HINT 1 – Hofstedes cultural dimensions – know them – in textbook HINT 2 – Porter’s five forces model – know model – in textbook HINT 3 – Contingency Factors
HINT 4 – Differences between content and process theory (motivation) HINT 5 – Know one leadership theory really well
(Look on blackboard for topics not covered today – worksheets are provided)
Topic 1: The environment and organisational culture
Four external factors impacting managerial decisions in the specific environment: 1. Customers: managers must meet needs of customers, also keep up with consumer demand 2. Suppliers: Affects the cost of production, need a steady inflow of supplies at a low cost, availability of supplies also matters 3. Competitors: Managers must consider price wars, price collusion, 1st mover advantage 4. Pressure groups: public groups affect managerial decisions e.g. sustainability -> green peace
List the six conditions that influence the general environment: 1. Economic conditions: inflation, tax, Global Financial Crisis, interest rates within financial institutions -> higher interest rates when borrowing money means that business will borrow less money. 2. Political/Legal conditions: laws within country affect business, and the differences in operation between countries. 3. Sociocultural conditions: The way society shifts to accommodate trends 4. Demographic conditions: age groups, gender, sex, religion, education 5. Technological conditions: Rapid change in tech affects cost of equipment, more depreciation. Also need to accommodate change through training staff to use new technology. 6. Global conditions: Exchange rate, importing and exporting goods.
What is organisational culture?
The shared values, principles, traditions and the ways of doing things that influence the way organisational members act.
How might managers promote an ethical culture?
(Pg.107 in textbook)
* Be a visibly good role model
* Communicate expectations – so employees know what is expected of them within the organisation * Provide ethics training on what is ethical – what one person thinks is ethical is not necessarily what another thinks * Visibly reward ethical behavior and punish unethical behavior * Provide protective mechanisms so employees can discuss ethical dilemmas and report unethical behavior
Topic 2: Managing in a global environment
What are the opportunities and threats presented to managers when business operates globally? Opportunities:
* Much larger market
* Tax benefits
* Diverse markets – having more locations of the one business allows company’s to fall back on something * Access to greater technology
* Access to greater skills
* Cheaper labor
* Wider demographic
* More competitors
* Costs to expand
* Cultural differences
* Language barriers
* Sovereign risk – political instability
PRACTICE ESSAY QUESTION
Hofstedes research has helped managers better understand the difference in national cultures when operating globally. Evaluate Hofstedes five dimensions of national culture.
Things to consider:
* Key message of the theory (pg. 151)
* Strengths and limitations of this model -> can compare to GLOBAL framework * Any case studies applicable
KEY MSG: summarise pg. 151
Explain Hofsteades five dimensions pg. 148
STRENGTHS AND LIMITATIONS:
* Still relevant to today’s culture
* Allows culture understanding
* Open and understanding model
* Acknowledges the need for managers to be flexible and adaptable Limitations:
* Stereotypes general country population as opposed to considering specific regions of countries and individual needs within the country * Research was conducted through questionnaires - effect results * Doesn’t consider political differences
* Age of research – quite dated
CASE STUDIES: find own
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