JHOROSE THE TECH MARKETERS

JONALYN A. MARANION
III-BSBM
Management Information System
Mr. Julius Ceasar Mamaril

ANALYZING ORGANIZATIONAL ENVIRONMENT AND UNDERSTANDING ORGANIZATIONAL CULTURE

ENVIRONMENT:
Is defined as outside institution and forces outside the organization that potentially affect an organization’s performance.

Types of Environment:
1) External Environment
2) Internal Environment

EXTERNAL ENVIRONMENT:
Major forces outside the organization with potential to influence significantly a product or resources services likely success.

Types of External Environments:
1) Mega Environment
2) The Task Environment

MEGA ENVIRONMENT:
The mega environment, or general environment as it is sometimes called, is the segment of the external environment that reflex the broad condition and trends in the societies within which an organization operates.

Major Elements of the Mega Environment:
1) Technological Element- reflects the current state of knowledge regarding the production of product and services.

2) Economic Element- encompasses the system of producing, distributing, and consuming wealth.
Capitalist Economy- economic activity is governed by market forces and the means of production are privately owned by individuals, either directly or through corporations.
Socialist Economy- the means of production are owned by state and economic activity is coordinated state plan.

3) Legal-Political Element- includes the legal and governmental system within
which organization must function.

4) Socio- Cultural Element- includes the attitudes, values, norms, beliefs,
behaviors, and associated demographic trends that are characteristics of a
given geographic area.

5) International Element- includes the developments in countries outside an
organization’s home country that have the potential impact to the organization.

TASK ENVIRONMENT:
Is that segment of the external environment made up of specific outside elements with
which an organization interfaces in the course of conducting its business.

Elements of Task Environment:

1) Customers and clients- are those individuals and organization that purchase its
products and/ or services.

2) Competitors- are other organizations that either offers of have a high potential of
offering rival products or services.

3) Suppliers- are those individual organization that supply the resources such as raw
materials, products, or services the organization needs to conduct its operation.

4) Labor Supply- consist of those individuals who are potentially employable by the
Organization.

5) Government Agencies- provides services and monitor compliance with laws and
regulations at local, state or regional, and national levels.

Organization’s Relationship with Stakeholders:
1) Stakeholders are any constituencies in the organization’s external environment that are
affected by, or have a vested interest in, the organization’s decisions and action.

2) Stakeholder relationship management is important for two reasons:
a) It can lead to improve predictability of environmental changes, more successful innovation, grater degrees of trust, and greater organizational flexibility to reduce the impact of the change.
b) It is the right thing to do, because organizations are dependent on external stakeholders as sources of inputs and outlets for outputs should be considered in making and implementing decisions.

3) Stakeholder Relationships are manage using four steps:
a) Identify external stakeholder.
b) Determine the specific interests of each stakeholder group.
c) Decide how critical this interests are to organization.
d) Determine what specific approach managers should use to manage each relationship.

Organization’s Culture
- is a system of shared meaning and beliefs within an organization that determines. In
large degree, how employees act. This definition complies several things.
1) Culture is perception that exist in the organization, not in the individual.
2) Organizational culture is a descriptive term. It describes rather evaluates.
3) Seven dimensions of an organization culture have been proposed:
a) Innovation and risk taking
b) Attention to detail
c) Outcome orientation
d) People orientation
e) Team orientation
f) Aggressiveness
g) Stability
Employees “learn” an organization’s culture in different ways.
1) Organizational stories- are one way that the employees learn the culture.
2) Rituals- are repetitive sequences of activities that express and reinforce the key values of the organization .

Learning Objectives:

 

 

1. Understand how multinational corporation use information technology as a means of coping with the uncertainty of their global environments.
2. Be familiar with the different types of organizational structure that have proved effective for multinational corporations.
3.  Appreciate that coordination is important to multinational corporations, and that it provides many advantages.
4. Have a good understanding of how global strategies have involved and of the role of global information system in each strategy.
5. Know what global business drivers are, and the techniques for specifying them.
6. Be alert to the problems of implementing global information systems, and know a strategy for keeping the problem effects to a minimum.
7. Have an idea of how the computer is affecting smaller nations around the world.

 

 

 

The Multinational Corporation (MNC)

 

        -it is a firm that operates across products, markets, nations, and cultures.

        -it consists of the parent company and a group of subsidiaries.

 

TYPES OF MNC ORGANIZATIONAL STRUCTURE

 

1. Worldwide Functional Divisions – the subsidiaries are organized along functional lines – manufacturing, marketing, and finance.

 

2. International Divisions – all foreign subsidiaries report to an international division of the MNC that is separate from the domestic division.

 

3. Geographical Regions – the MNC divides its operation into regions and each region is responsible for the subsidiaries that are located within its borders.

 

4. Worldwide Product Divisions – the firm is organized along the lines of product division and the division are each responsible for their own operations on a worldwide basis.

 

 

THE SPECIAL NEED FOR COORDINATION IN AN MNC

 

Coordination – become a key to achieve competitive advantage in a global marketplace.

 

 

THE ADVANTAGE OF COORDINATION

 

Ø      Flexibility in responding to competitors in different countries and markets.

Ø      The ability to respond in one country – or in region of a country - to a change in another.

Ø      The ability to keep abreast of market needs around the world

Ø      The ability to transfer knowledge between units in different countries.

Ø      Reduced overall costs of operation.

Ø      Increased efficiency and effectiveness in meeting costumer needs.

