Challenges, Solutions, and Benefits of Cross-Border Management

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This essay delves into the intricacies of managing across borders, a critical aspect of international business. It begins with an introduction that defines cross-border management and its growing significance in today's globalized world. The discussion section meticulously explores the challenges faced, including cultural differences, varying levels of technological advancement, business complexity, differences in management methods, geographical disparities, and economic status variations. The essay then provides practical solutions to these challenges, such as adopting common managerial methods, recognizing cultural differences, establishing appropriate business laws, and implementing effective communication strategies. Furthermore, the essay highlights the benefits of cross-border management, such as improved management and leadership skills, the development of skills to manage virtual teams, enhanced understanding of cultural differences, and the opportunity to learn new management strategies. The essay concludes by summarizing the key points and emphasizing the importance of effective cross-border management for businesses seeking international growth and success.
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SUBJECT
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EXECUTIVE SUMMARY
Managing across border has recently become an issue for businesses that desire to be
international organizations. This essay addresses the issues related to international or cross
boarder management i. the challenges or problems involved, solutions to the challenges and
benefits to the managers. The essay contains four main parts. The introduction that gives a brief
introduction of the topic, the discussion that gives clear and detailed information on the
challenges, solutions and benefits of across boarder management, the conclusion that gives a
personal view on the topic but in regard with the discussion and lastly the reference section that
shows a list of sources from which the information was derived.
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Table of Contents
INTRODUCTION.....................................................................................................................................4
DISCUSSION............................................................................................................................................4
Challenges Facing Across Boarder Management................................................................................4
Solutions to Challenges.........................................................................................................................6
Benefits of Cross Border Management................................................................................................8
CONCLUSION..........................................................................................................................................9
REFERENCES..........................................................................................................................................9
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MANAGING ACROSS BORDERS
INTRODUCTION
Management is the process of planning, controlling, directing and organizing business
operations, resources and employees with an aim of achieving the set goals and objectives.
Business management is the responsibility of the managers. Managing across borders involves
the management of an international business environment which will consist of completely
different aspects (Jain, 2012). Managing across boarders also refers to management of an
international business organization. Management of an international environment currently has
become a serious business operation especially for managers. This is caused by the adverse
changes that face the international operating environment (Hale, 2009). Business organizations
and industries are developing and growing at high rates which gives them the desire to go global
(Grainger, 2010). The desire to exploit the global economies of scale and benefits for these
businesses has led to great need for coordination and integration of management activities.
Therefore, in today’s business world, this calls for capable managers or leaders with effective
and efficient management skills that can be applied in every part of the world. With the
increasing desire for growth and development, the international business environment requires a
manager who can be successful in managing it (Kieck, 2010). In addition to that, it is important
to secure and maintain the global advantage for such businesses and industries which ensures
future productivity. Research has shown that, the global business environment currently needs
managers with great technical and interpersonal skills that will help them manage and adapt to
the various changes of the environment. Managing across boarders clearly offers the managers
an opportunity to improve their skills, develop their knowledge and careers and implement their
management strategies all over the world (Doyle, 2010).
In this assignment I will discuss the challenges facing management across boarder, benefits or
advantages realized and the solutions to those challenges.
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DISCUSSION
Challenges Facing Across Boarder Management
Cultural differences
When a business goes global, it has to open more stores or start operation in another country or
continent. Global businesses operate all over the world. Every country has its own different
ethnic groups and races with different cultural practices. If the business’s cultural practices are
different from those of the new location, then this becomes a challenge for it. Many businesses
have ended up changing their business operations to suit those of the surrounding environment
especially when they go global. These cultural practices can be practices related to national
holidays, religious holidays e.g. Christmas among others (Reilly, 2015) Therefore, for
management across boarder to be successful and effective for a business or manager, they should
be able to identify and respect the cultural differences between the employees, stakeholders,
business owners, customers and any other person who may be involved with business
development and growth.
Difference in technology advancement
Different countries have different levels of technology advancement (McLinden et al, 2011).
There are those that are still developing like in Africa and those that are already developed like
USA. Businesses operating in these locations certainly use different technologies in their product
or service production processes. In that case, when a business decided to go global and locate
itself in a location that has different technological support, it becomes a challenge for it. This is
for every business because the employees may not have the skills, experience and expertise to
work with the technology. Therefore, this becomes a challenge for the managers to control and
organize the operations in that kind of environment.
