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UNIT 10

1988

1987

Company

Headquarters

Industry

 

 

 

 

 

5

5

International Business

Armonk, N.Y.

Computers

 

 

Machines

 

 

6

8

Toyota Motor

Toyota City (Japan)

Motor vehicles

 

 

 

 

 

7

10

General Electric

Fairfleild, Conn

Electronics

 

 

 

 

 

8

6

Mobil

New York

Petroleum refining

 

 

 

 

 

9

7

British Petroleum

London

Petroleum refining

 

 

 

 

 

10

9

IRI

Rome

Metals

 

 

 

 

 

11

11

Daimler-Benz

Stuttgart

Motor vehicles

 

 

 

 

 

12

16

Hitachi

Tokyo

Electronics

 

 

 

 

 

13

21

Chrysler

Highland Park, Mich

Motor vehicles

 

 

 

 

 

14

18

Siemens

Munich

Electronics

 

 

 

 

 

15

17

Fiat

Turin

Motor vehicles

 

 

 

 

 

16

19

Matsushita Electric Industrial

Osaka

Electronics

 

 

 

 

 

17

15

Volkswagen

Wolfsburg (W. Ger.)

Motor vehicles

18

12

Texaco

White Plains, N.Y.

Petroleum refining

 

 

 

 

 

19

14

E.I. Du Pont de Nemours

Wilmington, Del

Chemicals

 

 

 

 

 

20

20

Unilever

London / Rotterdam

Food

 

 

 

 

 

21

24

Nissan Motor

Tokyo

Motor vehicles

 

 

 

 

 

22

22

Philips'

Endhoven

Electronics

 

 

Gloeilampenfabrieken

(Netherlands)

 

 

 

 

 

 

23

27

Nestle

Vevey (Switzeriands)

Food

 

 

 

 

 

24

32

Samsung

Seoul

Electronics

 

 

 

 

 

25

25

Renault

Paris

Motor vehicles

 

 

 

 

 

Multinational corporations are not always easy to identify, since it may be difficult to determine from the outside how much control management maintains over the policies of affiliates or whether management actually uses a global perspective. As a result, for purposes of gathering statistics, an arbitrary percentage (such as 25 percent of sales from foreign sources) is sometimes used to distinguish multinational corporations from other types of international businesses. However, there is no single universally accepted percentage of foreign sales that clearly separates multinational corporations from others.

Regardless of their size, companies may decide to expand internationally for a number of different reasons. Some organizations may become involved through unsolicited orders from foreign customers. Others may initiate international efforts in order to open new markets or to preclude foreign companies from entering specific foreign markets and eventually becoming domestic competitors. Still others may be motivated by the need to develop sources of supplies, possibilities of acquiring needed technology or prospects for reducing costs by operating in foreign countries. Whatever the reason, managers need to think through their basic orientation toward international management.

51

UNIT 10

Orientations toward International management

Top-level managers in companies that are expanding internationally (particularly those in multinational corporations) tend to subscribe to one of three basic orientations, or philosophies, regarding a degree to which methods of operating are influenced by headquarters or by company members in other parts of the world. The three orientations are ethnocentric (home-country oriented), polycentric (host-country oriented), and geocentric (world oriented). A home country is the country in which an organization’s headquarters is located, whereas a host country is a foreign country in which an organization is conducting business.

An ethnocentric (or home-country) orientation is an approach to international management whereby executives assume that practices which work in the headquarters or home country must necessarily work elsewhere. For example, during the period 1973 to 1986, Procter & Gamble lost an estimated quarter of a billion dollars of business in Japan partially because of an ethnocentric orientation. As one former Japanese employee stated, “They did not listen to anybody”. One of the most serious blunders was a commercial for Camay soap that was used in the late 1970s. The commercial showed a Japanese man meeting a Japanese woman for the firs time and immediately comparing her skin tothatofafineporcelaindoll.AlthoughthiscommercialhadworkedwellinthePhilippines,SouthAmerica, and Europe, it was a disaster in Japan. A Japanese advertising specialist who worked on the commercial had warned Procter & Gamble that only an unsophisticated or rude man would say something like that to a Japanese woman, but company representatives would not listen. As the visechairman of Procter & Gamble later noted, “We learned a lesson here [in Japan] about tailoring your products and marketing to the market. Although an ethnocentric orientation often is a phase that organizations go through when they enter the international area, it can prove extremely difficult to eradicate”.

