Module 3 – Globalization

Globalizationà Rapid expansion of free market capitalism among the nations and states and acceleration of cross border transaction facilitated by the recent technology development.

Five stages of globalization

-Globalization of markets à merging of traditionally distinct and separate national markets protected by the national barriers into one huge global marketplace. Elimination of barriers for trade.

-Resources and production à development of global production. Sourcing of goods and services from locations around the world to take advantage of cheap resources. Reduce cost and sell more to become competitive.

-Capitol of market à countries want to be attracted to investors. A country like a company.

-Technology à find a strategic partner who can jointly do research to develop a new product or new technology.

-Human capital à firms seek the best brains through global search.

The pros and cons of globalization



Economic prosperity: efficient use of resources, will improve productivity and result in lower prices for goods and services.

Income disparity: not everybody will be beneficiaries of this increased efficiency and additional economic prosperity. Rich get richer and the poor get poorer.

Interdependence: countries can rely on each other more than ever. This can improve the productivity and the efficiency of the scarce resources.

More insecurity: When one part of the world economy is in trouble it can quickly spread to other countries without any insulation between the countries.

Cultural convergence: pressure for global culture. Rapid spread of Western culture to the rest of the world, particularly the American culture.

Cultural decay: cultural imperialism. Many foreigners intimidated by the invasion of American culture into their life and worried about the loss of their cultural identity.

Pollution halo: improve the local environment by bringing in higher environmental standards and enhancing the environmental consciousness of the local firms and people in developing countries.

Pollution haven: companies tend to move their production facilities to the country where the environmental regulations are most lenient and the developing countries are willing to negotiate the environmental regulations in an attempt to induce more foreign production facilities.

Cost savings to MNCS: develop local economy. globalization of production made it possible for the firms to reduce their manufacturing cost by building their production facilities in the country, they can use the cheap resources.

Job fight: Companies move their production first to the country where the labor is the cheapest and thereby exploit the labor in the developing countries and this causes the job to shift

from the industrialized countries to the developing countries.

WTO: World Trade Organization tries to eliminate trade barriers

IMF: International Monetary Fund works to rescue troubled countries and to stabilize foreign exchange market.

OECD: Organization for Economic Cooperation & Development works constantly to coordinate among the member countries to develop policies to deal with various socio-economic problems.

Module 4 – Strategic Planning

Free market à Capitalism allows a free market to exist and promotes competition.

Regulated market à public utilities, regarded as a public good and which require regulation to maintain high levels of accessibility, affordability, and safety that otherwise might be jeopardized in pursuit of profit.

Industry à Consists of competitors providing similar products or services to the same market; often segmented to cater to different market segments

Market à Consists of buyers, which could be companies in another industry (B2B) or individual consumers (B2C); usually segmented into smaller customer groups

Market Shareà firm’s annual sales as a percentage of the annual sales of the entire industry.

Strategic decisions differ from operational or tactical decisions primarily in that their complexity and consequences are more consequential for the organization.

-Strategic decisionsà tend to get made only after appreciable analysis, discussion, and debate, and typically involve a number of people in the decision.

-Operational decisionsà made after the strategic-planning process. The reason is that operational decisions and plans flow from the strategic decisions made, and so the latter must precede the former.

Business modelà describes the way in which a firm does what it does to deliver customer value

Porters Five Forces

(Michael U. Porter) Used to create a competitive environment analysis.

-Threat of new entrants à likelihood that new competitors will enter the market.

-Threat of substitutes à products similar to yours that can replace your product

-Bargaining power of suppliers à supplier competition, specialization of the product.

-Bargaining power of buyer à the more concentrated the value the more power they will have.

-Competitive rivalry à intensity among existing competitors in the industry

SWOT Analysis

Internal and external analysis of a firm

-Strengths à what gives you an advantage

-Weaknesses à your disadvantages

-Opportunities à external factors good for the company

-Threats à external factors that harm the company

BCG Analysis

Scatter plot graph. Tool for analyzing: product lines, brand management, product position in market

-Star à high growth and high market share

-Cash cow à large share of low growth market

-Question mark à small share of a high growth market

-Dogs à low growth and low market share

Module 5 – Decision Making

Decision Making Model

-Identify the problem

-Identify the decision criteria

-Develop alternatives

-Analyze alternatives

-Implement alternatives

-Evaluate decision effectiveness

Role of Intuition

Experiences ad tuition are tied together

-Experience based-decisions

-Affected-initiated decisions

-Skills, knowledge and training

-Subconscious mental processing

-Value or ethics based

Bounded Rationalityà When a decision is being made the person or people involved are limited by their knowledge, available information, cognitive limitations and time available to make the decision.

