History and Business

1
Chapter 2

• History and Business

2
Demands for Businesses are the Product of the
Times

• Postwar years (194555)
• Growth years (195570)
• Time of Trouble (197080)
• International Era (198090)
• Now in a global era (1990now)

3
Postwar Era (194555)

• Reconstruction worldwide
• Pent-up demand
• U.S. one of few able to meet demand
• Characterized by
• emphasis on supply/demand
• Efficiency
• Production and distribution issues

4
The Growth Years (195570)

• Growth via international expansion becomes a
  priority for firms from more nations,
  particularly Europe and Japan.
• Developing economies no longer willing to be
  developed, want organizations to play more active
  development roles.
• Managerial challenges
• Political risk analysis
• Centralized ownership and control.

5
Time of Trouble (1970s)

• Watershed years
• Growing nationalism
• Business roles rejected
• Need to look beyond domestic concerns
• Managerial tasks
• How to be international, ways and means
• Monitoring activities outside home country
• More strategic in thinking.

6
New International Era (198090)

• New ways to use resources
• Multiple business actors
• Increasing speed of activity
• Managerial challenges
• Structural shifts
• New emphasis on processes, e.g., information
  systems.

7
Global Era (1990now)

• Amorphous borderlessness in all spheres of
  activity.
• A rapid and discontinuous rate of change.
• Increased complexity and uncertainty.
• Growing numbers of and diversity among
  participants in global events.

8
Global Enterprises

• Well-known multi- and transnational businesses
• Public holding
• Private holding
• Global start ups/born globals
• Nongovernmental organizations (NGOs)
• Intergovernmental organizations (IGOs)
• Cross-sector alliances
• Global gangs and terrorism

9
Adopt a Broad Sense of What Globalization is and
What it Means

• Globalization includes increased permeability of
  boundaries of almost every kind, including fairly
  tangible physical borders such as time and space,
  nation-states and economies, industries and
  organizations and less tangible borders such as
  cultural norms or assumptions about "how we do
  things around here."

10
In Your Groups

• Prepare and report to the class
• What are the distinguishing characteristics of
  this type of global enterprise?
• What makes it global rather than domestic?
• Provide some examples of this kind of enterprise.

11
Implications for Managing a Particular
Organization

• A growing need to transcend external boundaries
  as well as internal borders, barriers, and
  boundaries to action.

12
Arthur Andersen, 1999 study of the global leader
(Institute for Strategic Change)

• Thinks globally
• Recognizes opportunities
• Creates a shared vision by developing and
  empowering people
• Appreciates cultural diversity
• Builds teamwork and partnerships
• Embraces changes
• Shows technical savvy
• Lives the values espoused

13
What Does this Mean to You?

• Heads up in terms of time and place and where you
  and various management schemes fit vis-à-vis
  globalization.