A polycentric (or host-country orientation) is an approach to international management whereby executives view host-country cultures and foreigners as difficult to fathom and, therefore, believe that the parts of the organization located in a given host country should be staffed by local individuals to the fullest extent possible. Locals – or nationals, as they are sometimes called – are thought to know their own culture, mores, work ethics, and markets best.

As a result, subsidiaries in various countries operate almost independently under the direction of local individual and are tied to the parent company mainly through financial control. The parent company may maintain a very low public profile relative to the subsidiary, as was the case until recentlywithUnileveranditsU.S.subsidiary, LevelBrothers.Itisverypossiblethatyouonlydiscoveredthat a Level Brother was owned by a foreign company when you read the individuals run operations in the host countries,theyhavelittleprospectofholdingseniorexecutivepositionsasheadquarters, mostlybecausethey areperceivedashavingonlyalocalperspectiveandexpertise.Still,apolycentricapproachmaybesuccessful when decision making is largely decentralized to host-country personnel.

The geocentric (or world) orientation is an approach to international management whereby executives believe that a global view is needed in both the headquarters of the parent company and its various subsidiaries and that the best individuals, regardless of homeor host-country origin, should be utilized to solve company problems anywhere in the world. Major issues are viewed from a global perspective at both headquarters and subsidiaries, which consider questions such as “Where in the world shall we raise money, build our plant, conduct R & D, develop and launch new ideas to serve our present and future customers?”. The geocentric approach is the most difficult to achieve because it requires that managers acquire both local and global knowledge.

52

UNIT 10

II.Exercises

1.Ознакомьтесь со словами в разделе III и запомните их.

2.Найдите в тексте предложения, где употребляются модальные глаголы с Perfect или Passive Infinitive и переведите их (см. грамматический справочник, стр. 80).

3.Переведите письменно текст на русский язык, пользуясь словарем.

4.Напишите развернутые ответы на следующие вопросы, исходя из содержания текста.

a)What does international business refer to?

b)What is international management?

c)What does MNC mean?

d)What are the three orientations in international management?

5.Напишите определения к следующим терминам на английском языке:

internationalmanagement;

multinationalcorporation;

ethnocentric orientation;

polycentric orientation;

geocentric orientation.

6.Напишите на английском языке, как Вы понимаете:

“What is the nature of international management?”

 

 

III. Vocabulary items

inventory

-

инвентарь

to conduct

-

руководить, управлять

to bear

-

нести

far-off

-

отдаленный

boundary

-

граница

to encompass

-

заключать в себя (содержать)

edge

-

конкурентоспособное положение

abnormal

-

ненормальный

formidable

-

значительный, громадный

to emerge

-

всплывать, появляться

rapidly

-

быстро

to be engaged

-

быть занятым

to vary

-

1) меняться, изменяться

 

 

2) расходится, различаться

extent

-

степень, протяжение, пространство

to affiliate

- присоединяться в качестве филиала

perspective

-

перспективный

unsolicited orders

-

невостребованные заказы

to involve

-

вовлекать

to subscribe

-

подписываться

headquarters

-

главное управление, штаб-квартира

to assume

-

взять на себя

executive

-

исполнительный

to fathom

-

вникать

53

 

 

UNIT 10

 

 

 

blunder

-

грубая ошибка

subsidiary

-

вспомогательный, дополнительный

ethnocentric

-

этноцентрический

polycentric

-

полицентрический

geocentric

-

геоцентрический

IV. Test

1. Подберите к определениям слева соответствующие термины справа. Запишите ответы следующим образом: например, a) 10.

a)The process of planning, organizing, leading, and controlling in organizations engaged in international business is ... .

b)One special type of organization involved in international management is ... .

c)An approach to international management whereby executives assume that practices work in the headquarters is ... .

d)An approach to international management where by executives view host-country cultures and foreigners as difficult to fathom and believe that the parts of the organization located in a given host country should be staffed by local individuals to the fullest extent possible is ... .

1)multinational corporation

2)international management

3)geocentric orientation

4)ethnocentric orientation

e) An approach to international management whereby executives believe

5) policentric

that a global view is needed in both the headquarters of the parent company

orientation

and its various subsidiaries is … .

 

f) … is a foreign country in which an organization is conducting business.

6) international

 

business

g) … refers to profit-related activities conducted across national boundaries.

7) home country

h) … is the country in which an organization’s headquarters is located.

8) host country

2. Закончите предложения, выбрав необходимое слово или словосочетание слева. Запишите ответы следующим образом: например, а) 1.

1) international trade

a) In the inventory of the items you would probably find

 

many that reflect the increasing volume of business

 

conducted on … .

2) international management

b) The brand names of U.S.-based company may have

 

been produced in … .