Business complexity
Businesses managers use various strategies to run their operations. A business that focuses on the
improvement of its efficiency, effectiveness, learning and responsiveness to situation changes
faces a challenge when it decides to go global. Operating in an international environment causes
higher levels of complexity. Basically, the very act of a business going international multiplies a
business’s operational complexity by default. Therefore, this means even the management
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process must be of high levels and effective for the business to be successful. However,
complexity becomes a problem if the managers are not well prepared for the changes and if they
are not effective and strong in making the right decisions.
Differences in management methods
Every country has its own common and popular management techniques for its business
organizations. When a business goes global or when a manager is preparing to manage across
boarder business, they must be able to adapt to the new location’s management techniques (Bešić
and Hirt, 2016). On the other hand, the business managers seem to persist on using their own
management strategies and methods. However, if the managers or the business is not ready to
adapt to the technique they should find another way to effectively and efficiently manage their
operations with success.
Geographical differences
The geographical differences relate to the long distances between the business locations, for
those that are already international businesses. The organizations are usually based in different
countries which means that they are far apart. Additionally, for a managers who is managing an
international business environment, it is a challenge. The managers must travel long distances to
check out the business operations and development status. Furthermore, they have to check out
the progress of the employees and their productivity. This is a challenge for managers who are
used to meeting their employees, stakeholders, business owners etc. on regular bases because
that may not be possible hence causing management problems.
Differences in economic status
Every country has its own economic growth rate. Developed countries have fast growing
economic growth rates while developing and underdeveloped countries have low economic
growth rate. These differences become a challenge for managers in charge of an international
business or environment (Maur and Wilson, 2010). The currencies and exchange rates for these
countries is also always different. This may affect management of businesses in different
countries than management of those locally placed.
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Solutions to Challenges
For businesses and managers to be able to be successful in managing across boarder, the
following solutions can be used to avoid the challenges and solve the problems faced:
Provision of a common managerial methods
To avoid the challenge on management and solve the problem of insisting on using same
managerial methods, an international manager(s) should create a suitable managerial techniques
that is likely to be accepted by every stakeholder, business owner or employee themselves. The
mangers should focus on identifying and recognizing every country’s management technique.
Comparisons should be carried out to be able to decide the best method for which country and
location (Khumalo and Chibira, 2015). Through this, managers who are responsible for global
environment and those that manage international businesses will certainly be successful in their
role. They will also be able to implement their management strategies effectively and efficiently.
Recognition of the cultural differences
This will avoid the challenge that relates to cultural differences. The management team should
focus on identifying and recognizing all the differences in culture among the organizations
employees, stakeholders, customers, investors among others. They should know what races and
ethnic groups that are available in the organization or business environment. In addition to that,
the managers should encourage cultural practice respect and adherence (Grainger, 2007). For
instance, for the Christians, they should be allowed to celebrate their Christmas celebrations
without pressure. By identifying and recognizing other peoples ‘culture, the managers will have
the opportunity to learn those cultures hence making their work easier.
Creation of appropriate business laws
Different countries have different laws and regulations governing the business activities.
Furthermore, there are laws that also govern the production of business production or services
which are different for each country. Therefore, for an international business, the challenge on
what law is to be adhered to can be avoided by creating new laws for the business itself, its
products and services. These laws should however go hand in hand with the laws of the country
where the business will be/is operating (Reilly, 2015). For managers who manage international
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environments, they should learn and be ready to adhere to the laws of the countries where their
business operations are.
Effective and efficient communication processes and structure
This will solve the issue with geographical differences. The challenge of managers failing to
attend business meetings in every organization in every country can be avoided and solved by
developing an effective and efficient communication process (Boermans, 2012). Communication
can be through emails, phone calls, video calls among other methods. The managers can conduct
meetings vial Skype or video conferences rather than waste time travelling all over the world to
conduct meetings. However, the managers should be ready to connect with the other managers
and organize meetings at regular times of the business year in different countries.
Benefits of Cross Border Management
Improvement in management and leadership skills
With cross boarder management, the managers have the opportunity to manage and lead a large
area. An international business has more employees, operations and activities to handle than the
local business organizations. The managers get the chance to lead international organizations in
international environment. The global business environment offers better opportunities for the
managers to practice and implement their skills, knowledge, expertise and experience
(Machulskyi and Bogomyagkov, 2012). This is likely going to develop their careers and
improve most of the skills they have.
