1. 17.1

2. 17.2 LEARNING OBJECTIVES IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATIONIDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESSCOMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIESDEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIES*

3. 17.3 LEARNING OBJECTIVES PLAN DEVELOPMENT OF INTERNATIONAL INFORMATION SYSTEMSPLAN DEVELOPMENT OF INTERNATIONAL INFORMATION SYSTEMS EVALUATE TECHNICAL ALTERNATIVES IN DEVELOPING GLOBAL SYSTEMSEVALUATE TECHNICAL ALTERNATIVES IN DEVELOPING GLOBAL SYSTEMS*

4. 17.4 MANAGEMENT CHALLENGES GROWTH OF INTERNATIONAL INFO SYSTEMSGROWTH OF INTERNATIONAL INFO SYSTEMS ORGANIZING INTERNATIONAL INFO SYSTEMSORGANIZING INTERNATIONAL INFO SYSTEMS MANAGING GLOBAL SYSTEMSMANAGING GLOBAL SYSTEMS TECHNOLOGY ISSUES & OPPORTUNITIESTECHNOLOGY ISSUES & OPPORTUNITIES*

5. 17.5 INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE BASIC INFORMATION SYSTEMS REQUIRED TO COORDINATE WORLDWIDE TRADE & OTHER ACTIVITIES *

6. 17.6 GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES CORPORATE GLOBAL STRATEGIES ORGANIZATIONAL STRUCTURE MANAGEMENT & BUSINESS PROCEDURES MANAGEMENT & BUSINESS PROCEDURES TECHNOLOGICAL PLATFORM INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

7. 17.7 GLOBAL BUSINESS DRIVERS General Cultural Factors: GLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIESGLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIES DEVELOPMENT OF GLOBAL CULTUREDEVELOPMENT OF GLOBAL CULTURE EMERGENCE OF GLOBAL NORMSEMERGENCE OF GLOBAL NORMS POLITICAL STABILITYPOLITICAL STABILITY GLOBAL KNOWLEDGE BASEGLOBAL KNOWLEDGE BASE*

8. 17.8 GLOBAL BUSINESS DRIVERS Specific Business Factors: GLOBAL MARKETSGLOBAL MARKETS GLOBAL PRODUCTION & OPERATIONSGLOBAL PRODUCTION & OPERATIONS GLOBAL COORDINATIONGLOBAL COORDINATION GLOBAL WORK FORCEGLOBAL WORK FORCE GLOBAL ECONOMIES OF SCALEGLOBAL ECONOMIES OF SCALE*

9. 17.9 CHALLENGES & OBSTACLES TO GLOBAL BUSINESS SYSTEMS GENERAL: CULTURAL PARTICULARISMCULTURAL PARTICULARISM SOCIAL EXPECTATIONSSOCIAL EXPECTATIONS POLITICAL LAWSPOLITICAL LAWSSPECIFIC: TELECOMMUNICATION STANDARDSTELECOMMUNICATION STANDARDS NETWORK RELIABILITYNETWORK RELIABILITY DATA TRANSFER SPEEDSDATA TRANSFER SPEEDS SHORTAGE OF CONSULTANTSSHORTAGE OF CONSULTANTS*

10. 17.10 GLOBAL STRATEGIES & BUSINESS ORGANIZATION DOMESTIC EXPORTER: Centralization in home countryDOMESTIC EXPORTER: Centralization in home country MULTINATIONAL: Central home base; decentralized production, sales, marketing in other countriesMULTINATIONAL: Central home base; decentralized production, sales, marketing in other countries FRANCHISER: Product created, initially produced in home country; relies heavily on local workers to produce, market in other countriesFRANCHISER: Product created, initially produced in home country; relies heavily on local workers to produce, market in other countries*

11. 17.11 GLOBAL STRATEGIES & BUSINESS ORGANIZATION TRANSNATIONAL: Truly Global Firm; No National Headquarters; Value-added Activities Managed From Global Perspective; Optimizes Supply & Demand, Taking Advantage of Local Competitive StrengthsTRANSNATIONAL: Truly Global Firm; No National Headquarters; Value-added Activities Managed From Global Perspective; Optimizes Supply & Demand, Taking Advantage of Local Competitive Strengths*