3) international business

c) The profit-related activities encompass important

 

supplies from … .

54

UNIT 10

4) the subsidiary

d) The United States is losing its competitive edge in… .

5) different reasons

e) There is no single universally accepted percentage of

 

foreign sales that clearly separates … from others.

6) other countries

f) Regardless of their size, companies may decide to

 

expand internationally for a number of … .

7) a far-off land

g) Whatever the reason, managers need to think through

 

their basic orientation toward … .

8) multinational corporations

h) The parent company may maintain a very low public

 

profile relative to … .

55

 

 

 

Key to Tests

 

 

(Ключ к поурочным тестам)

Unit 1

 

 

 

1. 1)

– f

2. 1)

– f

2)

– g

2)

– a

3)

– a

3)

– e

4)

– c

4)

– c

5)

– d

5)

– d

6)

– b

6)

– b

7)

– e

 

 

Unit 2

 

 

 

 

 

1. a) – 6

2. 1)

– f

6) – g

11) – n

b) – 4

2)

– i

7) – c

12) – o

c) – 1

3)

– k

8) – m

13) – e

d) – 5

4)

– l

9) – j

14) – h

e) – 2

5)

– a

10) – b

15) – d

f) – 3

 

 

 

 

Unit 3

 

 

 

 

 

1. 1)

– g

2. 1)

– c

 

 

2)

– c

2)

– d

 

 

3)

– f

3)

– a

 

 

4)

– e

4)

– e

 

 

5)

– a

5)

– b

 

 

6)

– b

 

 

 

 

7)

– d

 

 

 

 

Unit 4

 

 

 

 

 

1. 1)

– e

2. 1)

– d

 

 

2)

– f

2)

– a

 

 

3)

– a

3)

– f

 

 

4)

– c

4)

– h

 

 

5)

– d

5)

– g

 

 

6)

– b

6)

– b

 

 

 

 

7)

– e

 

 

 

 

8)

– c

 

 

Unit 5

 

 

 

 

 

1. 1)

– e

2. 1)

– h

 

 

2)

– a

2)

– b

 

 

3)

– d

3)

– g

 

 

4)

– c

4)

– a

 

 

5)

– b

5)

– f

 

 

 

 

6)

– e

 

 

 

 

7)

– c

 

 

 

 

8)

– d

 

 

56

 

 

 

KEY TO TESTS

 

 

 

 

Unit 6

 

 

 

1. 1)

– e

2.

1) – e

2)

– a

 

2) – c

3)

– c

 

3) – f

4)

– f

 

4) – d

5)

– d

 

5) – a

6)

– g

 

6) – b

7)

– b

 

 

Unit 7

 

 

 

1. 1)

– d

2.

1) – b

2)

– c

 

2) – g

3)

– b

 

3) – d

4)

– a

 

4) – f

5)

– e

 

5) – a

6)

– e

 

 

7)

– c

 

 

Unit 8

 

 

 

1. 1)

– b

2.

a, d, e, h, i, j

2)

– g

 

 

3)

– a

 

 

4)

– f

 

 

5)

– c

 

 

6)

– d

 

 

7)

– e

 

 

Unit 9

 

 

 

1. 1)

– c

2. 1) – f

2)

– d

 

2) – b

3)

– g

 

3) – c

4)

– a

 

4) – g

5)

– h

 

5) – e

6)

– k

 

6) – a

7)

– b

 

7) – d

8)

– f

 

 

9)

– e

 

 

Unit 10

 

 

 

1. a) – 2)

2. a) – 3

b) – 1)

 

b) – 7

c) – 4)

 

c) – 6

d) – 5)

 

d) – 1

e) – 3)

 

e) – 8

f) – 8)

 

f) – 5

g) – 6)

 

g) – 2

h) – 7)

 

h) – 4

57

ADDITIONAL ASSIGNMENTS

BLOCK 1

1.Выберите русский эквивалент для данного английского слова.

1. to allocate

1.

мотивировать

2. innovation

2.

иметь дело

3. to compare

3.

метод работы

4. to motivate

4. размещать

5. work method

5. процесс управления

6. to deal with

6.

прибыль

7. management process

7. прибыльные организации

8. profit-making organizations

8. нововведение, новшество

9. profit

9.

сравнивать

10. to involve

10. вовлекать

 

11. предусматривать

 

12. конкуренция

2.Выберите английский эквивалент для данного русского слова.

1. состояние экономики

1. a competitor

2. факторы окружающей среды

2. key method

3.

конкурент

3. to motivate

4.

