5/19/2014

Introduction to
International Management

Ben L. Kedia, Ph.D.

Wang Professor of International Business
and Director of the Memphis CIBER

Module 1

Wang Center for International Business 1

Participant Introduction
• Name

• School

• International Background and Experience

• Expectations from the Seminar

Wang Center for International Business 2

KEDIA - Session 1 1
 5/19/2014

International Management
• International management involves doing the
managerial functions in an organization on a
worldwide basis in order to achieve the
organization’s goals
• Management functions:
• Planning
• Organizing
• Staffing
• Directing
• Controlling
• Coordinating

Wang Center for International Business 3

The Global Game Has Changed

• Yesterday was to…
• build an efficient network of production, sales, and
service subsidiaries capable of penetrating markets
around the world.
• Today is to…
• innovate by learning from the world.
• Tomorrow…
• winners will be companies that create new value by
searching out and mobilizing untapped pockets of
technology and market intelligence that are scattered
across the globe.

Wang Center for International Business 4

KEDIA - Session 1 2
 5/19/2014

Innovation Market Drivers

Customers Competition Compliance

• Generation Y • BRIC Countries • Europe’s WEEE

• Aging (Brazil, Russia, (Hazardous Substances)

Population India, China) • Sarbanes-Oxley,

• Shorter Product Basel II (US and
International Banking
Life Cycles /Accounting Standards)

Wang Center for International Business 5

Framework for Understanding the

Global Business Environment

• Semi-Globalization (Tension between globalization and

localization)

• Semi-globalization means that both forces of globalization and

localization are taking place at the same time

• This tension is the fundamental source of uncertainty in

international business, as the world is neither completely
globalized nor completely localized

Wang Center for International Business 6

KEDIA - Session 1 3
 5/19/2014

Forces of Globalization
• Globalization refers to the broadening and
deepening of interactions and interdependences
among peoples and countries of the world

• Broadening: The extension of economic and geographic

linkages to encompass virtually all major societies and
states
• Deepening: An increase in the frequency and intensity of
state and societal interactions

Wang Center for International Business 7

Forces of Localization
• Localization refers to the segmentation and
contraction of the interactions and
interdependences among peoples and countries of
the world
• Nationalism
• Institutional Diversity
• Cultural Values
• History and Tradition
• Security
• National interests

Wang Center for International Business 8

KEDIA - Session 1 4
 5/19/2014

SEMI-GLOBALIZATION
Complete Complete
Localization Globalization
Culture/
Civilizations
Technology
Administration/
Politics Openness/
Liberalization
Geographical
Differences Market Opportunity
Economic
Differences Collective Goods and
Global Governance
A World of The World
Nations and is Flat
Cross-Boarder Integration of Markets
Wang Center for International Business 9

Essential Question: How Integrated

Will the World Become?

Zero Total
Degree of Global Market Integration

Product Markets

Capital Markets

Labor Markets
Technology Markets

Wang Center for International Business 10

KEDIA - Session 1 5
 5/19/2014

Triple Convergence: Thomas Friedman

• Market Liberalization
• Brazil, Russia, India and China (BRIC)
• New Technologies
• Global fiber-optic network allows individuals to connect
seamlessly (call centers, radiologists, accountants,
reservations)
• Decreasing importance of geographical distance and
cultural differences (flat world)
• Revolutionary Structures and Strategies
• New organizational forms develop to take advantage of
flat, interconnected world: Wal-Mart, UPS, Skype,
Infosys, Dhruva, etc.

Wang Center for International Business 11

A New World
• 3 Billion New Capitalists
• Willing to work for much lower wages than in the United
States
• Population growth only set to increase
• New technology allows new connections to global
marketplace
• 3 Billion New Consumers
• Growing importance of emerging and developing markets
for international business
• New source of talent, innovation and low-cost sourcing

Wang Center for International Business 12

KEDIA - Session 1 6
 5/19/2014

Adapting to a Multi-Polar World:

Accenture’s New Globalization Playbook
• “My colleagues and I at Accenture (ACN) call this new
era the “multipolar world” – a world of dynamic shifts
in power and influence.
• As we travel the world … we both observe and are
contending with two issues over and over again.
• The first issue is readiness—how prepared are
companies and organizations in the developed world to
compete and win on the key battlegrounds for
customers, talent, innovation, recourses, and capital.
• The second issue is the pace of change—the speed with
which these shifts in power and influence are
occurring.”
Source: Businessweek, August 12, 2008

Wang Center for International Business 13

Primary Issues in Designing IM Courses

• Goals: Internationalizing Mindsets/Basic Career
Knowledge
• Content: Breadth/Depth, Sequencing
• Pedagogy: Lectures/Cases/Debates
• Evaluation:
Participation/Tests/Cases/Papers/Projects

Wang Center for International Business 14

KEDIA - Session 1 7