Managing in Global Context
Introduction
Managing in the global context refers to the diverse strategies applied in directing and controlling international organizations. The diverse strategies are meant to protect the well-being of the organization and the welfare of the customers (Javidan, Bullough and Dibble, 2016, 61). The issues that international managers have to deal with include sales, finances, marketing, and hiring. Organizations that have invested in various countries around the world have to consider the social-cultural issues that may affect their operations. For example, the considerations that Ford Company has to make in the United States are different from the ones made in 论文帮助/论文写作服务/负担得起我及时提交我最好的质量 – China. The reason is that the economic, social-cultural issues in 论文帮助/论文写作服务/负担得起我及时提交我最好的质量 – China are different compared to the United States. Managing in the global context means that an organization should operate its different branches and subsidiaries across the world and still remain profitable (Clark, Raffray, Hendricks and Gagnon, 2016, 175). The social-cultural issues to be put into perspective include language, customs, education, lifestyles, religion, and ethnicity.
Importance of Global Management
Global management is essential in expanding market share. Companies that are aspiring to expand their customer base must learn the various strategies of managing and directing international corporations (Hernandez, O’connor and Meese, 2018, 162). For example, Starbucks opened its first international store in 1996 and by 2005, it was operating in over 3,200 locations in 34 countries. The expansion was due to the ability of the management to understand the concept of global management. Entering the foreign market requires global management skills, which are lacking in various countries (Bird and Mendenhall, 2016, 118). For example, McDonald’s Restaurant made huge profits for entering the foreign market. The success was attributed to the ability to manage a global fast food restaurant, which was rare in various countries around the world. Therefore, a business can expand the market share by exploring the global market.
Organizations that master the skill of global management can make huge profits when they enter into the global market. One of the strategies of global management is marketing in various countries. The marketing strategies vary depending on the cultural and social dynamics of a nation. Global management requires that managers should understand the best and profitable way to market their products in the local and global context (Rizescu and Tileagă, 2017, 137). For example, Procter &Gamble ventured in various nations due to their ability to market creatively. They focused on products that had little competition such as shampoos, detergents, and diapers. The company has engaged in a massive campaign in every country it sells products. The market entry strategy of the organization to provide premier products at a friendly price. Today, Procter &Gamble has spread into 80 countries. The case study of Procter &Gamble is proof that global management can help increase the market size and boost returns.
Global management is crucial in boosting the economies of scale (Kapoor, 2016, 121). When companies produce their goods or products locally, they benefit by manufacturing them in huge volumes. As a result, they benefit from economies of scale, which boost their profit and enhance efficiency. Global management will help an organization to explore the global market and manage it well. Therefore, if a company was producing 100,000 units, it can simply produce 200,000 units and thus increase the economies of scale. For example, Coca-Cola reaps huge benefits by producing their beverages in a large scale. The production facilities are thus utilized more intensively and profitably (Kapoor, 2016, 122). Another classic example is of Intel Corporation which started by selling microprocessors in the United States market. The local market required them to run one shift for 5 days a week. When the company plunged into the international market, it was required to satisfy the demand by running 3 shifts for 7 days a week. Thereby, it was utilizing the production facilities intensively and reaping profits from the economies of scale.
Realizing Location Economies
Various locations across the world favor different products or services. Therefore, global management is essential in identifying products that can be efficiently and profitably in various regions. Global management analyzes the economic, cultural and social issues of the people living in a nation (Stone and Deadrick, 2015, 141). The reason is that they will either provide labor or become customers. Through global management, investors identify the right places where they should manufacture, assemble products or sell their products. For example, 论文帮助/论文写作服务/负担得起我及时提交我最好的质量 – China has been identified as a favorite nation for the production of textiles. The nation is favorable due to the low cost of labor and massive development of infrastructure. A global manager would warn an investor from starting a textile business in the United States since the cost of labor is high. The United States market is favorable for technologies and software invention due to a high number of software engineers available and the need for innovation in various sectors. On the other hand, New York, Rome and Paris are friendly to businesses like fashion design. The presence of fashion designers, the high demand and design schools makes the market favorable.
