The Impact Of Management On The 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.

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.

Globalisation has been defined as “the processes rendering the world as a whole as a single place” (Robertson, 1990, p.19). With three main developments included trade, foreign direct investment (FDI) and the international transfer of knowledge and technology, it promotes the increase of Multinational Corporation (MNC), especially in US, East and South-East Asian and Western European (Kleinert, 2011). MNCs can be seen as the dominators of world trade as a consequence of sufficient global resources and operations (Clegg et al. 2011). However, managers of such MNCs are required to have sophisticated control skills

Globalisation allows individuals, groups, corporations, and countries to reach around the world farther, faster, more deeply, and more cheaply than ever before. Most large local companies regard globalisation as opportunity, thereby exploring overseas markets for maximum market share and optimum business strategies. However, managers would face a series of challenges caused by leadership models, cultural backgrounds, political and economic risks, HR management, etc. To study multinational management skills is very useful for my future career. In this essay, I will set goals for this subject, identify the skills I have honed and need to improve, and explain my strategies for achieving goals.

From the research it is evident that the western best practice of management is not universally adopted. Several national cultures hold a differing opinion to the west in several areas, however it is the West of the world that provides the majority of research on management (Bealer, D. and Bhanugopan, R., 2014). Hofstede (1983) identified six dimensions of national culture independent of each other that distinguish countries from one another. Nationality is an important factor for management because it has a psychological effect on employees.

At the time of increasing globalization worldwide, going international is the ultimate choice for most companies that aiming to expand their business and market in the future. However, entering and sustaining a new market has always been the challenge for most companies that chose to do so. Among the essentials matters to be considered in going international, the understanding of the dynamics of international management (IM) issues and how to resolve it is of paramount to all corporations. This paper will provide an analysis of concepts and highlight on cultural theories and a case study of Carrefour in Japan to emphasize the importance of sufficient knowledge in IM dynamisms in general, and cross cultural management, in particular.

The huge impact of globalization has caused some challenges in the world of international business. The major problem is the cultural differences among nations. Hofstede believed there is one common thing in all nations and it is called management. This term has different meanings in different countries. Globalization has afforded many opportunities for different countries to work together but it has also revealed some problems relating to the effectiveness of the managing of partnerships among different cultures.

The globalization of businesses affects the personal, production, and the business mindset on numerous levels across the board. When the technology we now use for business purposes today was not available, the success one has as a marketing manager for a major company meant, for the most part, the ability to sell and market your companies product domestically at the highest level possible. However, due to the major advancements in technology such as the Internet that have expanded the marketability of companies, the views of what now makes a successful manager have changed. If marketing managers for a larger company were to only focus on the domestic customer and not have a global mindset, then they wouldill surely fail to expand across the seas or to other countries and more than likely lose their job.

Not everyone sees globalization this way though. L. Šimanskienė (2003) points out that one result of globalization is the increasing employment due to the abundance of general working power. No matter what opinion you take on globalization though, there is no doubt that it is continuing to spread and change the way managers do business. It is also forcing managers to continue to grow and learn and to think of new and creative ways to get ahead in today’s competitive economy.

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.

Hofstede (1993) believes that since companies are spreading their business in global stage the core issue which comes out from this is how they should manage various national and regional differences. “There is something in all countries called ‘management’, but its meaning differs to a larger or smaller extent from one country to another” (Hofstede G. H., 1984).

Wal-Mart’s worldwide employments presently consist of 4,263 stores and 660,000 employees in fifteen nations externally the United States. There are completely controlled stores in Argentina, Brazil, Canada, and the UK. With two.one million workers globally, the business is the gigantic independent entrepreneur in the US and Mexico, and 1 of the gigantic in Canada. In the monetary span in 2010, Wal-Mart’s worldwide departmentalizing commerce were $one hundred billion, or 24.7% of overall marketing.

Generally, culture can be viewed as the behavioural norms within a group of people sharing common ethnicity, beliefs, education, historical background, location or institutions. It is widely the accepted behaviour in a group and likely the most striking or peculiar form of behaviour noted by a foreign member new in the group. Considering this, multinational corporations (MNC) must be highly sensitive towards cross cultural management in order for them to expand, implement their strategies and achieve their goals in domains outside their home.