University of California Irvine Civil Action Quiz Questions We will take the quiz at the beginning of class this evening and then watch the movie A Civil A

University of California Irvine Civil Action Quiz Questions We will take the quiz at the beginning of class this evening and then watch the movie A Civil Action. Attached is the in-class assignment for the movie.A Civil Action Assignment.docx UNIT VIII STUDY GUIDE
International Issues
Course Learning Outcomes for Unit VIII
Upon completion of this unit, students should be able to:
8. Examine the process of implementing strategies across business operations.
Reading Assignment
Chapter 11: Global and International Issues
Unit Lesson
Overview
Welcome to our final unit for the course. During this unit, we will focus on the global impacts and issues
related to strategic management. As previously discussed, the overall health of the United States economy is
based on the global economy condition and outlook. Domino’s is a prime example of how a company can tap
into the global market to include areas that are still developing. If you do a quick Internet search, you will find
that Domino’s operates franchised pizza eateries in over 70 locations, grossing more sales internationally
than domestically in the United States. Previous to globalization of the markets, each nation or geographic
area had its distinct market areas and rarely interacted with other markets. This has drastically changed with
the increase of air travel, communication capabilities, and overall reliance of a global-based economy.
In 2005, Thomas L. Friedman released his book The World Is Flat: A Brief History of the Twenty-first Century.
In his book, Friedman tried to highlight the “flattening” of the world economy. His work attempts to help us
gain a greater understanding of the impact that the growing middle class is having on the worldwide economy;
Friedman discussed how the global supply/demand scenario we grew up with has changed, and he warned
about the struggles the western world will have to adjust to the changes (Friedman, 2005).
Made in Everywhere
Take a look around your house or apartment, and think about how many products are made in other countries
and shipped into the United States. Clothing is a great example of a product that is made all around the world.
Also, consider how many entities have developed, created, shipped, marketed, stored, and displayed the
product you purchased. Even though the product may have been made overseas, that product does create
and maintain jobs in the United States because of the distribution network. Take a look at the five largest
companies in each country. What would happen if these companies decided to only place their product or
service within their respective country? Would this cause severe economic losses and strategic challenges for
the companies? The consequences could be stagnant growth, overbearing competition from competing
entities, and a limited workforce.
Globalization
Many of the firms located around the world are not always considered as specific country based, but are
considered as international. Other corporations may be U.S.-based, or headquartered, entities but are
aggressively establishing themselves in the international marketplace. A recent example is Uber
Technologies based out of California, which is a company that provides a technological medium that connects
screened drivers with requesting riders. This service-based corporation has minimal overhead cost (services
only) and is rapidly expanding to other countries. Competitors, such as taxi services, describe Uber’s platform
BBA 4951, Business Policy and Strategy
1
as disruptive and not legitimate. Uber describes its service as an alternative customer
choice in
a market that
UNIT x STUDY
GUIDE
does not give its consumers the freedom to choose service with the ease and Title
reliability of a smartphone.
Corporate Taxes
Most counties have a set tax rate for doing business in their country. Existing and prospective corporations
consider these tax implications before setting up their entity in a country. The tax rates can vary throughout
the world. Rates range from 12% up to 35%. The United States has the highest corporate tax rate in the
world, currently set at 35%. This rate is considered very high for some corporations, thus limiting corporate
investment in the United States. Other entities see the United States as a must-have market for their portfolio
and are willing to pay the steep corporate tax rate.
Connecting the Dots
We have covered a great deal of content. Your previous coursework toward your degree has provided you
with skills and knowledge essential to future professional success. This class has asked you to begin to look
at your future and strategically implement what you have learned.
As you progress forward in your educational and professional endeavors, consider the strategy implications of
each choice and decision you make. For example, is it realistic to try to complete an undergraduate degree in
one year? A more realistic goal would allow four to five years to complete a program of this magnitude. Also,
consider incorporating some of the tools that we learned about during our time together. A great example is
the SWOT analysis and its practicality for major life choices. For example, if you are considering switching to
a new employer, consider the (S)trength, (W)eakness, (O)pportunities, and (T)hreats of transitioning.
In previous units, as well as in this unit, you have worked on an implementation plan for a company you
selected. Within this unit, you will gauge the outlook for your company and its prospects for the future. When
doing so, consider the previous investigation you have done for this course. If you were to combine the work
from the previous units along with what you will add from this unit, you will see the full implementation plan.
Consider how you would use plans such as this for your employer or your own business.
This is a great opportunity for you to demonstrate your understanding of the concepts of strategic
management and its application to organizations.
Reference
Friedman, T. L. (2005). The world is flat: A brief history of the twenty-first century. New York, NY: Farrar,
Straus, & Giroux.
Suggested Reading
The chapter presentation below will provide you with additional information on this unit’s concepts.
Click here to access the PowerPoint version of the Chapter 11 Presentation.
Click here to access the PDF version of the Chapter 11 Presentation.