Managing in the global context is thus essential since it assists managers to decide where they should establish their business subsidiaries. Additionally, some businesses have changed the focus of their activities to locations that are cheaper or profitable to operate in (Stone and Deadrick, 2015, 143). Global perspective thus considers various factors such as the cost of operating a business and the business opportunities available. The manager who is thinking of a global approach to carrying business must think broadly of the factors he should consider to ensure that the business will remain profitable. It is also important for the business to remain competitive in the market. The competitiveness will be realized when various factors such as marketing a product are considered in the design and sale of a product. For example, there are nations that can favor the production of marketing of a specific product while remaining hostile in the production of another product (Stone and Deadrick, 2015, 144). Therefore, it is upon the manager to consider the marketing mix and other factors that influence the production and sale of a product to make the right choices.
For example, ThinkPad X31 laptop computer was designed in the United States because the parent company IBM believed that America was appropriate for the basic design. The keyboard and hard drive of the computer were made in Thailand while the display screen and memory were made in South Korea. On the other hand, the microprocessor was made in America while the in-built wireless card was made in Malaysia. Finally, the various components were assembled in Mexico. ThinkPad X31 laptop computer was later sold in the United States market. The case study indicates that managers who think globally should identify the opportunities they can take advantage of. One of the reasons the managers at IBM decided that the various components should be designed, made and assembled in various locations is due to the cost and expertise (Beeler et al., 2017, 23). For example, Thailand focuses on designing and manufacturing hard drives while South Korea specializes in computer memory cards. The decision to assemble it in Mexico is due to the low labor cost compared to the cost of labor in the United States. The decision to sell it in North America was due to the wide knowledge of IBM in the North America computer market. Therefore, they believed they had something to offer to the people since they had identified the gaps in the market.
Global Learning
Organizations that invest in foreign markets can gain skills from their subsidiaries that they never learned from their local stores. The reason is that the subsidiaries will be exposed to different environmental factors that will trigger the business to review its operations (Beeler et al., 2017, 24). A company operating in Asia may be required to review its operations when operating in the United مساعدة التعيين – خدمة كتابة المقالات من قبل كبار الكتاب العرب, Arab Emirates. For example, McDonald restaurant is realizing that the business strategies in the United States are different from those of France. In France, the McDonald business is sluggish prompting the business executives to analyze the situation. The findings of their analysis indicate that foreign franchises in France are a source of new ideas. Specifically, after the restaurants in France started performing poorly, the executives decided to change the layout of the restaurants. The theme and layout have changed to embrace hardwood floors, armchairs, and exposed bricks. The menu has also been changed to embrace what people in France love especially premier sandwiches and chicken on focaccia bread. As a result of the changes in the menu, theme, and layout, sales with 3.4 percent per year. Consequently, McDonalds is considering to adopt various changes in foreign subsidiaries. The changes in McDonalds represent the many changes that managers should identify and carry out in the management of global companies.
The global learning poses a challenge to the global manager that new ideas can emanate from foreign subsidiaries and not just at the corporate headquarters. Additionally, the global manager should recognize that adopting new strategies requires new skills (Beeler et al., 2017, 26). The employees will be retrained to ensure they understand the new menu, layout and theme and other policies that may change. In some cases, the training fails to put the new strategy into jeopardy. Therefore, the global manager is required to think wide about business and apply various strategies to resolve the issue. The wide perspective will help embrace new ideas from various sources. When the new strategies are learned, there is a need to develop the right employees who will implement them (Bahaudin, 2017, 132). It is thus essential for a business to remain proactive in the policies applied and how they should be changed to handle a situation such as sluggish growth.
