Management in a Global Environment | Report

Running head: MANAGEMENT IN A GLOBAL ENVIRONMENT
MANAGEMENT IN A GLOBAL ENVIRONMENT
Name of the Student
Name of the University
Author Note

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Introduction
The proper management of global or international operations of firms is a key
challenge that is faced by the managers and the entire organization itself. The changes that
are constantly taking place in the economic activities and business environments have an
influence on the decision making process of the customers. Advances have also started taking
place in the technology based on communications and information systems (Banfield, Kay &
Royles, 2018). The coordination within organizations have provided potential methods to the
markets that are fast-growing in nature. Global organizations have also struggled to adapt to
the continuous changing environment in various countries. The international firms that
operate in the developing markets are more successful than the operations that they have in
the developed countries (Buckley, Doh & Benischke, 2017).
The essay will be built on the study of challenges and opportunities that are faced by
international managers in managing the international operations of organizations. The
company that has been taken into consideration for this study is Qantas Airways. The
organization operates in the airlines industry of Australia and has been able to develop its
international operations in many countries.
About the company
Qantas Airways Limited is flag carrier airlines organization of Australia and has also
gained the position of the biggest company based on fleet size, international destination and
international flights. The base of Qantas Airways is located in Sydney in the suburbs of
Mascot that is adjacent to the main hub which is located at the Sydney Airport. The shares
that have been gained by Qantas in domestic market of Australia in the year 2014 is around
65% (Qantas.com. 2019).

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Challenges and opportunities provided for managers on a global basis
International management is based on the appropriate formation of strategies and also
structuring appropriate design of various organizations for managing individuals within the
cross-cultural environment. The managers perform some specific activities that are mainly
related to proper international expansion and managing the differences that are present in the
technical, political, economic, bureaucratic and the linguistic aspects (Hitt, Ireland &
Hoskisson, 2016). Organizations of various sizes, small, medium and large face issues in the
international operations. Global or international firms face major competition due to rapid
changes that take place in business environment. The factors that have to be considered based
on challenges faced by international firms are as follows,
The difference between various languages have an impact on the
communication that is developed between customers, employees and the
business partners. Foreign language is able to offer key challenges to the
managers of international organizations in managing the employees
(Kowalkowski, Gebauer & Oliva, 2017).
Culture plays a key part in appropriate determination of the habits, holidays,
behaviours and the preferences of customers in various societies. The
development of business strategy in different countries is based on the culture
of the society. The differences in culture have an impact on local operations of
various firms (Krishnan & Scullion, 2017).
Information and knowledge that is gained by the organizations based on
habits, attitudes and business etiquettes of various foreign countries is
considered to be important for the managers. The reactions that are provided
by managers in different situation are mainly based on their attitudes. The

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competition that is faced by foreign firms in domestic markets are influenced
by the attitudes of individuals (Paul, Parthasarathy & Gupta, 2017).
The proper formation of facility and technologies that are a part of the market
are able to offer opportunities for the production, marketing processes and
sales operations. The managers can help in forming relationships with local
communities with the help of appropriate advertising and promotional
activities (Sousa & Tan, 2015).
The major opportunities that are offered to managers by international expansion based
processes of the organizations are,
The managers of global firms are able to offer opportunities in order to
manage the cross border based operations. Foreign exchange can also be
considered as a significant feature that is related to the export operations.
The profitability of organizations can increase and the managers will play a
key part in the development of effective relationships the with consumers in
different parts of the world. International expansion can also help the
organizations to improve the revenues that are gained based on a large
consumer base (Sparrow, Brewster & Chung, 2016).
The governments and economies of various countries can offer various
benefits that can attract the foreign organizations. Benefits that are provided
by the government include subsidized resources, tax sops and financial
incentives as well.
The managers of international organizations have an impact on the ease with
which the businesses can expand the operations. The relationships with
governments of different countries have been developed by managers of the
international organizations (Srai et al., 2016).

