Challenges Managers Face When Companies Go International

2578 Words Mar 1st, 2012 11 Pages
Executive Summary
These days, most businesses are set in a global environment, and the various corporations do not just regard their primary market locations or bases, they also have to take the rest of the world into consideration. Thus, many more corporations are going into multi-national business, scattered all over numerous parts of the globe. Usually the major source of concern for multinational companies and their managers is how to maintain high quality, in an ever-changing global economy
It is quite clear that multicultural organizations and their mangers still find solutions to their multi-cultural problems despite severe bureaucracy and staff frustration in some cases. Although multi-national corporations are aware of the
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The capacity of managers to prevent any surprises that may arise from doing business on an international scale diminishes as the interactive complexity increases. Therefore, as the level of interactive coupling and interactive complexity continues to increase in a corporation. Then the whole system can be seen as an accident waiting to occur. This is what Charles Perrow refers to as “normal accident” in the sense that errors of operation will merely serve to trigger the events. Therefore, the management techniques and strategies employed to resolve international business problems have to differ from the management techniques for resolving local and domestic problems.
As such mangers are to improve upon their managerial capacity to prevent unanticipated interactions and components, the system has to be firstly simplified, then there has to be and effort to increase the capacity to handle international problems, building in longer response times, and decoupling of major components. Apart from convergent problems which are problems which show promise for solution, multicultural corporations also face divergent problems. Divergent problems don’t promise a solution and tend to lead to more differences. According to Tylor (1977)
"Culture is complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a
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