Challenges Facing Global Managers
Challenges that managers will face in the future may not only be with their existing local management responsibilities, but will probably include managing business abroad. Not only will change in the structure of the organization will occur, but also the roles and responsibilities of people within the organizations. The form of change which will be applied depends on many factors such as management, skills and expertise, and resources. The companies might focus on integration, disintegration, or merging both of them. Companies will be faced with many challenges and will need to optimize their organizational objectives.
The reason why the organizations may expand into the global market is the firm's existing market has been saturated. A good example of a saturated U.S. market would be Coca-Cola. Coke wanted to increase their market and expanded into the global market. As such, Coke had to adapt managing globally. Expanding globally, will force organizations to adapt with various environments, geographical separation, cultural and national differences in business practices. These are just a few challenges global managers will be facing in the future (Hallin).
Today, as we live in a global world, many believe increasing our ability to access to foreign markets and the increasing number of worldwide mergers, acquisitions, and joint ventures are forces that will influence companies to expand their businesses into international markets.
As we have recognized in our marketing classes the four P's of marketing are significant to include in strategic planning. The definition of "Place" in the marketing mix is where you can expect to find your customers. As such, one of the most important problems that the companies will face when pursing global expansion is the selection of the best location for global expansion. There are two stages of global expansion. First, the companies must determine which countries offer the best market and operating environment. These include technological, political, economic, physical and social factors. Then the facilities of the country should be determined.
One of the most important features that the global managers will face is the different values of cultures. Cultural empathy and integrity in dealing with people from various cultures will be important for managers to think and act on. Global managers do not have to know the culture in detail, but will need to think and act with an open mind. Managers should understand the worldwide business environment, work and be open to learn from people from various cultures. Global managers should treat everyone equally whether they are American, Australian, Mexican, etc. A Global manager's role is similar to being a coach. The global manager should not play the actual game but be responsible for the team's success, have the expertise to improve the player's skills, have the experience to guide the team's strategy, and have the authority to change their players. The global managers should recognize the importance of international management development and have the ability to view the world from different points of view. A critical task will be to use global knowledgeable to identify opportunities in the growing global world.
Moreover, global managers also must focus on the unique needs of marketplace trends while maintaining a corporate advantage. Furthermore, the global managers must integrate their knowledge of their company's mission and capability with the market.
As the world we live in continues to operate globally, it will be necessary for companies to learn to operate as if the world is one large market. Companies will need to look at regional and national differences, and draw on the similarities between countries to enhance their competitive advantages.
Merrill Lynch in Japan
1. Given the changes that have occurred in the international capital markets during the past decade, does Merrill...
Cited: Hallin, Daniel C. and Paolo, Mancini. Americanization and Globalization.
25 November 2004.
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