Transforming Internal Governance: The Challenge for Multinationals

Since managers cannot manage what they give little attention to, a paradox is widespread across all forms of organizational change: changes that successfully improve performance in one part of the firm often fail to translate into gains in firm level performance.

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’.

As organizations become increasingly global, the success of organizations is dependent on the leader’s skills in merging diverse cultures in building high performance teams across multiple countries. Global organizations are required to adapt to continuous changes in culturally diverse global business environment. Multinational leaders must become adapt to leading a culturally diverse workforce if the organization is to become transcontinental. Therefore, there must be an emphasis on diversity training and cultural sensitivity training across the organization, especially among members of executive leadership. Inclusive leadership has been presented as the most applicable global leadership style as businesses make the transition from a local to global mindset. This synopsis will discuss integrating varied perspective, negotiating strategies and cultural mindsets, and communicating methods that facilitate organizational strategy, This document will conclude with a summarization of this discussion.

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

Introduction - Globalism gradually developed over the last few decades because of the increased number of regional trade agreements combined with Internet and phone communication improvements. Globalization has brought the world closer in communication, economics, politics, and especially business. The Internet and technological improvements have allowed instantaneous communication almost anywhere, and even poor women in India are using Smartphones to manage their banking portfolios. The idea of globalism continues to break down cultural barriers. As this continues it will be essential for organizations to not only understand, but embrace cultural differences and styles (Levin, 2008). Clearly, the changing demands of global stakeholders require new ways of approaching diverse individuals and cultures. There are differences in style, skill, education and attitude in every organization now accentuated when we think of the multi-national organization. Organizations are far more effective once they understand and use diversity within their strategic and tactical planning process (Parvis, 2003).

Both the authors have taken descriptive approach to elaborate in detail their respective areas of cross cultural management. As per article, “Rethinking Cross Cultural Management in a Globalizing Business World” by Soderberg & Holden (2002), due to globalisation and its increasing trend, the organisations and its environment has gone through significant changes. Thus the traditional way of defining the cross cultural management needs amendments. Further the author has elaborated that in this commitment the authors are contending for a split far from the conventional method for considering and portraying diverse administration for two fundamental reasons. To begin with, the winning idea of society as-substance, which in this logical connection is vigorously connected with national societies (and, by augmentation, country states) is distant with the hypothetical improvements of conceptualization of society and character. Moreover a conceptualization of hierarchical and national society’s too characterized and homogeneous substances is out of stage with the new economy, with its accentuation on systems administration, hierarchical learning and information as the fundamental hierarchical asset, which rises above firm, industry, and national limits. Second, the new economy requires not simply new skills and 'worldwide education but also needs to adopt 'the worldwide attitude'. A globalizing business world too needs suitable calculated apparatuses and expository methodologies of advantage to both analysts besides, specialists. Consequently the article “Cross cultural Differences in Management” by Amman & Jordan (2012) has concluded that due to cross cultural environments, the managers can encounter different impact on different areas of management. These impacts can create many limitations and barriers on different areas of business. Therefore, managers of the

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.

The global environment that multinational corporations (MNCs) are now operating in are constantly changing, becoming exceptionally complex and diverse (Hurn, 2012). Due to the changes, globalisation has caused through the butterfly effect, multiculturalism and diversity are becoming important topics for many MNCs globally (DeLancey, 2013). Numerous methods have been implemented by MNCs in order to capture cross-cultural differences in the workplace and how these can be readily applied to change management objectives in order to remain competitive and relevant in the ever-evolving business environment. This literature review will consider the significance that culture in the workplace has on implementing change strategies in MNCs and the implications and challenges that hypothetically surface due to the divergent nature of multiculturalism.

