Management Of Risks And Keeping The Business Running ( Dally, 2007 )
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Doing business internationally is not the same as doing business locally (Lambert, 2000). There are new, interesting and exciting opportunities that face the management. However, in some cases, there are inevitable challenges. The challenges are more prevalent when it comes to management of risks and keeping the business running (Dally, 2007). To do this effectively, there are significant skills to learn; also it’s necessary to adopt certain strategies and understand the different environments within which the business operates.
Laws and regulations are different from one country to the other and having a deeper understanding of each is a requirement to the development and stability of the business (Lindquist, 2012). In addition to this,…show more content… In a global supply chain for example, risk management entails accounting and bridging cultural, language, organizational values and behaviors differences. As opposed to capital markets, a supply chain tends to be less dynamic and complex (Lindquist, 2012).
However, when it comes to risk management, it is similar to mortgage backed securities or swaps in credit defaults. The network of companies present in a supply chain works towards converting ideas into goods and services that meet the expectations of their customers. As a result, supply chains adapt to the structural shifts in the market. Among these shifts are the fluctuations in the currency as well as the shifts and upheavals in the economy. A supply chain has to be flexible enough to adapt to the shifts and changes in the market (Collos, 2005).
A good example is Dell Company, which started as a minor supplier of electronics within the university compound. The ability to meet the needs of clients within this squeezed environment made the business adopt and be flexible enough to market demands. Today, when it comes to reputable multinational companies, Dell is a famous name with simply the strategy of cutting the middleman and reducing risks (Lambert, 2012). Therefore, this scenario is indicative that success in the international