MG2005 Flashcards
WEEK 1-5
why and how international management and the study of organizations matter
- help understand the evolution of international organization.
- the driving forces of globalization
- variations within and between countries and ownership typers
This knowledge is helpful because - allows to adapt top chaning markets dynamics
- effectively manage international opperations
- understand cultural differences
what are the driving forces in globalization
-technology break throughs
- changes in international competition
- organization change
- the rise and fall of empires
- the growth of super star firms
what is globalization
it is the increasing interconnectedness and integration of economies, cultures and societies worldwide through technology, communication , migration and tradewha
what are winners and what are losers in the global economy
Winners are those who adapt and thrive in response to the opportunities and challenges brought about by globalization, such as increased trade, technological advancements, and interconnected markets.
Losers, on the other hand, are those who struggle or fall behind because they fail to adapt to these changes, potentially losing out on opportunities for growth, competitiveness, and prosperity.
what is the agency theory
A theoretical framework that examines the relationships between principals (owners) and the agents (managers) in organizations.
What are the main assumptions of the agency theory
- owners seek profit maximazation
- managers may have conflicting interest and behave in a self- interested manner
- information asymmetry + moral hazards
- monitor managers to make sure their
actions align with the owners interests
what is the transaction cost theory
theory that analyzes the costs associated with transactions between firms such as :
- negotiating contracts
- monitoring performance
- opportunistic behaviour
what are the agency theory common criticims
- oversimplification of the principal-agent relationship
- focus on short term financial gains
- neglect stakeholder interests
- failure to account for non-financial motivations
explain oversimplification of the principal-agent relationship
the theory does this by primarly focusing on the aligment of interests between owners and managers, while ignoring the broader complexities of organizational dynamics. Factors like market positioning, innovation, strategic capabiliteis
explain - focus on short term financial gain
by having a short terms focus on gains instead of a long term focus on long -term sustainability and ethical considerations, managers will prioritize immediate profits over the organizations long-term viability and ethical behavior.
explain - neglect stakeholder interests
by overlooking their interest (employes, customers, the community) the theory may fail to consider the broader impact of managerial decisions on various stakeholders and societal welfare
- failure to account for non-financial motivations
managers are driven by things like job satisfaction, reputation and personal values not money, which can affect their decisions and their actions in a company.
what is the resource based view
here the firm emphasis on the significance of the firm’s unique resources and capabilities in achieving sustainable competitive advantages.
what is the resource based view focus
find unique, rare and hard to imitate resource and capabilities that will help them maintain a competitive edge in the market
RBV highlights the importance of
dynamic capabilities, core competencies,