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Example of Qantas Airways and challenges faced due to competition
Qantas Airways has suffered in a huge way in the last few years due to the increase in
levels of competition from various Middle East based carriers who have used the locations
that are geographically excellent in nature. Qantas has faced lack in revenues due to local
competition that is provided by Ryanair. The full service based airlines organization and the
unionised workforce provided by Qantas Airways is an important aspect related to the
revenues that are earned the organization. The organization had faced a huge loss of around
the 244 Million Australian Dollars (Bbc.com. 2019). This was considered to be a major loss
that had been faced by the organization since 17 years of privatisation of its operations. The
record that is developed by Qantas Airways in the airlines industry is considered to be a
major factor that has an impact on the organization. The financial issues that are faced by
Qantas Airways in the international operations is a major issue that has an impact on the
behaviour of managers as well (Sousa & Tan, 2015).
The high value that is gained by Australian Dollars has provided cheap travel options
to the people of the country. The economic downturn that has taken place in various countries
is also able to affect the operations and profitability levels of Qantas Airways. The
competition that is provided by increase in routes and growth in price levels are significant
issues that Qantas Airways has faced in the operations. The ways by which Qantas Airways
aims at capturing the market in China is based on the expansion based plans that have been
developed by the organization (Paul, Parthasarathy & Gupta, 2017). The expansion of
operations of Qantas Airways in China is affected by the role that is played by the managers
of the company. The differences that exist between the cultures of China and Australia have
to be managed with the support that is offered by the international managers. The managers
have the responsibility to provide effective training to the employees so that they are able to
uphold the processes and positive culture within the environment as well (Krishnan &

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Scullion, 2017). The relationship and communication that can be developed by Qantas with
the middle class based customers is considered to be a major task that has to be completed by
the organization.
The acquisitions are planned by Qantas Airways in order to uphold the routes and
revenues of the organization in airlines industry. The most aggressive competitor of Qantas
Airways in China is China Southern Airlines that is biggest carrier of the country. Qantas is
also in discussion with an organization like Emirates in order to reduce the competition that is
faced in Middle East (Hitt, Ireland & Hoskisson, 2016). In this case, the international
managers have to face major levels of challenges based on formation of a collaborative work
environment within the organization. Qantas-Emirates alliance will be able to serve a two-
fold purpose for the organization that include, gaining access to extensive network and
communication with the customers in various parts of the world (Smh.com.au. 2019).
The aggressive levels of competition and soaring costs of fuel has a major influence
on the sustainable operations of Qantas Airways in the airlines industry. The saturation levels
in airlines industry has led to the development of huge competition on the international and
domestic levels as well. The revival of the brand is considered to be a major aspect that can
lead to the improvement of revenues of Qantas Airways (Buckley, Doh & Benischke, 2017).
The international managers of Qantas are able to play a key part in appropriate revival of the
brand of Qantas Airways in the airlines industry of Australia. Qantas Airways will be
successful in improvement of revenues and growth by the services that are offered by the
managers in various international locations (Smh.com.au. 2019).
Personal view of the conflicts and solutions based on the example
The conflicts that are faced by managers in the operations of Qantas Airways are
mainly based on the cultural differences that exist in countries where the company has started

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operating. The cultural differences have an impact on the work environment that is developed
within the organization after the company has aimed at entering the country. The conflicts
faced by Qantas Airways have an impact on the growth of the organization. The relationship
between employees and with the other organizations can also play a key part in proper
growth of the revenues that are gained by Qantas Airways (Stone & Deadrick, 2015).
Qantas Airways has aimed at developing partnerships and has also acquired
organizations in order to reduce the competition that is being faced in the airlines industry.
According to me, the conflicts and issues that are faced by Qantas Airways in the industry or
on an international basis can be reduced by the effective role that is played by the managers
(Tidd & Bessant, 2018). The services that are provided to customers in different parts of the
world are highly important for the organization in order to maintain the profitability levels.
The managers can influence service levels that are provided to the consumers in order to
attract them towards the firm. Qantas Airways needs to implement changes in the operations
for improvement of the revenues that are currently gained by the organization (Verbeke &
Asmussen, 2016).
The communication that is formed by the managers of Qantas with the employees in
various parts of the world is a major aspect that is based on maintaining the reputation of the
organization. I think the solutions that have been implemented by Qantas are mainly based on
training that is provided that is provided to them based on the cultural differences. The
international managers are thereby able to support the operations that are developed by
Qantas Airways in the airlines industry (Vidgen, Shaw & Grant, 2017). Qantas Airways can
face the aggressive competition by the services that are provided by the managers and their
relationship with the employees as well. The issues and conflicts that Qantas Airways faces
can be solved effectively by the managers of the organization who can affect the behaviour of
the employees. I think that the managers of an international organization like Qantas Airways

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have to be highly informed about the cultures in different countries. The knowledge related
various cultures can offer support to the organizations so that the relationships with the
employees in different countries can be developed (Stone & Deadrick, 2015).
Conclusion
The essay can be settled by stating that the managers of international firms can face
key concerns based on the proper management of operations in different countries. Qantas
Airways has been analysed as an example based on the challenges and opportunities that are
faced by the international managers of the organization. The company has implemented
solutions based on acquisition and expansion of the operations in various countries. This is
expected to play a key part in proper reduction of competition that is faced in the airlines
industry. The managers of Qantas Airways will support the organization to provide effective
training to the employees so that they are able to understand the differences in culture that
exist between various countries.

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