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Block 2 session 1: Giving context to your ideas (Competing in a global…
Block 2 session 1: Giving context to your ideas
(Competing in a global context)
1.1 The importance of context for organisations
dictionary definition of context
"the circumstances that form the setting for an event, statement, or idea, and in terms of which it can be fully understood" (Oxford dictionaries, n.d.)
Organisational context
External context (outside influences)
political regulations
physical resources
cultural norms
internal context (internal environment)
governance structures
prevailing culture
internal stakeholders
existing relationship with those its serves + own members
Understanding context/ environment (internal and external) in which an organisation operates
Analysed using:
STEEPLE
PESTLE
context affects a companies aims and day to day running. It highlights risks and opportunities
effect on innovation
highlights what needs to be improved internally or externally in relation to broader surroundings
1.2 Discovering the global context
Globalisation
"The intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa"
Anthony Giddens
1990
happened due to
digital technology
transportation
changes in trage
Governing bodies oversee rules and procedures internationally
General Agreement on Tariffs and Trade (GATT) 1964
World Bank
World Trade Organisation (WTO) (Successor of GATT)
International Monetary Fund (IMF)
Affects on different business functions
Operations management
how to coordinate business processes across different nations
Marketing
how to advertise to different nationalities eg different humour etc
accounting and finance
accounting compliance for different countries
Human resource management
multicultural workforce , global market of labour available
effect on innovation
company has to assess how an idea will hold up to global standards and culture
1.3 Localising the global context
"Glocalisation"
Derived from Japanese word "Dochakuka" meaning 'global localisation'
"meaningful integration of local and global forces" (Brooks and Normore, 2010)
"Glocal development refers to the dialectic of the global and the local" (Weber, 2007)
effect on innovation
new ideas have to bridge local and international levels
some organisations adapt product/services to international market
Kit Kat offering Green tea kit kat in Japan
McDonalds offering different foods in each country