES ...................................... 68
STUDY UNIT 11: CHAPTER 11: INTERNATIONAL HUMAN RESOURCE MANAGEMENT ................. 73
, STUDY UNIT 1: CHAPTER 1: GLOBAL BUSINESS OPERATIONS
DEFINE MULTINATIONAL CORPORATIONS (MNCS).
MNC’s are business enterprises that operate in more than one country. These organizations operate across
international borders irrespective of their size or contextual orientation. The Evolution of MNC’s:
• MNC’s are the driving force behind globalization.
• MNC’s are business enterprises that operate in more than one country.
• They operate across international borders irrespective of their size or contextual orientation.
TRENDS IN THE EVOLUTION OF MNC’S:
• MNC’s production chains have been defragmented: with activities outsourced o situated offshore in
various locations.
O Referred to as the co-ordination of global value chains.
O Undertaken in an effort to minimize and MNC’s worldwide tax liability.
o Usually use complex tax planning structures, incl. intra-group transfer pricing, investment through
offshore financial centers and special purpose entities, to alleviate tax liabilities.
• MNC’s need a change in attitude regarding environmental and social issues.
o Because of tighter regulations and higher environmental and social standards imposed by host
countries, apart from its own self-regulation and CSR requirements.
• The application of the principles of corporate governance and the crafting of global business
strategies.
o MNC’s are being influenced by the global economy, with its transmission of foreign direct investments
(FDI) in developed and developing countries. (Often motivated by market-seeking an efficiency-
seeking considerations.)
• Complex ownership structures and sophisticated technology and strategies to support their
Internationalization initiatives. (For SME’s too)
• MNC’s in developed countries expanding into developing countries.
o Has implications for the differences between conventional and unconventional MNCs and their modus
operandi, in host countries.
GLOBALIZATION AND THE TRANSIENCE OF MNCS
• MNCs from developing countries: less conventional, late comers.
• MNCs from developed countries: conventional, early movers. (in terms of when and how they achieve
competitive advantage)
o Emphasizes strategic importance of the time and method of entry into global competition.
• Typically unconventional MNCs are small, obscure, and operate in fragmented, low tech industries through
joint ventures to exploit low cost advantages of developing countries. Also found in developed countries.
, Already investing directly in developed countries through acquisitions and joint ventures: thereby gaining
access to more sophisticated tech and market channels. They follow unconventional modes of operating
by
GLOBAL
BUSINESS
MANAGEMENT
Summarized notes as per prescribed textbook
, TABLE OF CONTENT
PG#
STUDY UNIT 1: CHAPTER 1: GLOBAL BUSINESS OPERATIONS............................................ 2
STUDY UNIT 2: CHAPTER 2: GLOBAL DIVERSITY MANAGEMENT AND LEADERSHIP ................... 7
STUDY UNIT 3: CHAPTER 3: BUILDING STRATEGIES FOR GLOBAL COMPETETIVE ADVANTAGE .... 15
STUDY UNIT 4: CHAPTER 4: STRUCTURING GLOBAL ENTERPRISES AND OPERATIONS .............. 20
STUDY UNIT 5: CHAPTER 5: THE POLITICAL ECONOMY OF FOREIGN EXPANSION ................... 27
STUDY UNIT 6: CHAPTER 6: COUNTRY ATTRACTIVENESS ................................................ 34
STUDY UNIT 7: CHAPTER 7: FOREIGN MARKET ENTRY STRATEGIES & ALLIANCES (P 110 – 117) ... 41
STUDY UNIT 8: CHAPTER 8: EXPANSION STRATEGIES IN EMERGING MARKETS: .................... 49
STUDY UNIT 9: CHAPTER 9: GLOBAL OPERATIONS AND SUPPLY CHAIN MANAGEMENT: .......... 58
STUDY UNIT 10: CHAPTER 10: GLOBAL MARKETING STRATEGIES ...................................... 68
STUDY UNIT 11: CHAPTER 11: INTERNATIONAL HUMAN RESOURCE MANAGEMENT ................. 73
, STUDY UNIT 1: CHAPTER 1: GLOBAL BUSINESS OPERATIONS
DEFINE MULTINATIONAL CORPORATIONS (MNCS).
MNC’s are business enterprises that operate in more than one country. These organizations operate across
international borders irrespective of their size or contextual orientation. The Evolution of MNC’s:
• MNC’s are the driving force behind globalization.
• MNC’s are business enterprises that operate in more than one country.
• They operate across international borders irrespective of their size or contextual orientation.
TRENDS IN THE EVOLUTION OF MNC’S:
• MNC’s production chains have been defragmented: with activities outsourced o situated offshore in
various locations.
O Referred to as the co-ordination of global value chains.
O Undertaken in an effort to minimize and MNC’s worldwide tax liability.
o Usually use complex tax planning structures, incl. intra-group transfer pricing, investment through
offshore financial centers and special purpose entities, to alleviate tax liabilities.
• MNC’s need a change in attitude regarding environmental and social issues.
o Because of tighter regulations and higher environmental and social standards imposed by host
countries, apart from its own self-regulation and CSR requirements.
• The application of the principles of corporate governance and the crafting of global business
strategies.
o MNC’s are being influenced by the global economy, with its transmission of foreign direct investments
(FDI) in developed and developing countries. (Often motivated by market-seeking an efficiency-
seeking considerations.)
• Complex ownership structures and sophisticated technology and strategies to support their
Internationalization initiatives. (For SME’s too)
• MNC’s in developed countries expanding into developing countries.
o Has implications for the differences between conventional and unconventional MNCs and their modus
operandi, in host countries.
GLOBALIZATION AND THE TRANSIENCE OF MNCS
• MNCs from developing countries: less conventional, late comers.
• MNCs from developed countries: conventional, early movers. (in terms of when and how they achieve
competitive advantage)
o Emphasizes strategic importance of the time and method of entry into global competition.
• Typically unconventional MNCs are small, obscure, and operate in fragmented, low tech industries through
joint ventures to exploit low cost advantages of developing countries. Also found in developed countries.
, Already investing directly in developed countries through acquisitions and joint ventures: thereby gaining
access to more sophisticated tech and market channels. They follow unconventional modes of operating
by
