Strategic International Business Management - PDF
Added on 2021-04-22
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STRATEGICINTERNATIONALBUSINESS MANAGEMENTOver the years, ways of doing business have changed and so are the methods thatleaders adopt for managing their operations (Ball, et. al, 2012). With the changing global
1business needs and environment, it has become essential for the leaders to adoptmethodologies that are more flexible. The competition in the market is increasing at a muchfaster rate and hence leaders need to adopt strategies that give them strategic edge over theothers firms. Communication within the company plays a very crucial role in managingoperations (Wheelen and Hunger, 2011). It helps to maintain the smoothness in the workingprocess as well as making sure that every information reaches to the beneficiaries. Effectivecommunication system helps in construction of positive environment within theorganisations. Most of the leaders in the firms have accepted open culture which helps themin bringing new ideas for solving issues that arise in daily operations of the firm. Style ofleadership plays an essential role in managing any changes in the operational procedures.Later part of this essay highlights the ways in which MNEs are changing and the leadershipchallenges that is present in front of them. It also illustrates about the style of leadership thatneeds to be followed as well as the factors that is hindering development of open culture. Ways of doing business is changing at much faster rate. It is due to the fact that thereis large change in the environment from the past. Environment in the business have becomemore sensitive and have become variable in nature (Scullion and Collings, 2011). This hasbrought challenges for the firms as they have to make continuous change in its operationalstyle so as to make sure that there is less chance of business failures.Multinational enterprises are operational in many parts of the world and hence they are moresensitive towards change in the global environment. Internal and external factors are makinghuge impact on the operational procedures of the company (Alkhafaji, 2011). The changingglobal scenario needs to be evaluated in a better way by understanding each and every aspectof the variables that is making impact on the business of the firms. With the globalisationmultinational enterprises have emerged in many parts of the world which has benefitted manypeople.There are several ways in which multinational organisations are changing. In the pastcompanies were more dependent on the human capital for their operations but the amount ofpeople that are working within a firm have reduced. Automatic and smart machines havereplaced people and have enhanced the efficiency of the firm (Crawford, 2012). It hasreduced the number of errors occurring while performing any task. MNEs were onlyconcerned about their growth and profits that they can make through their business. But nowthey also have to think about the sustainability of the society and their business.
2Sustainability has become a major concern for such firms and they have to take care of theissues related to the sustainability (Lee and Carter, 2011).In previous times, multinational firms have been concerned about making their business moreprofitable irrespective of the impact it is posing to the environment. But now companies havebeen forced by the governments to operate their business in such a manner that it puts lesserburden on the environment and the resources available with the company. It is also essentialthat companies take care of the CSR activities along with their business. Companies need totake care of all the ethics while managing their operations and need to make policies thatbenefit their stakeholders (David, 2011). Companies need to invest a whole lot of their moneyin the welfare of the society.There have been a lot of changes noticed in the organisational structure of the companiesover the years. They have developed their organisational structure in a way that senior levelemployees can interact with their juniors. More parallel structures have been promoted in thecompanies. Companies are giving most of their jobs on contracts. This helps company incutting their cost that they would have invest on the welfare of their employees (Bolden,2011). Most of their jobs are given to the smaller or local companies who have their ownemployees and are very much capable to finish the task. It is one of the cost cutting measuresthat companies have adopted over the years.There are many leadership challenges that are faced by the MNEs. These challenges have tobe removed in order to ensure the long term growth of the company. There is a huge amountof competition that is present in the market and it has become a challenge for the leadershipto maintain its growth rate. For surviving in the competition leaders needs to make strategiesthat are unique and differentiates their firm from that of others (Hitt, Ireland and Hoskisson,2012). This has also brought challenges for the leaders as they have to manage their businessin such a manner that they can achieve higher profits. For doing this they usually adopt costcutting measures.In the changing global workforce the demands of the employees have also changed.Companies also have to fulfil their demands so as to make sure that the employees remainloyal to the firm (Spillane, 2012). Managing healthy employee relations is essential for thefirm’s production as it directly affects performance of the employees. A satisfied employeealways adds value to the product and services of the company which is necessary formaintaining the standards of the products.
3In present business there are large amount of situations and issues that company faces and itis essential for the leaders to make sure that they have an effective decision making system.This can only be possible if they involve large number of employees in their decision makingprocess (Birkinshaw, Brannen and Tung, 2011). Any discrepancies in the decision makingcan lead to failure in the market which is not good for the image of the company.As it can be seen that there are many challenges that is faced by the leaders at higherlevels of hierarchy. The way in which operations is managed within the company alwaysdepends on the style of leadership being followed within an organisation (Cavusgil, et. al.,2014). In the past it can be seen that most of the leaders were following autocratic style ofleadership. It was beneficial at that time but in the current business environment it is essentialthat a manager listens to its employees and become more democratic in nature. In order toreduce the difficulties in business, leaders need to apply effective strategies that will able tosolve the problem. Developing a culture within an organisation is necessary. This helps to bind the wholeworkforce in a single thread. Open culture is something that is the demand of the workplace.Open culture has become the key for modern day business. In the multinational firms thereare many employees working. They all come from different cultural backgrounds and hence acommon culture must be applied within an organisation. This brings uniformity in theworking procedures as well as it helps in maintaining the positive environment at theworkplace. In the past top leadership finds developing a culture within an organisation to bewaste of valuable time. Even till today most of the leadership in an organisation understand itto be the work of the HR department (Reiche, et. al., 2016). According to Edgar Schein thereis indirect and direct mechanism within a firm and organisational culture is directly affectedby direct mechanism. Open culture is also understood to be as the responsibility of collectiveresponsibility and collective creativity. In such type of culture every employee works as ateam to achieve common goals with having mutual respect for each other’s idea.It is necessary in the modern day business to retain old employees, attract new talents andinspire them all to work for the organisation. Embedding an open culture within anorganisation can provide it with the same. It acts a protective shield at the time when firmfaces challenges or is going through tough times.It is the role of the leader to pay attention to the culture in which employee live or work (Doz,2011). Developing a culture within an organisation is important because a competitors can
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