Global Business Environment: Leadership Skills and Strategies Report

This report comprehensively analyzes the global business environment, emphasizing the critical role of leadership in navigating its complexities. It delves into the skills required for CEOs and other leaders, highlighting the importance of understanding cultural dimensions, international business standards, and stakeholder management. The report examines the impact of cultural factors on business decisions, including the comparison of business practices in Australia and China, and the implications of Hofstede's cultural dimensions model. It also assesses the importance of communication, partnership building, and the use of innovative approaches to knowledge in achieving global business success. Furthermore, the report evaluates the skill gaps of managers, focusing on areas such as business decision-making, customer management, and technological knowledge, and proposes relevant training to address these deficiencies. Finally, the report underscores the need for adapting to cultural nuances and the importance of continuous learning for effective leadership in the ever-evolving global marketplace.

Running head: MANAGING GLOBAL BUSINESS ENVIRONMENT
MANAGING GLOBAL BUSINESS ENVIRONMENT
Name of the Author:
Name of the University:
Author Note:

1MANAGING GLOBAL BUSINESS ENVIRONMENT
In order for a business to flourish in today’s volatile and competitive global economy,
company leaders must focus on the nuances, both internal as well as external, that are directly
related to the sustainable growth of the business on international standards. By engaging in
meetings and discussions with the internal stakeholders, they must develop the necessary skill
set, a combination of the basic and case-specific elements that can drive company leaders or
CEOs to success through effective listening, sensing and observing of the business prospects.
According to Peter F. Drucker (2005), performativity is directly dependent on the
learning. For a business leader, this learning entails first the understanding of one’s own and
thereafter the company’s strengths and weakness, in relation to the core values of the
company. Taking a cue from Drucker, who focuses more on the humanistic side of successful
business processes, A.G. Lafley (2009) contends that this learning must encompass the
internal and external factors or stakeholders’ interests which has a direct bearing on the
company’s benefits. However, both gives adequate importance to decision-making and
optimization of business by receiving and integrating the customer feedbacks within the
corpus of business processes. As a CEO of Proctor & Gamble (P&G), Lafley’s concerns
circulate more around the interests of the customers (Lafley, 2018). H. Saxena (2015) also
focuses on the development of the skills by the CEO through learning, but he is more
concerned about the process of this learning, and suggests three criteria for the same –
listening, sensing and observing. Like Drucker and Lafley, these three phenomena also relate
to the demands of the customers. Nevertheless, they also take into consideration the interests
of other stakeholders. Listening to the suggestions of the customers and the employees are
extremely important, as it may bring forth long-term benefits for the company (Saxena,
2018). Similarly, the CEO also must be able to sense any loopholes or shortcomings and
adopt related necessary measures for the same. An all-pervading observant eye is also equally
necessary for the leaders in this regard. Therefore, it may be said that, for this to have a full

2MANAGING GLOBAL BUSINESS ENVIRONMENT
play, the organizational culture or the communication standards within an organization
should have a transparent collateral approach, rather than a strictly hierarchical one.
Notwithstanding its correlation with Saxena’s contentions, Drucker provides a
different argument. He says that these learning processes are related to the integral elements
of the person concerned, whether he/she is predominantly a reader or a writer. This, he
elaborates through characteristics of the U.S Presidents (Drucker, 2018).
This paragraph will discuss where in Europe the tools handled by the current CEO
should be made available, whether in Germany, Liverpool or in other parts of Britain. In this
regard, the propositions of Drucker (2005) argues that the advantages of taking over an
existing handheld manufacturing plant in Germany is likely to result in the expatriate CEO’s
better understanding of the business and regulation of adequate policies, since Germany ranks
higher than Britain in terms of Long-Term Orientation in Hofstede’s Model of Cultural
Dimensions. However, Raible (2016) argues that the disadvantages of taking over an existing
handheld manufacturing plant in Germany is likely to result in poor business as compared to
Britain because, unlike the British who are Indulgent and open to new changes the Germans
are more Restrained and hence the new business is likely to be rejected by the Germans, who
may see it as a threat to their corporate culture. Much in line with the previous argument,
Elshandidy, Fraser and Hussainey (2015) argues that the advantages of taking over an
existing handheld manufacturing plant in Britain is likely to result in quality business because
the British corporate culture is more open to new avenues and prefers to trod upon uncertain
paths more than Germany. Opposed to that, the contentions of Lafley (2009) argues that the
key disadvantages of taking over an existing handheld manufacturing plant in Britain may
result in poor business outcomes because in Britain people are comparatively more
individualistic and concerned about the personal or family interests, rather than a shared
interest of the entire society. The framework presented above borders heavily on the cultural

3MANAGING GLOBAL BUSINESS ENVIRONMENT
dimensions of Geert Hofstede, and it may be argued that we can adopt this model because it
gives a nuanced reading of the socio-cultural factors which has a huge impact on the
establishment of a new business, especially if it is in a new country.
Parent Company CEO
Name Ivan Harris
Location New South Wales, Australia
Phone Number ([phone]
E-mail [e-mail]
CEO Expatriate
Name Li Chen
Location Beijing, China
Phone Number ([phone]
E-mail [e-mail]
An essential quality of global leaders is to build partnerships in business. In order to
standardize and integrate operations on a worldwide basis, leaders of organizations should
align their business processes with respect to the different cultural backgrounds of the
stakeholders and shaping the communication styles accordingly. In terms of international
business standards, this innovative prototype of organizational culture offers strategic
measures to individual stakeholders as well as groups to face the more complicated
challenges pertaining to planning and commutations more effectively with newer tools in the
form of innovative skill sets (Goldsmith, 2018). This innovative approach, which takes into

