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By Asterios G. Kefalas

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Generates and selects appropriate objectives B. Evaluates consequences C. Suggest modifications of objectives Outcome : Inferences matrix C. People 1 . Labor 2. Middle Management 3. Top Management D. Diagnostics 1 . Ratios 2. Z-Factor 3. Company Value Outcome : Options/candidate strategies matrix The system goal (Z) . = an organization (X) is an open, organic system that operates within an environment (Y) in search of a Management the process of antiCipating and estimating the future consequences of its decisions to set certain goals and to deploy certain resources.

The upper portion ( area I) illustrates management's modeling process. Thus, the environment is dealt with by management via the Environmental Model, the corporation via the Corporate Model, and stakeholders via the Value Model. Management's overall task is to make a statement that answers the what if's with so what's. In other words, management must estimate the future state of the environment ( create scenarios), assess the corporate strengths and weak­ nesses ( estimate the consequences), and then tell the stakeholders how their goals will be achieved ( set objectives).

E. Bradley and E. C. Bursk, "Multinationalism and the 29th Day," Harvard Business Review 50, No. 1 (January-February 1 972) : 39. S. Department of Commerce, " 1 982 Benchmark Survey of Direct Foreign Invest­ ment," in Survey of Current Business, (Washington, DC: Government Printing Office), December 1 985, 37. 10United Nations, Multinational Corporations in World Development (New York: United Nations, 1 985) : 6. Chapter 2 The Multinational Corporation viewed foreign investment simply as a transfer of capital among countries, whereas practicing managers and government officials regarded it as just an­ other business decision.

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