The General Impact of Management in International Business

1085 Words3 Pages
bulb-icon

Recommended: Challenges of globalization in management

Nowadays the international trade has a considerable extension; the exchange of goods, services, and natural resources is making in all over the world. Transportation and communication become quicker with the precious aid of the new technology. Often, several companies move from their native country to another one. The world is seen now as a global market where a diversity of societies is appealed to deal together. So, the management must from now on be considered in larger sense as several countries has to combine their view of management, their managerial styles and indubitably their culture, to ensure the globalization of business. So, what is the general impact of management in the international business?

In this essay this question will be clearly answered by deep details, concerning the important issues meet generally the managers in business international, such as: Conflict of culture, ethical issues, and fair trade issues. And the advent of the Multinational Corporation will be largely explained.

Finally, as example, the difference between the managerial styles of USA and Japan will be considered and the managerial styles of China will be described.

Keywords: Management, Globalization, Trade

With the expansion of the market in the world, the rise of production, and the number of customers, the management becomes more complex and more competitive. The globalization of the business requires diversity of tasks and skills; due to the high rise of demand in the international market. Consequently, more employees will be contacted to move to another place to satisfy the unlimited needs. Then, this fact causes the implantation of several international companies or multinational corporations, the conflict of culture, t...

... middle of paper ...

...ttees; they made slow decision, and practice slow implementation of decision. In planning organizing, collective and individual responsibility are required. They attempt to introduce responsibility system; formal bureaucratic organization system is required. They mostly hire from school, than other companies. They have a slow promotion process but a regular salary. In leading practice, the leader acts as the head of the committee, and the directive is child-parent type and they avoid confrontation. And the control is made by the group leader.

In addition, the management has a direct impact on all factors in the globalization of business, whether in Multinational corporation, international exchange, ethical norms or diversity of cultures. Consequently, Management has to be more qualified so that it faces the high intensity of the demands in the international market.

Show More
Related

  • It Is Unethical To Pay Cheap Wages In Developing Countries

    333 Words  | 1 Pages

    With the continuous development and progress of society, globalization gradually becomes the main trend toward the development within the company. Therefore, correct understanding of a multinational company becomes extremely important. This research will introduce a multinational company in accordance with the three thesis from the perspective of comprehensively and objectively. It is helpful to understand multinational companies

    Read More

  • Comparison Of Northwest Airlines And American Airlines

    4751 Words  | 10 Pages

    Globalization can be defined as “making worldwide in scope or application”(1). In this comparison of the global corporate culture of Northwest Airlines and American Airlines several areas will be addressed. The strength of the global culture with-in the companies. The fit of the company to the global marketplace, and the adaptive ness or the empowerment of the employees will be examined and compared. Perhaps more important, than whether they currently have a global atmosphere, is whether they can improve or create this atmosphere. A comparison between the two airlines will be made on their mission statements, information dissemination, global-mindedness, career paths, and the use of cultural differences as an asset and if a worldwide training system is in place. A conclusion will then be made as to which corporation has the best organizational composition to compete in the global market.

    Read More

  • Analysis Of Theodore Levitt The Globalization Of Markets

    1168 Words  | 3 Pages

    Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.

    Read More

  • Leadership

    658 Words  | 2 Pages

    Leadership is the defining factor of a successful organization today. With the large number of companies in the world, there are just as many leadership styles. Understanding the different leadership styles is vital to the development of a management team as well as the organization. Matching the leadership style with the type needed for the organization in that point in time will impact the company in a positive manor. We can see examples of that in large corporations that will experience a shift in management when the level of production falls under a certain benchmark. The Blake Mouton Managerial Grid consists of five different leadership styles. The different styles outline the behaviours, traits, attitudes and focuses of the various leadership styles. The five styles are; Country Club, Impoverished, Middle of the Road, Team Leader, Produce or Perish leader. The model outlines how emphasizing on a particular area such as production could have negative repercussions onto another such as people. The grid is based on the idea that when the concern for both production and people are high, employee engagement and production will rise as well.

    Read More

  • Personal Reflective and Goal Setting Strategies

    956 Words  | 2 Pages

    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.