BBA 4951, Business Policy and Strategy
2
Strategic Management Concepts: A
Competitive Advantage Approach
Sixteenth Edition
Chapter 11
Global and International
Issues
Slide in this Presentation Contain
Hyperlinks. JAWS users should be
able to get a list of links by using
INSERT+F7
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
11.1 Discuss the nature of doing business globally,
including language and labor union issues.
11.2 Explain the advantages and disadvantages of doing
business globally.
11.3 Discuss the global challenge facing firms and why this
is a strategic issue.
11.4 Discuss tax rates and tax inversions as strategic
issues.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (2 of 2)
11.5 Compare and contrast American business culture
versus foreign business cultures; explain why this is a
strategic issue.
11.6 Discuss the business culture found in Mexico, Japan,
China, and India; explain why this is a strategic issue.
11.7 Discuss the business climate in Africa, China,
Indonesia, India, Japan, Mexico, and Vietnam; explain why
this is a strategic issue.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Figure 11.1 A Comprehensive StrategicManagement Model
Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988): 40. See
also Anik Ratnaningsih, Nadjadji Anwar, Patdono Suwignjo, and Putu Artama Wiguna, “Balance Scorecard of David’s
Strategic Modeling at Industrial Business for National Construction Contractor of Indonesia,” Journal of Mathematics
and Technology, no. 4 (October 2010): 20.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Global/International Issues
• The underpinnings of strategic management hinge on
managers gaining an understanding of competitors,
markets, prices, suppliers, distributors, governments,
creditors, shareholders, and customers worldwide.
• The price and quality of a firm’s products and services
must be competitive on a worldwide basis, not just on a
local basis.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Nature of Doing Business Globally
• Exports of goods and services from the United States
account for only 13.5 percent of U.S. gross domestic
product.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Globalization
• Globalization
– process of doing business worldwide, so strategic
decisions are made based on global profitability of the
firm rather than just domestic considerations
• Global Strategy
– includes designing, producing, and marketing products
with global needs in mind, instead of considering
individual countries alone
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Multinational Firms
• Multinational Corporations
– Organizations that conduct business operations across
national borders
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Advantages of Global Business (1 of 2)
1. Firms can gain new customers for their products.
2. Foreign operations can absorb excess capacity, reduce
unit costs, and spread economic risks over a wider
number of markets.
3. Foreign operations can allow firms to establish low-cost
production facilities in locations close to raw materials or
cheap labor.
4. Competitors in foreign markets may not exist, or
competition may be less intense than in domestic
markets.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Advantages of Global Business (2 of 2)
5. Foreign operations may result in reduced tariffs, lower
taxes, and favorable political treatment.
6. Joint ventures can enable firms to learn the technology,
culture, and business practices of other people and to
make contacts with potential customers, suppliers,
creditors, and distributors in foreign countries.
7. Economies of scale can be achieved from operation in
global rather than solely domestic markets.
8. A firm’s power and prestige in domestic markets may be
significantly enhanced if the firm competes globally.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Disadvantages of Global Business
1. Foreign operations could be seized by nationalistic factions.
2. Firms confront different and often little-understood social, cultural,
demographic, environmental, political, governmental, legal,
technological, economic, and competitive forces.
3. Weaknesses of competitors in foreign lands are often overestimated,
and strengths are often underestimated.
4. Language, culture, and value systems differ among countries, which
can create barriers to communication.
5. Gaining an understanding of regional organizations is difficult.
6. Dealing with two or more monetary systems can complicate
international business operations.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Global Challenge
• America’s economy is becoming much less American.
• A world economy and monetary system are emerging.
• Markets are shifting rapidly and in many cases converging
in tastes, trends, and prices.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 11-2 Corporate Tax Rates Across
Countries in 2015 (From High to Low) (1 of 3)
Country
Corporate Tax Rate (%)
United Arab Emirates (UAE)
55.00
Chad
40.00
USA
35.00
Brazil
34.00
France
33.33
Germany
33.00
India
30.00
Mexico
30.00
Italy
27.50
Japan
25.50
Israel
25.00
Austria
25.00
China
25.00
Portugal
25.00
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 11-2 Corporate Tax Rates Across
Countries in 2015 (From High to Low) (2 of 3)
Country
Corporate Tax Rate (%)
Finland
24.50
U.K.
23.00
Ukraine
21.00
Estonia
21.00
Russia
20.00
Greece
20.00
Croatia
20.00
Libya
20.00
Netherlands
20.00
Turkey
20.00
Poland
19.00
Czech Republic
19.00
Hungary
19.00
Singapore
17.00
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 11-2 Corporate Tax Rates Across
Countries in 2015 (From High to Low) (3 of 3)
Country
Corporate Tax Rate (%)
Canada
15.00
Hong Kong
16.50
Romania
16.00
Latvia
15.00
Lithuania
15.00
Ireland
12.50
Serbia
10.00
Bulgaria
10.00
Cyprus
10.00
Bermuda
0.00
Source: Based on information at www.worldwide-tax.com/#partthree, retrieved January 1,
2015.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
American Versus Foreign Business Culture
• To be successful in world markets, U.S. managers must
obtain a better knowledge of historical, cultural, and
religious forces that motivate and drive people in other
countries.
