Social Influence on Global Management

1
Social Influence on Global Management

• WTO vs. U.S. Marine Mammals Protection Act
  Flipper Seal of Approval
• Starbucks Fair Trade Blend
• U.S. MNCs that outsource/off-shore are 21st
  century Benedict Arnolds
• Access to lower priced drugs from Canada
• Angola bans genetically-modified grain donated
  from World Food Program

2
Hierarchy of External Influences

• Social
• Economic
• Technical
• Global
• Political/Legal

Remote Environment
Competitive Environment
Firm

• Five Forces
• Competitor Intelligence
• Industry Structure
• Strategic Groups
• Political/Legal

3
Social Influencers (Stakeholders)

• Shareholders
• Government
• Financial Community
• Host Community
• Ecological Environment
• Society in General

Remote Environment
Competitive Environment
Firm

• Rivals
• Customers
• Suppliers
• Employees
• Managers
• Board Members

4
Social Influence on International Strategy
Acme GmbH WOS in Germany
Acme Inc. HQ in U.S.
Cervesa SA JV in Mexico
Gang Ped LTD Contract Supplier in Thailand
5
Stakeholder Analysis

• Who are they?
• How can they be classified?
• How do they exert influence?
• What is level of threat opportunity ?

6
Your Examples and Recommendations

• What company/industry?
• What are social issues?
• How do they impact the company?
• Describe issue in greater detail
• Relevant political, legal, social, ethical,
  economic, and/or strategic drivers
• How do issue(s) impact company's strategy, entry
  mode, value chain activities, financial
  performance, etc.?
• What are YOUR recommendations?