Global Management
Session 1: Globalization and You as a Global Manager
v The session becan by showing a short video called ‘Did you know’
v The video briefly pointed out how globalisation has reshaped the world in terms of
social, economic, environmental and technological aspects.
v One of the key idea that the video clip demonstrated is that the economy in emerging
markets will overtake the economy in developed countries by 2020 for the first time in
human history.
v Fundamental concepts of the session- What is globalisation, how it has evolved and
affected our lifestyles, the globalisation of markets and production
v Example of Starbucks and Boeing- How did these two firms take the opportunity of
globalisation to way they used to operate, and expand in both their home country and
overseas .
v The global economic activities are shifting towards emerging markets, e.g The BRICS
v Why and how big data will play an essential role in the aspects of business competition
and managing a multinational company.
v Even though global companies account for the world/s ¼ GDP, ½ of these companies
‘profits are still generated from their home coutries, big question is, has globalisation made
the world flat and removed the barriers to do business in the globe or do differences still
exist across different countries.
v CAGE Framework- Cultural differences, Administrative differences, Geographic
attributes, Economic distance
Some examples of the frame work:
1. Cultural differences lead to reduction in transactions between countries.
v Different languages, cultural barriers between different ethnicities and social networks,
different religious beliefs, differences in national work systems, e.g minimum wages,
working hours, employee benefits etc., different norms, values, e.g western management
culture might clash with certain social norms and values in a foreign country and
eventually result in conflicts and miscommunication between global managers and
employees overseas.
2. Administrative differences- lack of common currency, e.g it is efficient for companies
using US dollars/Euros in transactions but what happens if they depreciate or fluctuate?,
different legal systems, e.g bribery might be legal in most developed countries but seen as
‘normal business activity’ in certain emerging markets, political hostility, newly elected
government might take different approach and affect the investment and operations of
multinational companies, as a global manager, these problems do matter in daily
management.
v Three vital concepts to a global manager, the world isn’t perfectly integrated so identify
the differences, view the differences in a particular perspective, e.g using CAGE
framework
v Second part of the session is about the Haier Case, the case was explored and discussed
