Transnational Management - International Management - Lecture Slides, Slides of International Management

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The Management Challenge of

Transnational Management

How should we then Manage?

• Given rate of globalization, pace of technology, and PLC, the nature of international management is changing.
• No longer sufficient to gain competitive advantage in one area.
• Three prong approach to success
• Present situation call for “new roles and responsibilities for managers”

• continuous renewal- preventing inertia. initiate continuous change as the environment changes.

Generalists at the HQ

• Involved at the HQ level to capture various scope and scale economies, in worldwide setting
• Have global perspective, and ability to coordinate activities across national boundaries to capture potential benefits
• allocation of resources among different organization subunits, e.g... plant locations decisions and allocation of capital.

The Functional Manager

• They must perform more than just a staff role
• Serve as intelligence scanner - highlighting new trends, new requirements and new regulations. establishing contact with other functional managers across boundaries.

• must cross-pollinate new ideas and development across boundaries. Help reduce the tendency of NIH
• encourage transnational innovations. Help MNC to locally leverage and the same time globally link innovative activities.

• Implementer of corporate strategy, dealing with diverse constituents, local government, unions, and at the same time maintaining trust of the HQ.

What are the new challenges facing big MNC

nowadays?

• Are present days MNC’s too big to survive in a more complex and nimble environment

The New Emerging Model of Management

• New management model is characterized by 3 core processes rather than formal structure as defined by different types of organizational units
• The three processes are entrepreneurial process, integration process, and renewal process.

Entrepreneurial Process

• Ability to open new markets and create new businesses.
• Unlike in the past, market growth rate has slowed so opportunities are getting limited.
• Specialized skills and knowledge are replacing capital as sources of competitive advantage.

• Managerial roles are now defined as : entrepreneurs who create and pursue new growth opportunities, Coaches, senior managers who review, and support the front-line initiatives and Corporate leaders who establish strategic mission and performance standards.

• Companies that are driven by the entrepreneurial

process tend to have four common attributes,

organizations are built around relatively small units,

that are interdependent (not SBUs), they use

multistage resource allocation process, with a highly

structured rigorous financial control system, and a

shared definition of where the company is headed.

Integration Process

• The second of the core process -- linking diverse

assets and resources to build competencies and

leverage those competencies in new markets

• The autonomous units created by the

entrepreneurial corporation must be integrated in

order to avoid inconsistencies, conflicts, and

fragmentation.

• There is the need to hold the different parts

together using normative integration, i.e... a set of

clear and motivating organizational values.

• It is the job of the corporate managers to nurture

and embed the values in the organization.