Someone recently bought our

students are currently browsing our notes.

X

International Management Managing Across Cultures Notes

Management Notes > International Management Notes

This is an extract of our International Management Managing Across Cultures document, which we sell as part of our International Management Notes collection written by the top tier of University Of Exeter (Business School) students.

The following is a more accessble plain text extract of the PDF sample above, taken from our International Management Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Managing Across Cultures

TERMS

*

Ethnocentric Predisposition - A nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions.

*

Polycentric Predisposition - A philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates.

*

Regiocentric Predisposition - A philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis.

*

Geocentric Predisposition - A philosophy of management whereby the company tries to integrate a global systems approach to decision making.

*

Globalisation Imperative - A belief that one worldwide approach to doing business is the key to both efficiency and effectiveness.

*

Parochialism - The tendency to view the world through one's own eyes and perspectives.

*

Simplification - The process of exhibiting the same orientation toward different cultural groups.

*

Guanxi - Chinese for "good connections".

THE STRATEGY FOR MANAGING ACROSS CULTURES

*

As MNC's become more transitional their strategies must address the cross cultural similarities and differences in their varied markets.

Strategic Predispositions

*

Most MNC's have a cultural strategic predisposition toward doing things in a particular way. Four distinct predispositions have been identified; ethnocentric, polycentric, regiocentric and geocentric.

*

If an MNC relies on one of these profiles over a period of time, the approach may become institutionalised and greatly influence strategic planning.

*

A predisposition toward any of these profiles can provide problems for a firm if it is out of step with the economic or political environment.

*

Successful MNC's use a mix of these predispositions based on the demands of the current environment.

Buy the full version of these notes or essay plans and more in our International Management Notes.