Management Information

Management Information Systems, Managing the Digital Firm, 17e (Global Edition) Kenneth Laudon, Jane Laudon (Solutions Manual All Chapters, 100% Original Verified, A+ Grade) All Chapters Are Reversed From 15-1 1 / 4

15-1 Copyright © 2022 Pearson Education Ltd.Chapter 15 Managing Global Systems Student Learning Objectives 15-1 What major factors are driving the internationalization of business?15-2 What are the alternative strategies for developing global businesses?15-3 What are the challenges posed by global information systems and management solutions for these challenges?15-4 What are the issues and technical alternatives to be considered when developing international information systems?15-5 How will MIS help my career?Key Terms The following alphabetical list identifies the key terms discussed in this chapter. The page number for each key term is provided.Business driver, 594 Legitimacy, 606 Cooptation, 607 Multinational, 601 Core systems, 604 Particularism, 598 Domestic exporter, 600 Software localization, 611 Franchisers, 601 Transborder data flow, 599 Global culture, 595 Transnational, 601 International information systems architecture, 594 Teaching Suggestions

The Bel Group: Laughing All the Way to Success

The opening case, “The Bel Group: Laughing All the Way to Success,” identifies some of the issues that organizations need to consider if they want to operate worldwide. Like many large, multinational firms, Bel has subsidiaries and sales offices in a number of different countries. It also has an acquisition strategy that means potential differences in systems, business processes, and reporting standards have to be managed. Given the Group’s product range and target audience, creating a customer bond and building customer understanding is vital to success. In a mobile-enhanced world, communication speed and customization across diverse contact points becomes a requirement. The company identified the need for a scalable, easy-to-use system that would provide an 2 / 4

15-2 Copyright © 2022 Pearson Education Ltd.

effective measurement tool for different marketing campaigns in order to meet the varying needs of its target audiences.

Section 15-1, “What major factors are driving the internationalization of business?” Figure 15-1 is an excellent example of the globalization of businesses and industries. This figure shows how one product, the Apple iPhone, involves operations in seven different countries around the world. That is possible only through advanced networks and information systems like the one Apple uses. Students might find it interesting to trace common products through the design, production, and distribution phases to see the globalization of industries first-hand. They can use the Internet to research this information for themselves.

This section discusses the added challenges corporations face when they do business on a global scale. Cultural particularism, social expectations, and political laws that vary from country to country add layers to business processes, management strategies, and information requirements that are not present in domestic companies. The problems and situations in this section are the basis for the remaining sections—how to organize and manage information systems that meet these challenges and serve a business worldwide.

Section 15-2, “What are the alternative strategies for developing global businesses?” It is important for students to understand that a company’s corporate headquarters isn’t always located in the United States as many people assume. There are many instances of companies whose corporate headquarters are located in foreign countries and simply have local or regional operations in the United States. This section defines four business strategies and structures global companies can use: domestic exporter, multinational, franchiser, transnational. It is an interesting exercise for students to classify companies tthey are familiar with into one of these four categories. For instance, Caterpillar is a domestic exporter, Intel is a multinational, McDonald’s is a franchiser, and Sony is a transnational. The section ends by matching the appropriate system configuration with the global strategy that a company uses.

Section 15-3, “What are the challenges posed by global information systems and management solutions for these challenges?” Take all the problems and challenges that a domestic company faces in designing, building, and managing its information technology infrastructure and magnify them on a global scale. The subsection “A Typical Scenario: Disorganization on a Global Scale” describes the more common situation occurring in global corporations—a hodgepodge of hardware, software, and telecommunications. The section describes how to arrive at a solution to these problems by defining core business processes, choosing an approach, and making the benefits clear to users. Using Table 15-4, you can demonstrate management challenges and solutions to creating a global information technology infrastructure.

Section 15-4, “What are the issues and technical alternatives to be considered when developing international information systems?” Students may assume that all countries have the same technology and telecommunications infrastructure as the United States.Many students are also under the impression that the United States leads the world in 3 / 4

15-3 Copyright © 2022 Pearson Education Ltd.

technology usage and advanced applications. Spend some time discussing how both assumptions are untrue. The disparate levels of telecommunications services throughout the world add to the challenges and difficulties of developing global information systems.It may also be interesting to discuss the challenges in developing software for global systems because of language and cultural differences. For instance, when a company develops a user interface for applications that will supposedly be used worldwide, should the English language be used, or should the application be adaptable to local languages via software localization? Discuss the challenges in using two different languages for similar applications.

Interactive Session: Management: Rethinking Global Supply Chains

Case Study Questions

• What factors have contributed to the growth of global supply chains?

Lower transportation costs, falling trade barriers, the growth of subcontracting, and use of the Internet as a low-cost global communication tool have enabled many companies to shift to a global sourcing model.

• What are the advantages and disadvantages of global supply chains?

Global supply chains have made it possible for original equipment manufacturers (OEMs) and Tier 1 vendors in the various industry supply chains, for example, to meet aggressive cost targets while keeping the price of new products low.

The complexity of having many levels of tiers for supply lines makes it very difficult for companies to have visibility into who their suppliers actually are. Without this knowledge, many companies are caught off guard when major disruptions occur.

• What measures can companies take to mitigate supply chain risk?

Businesses should eliminate their dependence on sourcing from a single supplier, region, or country. They should develop alternate supply sources and increase their safety stocks. These moves will increase costs, but they will make supply chains more resilient. Companies should also consider more regionalization of production and even localization of suppliers if feasible. Lastly, companies should consider reducing the number of products they make.

• Should companies continue to maintain global supply chains? Explain your

answer.

Companies should continue to maintain global supply chains as the pros outweigh the cons for the business. What is important is to recognize some of the steps and ways that problems and issues can be mitigated so that the impacts are less severe when something unexpected might interrupt the supply chain.

• / 4