Comprehensive Report: Management in the Global Business Environment

This report provides a detailed analysis of the global business environment, examining various aspects crucial for success in international markets. The report begins by discussing different organizational structures, such as divisional and geographic structures, and their suitability for companies expanding globally. It then delves into the importance of ethical considerations, particularly in the context of clothing manufacturing, emphasizing the need for research into supplier practices to mitigate risks related to ethical sourcing. The report highlights the potential risks of neglecting ethical concerns and outlines a research plan to assess suppliers. Furthermore, the report identifies key leadership skills, including listening, sensing, and observing, that are essential for navigating the complexities of the global business landscape. The report concludes by stressing the importance of these skills for effective management and achieving a competitive edge in the global market. This report is a comprehensive resource for understanding and succeeding in the global business environment.

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

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Activity 1
Organizational Structure
The organization from the discussion is looking to expand their business in the
international market in Europe, and after spending two months in the market of that region,
the President of the organization are looking to expand their handheld tools, which are crafted
for the local markets. The organizational structure that need to be followed by this
organization is the divisional structure based on products. This structure will help the
organization to particularly focus on the type of products or projects according to the
requirement of the clients in the targeted market in Europe. This will help to particularly
focus on a particular project or certain number of projects, so that the products can be
manufactured flawlessly and can meet the requirements of the customers, which will help in
the sustainability of the organization in those targeted market. The organization can also
follow the Geographic Organizational Structure, which is suitable for a small manufacturing
organization like this handheld tool manufacturing organization, and will be divided on the
basis of the geographic location on which the organization is planning to operate, and will be
controlled by a centralized headquarter. This will help the organization to serve the different
needs of different teams of the targeted market in Europe (Flight& Palmer, 2013).
If the organization is planning to expand in the region of Asia as well, then the
organization can follow the market based divisional structure. The divisions will be based in
the market places in Asia where the organization is going to expand apart from the market
places in Europe. They can segregate their structure according to the types of customers and
their requirements of handheld told, which includes hand saw, pliers, clamps, wrenches,
screwdrivers and others. This organizational structure will benefit the organization as it can
focus on a particular market segment, and able to satisfy the requirements of that

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organization. This will also help the organization to become aware about the changes in the
demand towards the handheld tools of that particular market place. The performance
measurement of each of the market area can be performed effectively and efficiently. The
managers for each of the divisions can view the amount of growth and can structure the
strategies accordinglyto gain the competitive advantage over others (Winnubst, 2017). They
can be held accountable for the growth in the sales for those particular areas, which will help
to assess the performances of the managers as well as the all the employees engaged with
those markets. Flexibility is there in this form of organizational structure in responding to
alterations in the local markets where the organization is going to expand their business
operations. The organization can add or remove the division in those expanded areas
according to the performances achieved by the organization. Implementation of the strategies
can be done in a better way. It is the best organizational structure, which is done on the same
divisions, which are located in various regions of Asia. The coordination of activities among
all the divisions are made locally and according to the market situations and requirements.
All these will help the organization to make better the adaptation of the marketing strategies
along with the implementation of the overall strategies that will better fit the demand for
those particular local market places (Ahmady, Mehrpour& Nikooravesh, 2016).
If the organization finds after three years that they are selling 50% of the overall
handheld tools produced in the international markets of Asia and Europe, the organizational
structure that will be followed by the organization will be the product structure. It will more
focus on the product line of the organization, which will be helpful as the organization
already possess their division in a number of cities. It will pace up the decision making within
the organization, through which they will be able to analyse and evaluate the marketing
conditions and the amount of sales done by the organization. It will help the organization to
remain flexible in the business environment. It will help the divisions who are performing

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badly and can investthe money and the framework of operationsin those divisions which are
performing well. It will help the organization to focus on the particular product line which
they are manufacturing. It will also be easier for the organization to assess the exact
requirements of the customers. As this structure is market oriented, it will help the
organization to particularly focus on all the markets of Asia and measure their performance
levels. An entrepreneurial spirit can be encouraged or fostered within the organization which
will help the organization to evaluate the performances of their employees and a friendly
competition between the divisions will encourage the employees to work harder and help the
handheld tool manufacturing organization to gain the competitive edge over others (Eisend,
Evanschitzky& Gilliland, 2016).

