Impact of Management in the Globalized Business

Challenge of Globalization W. L. GORE & ASSOCIATE had been expending their business in more than 30 over country; there are Asia Pacific, Europe and the Middle East, Central America, North America and South America, leading manufacturer of thousands of advanced technology products for the electronics, industrial, fabrics and medical markets. With the employees of 9.500 people around the world, managing the people also bring along the trouble as well. With the diversity of culture, people, background, language and norms, challenges and problems occur within the company and beyond the boundaries of the company. This is the major problems that will occur when a company goes global and expanding to the world. This challenge of globalization

Globalization of business has had a large impact on the field of management. Those seeking management roles in large, multinational corporations must have a different set of skills than in previous generations. In his article “Globalization on the Homefront”, Harold Torrence (n.d.) wrote, “As a direct result [of globalization], management teams are racing to develop the skills and competencies needed to comprehend and appreciate an onslaught of values, assumptions, beliefs and traditions that are fundamentally different from their own.”

Every organization that is looking to expand into a global market can and will face many challenges. There are ethical challenges in every market. Ethical challenges can cause issues not only within the company, but with those who are looking to invest in that particular company as well. There are not many people who will continue to do business with and invest in a company that continually has ethical issues to deal with.

This essay will first define the term of globalization. Then it will focus on three dimensions, which are dynamic change, managing cross-cultural workforce and supervising subsidiary to describe managers’ function roles, and skill.

Globalism has resulted in a number of changes for the economic viability of the modern corporation. As both the developed world evolves in their new market structure, the developing world adds to the pressures and changes necessary to do business in the contemporary environment. Doing business is not the same worldwide, and the citizens of the global village realize that there are different cultural norms, behaviors, and expectations that stakeholders of all types have when thinking about the modern corporation. Business ethics sets up standards for organizations to act in a way that may be considered right or wrong, or at the very least acceptable or unacceptable. As trade barriers are falling around the globe, differences in morality are gaining more interest regarding such issues as human rights, political behavior or even environmental conservation. The core purpose of a multinational business is to continue to grow the organization, find more resources, develop more product and convert new customers. Without fiscal advantages, organizations would not have the impetus to expand globaly greater profits, less regulation expense, tax incentives, larger universe of workers, etc. Multinational corporations do, however, need to keep in mind that customs, laws, and expectations may very well change by country, but that there are still remaining overall global moral standards of behavior (Mayfield, 2003).

International business ethics challenges the corporate world to deal with questions of what to do in situations where ethical standards come into conflict as a result of the different cultural practices in the nation. Since, there is this dilemma that has progressively troubled the large multinational corporations, international business ethics has arisen to help address these adhesive subject matters. There are several international business ethics discussions on the question of how to act in the home country as opposed to the host country is at the central point of most international corporations. The argument in question is how companies should practice their business according

With globalization and increasing interconnectedness between countries, today’s organizations operate in a rapidly changing environment which is fraught with complexity and uncertainty. Factors such as increasing diversity among culture, people and nations is impacting global organizations.

In her article, ‘Unmasking the Myths: Learning to Navigate the Rough Seas of Ethics, Sophia Kusyk has articulated the myths that corporations perpetuate when engaging in trade and commerce across cultures. There is a blurring of the difference between the necessity of having the correct etiquette in a foreign culture as opposed to pursuing the correct ethics. Cultural relativism and individual subjectivism give rise to the notion that cultural tolerance is of greater import than doing the right thing. The final myth enumerated is that businesses exist merely to extract profit for their shareholders. Kusyk has recommended that corporates employ instruments such as mission and value statements, codes of conduct, ethics training programs, ethics committees, board appointments, certifications, confidential processes for whistle-blowing and transparency measures to align themselves with the stated UN Compacts published to inculcate corporate ethics in a globalized world (Kusyk, 2010).

In the present time almost all companies operate in a global environment or there in the scope of expanding at an international level. This globalization of business appears to be an ongoing process, but it has its own hindrances and opponents. Critics suggest that globalization leads to the exploitation of developing nations and workers, causing harm to the environment in quite many cases, and increased human rights abuses/violations. To add that, the critics believe that globalization primarily benefits the wealthy and widens the gap between the rich and the poor. Whereas on the other hand the supporters of globalization argue that open markets lead to increased standards of living for everyone, higher wages for workers worldwide, economic growth and development in impoverished nations. There are many large corporations which are multinational in scope and will continue to face issues be it legal, social or ethical coming into context because of the globalization.

Asia’s fashion and apparel market will continue to grow at a healthy clip through 2011-2015. The reason why we focus on Asia area is because as forecast last year, clothing demand in Asia is higher than the demand in Western Europe and North America in 2011 [Appendix 2]. “Many economists predict that demand will be driven by rising personal disposable income levels and an increased focus on fashion apparel, especially in the main cities.” Said by Carrie Yu. As we known, many foreign apparel brands are already present in Asia, and they will spread steadily. Here we have a figure to show the market demand growth in different Asia countries [Appendix 3]. After analysis the data and GDP per person at purchasing-power parity [Appendix 4], we choose three countries-Japan, Singapore and Hong Kong-that are good for Hollister to expand in.

With the expanding world we live in globalization and international trade has become a key part of large business, corporations and organizations alike. But how does management impact globalization in business? There are a few key aspects to properly understanding what is needed when running a business abroad. Understanding cultural differences and behavioral changes internationally is the first step to succeeding abroad. Additionally, when any business goes abroad or widens their horizons, one must manage the “bottom line” financially properly or it could lead to ruin. And lastly, understanding that managerial styles change depending on the county one is in is a key factor in retaining good employees. In many ways, the amount the business will thrive becomes obvious if you observe how it and it 's employees conduct themselves out of the “safe zone” of their home country.

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

Globalization is one of the most powerful influences that organizations face (Benveniste, 1994; Harrison, 1994; Kanter, 1995). Information technology, communication, travel and trade that link the world are revolutionary in their impact (Harrison, 1994; Kanter, 1995, p. 11; Gates, 1999). Whether globalization is a source of provocation or inspiration depends on an organization 's preparedness to step up to the world playing field.

Multinational Organizations provide jobs to individuals all over the world, helping to expand the job market and bridge the gap between different countries. Although this sounds reputable it does have its share of issues, since all countries operate in their own way following their own laws and customs thus making it difficult to have a set standard of moral obligations for the multinational companies who operate within them. These countries however are not free from moral obligation and instead need to find creative ways to insure ethical behavior in each individual country and as a whole. Companies have an obligation towards social responsibility, which if violated may result in various costs such as fines or lawsuits. In order to effectively fulfill this obligation they need to act ethically in terms of competing fairly and paying taxes. They also need to insure that they are adhering to the laws and customs of society in terms of who they hire and how they treat both employees and individuals in general. While both of these facts are important another concern is the way a company conducts business, which reflects heavily on itself, creating its own reputation. If a company acts immorally people will hear about it and the business may find that they are no longer able to recruit ethical employees, since more often than not ethical individuals want to work for a moral company with good business practices. This behavior is important as it impacts long term relationships

It also establishes a healthy and pleasant teamwork atmosphere for all the parties involved in an international business deal, making each party feel comfortable with each other. Also, acting in accordance with moral values is crucial for deserving clients’ attention and support and achieving a significant competitive advantage in a particular market segment.