Management And Globalization Of Business

The substantial part of the article concentrates on the way companies and their managers should embrace contemporary multinational market. The author claims: “Adaptation strategies are better suited to opportunities opened by the shift in the locus of teh global growth. (..)Western markets must compete in big emerging markets like China and India. But they can;t forcé their way in.” That is why, it is critical to pay careful attention to political, economic, or cultural diversity. Ghemawat is skilled in giving pieces of advice to those who underestimate the importance of countries differences and similarities. He also says: “I propose that every MBA gradúate – and presumably every global manager – have a mínimum body of globalization related knowledge, including (..)an understading of how differences between countries can influence cross-border interactions; awareness of the benefits of teh additional cross-border integration’.

In this report I am going to define the meaning of Globalisation and assess the impact of globalisation on the way the business operate.

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.”

Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables.

Sometimes, in an effort to protect their jobs, further their careers or meet unrealistic objectives some managers may also experience ethical issues such as corruption (accepting bribes, abusing their power for financial gain), advertising (desire to oversell a product), sourcing raw materials (do they conduct business with a supplier who isn’t treating their staff fairly or whose methods are damaging to the environment), privacy (should the company record telephone conversations, access private emails and web sites that staff visit), safety (is the work environment safe or hazardous to the staff and community), salary (is the staff being paid fairly, in line with their job descriptions), communication (is information on a need to know basis, when a public announcement is made does the staff know first or last), and pricing (is product pricing set

As argued by Eaton (2001), globalization is an enterprise management feature, which increases liberalization of international trade and international competition. Needless to say, nowadays most of senior managers tend to plan their companies to go worldwide. In the early 1970s, M&S expanded its international operation to purchase a 50 per cent shareholding of three Canadian companies for the first step. In November 1997 the company announced a 2,100 million GBP plan for global expansion which would be across Europe, the Far East and the Middle East (Bevan, 2002).

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.

Organization wants to achieve the objectives of sustained growth and increased profitability, organization must constant innovation its product or service, also need to carry out some plans to expand its business to enable an organization to have a better development. Organization expands its business cannot be confined to the domestic market must also move abroad, which effectively allows an organization closer to the global market and broadening the scope of business and profitability. However, business expansion is not as easy in this global environment, globalization has not only changed the enterprise competitive landscape also influence the way leaders conduct business (Caligiuri, 2006). Furthermore, with globalization, global leadership in terms of cultural knowledge needed to become more acute and require more advanced level of cognitive ability on the complexity of managing the demand of multiple cultures while completing managerial tasks (Caligiuri, 2006, Grosse, 2011). Therefore, the development of global management skills is very important for the global organizations and managers. Only effective in developing global management skills can help the organization reduce the risk of international business

Globalization refers to the increasing unification of the world's economic order through reduction of such barriers to international trade as tariffs, export fees, and import quotas. The goal is to increase material wealth, goods, and services through an international division of labor by efficiencies catalyzed by international relations, specialization and competition. It describes the process by which regional economies, societies, and cultures have become integrated through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of

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

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

“No one company any where in the world is big or strong enough to do everything on its own.

Management is involved at all levels of a business and is central to business more importantly in this globalised era. The functions of management outlined above are cardinal to any business. This paper will discuss the importance of management in a globalised business era.