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Activity 2
Requirement of Additional Research
There is an urgent need for initiating additional research in regards to the customer
concerns of ethical clothing. This is due to the reason that in the recent time, there are few
incidents occurred in the recent time where it is seen how miserable the life of textile workers
is and in what condition and environment they are working. For example, the fire incident at
Rana Plaza, Bangladesh caused more than 1000 deaths and exposed the insights of the
workers. Developing nations such India and Bangladesh are the first choice for the global
fashion brands due to cost advantages associated (Sinkovics, Hoque & Sinkovics, 2016). It is
reported that the production and resource cost in these countries is lower and thus the global
fashion brands are outsourcing their manufacturing activities in these countries in order to
gain cost leadership. However, the incidents such as Rana Plaza exposed the real conditions
to the world and the customers became aware about the real world situation. Brands such as
Walmart, Gap and Primark got affected due to their outsourcing association with this
incident. Thus, in this case as well, additional research is required to gain the larger insights
about the infrastructures and background of the suppliers. In the current time when the
customers are more aware about the ethical clothing, it will be a risky affair to just outsource
the manufacturing process and generate negative word of mouth in the later stage. Initiation
of the additional research will also help to identify the background of the suppliers if they are
involved in any unethical activities in the past (Manchiraju & Sadachar, 2014). Even
association with the suppliers with having past ethical issues will cause negative implications
for the said clothing chain. The level and extent of competitive advantages to be gained by
the clothing chain in the later stage can also be determined by the initiation of the additional
research. This is due to the reason that additional research will help to identify and ensure

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that the outsourced partners are ethical in nature and there are no risks associated for the
clothing chain. Accordingly, the brand promotion can be done by leveraging on the ethical
clothing trends and sustainability maintained in the manufacturing process.
Discussion of the probable risks
There will a few risks that might get emerged if the intended research is not initiated
with the major impacts will be on the brand value of the clothing chain. One of the major
risks will be in terms of the brand value or equity. This is due to the reason that without the
initiation of the additional research, the background of the suppliers cannot be detected along
with their business process and practices. Hence, in the case of emergence of any unethical
business process in the long term or occurrence of any incidents such as Rana Plaza, the
brand value of the clothing chain will be affected and they will be equally be held responsible
due to the partnerships (Bly, Gwozdz & Reisch, 2015). The next risk that might also get
emerged will be in terms of finance due to the fact that emergence of any unethical or
unwarranted incidents will cause the clothing chain to pay for the compensation as well as
legal penalty. This will create added financial pressure on the organization and the average
profitability will be affected. Not undertaking the additional research will also reduce the
control over the outsourced partners. This is due to the reason that with the insights to be
gained from the research, control measures for the suppliers can be initiated and implemented
but without that insights, information related to the suppliers will be limited and the clothing
chain will face the risks of lack of control over their supply chain process. Without the
initiation of the additional research, risk related with long term business competencies will be
evident (Moon et al., 2013). This is due to the reason that competitive advantages to be
gained by leveraging on the ethical fashion branding will not be viable enough without
having the concrete information regarding the suppliers. Thus, emergence of the information