Literature Review and Analysis
The literature review comprises of the various scholars who have researched or commented on the concept of managing in the global context. Bücker and Poutsma (2010) carried out a study on global management competencies. The study found that global management competencies were necessary since the topic had received huge attention in the last decade. It was thus necessary to examine issues such as the effect of globalization on the role of the manager. The manager had to bear competencies that would enable him or her to deal with cultural diversity. On the other hand, Bahaudin (2017), indicated that specific leadership and management skills were necessary for global management. The study was initiated by the great demand in the number of people in multinational companies. It was discovered that people who were working in global companies were required to display specific characteristics compared to the ones managing local companies.
Beeler, Cohen, Vecchi, Kassis-Henderson, and Lecomte (2017) indicated that managing at the global level required better policies to be managed to address issues such as language. The official language used in an organization can trigger resistance or acceptance. Additionally, clients can also resist embracing a product or service based on how it has been presented.
Stone and Deadrick (2015) indicates that human resource management was being affected by the growth taking place in the global arena. The duo poses that research needs to be carried out in various areas with the aim of developing high-quality global management.
Kapoor (2016), indicated that it was necessary for human resource managers to look for people who were qualified to serve in a global perspective.
Rizescu and Tileagă (2017) carried out a descriptive study on the effects of globalization on the transformation of organizational management. The study focused on how globalization has changed management skills. The people who were required to have specific skills that would enable them to handle global issues.
The various studies are pointers to the growth in the discussion and research about managing in the global context. The topic is thus becoming relevant to the various organizations or investors who want to expand their business to the global market. As a result, it is essential to identify that there is a need for skills that would be used in managing businesses in the global market. International organizations are different compared to local companies. They may have similar products, but there are various considerations that need to be made to make the business successful in different regions (Bahaudin, 2017, 132). The various regions require skills to handle social-cultural issues including language, ethnicity, religion, beliefs, and perspectives about work. Advertisements are required to be different depending on the region since some cultural beliefs require adverts that respect their moral background. An advert about a music concert is different from an advert on a music concert in the United مساعدة التعيين – خدمة كتابة المقالات من قبل كبار الكتاب العرب, Arab Emirates. Additionally, the celebrities who are used in promoting products should be different based on how popular or accepted a person is in a specific region. For example, popular artists who promote products in the United States may be ineffective in advertising a product in India.
Recommendations
Managing in the global context requires various strategies to make it work. One of the recommendations is to share a new strategy with the international teams and receive their feedback. When executives want to change an organization, they will go through personnel at various levels of management. It is crucial to engage the various levels of management in different foreign nations and get their point of view. One of the reasons why projects or ideas fail is because the people who are entrusted with the task are not working hard enough (Bahaudin, 2017, 134). In some cases, the projects or initiatives may be opposed if they are not clearly understood. The top management should create time to meet with different teams to identify their problems and strategize on the way forward.
Another recommendation is that global managers should develop timelines for the initiatives they want to implement in the subsidiaries. The reason is that the timelines will include the milestones, metrics, goals, and logistics of achieving specific goals. The work plan or detailed strategy should be distributed to the relevant subsidiaries for implementation. The implementation should be carried out in phases and reports submitted about the progress. It is the role of the global manager to collaborate with the various stakeholders to make the changes a reality (Bücker and Poutsma, 2010, 830). In some cases, a weekly follow up and reports should be reviewed and weaknesses identified. The weaknesses should be addressed immediately to prevent cases of delay in the implementation of a program or initiative. One of the ways of overcoming the weakness is to communicate with all stakeholders to ensure they are playing their part. Additionally, it will prevent cases of resistance to the proposed changes. Online communication such as Skype or other video channeling platforms can be used to get prompt responses even when the regular physical meetings are not possible.
It is recommended for a global manager to take time to understand the local culture, religion, behavior and market needs. The various elements of culture will determine if a certain approach is successful or not. Some companies never consider understanding how they can refine or adjust their products due to the varying market needs (Bücker and Poutsma, 2010, 833). For example, a client in the United States will interact with a product differently compared to a client in India. In some cases, the approaches that will work in India cannot work in the American market. In marketing activities, some celebrities may only be known in India whereas they may be unknown in France. Therefore, a company should not rely on one advert to market products. It is advisable to customize the adverts to the specific cultural dynamics of a nation or region.
