Chapter 2: Environmental Constraints on Managers

Chapter 2: Environmental Constraints on Managers

Understanding the Global Environment

The global environment presents both ______and ______for managers.

With the marketplace now ______and national borders becoming increasingly irrelevant, the potential for organizations to grow is expanding dramatically.

Managers working within the global environment must deal with:

______differences

New ______from around the globe that can appear at any time

Global Trade

An important part of the global environment is global ______

Global trade has been around for centuries, and is shaped by several regional trading alliances and agreements that are negotiated through the ______

Examples: European Union (EU)

North America Free Trade Agreement (NAFTA)

The Legal-Political Environment

Canadian managers are used to ______legal and political systems, this however is not the case in some countries of the world

Managers in such countries face uncertainty and are not always to accurately ______outcomes due to such circumstances

Example: Google in China

The Economic Environment

The global manager must be aware of the economic system under which a country operates when conducting business globally.

A ______ is one in which resources are primarily owned and controlled by the private sector (Ex. Canada)

A ______ is one in which all economic decisions are planned by a central government.

The Cultural Environment

National culture has a ______effect on employees than does their organization’s culture…what is national culture?

______are the values and attitudes shared by individuals from a specific country that shape their behaviour and beliefs about what is important.

HOFSTEDE’S CULTURAL DIMENSIONS

Studied 116,000 IBM employees in 40 different countries

He was able to classify their ______and ______into four distinct categories

His research proved useful to managers in determining Canada’s placement (Scale: High to low)

Good managers must recognize the ______in order to be successful.

Individualism Vs. Collectivism

______ – Look after their own interests and those of the immediate family (Example: US, Canada)

______- People prefer to act as members of a group and expect to be looked after and protected. (Example: Mexico, Thailand)

Power Distance

Power Distance – A society that accepts that power is ______within an organization or institution. Employees have a high regard and respect for those in positions of ______.

Uncertainty Avoidance

Uncertainty Avoidance – This refers to the degree to which people tolerate ______and prefer structured over unstructured situations. People in a society with high uncertainty avoidance tend to be ______.

Achievement Vs. Nurturing

Achievement is the degree to which values such as ______is seen as important (Example: US, Japan)

Nurturing emphasizes ______and concern for others. (Example: France, Sweden)

Long Term and Short Term Orientation

This attribute looks at a country’s orientation toward ______.

Long term Orientation – People look to the ______and value thrift and persistence; leisure time ______. (Example: China, Japan)

Short term Orientation – People value the ______and emphasizes respect for tradition and fulfilling social obligations; leisure time ______(Example: Canada, US, Australia)