    Read More

  • Cultural Constraints In Management Theories By Geert Hofstede Case Study

    1148 Words  | 3 Pages

    They also see their managers as task masters and expert problem solvers rather than as motivators and they value production roles more than leadership roles (Hofstede, 1993, p. 83). In Japan, they value employee loyalty. They expect their workers to join a company and remain there for the duration of their working life. They have a groupthink outlook and spend a lot of time working in groups. They value what is good for the company and the team rather than looking for individual recognition and tend to be more peer led than manager led, which means that US management cultures are not a good fit for countries like Japan (Hofstede, 1993, p. 83-84). In France, employees who are educated are more highly respected and their workers are divided into two categories. There are the properly educated workers (cadres) and the not properly education workers (non-cadres). There is no crossing between the two and the cadres are given privileges that the non-cadres are not regardless of their actual job title or task (Hofstede, 1993, p. 84-85). In Holland, they manage by consensus (Hofstede, 1993, p. 85). China has many smaller, family run businesses and because of this, many times the manager and the owner are the same. They tend to be more specialized and less global, and most of the decisions are made by the most dominant member of the family that owns the business. They are very thrifty when it comes to cost and spending and apply Confucian values on money. Their management system is very lacking of modern business management practices (Hofstede, 1993, p. 86). In short, all these comparisons can be summed up by saying that all companies everywhere have a concept of management, but what it means and how it’s practiced is different around the world (Hofstede, 1993, p. 88-89). So, if

    Read More

  • Cultural Differences Of Geert Hofstede: Understanding Cultural Values

    1893 Words  | 4 Pages

    Secondly , it is important to understand the difference in cultural values. According to Geert Hofstede, there is no such thing as a universal management method. Management interacts with other dynamics of society including politics, family, religion, beliefs etc.

    Read More

  • Impact of Management on Global Business Expansion

    1029 Words  | 3 Pages

    Globalization of business in the contemporary world has indeed amalgamated different managerial style from different region or countries or at time created a drift. Both the difference and slight similarity in managerial styles have cons and pro in the international business. Looking at the difference in management style between Saudi Arabia and United States of America which basically equates to the west and the east ideologies of management . As might be expected in a culture where organizations are run along hierarchical lines in Saudi Arabia managers tend to be very instructive in their approach. Subordinates view it as the boss role to take decisions and to convey those decisions down the chain for implementation. However, the leader will often include his group in a consensus style discussion being taken by the leader. (Business Culture, 2013).This is utterly different from the managerial styles in U.S.A that are based on individuality and personality rather than the eastern ideology that rotates around the hierarchical

    Read More

  • National Culture Influences on International Management

    2527 Words  | 6 Pages

    Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.

    Read More

  • International Management Challenges

    2709 Words  | 6 Pages

    In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.

    Read More

  • Management Problems Facing Multinational Corporations

    1385 Words  | 3 Pages

    Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as ‘multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.

    Read More

  • Japanese Management Style

    1081 Words  | 3 Pages

    However, to take them as a methodology without realizing the enormous cultural base on which they rest and which makes them successful in their setting is to risk to failure. The general culture in Japan prepares people to participate in its processes through ways they often are not even aware of. So, probably that is why the efforts to apply Japanese managing insights have met with limited success outside Japan. There are many positive and fundamental concepts in this management, that probably can be applied all around the world, such as the total quality management that devotes the responsibility of quality to everybody working in the firm, and also the cost control production which tries to improve quality while reducing costs by setting budgets based on future costs rather thatn on historic costs. Other characteristics of the Japanese ma... ...

    Read More

  • History of Multinational Corporations

    2012 Words  | 5 Pages

    The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures. Organizations such as the British East India Trading Company, promoted both global trade and the acquisition of natural resources, primarily for their home countries in areas including Africa, East Asia, and the Americas. Global trade was the primary factor in the growth of the world economy during this time. However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provided a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine it what ways, and to what degree it has changed over time.

    Read More

  • Globalization and Human Resource Management

    1375 Words  | 3 Pages

    With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.

    Read More

  • Cultural Innovation Strategy Essay

    1071 Words  | 3 Pages

    Local managers live in a stable living environment, so the thinking of the people is stable, the behavior of the administration has a long-term development awareness, more in line with the interests of the companies. At the same time, it can also reduce the time and frequency of visits to relatives and vacations and greatly improve the efficiency of utilization of human resources. But this is mainly because the local staff is familiar with local customs and habits, market dynamics and various government regulations. In addition, it is easy to reach a consensus with local consumers. On the one hand, it has trained a large number of highly qualified personnel for the host country, in a certain sense, it has retained its management and management staff for the future development of its own country. Managers employed by local multinational corporations have more opportunities to acquire advanced personnel with experience in science, technology and foreign administration and are familiar with the operating mechanism of the market economy. The flow of these new types of business managers and technicians in the country will surely generate the international experience of advanced management and the diffusion of technologies in the host countries. The legal environment mainly includes unfair competition laws, tax laws, environmental protection laws and foreign trade laws and regulations

    Read More

More about The General Impact of Management in International Business

Open Document