• For multinational firms, knowledge of business culture
variation across countries can be essential for gaining and
sustaining competitive advantage.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 11-3 Cultural Pitfalls to Avoid to be a
Better Manager (1 of 2)
•
Waving is a serious insult in Greece and Nigeria, particularly if the hand is
near someone’s face.
•
Making a “good-bye” wave in Europe can mean “No,” but it means “Come
here” in Peru.
•
In China, last names are written first.
•
A man named Carlos Lopez-Garcia should be addressed as Mr. Lopez in
Latin America but as Mr. Garcia in Brazil.
•
Breakfast meetings are considered uncivilized in most foreign countries.
•
Latin Americans are, on average, 20 minutes late to business
appointments.
•
Direct eye contact is impolite in Japan.
•
Do not cross your legs in any Arab or many Asian countries-it is rude to
show the sole of your shoe.
•
In Brazil, touching your thumb and first finger—an American “Okay” sign-is
the equivalent of raising your middle finger.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 11-3 Cultural Pitfalls to Avoid to be a
Better Manager (2 of 2)
• Nodding or tossing your head back in southern Italy, Malta, Greece,
and Tunisia means “No.” In India, this body motion means “Yes.”
• Snapping your fingers is vulgar in France and Belgium.
• Folding your arms across your chest is a sign of annoyance in
Finland.
• In China, leave some food on your plate to show that your host was
so generous that you could not finish.
• Do not eat with your left hand when dining with clients from
Malaysia or India.
• One form of communication works the same worldwide. It is the
smile—so take that along wherever you go.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Cultural Differences between U.S. and
Foreign Managers (1 of 4)
• Americans place an exceptionally high priority on time,
viewing time as an asset. Many foreigners place more
worth on relationships.
• Personal touching and distance norms differ around the
world. Americans generally stand about three feet from
each other when carrying on business conversations, but
Arabs and Africans stand about one foot apart.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Cultural Differences between U.S. and
Foreign Managers (2 of 4)
• Family roles and relationships vary in different countries.
• Business and daily life in some societies are governed by
religious factors.
• Time spent with the family and the quality of relationships
are more important in some cultures than the personal
achievement and accomplishments espoused by the
traditional U.S. manager.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Cultural Differences between U.S. and
Foreign Managers (3 of 4)
• Many cultures around the world value modesty, team spirit,
collectivity, and patience much more than competitiveness
and individualism, which are so important in the United
States.
• Punctuality is a valued personal trait when conducting
business in the United States, but it is not revered in many
of the world’s societies.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Cultural Differences between U.S. and
Foreign Managers (4 of 4)
• Eating habits differ dramatically across cultures
• Rules of etiquette vary and managers must learn the rules
of others.
• Americans often do business with individuals they do not
know, unlike businesspersons in many other cultures.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Communication Differences Across
Countries
• Americans sometimes come across as intrusive,
manipulative, and garrulous; this impression may reduce
their effectiveness in communication.
• Managers from the United States are much more actionoriented than their counterparts around the world; they
rush to appointments, conferences, and meetings—and
then feel the day has been productive.
• U.S. managers often use blunt criticism, ask prying
questions, and make quick decisions.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Mexico’s Business Culture
• Employers seek workers who are agreeable, respectful,
and obedient, rather than innovative, creative, and
independent.
• Mexican employers are paternalistic, providing workers
with more than a paycheck, but in return they expect
allegiance.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Japan’s Business Culture
• The Japanese place great importance on group loyalty and
consensus, a concept called Wa.
• When confronted with disturbing questions or opinions,
Japanese managers tend to remain silent.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
China’s Business Culture
• The Chinese rarely do business with companies or people
they do not know.
• Your position on an organizational chart is extremely
important in business relationships.
• Arriving late to a meeting is an insult and could negatively
affect your relationship.
• Meetings require patience because mobile phones ring
frequently and conversations tend to be boisterous.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
India’s Business Culture (1 of 2)
• People in India do not like to say “no,” verbally or
nonverbally.
• Rather than disappoint you, they often will say something
is not available, or will offer you the response that they
think you want to hear, or will be vague with you.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
India’s Business Culture (2 of 2)
• Indians prefer to do business with those whom they have
established a relationship built upon mutual trust and
respect.
• Punctuality is important.
• Indians generally do not trust the legal system and
someone’s word is often sufficient to reach an agreement.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Business Climate Across Countries
• Ease of doing business rankings based on how easy it is to:
– start a business
– deal with construction permits
– register property
– get credit
– protect investors
– pay taxes
– trade across borders
– enforce contracts
– resolve insolvency
– get electricity
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Africa’s Business Climate
• Recently, 25 African countries held democratic elections,
whereas two decades ago only 3 African countries were
considered democracies.
• Currencies in Africa are stabilizing and many countries are
fund-raising to build modern highways, ports, and power
grids.
• Many African and non-African companies are launching
operations in Africa due to the rapidly growing middle class
and an average GDP grow…
Purchase answer to see full
attachment