Ø      The ability to achieve and maintain diversity in the firm’s products and in how they are produced and distributed.

 

 

GLOBAL BUSINESS STRATEGIES

 

 

1. Multinational Strategy – the oldest of the strategies, having been pursued by European – based firms prior to World War 11.

 

2. Global Strategy – the multinational strategy is one of decentralization, the global strategy localizes control within the parent.

 

3. International Strategy – it is a blending of the centralized control of the global strategy and the decentralized control of the multinational strategy.

 

4. Transnational Strategy – strategy becomes popular in the 1980’sas firms recognized that they had to be more responsive at the subsidiary level.

 

 

 

GLOBAL BUSINESS DRIVER (GBD)

 

-         An entity that benefits from global economies of scale and scope and thus contributes to the global business strategy.

 

 

SEVEN DRIVERS THAT WERE IDENTIFIED IN A SURVEY OF 105 MNC’s WITH HEADQUARTERS IN UNITED STATES.

 

 

1.      Joint Resources – several of an MNC’s subsidiaries share the same resources as a way to keep expenses down.

2. Flexible Operations – production can be moved from one plant to another in response to changing conditions.

3.      Rationalized Operations – the components and subassemblies that go into MNC’s finished products are produced around the world.

4.      Risk Reduction – MNC’s hedge against the risk inherent in operating in a single country by operating multiple countries.

5.      Global Products – the firm markets the same products around the world or subsidiaries around the world assemble their own products from common subassemblies.  

6.      Scarce Supplies – certain resources are so scarce or expansive that they cannot be provided at each location.

7.      Corporate Customers – the firm’s customer are located around the world.

 

 

SUGGESTIONS FOR SETTING GBDS

 

 

Ø      Analyze should involved the firms top executives.

Ø      The level of the analysis should not be too high.

Ø      Analysis should recognized differences that exist within the firms.

Ø      Analysis should recognized differences in culture that exist from one subsidiary to another.

 

 

 

PROBLEMS IN IMPLEMENTING GLOBAL INFORMATION SYSTEM

 

 

1. Politically Imposed Constraints

              – The national government where the subsidiaries are located can impose a variety of restrictions that make it difficult for the parent to include the subsidiaries in the network.

A. Restriction on Hardware Purchase and Imports

          -National governments seek to protect local manufacturers and stimulate foreign investments in local manufacturing by specifying that only equipment produced or assembled in that country is to be used.

B.  Restriction on Data Processing

          - National policy may dictate that data be processed within the country rather than transmitted out of the country and processed elsewhere.

C. Restriction on Data communications

          - The most publicized data on communications restriction is that put on Transborder data flows

Transborder data flows (TDF’s) - are the movement of machine-readable data across, national boundaries. They have been classified into four types:

 

1. Operational data such are as transaction data used in accounting information systems.
2. Personal data that identifies specific individuals.
3. Electronic funds transfer from one country to another.
4. Technical and Scientific data.

 

2.      Technological Problems

- MNC’s are often plagued with problems related to the level of technology that exists in subsidiaries countries, reliable power source are not available, resulting in frequent power outages.

 

3.      Lack of Supports from subsidiaries Managers    

-the managers of subsidiaries offices often are part of the problem. Some are convinced that they can run their subsidiaries w/o help, and they view headquarters imposed regulations as unnecessary.

 

 

 

 

A TRANSNATIONAL STRATEGY FOR GIS IMPLEMENTATION

 

 

-         is the most complex of the four

-         It attempts to integrate the entire MNC’s into a smoothly working system.

 

 

 

Link the GIS to business Strategy

 

        The team should:

 

1. Work closely with the firm’s executives to give an understanding of the potentials impacts of the GIS on global business strategy.
2. Understand each business unit’s global business strategy.
3. Determine the global GIS strategy that is appropriate for each unit’s global business strategy.
4. Define objectives for each GIS strategy.
5. Identify applications necessary to achieve each GIS strategy and prioritized them.
6. Assign responsibilities for implementing the applications.

 

 

 

Define the information resources

 

The team should:

 

1.      Determine the number and location of regional data centers.

2.      Identify vendors who can provide products and services for each subsidiary site

3.      Specify standards hardware and software that can be used at all sites.

4.      Make plans for one or more help desks to assist subsidiaries on a 24 hours a day seven-days-a-week basis.

5.      Be prepared for implementing delays that are not experienced in the parent country.

 

 

Provide for data sharing

 

The development team should:

 

1. Develop a global data model that supports the global business objectives.

2. Form a group consisting of representatives from both parent and the subsidiaries for the purpose of establishing data standards to be applied throughout the MNC.

3. Study legislation in the various countries of operation to define limitations on processing and telecommunications.

4. Based on the study, determine whether to transmit data across country borders or process it in the subsidiary country.

5. Implement the database.

 

Consider the cultural Environment

 

The development team should:

 

1. Be alert to cultural differences that exist among the subsidiary countries and formulate systems solutions that are mutually acceptable to all concerned.
2. 2. Conduct a skills survey of information specialists within the subsidiaries for the purpose of making maximum use of those skills during implementation.

3. Provide educational and training opportunities to the subsidiaries so that their personnel can acquire skills in areas where they are deficient and sharpened the skills in areas where they have strength.

4. Establish formal programs for preparing managers at the parent location to work with managers in the subsidiaries, and vice versa. Such programs should address the cultural differences that can be expected and how to respond to them.

 

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