Challenges Faced by Australian Companies in Globalizing their Business

Running head: MANAGEMENT AND ORGANIZATION
Management and Organization
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Author’s Note

1MANAGEMENT AND ORGANIZATION
Introduction
Kareska (2016) stated that globalization is a process that is adapted by the organizations
to expand their business operations and to develop international influence on an international
scale. Stromquist and Monkman (2014) on the other hand stated that there are the economic
activity of the organization that takes place across different countries is termed as global business
and the process to attain the same is known as globalization. However, contemporary
organization faces series of difficulty in making the business function global. This essay will
highlight the problem faces in management practices by Australian companies during the
transition process of globalizing the business. Additionally, this essay will also emphasize on the
organizational behavior and management theory that can be utilized for analyzing the underlying
values of these theories. This essay will also demonstrate the impact of the implementation of the
management theories and organizational behavior on the practice decisions making ability for
Australian business.
Discussion:
Details about Global Business
Contemporary organizations desire to make their business global for expanding their
market share, increase their profit base, reducing the production cost and become more
competitive (Taube et al. 2014). However, the difficulties that Australian organization faces due
to globalizing their business are- accelerated pace of change, maintaining a diverse workforce,
implementing variability of technology, fluctuations of the economic conditions and market,
complex managerial environment, maintaining ethical standards and political policies of
different nations and practicing global crisis management (Kareska 2016). These highlighted
problems are also demonstrates the challenges of organizational behavior. Bond and O'Byrne

2MANAGEMENT AND ORGANIZATION
(2014) furthermore highlight that management and supervisors should also possess the
knowledge regarding the overseas business and people of the nation in order to align their
workforce with all the industrial sectors. This process is a part of the management theory and is
important for the companies that desire to perform in international context.
Stages in the phase model of globalization
The stages of the phase model of globalization includes- exporting of the products,
generating cooperative contracts, developing strategic alliances and wholly owned affiliates.
However, strategies like global new ventures help an organization for being more global and less
domestic. Ruggie (2017) stated that in order to make the business global, there should be large
number of export from the home to host nation. On the other hand, cooperative contracts
illustrate the relationship between the state government and the company of the nation
(Warszawski et al. 2014). The government of the nation provide fund to the business authorized
by public statute in order to expand the business values and nation’s economy. Picciotto (2017)
moreover states that there should be some agreed upon agreements between two or more parties
in order to make entry in new geographic market and this is known as development of strategic
alliances. The term wholly owned affiliates comes into consideration when some Australian
company intends to acquire other company in order to enhance their brand presence.
Strengths and weaknesses of the Stages in the phase model
Filatotchev and Nakajima (2014) stated that exporting business materials to other nation
need the awareness of the culture of the host nation, political instability, knowledge about legal
system and have proper source of funding. Australian contemporary organization faces the
problem that of deciding the skill-sets that match with the requirement globalizing their
functions. The strength of the exporting phase highlights the ability of the organization to ship