Corporate social responsibility (CSR)à is a business’s duty to positively impact all stakeholders while minimizing its negative impact on society and the environment.

Triple Bottom Line (People, Planet, Profit)à used to evaluate their performance in a broader perspective to create greater business value.

Diversity in the workplace

-Levels of diversity

oSurface level: age, gender, race and ethnicity, disabilities, religion, sexual orientation and gender identity

oDeep level diversity

-Stereotypes, prejudice, discrimination

-Glass ceiling à aspects that do not let minorities grow

Module 6 – Communication 

Interpersonal communicationà exchange of information between a sender and a receiver. The information may be something other than verbal or written messages, and the senders and receivers may be other than people.

The communication processà symbolic interaction between two people. The basic elements of the communication process:

1.The source or sender: originator of the message

2.The message: stimulus the source transmits to the receiver

3.The encoding process: transforms the intended message into the symbols used to transmit the message.

4.The channel: means by which the message travels from a source to a receiver.

5.The receiver: person who receives the message and has the responsibility to interpret it.

6.The decoding process: translating the message and interpreting it.

7.Feedback: from the receiver back to the sender is actually another message indicating

8.         Noise: anything that disrupts the transmission of the message or feedback,

Characteristics of persuasive communication

Supportive communicationà designed to avoid defensiveness and nurture interpersonal relationships. When defensiveness occurs, people feel anger and hostility toward the other person, and communication breaks down. This type of communication is descriptive, problem- oriented, flexible, and owned rather than disowned.

Role of empathy in communicationà capacity to understand and relate to another’s feelings. Empathic listeners imaginatively project themselves into the speaker’s frame of reference and comprehend the full impact of the message. Empathic listening involves accurately perceiving the content and also understanding the emotional components and unexpressed meanings contained in the message.

Principles of effective communication à accuracy of communication depends on the successful completion of each step in the communication process. It is not enough to carefully prepare and transmit a message and then simply assume that effective communication has occurred. The encoding, transmitting, decoding, and feedback processes are all essential for effective communication. 

Types of non-verbal communication

-Physical distance (proxemics) à We tend to stand closer when talking with people we know and like and farther away from people we do not know or do not like.

-Posture (kinetics) à can be used to indicate numerous things, including liking or status. When talking to another individual, we can communicate an element of responsiveness and interest in what they have to say by making spontaneous gestures, shifting our posture from side to side, and moving closer to the individual.

-Facial cues à expressive and communicate many messages just using facial cues.

-Vocal cues à Speaking in a pleasant tone of voice at a moderate rate of speed indicates a desire to communicate with the other individual.

-Appearance à Physical appearance, especially clothing, sends surprisingly strong nonverbal messages. High-status people often display appropriate ornaments, such as the badges and bars used in the military or police units.

Downward communicationà flows from higher level people to those in lower levels. The most common downward communication includes explanations of organizational policies and practices, instructions about how to do the job, the rationale for the job’s importance, feedback to subordinates about their performance, and explanations of the goals of the organization.

Upward communicationà  provide feedback on how well the organization is functioning. Lower-level employees are expected to provide upward communication about their performance and the organization’s practices and policies. The most common forms of upward communication include memos, written reports, suggestion boxes, group meetings, and grievances.

Informal communication

Grapevine is created by informal associations and cuts across formal lines of communication. Some of the major characteristics of grapevine information are as follows:

1.Grapevines are found in every organization, and they are virtually impossible to eliminate. It is only natural for employees to discuss matters of mutual concern, and even the closest monitoring of their conversations will not prevent them from talking. Furthermore, employees are more satisfied in organizations that have extensive informal communication.

2.Information usually travels more rapidly through the grapevine than through official communication channels.

3.The grapevine is a more spontaneous form of expression, hence more intrinsically gratifying and credible than formal communication.

4.In situations where official censorship and filtering occur, grapevine information is more informative.

Communication roles

Gatekeepers à is someone who controls the flow of messages between two people or two groups in an organization structure.

Liaison à is someone who controls the flow of messages between two people or two groups in an organization structure.

Opinion leaders à fill an important role in what is called the two-step flow model of attitude change.

Boundary spanners à are people who communicate with the organization’s environment.

Ways of Improving Communicationà increasing feedback, regulating information flow, repetition, simplifying language, effective timing.