International management: la International management: la figura del laureato in lingue nel figura del laureato in lingue nel contesto dell'economia globalecontesto dell'economia globale

Lorenzo Gui, VIU

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Temi che tratteremo:Temi che tratteremo:

– Introduzione all’economia globale: le nuove economie emergenti.

– La gestione delle imprese globali.

– Il made in Italy e i distretti di fronte alla sfida della globalizzazione.

– Il ruolo che delle figure professionali laureate in lingue nelle aziende.

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Internationalization and Globalization:a new geo-economy

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What is Globalization?What is Globalization?

• The integration of economic, political, and cultural systems across the globe

• "A social process in which the constraints of geography on social and cultural arrangements recede and in which people become increasingly aware that they are receding [Malcolm Waters]

• “The diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result.“ [Tom G. Palmer]

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A new geo-economy?

• The internationalization of economic activities is nothing new

but

• until very recently (the 1950’s), in terms of production, plant, firm and industry were essentially national phenomena.

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Internationalization vs Globalization

• Internationalization processes involve the simple extension of economic activities across national boundaries (quantitative process)

• Globalization processes involve also the functional integration of internationally dispersed activities (qualitatively different)

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Core and Periphery

• In 1945, 71% of world manufacturing production was concentrated in just 4 countries and almost 90% in 11 countries.

• The group of core industrial countries sold 2/3 of its manufactured export to the periphery and absorbed 4/5 of the priphery’s primary products.

• Things changed a lot!!

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Recent changes in globalization, particularly industrial growth in

developing countries, is challenging this representation.

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A qualitatively new integration

• International economic integration until the 1950’ manifested through arm’s length trade in goods and services and international movement of capital:SHALLOW INTEGRATION

• Today, integration organized by TNCs; cross-border value adding activities within firms increasingly influence linkages between national economies:DEEP INTEGRATION

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Integration of trade and disintegration of Integration of trade and disintegration of production:production:

• Fragmentation of production, i.e. division of production stages among suppliers located in different countries.

• Larger participation of developing country firms in the global economy (about 40% of world trade in parts and components)

• Role of intermediary (e.g. Retailers, Branded Marketers, etc.) in structuring global production chains and facilitating global matching

• “New” players and lead firms, that sell final products and set production standards for "lesser" producers.

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In your dishwasher…

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Supporting Evidence

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Strategies and Advantages

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Comparative advantageComparative advantage

• Opportunity cost or economic opportunity loss is the value of the next best alternative foregone as the result of making a decision.

• Comparative advantage refers to the ability of a person or a country to produce a particular good at a lower opportunity cost than another person or country.

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Competitive advantageCompetitive advantage

• Competitive advantage is a position a firm occupies against its competitors.

• Firms have a competitive advantage over rivals when organisation and managerial processes, position and technology competencies (skills) give them superior value creating processes

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Location and the Value Chain:Location and the Value Chain:Offshoring (and Outsourcing)Offshoring (and Outsourcing)

• Is the firm’s competitive advantage based on firm-specific or country-specific resources (comparative advantage)?

• How great are the coordination and learning benefits from co-locating activities according to firm’s business strategy?

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Value chain…individual functionsValue chain…individual functions become become separableseparable

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Activities can then be located anywhere in Activities can then be located anywhere in the worldthe world

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Porter’s national diamond Porter’s national diamond frameworkframework

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How we compete in a global economy?

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The traditional view of global The traditional view of global advantageadvantage

• “Projecting”: leading from the strength of the home base and seeking new market potential and cost advantage abroad

• Glocal strategies: think global, act local (adapt)

• Globalization means “teaching the world” your home winning model

• But is local adaptation relevant only locally?

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Penetrating new markets or Penetrating new markets or learning from the world?learning from the world?

• Competitive advantage is primarily based on knowledge

• Not all the knowledge a global company needs to prosper is to be found in one place

• The cost of distance is falling rapidly

• Metanational:build a new kind of competitive advantage by discovering, accessing, mobilizing, and leveraging knowledge from many locations around the world.

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Think Local, Act GlobalThink Local, Act Global

• Maximize the local distinctive contribution to the overall goal of leveraging innovations globally

• Use the comparative advantage of your location to build and improve some unique operational competence

• Squeeze distinctiveness out of local environment

• Be proud of local capabilities, but be also committed to the global cause

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New frontiers in international strategy

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Semiglobalization and strategySemiglobalization and strategy

• Semiglobalization: this structural condition of intermediate levels of international integration affords room for international business strategy

• Importance of location specificity and business specificity: International Corporate Strategy

• Why countries or locations differ? (CAGE framework)

• Ecology of firms and locations need to be looked at from specific industry persprctives (arbitrage strategies)

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Local Systems: 199

Manufacturing firms: 224.368

Employees: 2.173.801 (43,7%)

Share of export (1998): 100 Bln € (45,8%)(Source: Centro Studi Banca d’Italia, 2000)

Geography of Italian productive districts

(Source: Istat, 1997)

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International Careers

• Posts in an export department (export manager)

• Marketing department (sales, advertisements)

• Purchase department

• Contracts managers (off-shoring management)

• Public relations and translators

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Rare Skills

• Ability to negotiate, (flexibility) to go abroad, and fix a complex deal

• Technological skills

• Management, marketing and economic knowledge

• Some knowledge of international business

• Foreign languages

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Promozione del Made in Italy nei mercati internazionali

L’export manager è la persona che cura le vendite all’estero di un’azienda.E’ suo compito conoscere i mercati nei quali andrà ad operare, sviluppare i contatti dell’azienda con clienti o potenziali clienti e documentarsi sugli strumenti che possono sostenere o agevolare le esportazioni dell’azienda. Per questa sua proiezione verso l’estero è estremamente importante una buona conoscenza delle principali lingue dei mercati nei quali andrà ad operare, spiccate doti di adattamento e di flessibilità, la conoscenza del prodotto, la conoscenza di Paesi e culture ed anche una buona capacità di negoziazione.