влиять

4. to monitor activities

5. практические знания

5. to perform functions

6.

выполнять функции

6. environmental factors

7. людские ресурсы

7. staff

8.

штат работников

8. performance

9. выполнение

9. working knowledge

10. контролировать деятельность

10. to make profit

 

 

11. human resources

 

 

12. state of the economy

3.Употребите правильно предлоги в предложениях с герундием.

1.

Please, forgive … my not coming on time.

a)

of

2.

The book is worth … reading.

b)

to

3.

You shouldn’t put … talking with these businessman.

c)

off

4.

She tried to avoid … speaking with this secretary.

d)

up

5.

The doctor insisted … sending the thick man to the hospital.

e)

on

6.

Do you mind … him examining by a heart specialist?

f)

at

7.

I don’t feel like … having a cup of strong tea.

g)

8.

It depends … living conditions.

h)

from

9.He did all possible to prevent her … falling.

10.She always complains … being alone.

11.This manager gave … the idea … having talking with mr. Brown.

58

ADDITIONAL ASSIGNMENTS

4.Употребите правильно в предложениях Infinitive or Gerund.

1.These two young people are sure to be / being very good friends.

2.She isn’t likely to change / changing her opinion.

3.Why do you avoid to speak / speaking to me?

4.Do you mind him to examin / examining by a heart specialist?

5.Excuse me for to break / breaking your beautifull vase.

6.She made me to write / writing this letter.

7.He saw her to sit / sitting at the table.

8.In to make / making this experiment they came across some very interesting phenomena.

9.The results of the experiment must be checked and re-checked before to publish / publishing.

5. Расставьте буквы в правильном порядке, и Вы узнаете, какое английское слово здесь зашифровано:

G-E-E-M-M-A-A-N-N-T

BLOCK 2

1.Выберите русский эквивалент для данного английского слова или выражения.

1.

long-term

1.

товарный ряд, ассортимент

2.

external environment

2.

крупномасштабная акция

3.

product line

3.

совместимость, сочетаемость

4.

packaging

4.

внутренние условия

5.

large-scale action

5.

преимущество

6.

compatibility

6.

новшество, нововведение

7.

internal conditions

7.

формулировка стратегии

8.

strategy formulation

8.

долгосрочный

9.

advantage

9.

стратегия

10.

innovation

10.

наблюдать

 

 

11.

внешнее окружение

12.упаковка

2.Выберите английский эквивалент для данного русского слова или выражения.

1.

организация

1.

to identify

2.

планирование

2.

entertainment

3.

создавать

3.

industry

4.

определять

4.

based on

5.

иметь дело

5.

importance

6.

развивать

6.

spare

7.

развлечение

7.

to create

8.

промышленность

8.

to appoint

9.

основываться на

9.

to develop

10.

важность

10.

organization

 

 

11.

to deal with

 

 

12.

planning

59

ADDITIONAL ASSIGNMENTS

3. Выберите из каждой группы предложений то, в котором сказуемое выражено глаголом в страдательном залоге.

1.This letter I have written will be sent tomorrow. This letter will be very important for me.

This letter was about my life in London.

2.The engineers were shown a new model of the computer. The engineers developed this new project in September. The project was new for us.

3.The work will have been completed by the end of the month. You are to complete the work as soon as possible.

He must have completed the work.

4.We have been discussing this problem since early morning. The problems will be discussed at the conference.

The problem to be discussed at the conference is of great importance.

BLOCK 3

1. Закончите предложения, используя по смыслу нижеследующие слова: lead to, technical, human, to engage in, conceptual, related to, to carry out.

In addition to having a knowledge base, managers need three key types of skills … the various functions of management. A skill is the ability … in a set of behaviors that are functionally … one another and that … a desired performance levels in a given area. For managers, the three key skill types are …, …, and ….

2.Выберите русский эквивалент для данного английского слова или выражения.

1.

customer

1.

развивать

2.

to be related to

2.

узнать, признать

3.

technical skills

3.

технические навыки

4.

proficiency

4.

заказчик

5.

to associate

5.

соединять, связывать.

6.

to develop

6.

величина

7.

community

7.

опытность

8.

to recognize

8.

быть связанным с

9.

to take actions

9.

показывать

10.

appropriate

10.

общество

11.соответствующий

12.принять меры

3.Поставьте Infinitive в правильной форме.

1.

He wanted me … on Sunday.

 

a)

ñome

b) to come c) came

2.

I saw him … the room.

 

a)

ånter

b) to enter c) entering

3.

We expected them … soon.

 

a)

àrrive

b) to arrive

60