Global management success can be realized through inclusiveness. Global managers should provide an open leadership style that accommodates every employee or leader’s ideas or perspectives (Bücker and Poutsma, 2010, 834). The inclusiveness allows creativity in overcoming problems. A good example is the case of McDonald that has changed the theme, layout, and menu of subsidiaries, yet the idea was not generated from the headquarters. The customer base is rapidly changing and it is crucial for a business to remain vibrant in overcoming problems that they experience. A manager cannot be in all subsidiaries at the same time. Therefore, it would be essential for them to listen to ideas from employees who are dealing with clients face-to-face. Additionally, the tastes and preferences of customers are changing fast, making it crucial for inclusiveness to be at the heart of global management (Bird and Mendenhall, 2016, 119). The reason is that different people will note how the tastes and preferences have changed and how the company can respond.
Technological advancement is another area that global companies should adopt. The manager should be informed of the software packages that are being used by rival companies to enhance their operations. Technology has created many opportunities and widened the market gap. For example, Amazon Corporation has risen over the ranks to become one of the successful companies in the world since it has embraced technology. The technology of delivering parcels to clients and providing them with regular updates has enhanced their competitiveness. It is thus essential for global management teams to invest in technologies that will boost their reputation or image in the market (Bird and Mendenhall, 2016, 121). In some manufacturing plants, robots have been used to reduce the cost of labor, increase accuracy and increase the level of production. Therefore, management in the global context should consider the various aspects that can improve their operations, boost their competitiveness in the market and customer satisfaction.
Conclusion
Managing in the global context can be demanding especially in the current world where the tastes and preferences are changing rapidly. The competitiveness is also growing fast making it crucial for global managers to innovate ways of remaining profitable and competitive. Management in the global context can enhance the operations of an organization and open doors for future growth. Global management opens doors to learning how other organizations profit from their enterprise. Additionally, global management can increase the number of subsidiaries and make the company profitable. The reason is that the management will involve learning different strategies that can be employed in fostering quality services. It is recommended that global managers should embrace various strategies such as technologies and inclusivity to keep their companies profitable. The focus of global management should be to satisfy the clients, involve all employees, remain competitive and seek opportunities for growth.
References
Bahaudin, A. S. 2017. Global Management skills and attributes for international business. Journal of International Relations and Foreign Policy, 25(1), pp.123-152.
Beeler, B., Cohen, L., de Vecchi, D., Kassis-Henderson, J. and Lecomte, P., 2017. Special issue on language in global management and business. 4(2), 15-41.
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.
Bücker, J. and Poutsma, E., 2010. Global management competencies: a theoretical foundation. Journal of Managerial Psychology, 25(8), pp.829-844.
Clark, M., Raffray, M., Hendricks, K. and Gagnon, A.J., 2016. Global and public health core competencies for nursing education: a systematic review of essential competencies. Nurse education today, 40, pp.173-180.
Hernandez, S.R., O’Connor, S.J. and Meese, K.A., 2018. Global efforts to professionalize the healthcare management workforce: the role of competencies. Journal of Health Administration Education, 35(2), pp.157-174.
Javidan, M., Bullough, A. and Dibble, R., 2016. Mind the gap: Gender differences in global leadership self-efficacies. Academy of Management Perspectives, 30(1), pp.59-73.
Kapoor, K 2016. Globalization and its Impact on Managerial Skills. 5(3), 113-137
Rizescu, A. and Tileagă, C., 2017. The effects of globalization on the transformation of organizational management. Journal of defense resources management, 8(1), pp.135-141.
Stone, D.L. and Deadrick, D.L., 2015. Challenges and opportunities affecting the future of human resource management. Human Resource Management Review, 25(2), pp.139-145.