12. 17.12 FUNCTION FUNCTION DOMESTIC EXPORTER MULTI-NATIONAL FRANCHISER TRANS-NATIONAL PRODUCTION PRODUCTION CENTRALIZED CENTRALIZED DISPERSED DISPERSED COORDINATED COORDINATED FINANCE/ACCOUNTING FINANCE/ACCOUNTING CENTRALIZED CENTRALIZED CENTRALIZED CENTRALIZED CENTRALIZED COORDINATED COORDINATED SALES/MARKETING MIXED MIXED DISPERSED DISPERSED COORDINATED COORDINATED HUMAN RESOURCES HUMAN RESOURCES CENTRALIZED CENTRALIZED COORDINATED COORDINATED STRATEGIC MANAGEMENT STRATEGIC MANAGEMENT CENTRALIZED CENTRALIZED COORDINATED COORDINATEDSTRATEGY GLOBAL BUSINESS STRATEGY & STRUCTURE GLOBAL BUSINESS STRATEGY & STRUCTURE

13. 17.13 GLOBAL INFORMATION SYSTEMS CENTRALIZED: Domestic Home BaseCENTRALIZED: Domestic Home Base DUPLICATED: Copies of Home System Used in Foreign LocationsDUPLICATED: Copies of Home System Used in Foreign Locations DECENTRALIZED: Each Unit has Unique SystemDECENTRALIZED: Each Unit has Unique System NETWORKED: Integrated & Coordinated at all LocationsNETWORKED: Integrated & Coordinated at all Locations*

14. 17.14 NATIONAL NATIONALSTRATEGY SYSTEM SYSTEM DOMESTIC DOMESTIC MULTI- TRANS- TRANS- CONFIGURATION CONFIGURATION EXPORTER EXPORTER FRANCHISER FRANCHISER NATIONAL NATIONAL CENTRALIZED CENTRALIZEDX DUPLICATED DUPLICATEDX DECENTRALIZED DECENTRALIZEDxXx NETWORKED NETWORKEDxX X : DOMINANT PATTERN x : EMERGING PATTERN GLOBAL INFORMATION SYSTEMS CONFIGURATIONS

15. 17.15 REORGANIZE THE BUSINESS ORGANIZE VALUE-ADDING ACTIVITIES FOR COMPARATIVE ADVANTAGEORGANIZE VALUE-ADDING ACTIVITIES FOR COMPARATIVE ADVANTAGE DEVELOP & OPERATE SYSTEMS AT EACH LEVEL: National; regional, internationalDEVELOP & OPERATE SYSTEMS AT EACH LEVEL: National; regional, international ESTABLISH SINGLE WORLD HEADQUARTERS: Have global chief information officerESTABLISH SINGLE WORLD HEADQUARTERS: Have global chief information officer*

16. 17.16 AGREE ON COMMON USER REQUIREMENTSAGREE ON COMMON USER REQUIREMENTS INDUCE PROCEDURAL BUSINESS CHANGESINDUCE PROCEDURAL BUSINESS CHANGES COORDINATE APPLICATIONS DEVELOPMENTCOORDINATE APPLICATIONS DEVELOPMENT COORDINATE SOFTWARE RELEASESCOORDINATE SOFTWARE RELEASES ENCOURAGE LOCAL USERS TO ACCEPT OWNERSHIPENCOURAGE LOCAL USERS TO ACCEPT OWNERSHIP* DEVELOPING GLOBAL SYSTEMS

17. 17.17 STRATEGY: DIVIDE, CONQUER, APPEASE DEFINE CORE BUSINESS PROCESSESDEFINE CORE BUSINESS PROCESSES IDENTIFY CORE SYSTEMS TO COORDINATE CENTRALLYIDENTIFY CORE SYSTEMS TO COORDINATE CENTRALLY CHOOSE AN APPROACH: Incremental, grand design, evolutionaryCHOOSE AN APPROACH: Incremental, grand design, evolutionary MAKE BENEFITS CLEARMAKE BENEFITS CLEAR*

18. 17.18 MAIN TECHNICAL ISSUES HARDWARE & SOFTWARE INTEGRATIONHARDWARE & SOFTWARE INTEGRATION CONNECTIVITYCONNECTIVITY SOFTWARE: Languages can be a barrierSOFTWARE: Languages can be a barrier*

19. 17.19 Connect to the INTERNET PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION IN THIS CHAPTER

20. 17.20