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Chapter 2:

Chapter 2:. History and Business. Demands for Businesses are the Product of the Times. Postwar years (1945 – 55) Growth years (1955 – 70) Time of Trouble (1970 – 80) International Era (1980 – 90) N ow in a global era (1990 – now). Postwar Era (1945–55). Reconstruction worldwide

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Chapter 2:

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  1. Chapter 2: History and Business

  2. Demands for Businesses are the Product of the Times • Postwar years (1945–55) • Growth years (1955–70) • Time of Trouble (1970–80) • International Era (1980–90) • Now in a global era (1990–now)

  3. Postwar Era (1945–55) • 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 (1955–70) • Growth via international expansion becomes a priority for firms from more nations, particularly Europe and Japan. • Developing economies no longer willing to bedeveloped, 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 (1980–90) • 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 (1990–now) • 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.

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