Please enable JavaScript.

Coggle requires JavaScript to display documents.

6.2 Globalisation - Coggle Diagram

- - - - with an influence on their own national sphere, which can also work together to exert their influence through various bodies such as the G20, the European Union (EU), the United Nations (UN), etc.
    - - (e.g. the World Social Forum) and global pressure groups or movements that will unite to focus their action on a particular topic or cause.
    - - involved in trade, capital transfer and organisation of production in multiple sites around the world
- - - - they identified four models of organisation that enable a transnational company to cope with the complex organisational demands of operating in an international environment.
        
        international organisations
        
        multinational organisations
        
        global organisations
        
        transnational organisations.
  - - - Hofstede and his colleagues have identified and labelled six key attitudinal dimensions where national differences could be found within societies.
        
        Power distance
        
        This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally.
        
        Individualism versus collectivism
        
        preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families.
        
        Masculinity versus femininity
        
        The Masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness, and material rewards for success. Society at large is more competitive. Its opposite, Femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus-oriented.
        
        Uncertainty avoidance
        
        The Uncertainty Avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.
        
        Long-term orientation versus short-term orientation
        
        Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently.
        
        Indulgence versus restraint
        
        Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.
      - Hofstede then applied these to organisational cultures, resulting in the following six dimensions of organisational culture:
        
        Organisational effectiveness
        
        Means-Oriented VS. Goal-Oriented
        
        Customer orientation
        
        Internally Driven VS. Externally Driven
        
        Level of control
        
        Easygoing Work Discipline VS. Strict Work Discipline
        
        Focus
        
        Local VS. Professional
        
        Approachability
        
        Open System VS. Closed System
        
        Management philosophy
        
        Employee-Oriented VS. Work-Oriented
      - Hofstede organisational cultures types (themes):
        
        Actual Culture
        
        It is the culture your organisation or department currently has. In order to guarantee accuracy and objectivity, actual culture should be measured using a valid and objective method, such as our Multi-Focus ModelTM on Organisational Culture.
        
        Perceived Culture
        
        Perceived culture is the culture people in the organisation think it has.
        
        Optimal Culture
        
        Highly aligned with organisational strategy.
        
        Ideal Work Environment
        
        Ideal work environment is measured exactly the same way as actual culture, except that instead of asking questions about the current work environment, the respondents describe the Organisational Culture they would love to have.
        
        Measuring Ideal work environment gives valuable information about the preferences of the people working in the organisation.
- - - - assume “an economistic and rational view of internationalization with little concern for the unevenness of benefits presented in this process (inequality)”
      - consider that there is “little recognition of MNCs as constituted through social interactions of different groups and the power conflicts that arises (power)”
      - ignore the role of “civil society groups outside the firm” in influencing globalisation.
- - - - In this case, an agent pays a fee to a company in order to use its process or design in its own geographical territory, think of the McDonald’s chain of fast-food restaurants.
      - the disadvantages of franchising include potential loss of control (of the brand, local market knowledge, or detailed knowledge of the production process).
    - - This method involves delegating production to overseas firms in order to increase flexibility and reduce costs for the main company.
    - - This is the least risky strategy for firms that get involved in international trade
      - it also presents disadvantages such as high transport costs. It tends to limit the development of the market overseas, and products are more expensive as they have to carry the cost of export duties.
    - - FDI is concerned with establishing production overseas, and creating new manufacturing or office facilities abroad.