When entering new markets, multinational corporations (MNCs) often form strategic alliances with local companies. An alliance is where two or more organisations integrate to form a strategic, business relationship (Finlay, 2000). The potential benefits of such alliances include access to knowledge and resources, building a global network, market access, recognition and access to a distribution network which can all provide MNCs with a competitive advantage in a foreign market. However, MNCs also face many challenges when forming alliances in other countries including loss of intellectual property, different expectations, various challenges of globalisation (e.g. more stringent regulations being imposed on foreign firms), ethical and cultural considerations and change management. This essay will focus on two of these challenges in depth - change management and cultural adaptation. However within these sections, certain other topics will also be considered including leadership, innovation and diversity and globalisation. This essay will critically discuss and analyse these challenges drawing on real world examples, academic theory and additional research. It will also highlight and consider potential solutions to these challenges.

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

In this paper, the article under scrutiny delves in the analysis of management across cultures. The aspects under study include leadership in a global environment, motivation, and communications across various cultural divides in a global setting. All these aspects engulf the prominent topic of management across cultures. The focus also extends to include the identification of appropriate HRM skills across teams as a way of limiting workplace conflicts. These elements are related to one another as they revolve around the leadership duties, roles in a global environment. In this paper, we also scrutinize these aspects, the present imminent challenges and delve at arriving at a conclusion that seeks to address the current challenges. The paper also aims at establishing solutions towards solving the challenges that global leader’s encounter and their solutions. In addition, we highlight the initiatives undertaken by organizations to shape their leaders to take on managing organizations on a global scale (van Driel & Gabrenya, 2013).

Dr. Farok J. Contractor is a professor in the Management and Global Business department of Rutgers Business School, New Jersey. He has written hundreds of articles on the topic of international alliance and foreign direct investment. “Punching above their weight: the sources of competitive advantage for emerging-market multinationals” is one such article of global interest which has been declared of great value both for the public as well as for policy makers. The prime focus of this article is upon the phenomenon of emerging market multinationals which have swept the world by storm and introduced a whole new way of conducting global leadership and business. These emerging market multinationals are specifically discussed

Each year we see how the world is becoming a smaller and a more crowded place. We see how society is crossing over physical borders and becoming a global society. International markets allow for job placement opportunities in foreign cultures but also come with unique challenges. Multi-national companies are now operating in new countries and markets. It’s a changing world and in order to be successful in this new world companies need to provide their employees the proper tools to do business in a new culture. Moreover, the company itself needs to be willing to adapt and change to meet the expectations of the markets.

Abstract The goal of this paper shall be to examine the tools and skills used by managers functioning in a business operating on a global scale. This essay will also touch on the impact of managers and their decisions on the globalization of business as a whole. Managers of today require aptitude in the use of technology, understanding of culture, and implementation of certain skillsets in order to be successful. This paper will draw from the text of Carpenter, Taylor, and Erdogan (2009) as well as the work of Griffith and Hoppner (2013) on marketing management of global businesses to highlight the expertise required to motivate and lead a team across all cultural and language boundaries. By using the expanding options available to management today, leaders in global business can solicit the best, highest quality results from their teams. MANAGEMENT IN THE GLOBALIZATION OF BUSINESS 3 Management in the Globalization of Business Technology, Culture, and Skillset Management styles and techniques of recent decades have been forced to change in order to accommodate the growing footprint of a business’s reach. While small business can continue to thrive in the current economic environment, it could be argued that in order to gain the highest level of success, a business needs to be able to break free of geographical boundaries. In doing so, a business can offer their products/services to a larger number of people while also gaining benefits of international trade. Key contributors

“When in Rome, do as romans do” refers to the importance to adapt to the customs or behavior of a different culture or society. In this time of globalization, businesses more than ever must apply this rule. Now, boundaries are eliminated between countries and new opportunities are born. Company enters new countries, moreover, multinational emerges and ultimately evolves to a global posture. It’s becoming part of our life. Every day, we experience various products of globalization. We communicate with friends and family from all over the world, we surf the internet, furthermore, with one click we purchase product from stores miles away from us. However, globalization also implies overcoming cultural challenges company faces when going