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Prof. Dr. Ahmad Sayed Mustafa By: Karim Hashem Tamer Badawi Tarek Abdel Latif Walid Helmy.

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Presentation on theme: "Prof. Dr. Ahmad Sayed Mustafa By: Karim Hashem Tamer Badawi Tarek Abdel Latif Walid Helmy."— Presentation transcript:

1 Prof. Dr. Ahmad Sayed Mustafa By: Karim Hashem Tamer Badawi Tarek Abdel Latif Walid Helmy

2 1.Introduction 2.Theoretical Framework 3.Literature Review 4.Research Problem 5.Research Objectives 6.Research Methodology 7.Conclusion

3 What is Globalization? Globalization is the process of integration of cultures. It comes about from the interaction of people from different cultures and societies. It is driven by the process of international trade and investment. The information technology field also has a great hand in the process. It has opened the way for greater and easier communication among people. Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed economic life. Information technologies have given all sorts of individual economic actors—consumers, investors, businesses—valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners.

4 Who is a Global Manager? A global manager is someone who knows how to conduct and manage business across borders. The global dimensions of business and management, though pervasive, pose many complications for a national or local organization to overcome. Skills Required: A global manager needs to have the skills to deal with expatriate work assignments. Basically, s/he will have to undergo three phases of adjustment to the new country. First is the tourist stage, in which s/he enjoys discovering the new culture; second is the disillusionment stage, in which his or her mood is dampened as difficulties become more evident.

5 A business leader or manager needs to be strategic in his or her thinking. Strategic leadership involves: - The capacity to learn, - The capacity to change, - Managerial wisdom. According to Rhinesmith (1992), a global manager needs: global mindset and be able to trust organizational processes rather than structure to deal with the unexpected; value diversity and multicultural teamwork; views change as an opportunity; and are comfortable with surprises and ambiguity.

6 Why Egypt need Global Managers? -To meet the challenges of increasingly international operating environment, exploring and developing global competencies of people throughout the organization becomes essential for companies, whether the main market is at home or abroad. - Export of the main objectives for Egypt to be able to: 1- Cover trade balance between balance of payments and balance of revenue. 2- Reduce Public Debt. 3- Reduce Unemployment Rate.

7 In his autobiography, former South African president Nelson Mandela recalls his dismay when he boarded an airplane and found that the pilot was African. With shock, he realized his reaction was exactly what he had been fighting against all his life. Mandela was discussing racism, but the same involuntary reactions surface in commerce. Consider labels such as "Made in Brazil" and "Made in Thailand." Someday they may be symbols of high quality and value, but today many consumers expect products from those countries to be inferior. Unfortunately, that perception is often shared by managers of the local companies that are striving to become global players.

8 Disadvantages of Globalization: - The main disadvantage of globalization is that rich countries become richer and the poor ones remain poor, because the demand for the developing and underdeveloped countries is very low. Hence entrepreneurs like to invest in those countries where they will be able to make good profits. - Another major damage of globalization is that some cultures are getting lost. The cultures of the countries that have more economic power are more dominant than others. Because, wealthy countries produce many things that can affect cultures, for example, clothes, movies and technologic products.

9 How Egypt can raise global managers? Selection Criteria: 1- Technical expertise and knowledge are used as the most important selection criteria. 2. Leadership qualities. 3. Good organizational skills and adaptability. Kealey’s model for overseas effectiveness. E (Effectiveness) = F (Professional expertise + Adaptation + Intercultural interaction + Situational readiness)

10 Explanation Kealey’s model: - A successful international assignment, managerial effectiveness is the ability to live and work effectively in the cross-cultural setting of an assignment. - Effectiveness is a function of professional expertise, ability to adapt to one’s host country, intercultural communication skill to interact with the locals, and situational readiness such as having family that is willing, able, probably excited to take the assignment.

11 What parties should be involved? Local Adaptation: International Strategy: appropriate when there is little foreign business – knowledge transfer from the centre of headquarters. Coordination cost is low. Multinational Strategy: Cross-border advantages of standardization and learning are low. Coordination-costs are lowest. Global Integration: Global Strategy: Advantages of standardization of policies and practices. Strong centralism. Coordination costs are high. Transnational Strategy: uses advantages form globalization, localization and cross border learning simultaneously. Coordination cost is highest.

12 - Research will study the impact of support Paints & Coatings industry in Egypt will help Egypt to go global. - Coatings industry in Egypt statistics confirm that no domestic or commercial arena remains unaffected, with applications ranging from household and decorative paints, to coatings used in the automotive industry. - The paints and coatings industry consists of manufacturers of paints, varnishes, lacquers, shellacs and stains. It includes two distinct sub sectors -- architectural and industrial -- which are about equal in size in terms of value of shipments.

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14 Total investment in Paints & Coatings sector in Egypt is 11.2 billion LE and the number of employees is 12,000. Table below illustrate total export for paints & Coatings during 2005 – 2007 divided by region:

15 Research Questions: While Egypt building global manager, what will be obstacle will be face? and how Egypt can overcome these obstacles? What will be the best business field can Egypt focus for Globalization? What are the expected obstacles? Global Management techniques are needed in order to operate under these conditions. Some of the problems with which a global manager deals may include: - Obtaining appropriate permits to operate a business in another country. - Securing the right to sell a product in another country, in compliance with that country's laws.

16 What are the expected obstacles? - Complying with the rules for foreigners working in other countries. - Understanding the employment laws of other countries. - Managing international tax consequences of importing, exporting goods & services. - Understanding the business culture of other countries. - Understanding the social customs of other countries. - Determining international branding and advertising needs.

17 How to overcome these obstacles? McCall and Hollenbeck’s (2002) interviewed 102 executives and identified 27 lessons of international experience that were further categorized under six broader themes: - learning to deal with cultural issues, - learning to run a business, - learning to lead and manage others, - learning to deal with problematic relationships, - learning about the personal qualities required of a leader, - learning about self and career.

18 Hypothesis: H 0 : will government support will help Egypt to increase export of Paints & Coatings? Paint and Coating Exporters’ Population and Sample Size: The general objective of the study aims mainly at promoting exports at sector level and the specific objectives are to carry out: 1) an export support study for painting and coating industry 2) a simple industrial profile model with expected economic indicators for a medium scale project for producing two types of paints and a type of resins.

19 The study depends on the direct interview with the key players of the sector and three sources of secondary data: 1) statistics from reliable sources; 2) information from previous studies and reports; 3) information on international markets from reliable websites.

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25 - Paints & Coatings sector may be one of sector can lead Egypt for globalization. - Government support required to this sector to be able to face threats facing this sector. - The financial return is not the only return of the export support; there is social impact as well. The export support will improve the performance of the sector and attract new investments as a result of increased production. These investments will increase the direct and indirect employment. - The new technologies in shifting into Low & Zero-VOC products, Green Chemistry, Hybrid Paints, Energy-Efficient Coatings, Nanotechnology & other trends will require extensive investment in R&D activities and manufacturing equipment development

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