- •1.The nature and content of notion “Management of fea”
- •2. Goal and tasks of management of foreign economic activity
- •3. Principles and functions of management of fea
- •1.Methods of enterprise’s fea management
- •2.The basic concept framework of enterprise’s management of fea
- •3.The main methodological approaches to the management of fea of the enterprise
- •Importance of motivation
- •1.Generaral characteristic of the of the management of foreign economic activity process
- •2. Types of operations and procedures in management of fea
- •3. Features of management of foreign economic activity by stages.
- •1.Management activities as the basis of the process of m.OfFea
- •5.By direction of influence :
- •6.By means of adoption :
- •7.By terms of decision making:
- •1.The origin of crisis in fea
- •2. Adaptation of enterprises acting abroad to external economics shocks
- •3.Diagnostics and crises avoidance of the of the enterprise acing abroad
- •1. (Contents, essence and structure of economic analysis of foreign economic activity of enterprise
- •Principle of quantitative comparison of charges and results of activity - envisages comparison of indexes after identical quantitative units.
- •2. Analysis of foreign trade turnover of enterprise
- •Theme 8. Organization of fea
- •Essence of content of organ of fea
- •Importance of organization of fea
- •Types of organizational structure of man of fea
- •Demerits of Line and Staff Organization
- •Functional organizational structure
- •Merits of Functional Organization
- •Demerits of Functional Organization
- •3. Special features of departments of foreign economic activity in international companies.
- •Organization
- •Organizational culture
- •1.Essence and content of forecasting of fea.
- •2.Types of foreign economic forecasts.
- •1.Time-series methods used historical data to develop forecasts of the future.
- •3. Methods and means of forecasting
- •Place and role of planning in the process of management of foreign economic activity.
- •Characteristic of operational and strategical planning of fea.
- •3.Advantages and disadvantages of planning
- •Disadvantages of planning
- •Internal Limitations Rigidity
- •1. Role of control in the process of management of foreign economic activity
- •2.Diagnostics as a function of management of foreign economic activity.
- •3. The role of regulation in securing of qualified management of foreign economic activity
- •Importance of regulation
- •1.The nature and content of notion “Management of fea”
- •2. Goal and tasks of management of foreign economic activity
1.The origin of crisis in fea
Crisis-unexpected event leading to major unrest amongst the people at the workplace.
Crisis-emergency situation which disturbs the employees as well as leads to instability in the organization.
Characteristics of crisis: -sequence of sudden disturbing events harming the org-ion.- arises on a short notice.-triggers a feeling of fear and threats.
Reasons of crisis in FEA: -technological failure;-boycott ,strikes, disputes;-violence, threfts, terrorism in the workplace;-disability to pay its creditors;-custom problem;-currency exchange rate changes;-problems with employees etc
The origin of world financial crisis:-consumer borrowing;-the housing bubble;- housing speculation;-predatory lending;-regulation and deregulation;-interest rates;-globalization and trade deficit;-shadow banking system.
2. Adaptation of enterprises acting abroad to external economics shocks
External Shock – an unexpected change in an economic variable which take place outside the economy.
External shocks: war, energy cost, famine, share prices, uncertainty, natural disasters.
Energy Costs: Rising oil prices affect many businesses worldwide; Change the nature of demand; Potential to generate inflationary pressures; Possibility of triggering global economic slowdown.
Famine: Succession of poor harvests can lead to famine conditions; Attempts to grow food to meet increasing shortages can lead to environmental degradation; Lack of access to world markets by developing.
Share Prices: The share market is now 24/7; Share prices reflect the expectation of future financial performance; A belief that prices may fall in any area of the world is sufficient to trigger global market changes
War: War increases uncertainty and leads to potential economic dislocation
Natural disasters: Natural disasters can affect resource allocation and availability and also create massive economic dislocation; Temperature extremes can destroy crops and lead to global shortage
Uncertainty: One of the most significant of the factors affecting the global economy; Affects future planning and investment. Can include:
corruption/fraud - causes loss of faith in markets
political change
rumour
payment default
collapse of major industries- shipbuilding, coal, manufacturing, etc.
3.Diagnostics and crises avoidance of the of the enterprise acing abroad
Crisis management- the process by which the org-ion deal with event that can hard the org-ion, its shareholders of the general public through elements are necessary to decline a situation as a crisis.
Crisis management prepares the individuals to face unexpected developments and adverse conditions in the organization with courage and determination.
Employees adjust well to the sudden changes in the organization.
Employees can understand and analyze the causes of crisis and cope with it in the best possible way.
Crisis management helps the managers to devise strategies to come out of uncertain conditions and also decide on the future course of action.
Crisis management helps the managers to feel the early signs of crisis, warn the employees against the aftermaths and take necessary precautions for the same.
Crisis management should be best understood as part of a broad continuum of activities as follows:
- planning - relates to getting institution in the best position to react to, and recover from, an emergency;
- incident response - the processes that ha s to be put into place to ensure that institution reacts properly and orderly to an incident as it occurs.
- crisis management - the management and coordination of institution’s responses to an incident that threatens to harm. It takes into account your planning and automatic incident response, but must also dynamically deal with situations as they unfold, often in unpredictable ways.
- business continuity - relates to those steps necessary to restore institution to normal functioning.
Essential features of crisis management:
1) Crisis management includes activities and processes which help the managers as well as employees to analyze and understand events which might lead to crisis and uncertainty in the organization.
2) Crisis management enables the managers and employees to respond effectively to changes in the organization culture.
3)It consists of effective coordination amongst the departments to overcome emergency situations.
4) Employees at the time of crisis must communicate effectively with each other and try their level best to overcome tough times.
5) At the time of crisis the management should be in regular touch with the employees, external clients, stake holders as well as media.
There are two elements of planning that are unique to managing a crisis:
Creating escalation rules – It means not only setting clear rules for when an employee must notify senior staff of a problem, but also empowering comfortable reporting to senior staff.
2) Creating a crisis team for employees- It means that the senior manager of an institution should establish a mechanism for pulling together a crisis team, staff to team.
Mechanism for pulling together a crisis team
Identify the key players who will be on a crisis management team, based on their specialties, willingness to serve, and personalities.
Identify the person (or people) authorized to bring the team together during a cnsis (the «crisis team manager»).
- crisis tam manager should be able to be reached 24/7.
Crisis- a threat to the org-ion the elements of surprise and have short decision time.
Crisis Management consist of:-Methods where instruments are used to response to both the reality and consequences of crisis;- Instruments of defining would scenarios should be used to deal with one definite threat;- Methods that are combined in different way to build crisis man plan.
Types:-Natural disasters,-Technological crisis,-Confrontation,- Organization misdates, -workplace violence, - man made disasters.
Features of CM: - Includes activity which help the managers to analyze and understand events which might lead to crisis;-enables employees to respond effectively to changes in the org. cultures;- consist of effectively coordination among the departments;-should be in regular touch with the employees, external clients, stake holders.
Theme 7. Analysis of foreign economic activity