Development of skills to manage virtual teams
Business managers must possess certain skills that make them special and successful in their
role. However, international managers should have even better skills for them to succeed in their
role. Therefore, when managing global teams, the manager will be required to develop their
skills more so that they can be fit for the role (Capaldo, 2013). They must be ready to change
drastically according to environment (should be flexible), patient in dealing with changes and
among all things be ready to learn.
Understanding cultural differences
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In an international business and environment, different people get to practice various cultures.
Just as mentioned earlier, a manager whose role is to conduct across boarder management should
be able to identify those different cultures and recognize them. In addition to that, they should
understand the cultures and respect them. Across boarder management offers a better chance for
a manager to learn about new cultures, their influences and different ways to manage (Moran et
al, 2014). Also, they get the chance to develop new strategies that will be effective and efficient
for the success of their responsibilities across the world.
Learning new management strategies
When managers travel the world and visit different countries to manage their businesses, they get
the opportunity to learn new different management strategies. This is gotten from the different
methods used in different countries. Managers are able to choose the best ones for their
organization, understand their advantages and disadvantages as well as the benefits that accrue to
their usage. Managers also get to meet knowledgeable people either investors, stakeholders,
customers and employees from whom they learn a thing or two from (Reiche et al, 2016). With
this, the managers will be able to effectively manage their businesses.
CONCLUSION
Managing across boarder is the process of managing businesses across the world or in an
international environment. International management therefore requires effective, efficient and
well skilled managers to succeed. These type of management has a good number of challenges
that are involved. However, the solutions are also an easy way out of the problems that face cross
boarder management. Businesses should ensure that their businesses have investigated their
chances of success, understood the benefits, advantages and disadvantages of being an
international business. Additionally, they should ensure that they have identified the challenges
and solution to those challenges before they go global.
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REFERENCES
Bešić, A. and Hirt, C., 2016. Diversity management across borders: the role of the national
context. Equality, Diversity and Inclusion: An International Journal, 35(2), pp.123-135.
Buyonge, C. and Kireeva, I., 2008. Trade facilitation in Africa: challenges and possible
solutions. World Customs Journal, 2(1), pp.41-54.
Boermans, M.A., 2012. International Entrepreneurship and Enterprise Development (Doctoral
dissertation, Utrecht University).
Capaldo, J., 2013. The Uncertain Gains from Trade Facilitation. Tufts University, Global
Development and Environment Institute Policy Brief, pp.13-02.
Doyle, T., 2010. Collaborative border management. World Customs Journal, 4(1), pp.15-21.
Grainger, A., 2007, June. Trade facilitation: A review. In a conference on Global supply chain
security at Imperial College, London.
Grainger, A., 2010. The role of the private sector in border management reform. BORDER,
p.157.
Hale, G., 2009. In Search of Effective Border Management. Canadian International Council.
Jain, S.R., 2012. Coordinated border management: the experience of Asia and the Pacific
region. World Customs Journal, 6(1), pp.63-75.
Kieck, E., 2010. Coordinated border management: unlocking trade opportunities through one
stop border posts. World Customs Journal, 4(1), pp.3-13.
Khumalo, S. and Chibira, E., 2015. Finding practical solutions to cross border road transport
challenges in SADC: a review of major challenges and prospects. Southern African Transport
Conference.
Machulskyi, I. and Bogomyagkov, Y., 2012. Corporate and business strategy at MNEs: A
managerial practice view.
Maur, J.C. and Wilson, J.S., 2010. Trade costs and facilitation: open trade and economic
development. Edward Elgar Publishing.
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McLinden, G., Fanta, E., Widdowson, D. and Doyle, T., 2011. Border management
modernization. World Bank.
Moran, R.T., Abramson, N.R. and Moran, S.V., 2014. Managing cultural differences. Routledge.
Reiche, B.S., Mendenhall, M.E. and Stahl, G.K. eds., 2016. Readings and cases in international
human resource management. Taylor & Francis.
Reilly, P., 2015. Managing across borders and cultures. Strategic HR Review, 14(1/2), pp.36-41.
Reilly, M.P. and Williams, M.T., 2012. Global HR: Challenges facing the function. Gower
Publishing, Ltd...
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