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without undertaking the research will be a risky affair and risks of getting diluted in the
market will be evident.
Research plan
A certain plan is required for researching these issues, which will help to maintain the
uniformity in the process. The first step in the research plan will be the identification of the
suppliers. The suppliers should first shortlisted among whom the chosen one will be selected.
In the next step, these shortlisted suppliers will be examined on the basis of few criterions
such as existing client lists, revenue data, corporate governance standards and maintenance of
workplace health and safety standards and legislations. These criterions will act as the
checklist. Existing client names will be important because it will portray their trustworthiness
and acceptability in the market. Association of the global fashion brands will create a sense of
trustworthiness. Furthermore, corporate governance data will help to identify the business
process and standards being followed by them along with their operational insights and
approach to environmental factors. The local workplace health and safety standards of the
host country should be checked and the extent to which they are being followed by the
suppliers. Meeting of these criterions will ensure the ethical value of the suppliers and
leveraging on the ethical fashion in the long term can be ensured.
Activity 3
Requirement of Skills
The global world is becoming more and more competitive due to advancement of the
innovation. Every organization is trying to gain the competitive edge over others. And to gain
this competitive edge, some set of skills are required to lead the organization. One of the
major skill is listening. If the leader of the organization is successful in listening to its
customers, then the organization will be successful in identifying the needs and wants of the

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people and provide the goods and services accordingly. Another skill is sensing, which is an
important skill required in this modern competitive world. The leaders need to have the
power of sense of developing the slack within the organization, and to have backup ideas to
counter those situations, which may harm the organization to lose the competitive edge over
their rivals. Another major skill is observing, which helps to assess the performance of the
employees in an ethical way, which will automatically enhance the productivity of that
organization (Ivey Business Journal, 2019). It helps to set up the stage for a productive as
well as innovative organizational culture. And all these must be initiated for the senior
management or the leader of the organization, for example, the Chief Executive Officer or the
Managing Director of that organization. It is not easy to build acorporate climate by a leader,
and forthat he or she must possess the above discussed skills, along with some other like
communication skills, handle the complexity of business conditions and proper business
knowledge. All these will help to cope up with the tough business conditions that prevail in
the business industry. These will help to sustain in this competitive world and maintain the
competitive edge over others.
Absence of the Skills in Me
The above discussed skills are not easy to possess, and it takes years to possess these
skills by a leader. Only experience can earn these skills, and I am still not that much
experienced to acquire all these skills. I am still at the learning stage, and it only can be
earned by me by working for at least a particular span of time with a company or a two. Only
education within the classrooms cannot provide these skills. It can be acquired by started
working with the organizations, and I have just started to working career, which will
complete one year in the coming month. I am learning from my peers and colleagues along
with my senior, who all are sharing their experiences about how to possess these skills
required to become an effective leader in my future life. I have to face many ups and downs

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in my professional front in order to achieve these skills and implement them in my
professional career. One can learn these skills only through the working skills and continuing
to work in an organization, where the skills of listening, onserving, communication and
others can be achieved. Only working experience in an ethical way can help me to possess
these skills which will require a healthy amount of time(Harvard Business Review, 2019).
Identification of Shortage of Skills
The colleagues of mine has find the shortage in me through my work and proceedings
of the organization. They belong from the different work culture but still point out my
shortage of skills through the meeting with the clients and identification of their demand and
requirements. In case of meeting with the clients and customers, I was not able to listen to
then properly and misjudged their requirements, which missed to provide the exact product
required by them, which hampered the relationship between the client and organization.
Proper communication between me and the clients was also not going properly. They started
to guide me and my seniors decided to give me proper training, so that I will be able to gain
those skills and can create a healthy relationship with the clients and customers. This will
ultimately help he organization to maintain the productivity, where I will have a role to play.
And proper guidance will help me to increase the set of skills, which will improve myself as a
leader of future with the skills (Harvard Business Review, 2019).
The following table shows about the required skills or set, which will help to outline
the constraint of international capacity of my office to the director for next year’s
professional development:
1 Proper business knowledge
2 Listening
3 Communication

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4 Observing
5 Sensing
6 Handling the complex situations
It can be said that all the above skills are complementary to each other and must be
possessed by every leader to lead their organization for future purposes. It will help the leader
of that organization to lead from the front and help to possess the competitive edge over its
competitors (Harvard Business Review, 2019).

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