4MANAGING GLOBAL BUSINESS ENVIRONMENT
consideration subjective as well as organizational behaviour has been severely lacking in our
company. The aforementioned touchpoints which business leaders and CEOs should follow,
which effectivelybuilds up to moments of truth during stakeholder interactions, could not be
sensed or foreseen earlier within the operative system of our company.
If we are planning for international success, we must strike a balance between the
bigger picture of the company and consultation with the major stakeholder at every level of
our company. This approach, through appropriate communication methods, would be
advantageous for us to assess our strengths and weaknesses, and do away with the duality of
cultural nuances which has a direct impact on our business, thereby helping our business
processes to acquire a dynamic dimension (Zenger, 2018). In order to address the
international competencies, with which we had been experiencing a hard time so far, the
variety of complexities that are associated with the landscape – the political, social, cultural
and economic differences – should be strategically addressed, taking into consideration the
goals and core values of the company. This would help our company leaders to effectively
build partnerships, which is currently one of the major competencies for successful business
on a global scale, although ironically globalization was supposed to make this process easier
(Herd, Alagaraja& Cumberland, 2016).
Therefore, in conclusion, it may be said that the skills needed to lead effectively in a
global business environment was lacking in our company, chiefly due to our adherence to
older strategic measures which often fails to fetch success in the modern scenario. Innovative
approaches to knowledge would help our leaders as well as the employees to connect the dots
which constitute effective gateway to successful business endeavour on a global scale.
Activity 3
4.3.1 Masculinity or feminist Society of China and Australia
Australia and China have masculinity culture

5MANAGING GLOBAL BUSINESS ENVIRONMENT
4.3.2 Low risk avoidance or high-risk avoidance
China has low risk avoidance while Australia has medium risk avoidance
4.3.3 Power distance
In Australia, the power distance is low, whereas in China it is high
4.3.4 Long term relationship or short-term relationship
China has a pragmatic culture, whereas Australia has a normative culture
6.1 Contrast Australia and China value of
6.2 Freedom and belongingness
China enjoys both freedom and belongingness while Australia enjoys more freedom
6.1.2 Independence vs Group harmony
Australia is more independent than China, which believes in the group harmony
6.3 Self reliance vs collectiveness
China is a collectivist society while Australia is more self reliant
6.4 Individualism vs group consensus
China has group consensus whereas Australia has individualism
6.5 Competition vs cooperation
Competition and cooperation both exists in China whereas in Australia only
competition exists
6.1.6 Efficiency vs quality
Australia focuses on quality of work whereas efficiency is the focus of China
6.1.7 Short term relationship vs Long-term relationship
China has a long-term relationship while Australia has a short-term relationship
6.1.8 Direct negotiation vs indirect negotiation
China maintains direct negotiations with the customers whereas Australia enjoys
indirect negotiations

6MANAGING GLOBAL BUSINESS ENVIRONMENT
6.1.9 Openers and use go to between
7.2 Type of custom of shaking hands of the Chinese people
CEO expertise should shake hands of the Chinese lightly.
Parent Company CEO’s Perception of CEO Expatriate Skills:-
Parent Company’s CEO’s
Perception of
CEO Expatriate Skills
Date
Unit
Number
Learning Outcome HS C NI HNKE N/A Training
Completed
4.3.5 Able to demonstrate how to greet the host
nation assistant manager at the office or
airport
 28.09.2018
4.3.6 Able to demonstrate how to greet a
prospective new business partner in a
business decision strategy
 28.09.2018
4.3.7 Able to demonstrate how to exchange
business cards
 28.09.2018
4.8 Able to demonstrate how to exchange
gifts that are actually appropriate
 28.09.2018
4.9 Able to demonstrate what gifts are
culturally appropriate for the spouse of the
expatriates
 28.09.2018
4.10 Able to demonstrate what gifts are
culturally appropriate for the children of
the expatriates
 29.09.2018

7MANAGING GLOBAL BUSINESS ENVIRONMENT
4.11 Able to demonstrate how to accept gifts
from the host nation representative
 29.09.2018
4.12 Able to demonstrate to sit around the
boardroom based on seniority and
authority
 29.09.2018
4.13 Able to demonstrate what to talk about in
the first meeting
 29.09.2018
4.14 Able to demonstrate what to talk about in
the second meeting
 30.09.2018
4.15 Able to demonstrate what to talk about in
the third meeting
 30.09.2018
4.16 Able to demonstrate how to accept
invitation to go out for dinner
 30.09.2018
4.17 Able to demonstrate who to sit next to in
business meetings
 1.10.2018
4.18 Able to demonstrate how to give
concessions in business negotiations
 1.10.2018
4.19 Able to demonstrate how to accept  1.10.2018
4.22 Able to demonstrate how to negotiate and
close the deal 6 to 12 months after
building a trusting and respectful business
relationship
 1.10.2018
4.23 Able to demonstrate an understanding of
the geography of China
 2.10.2018
4.24 Able to demonstrate having visited and
gained awareness
 3.10.2018

8MANAGING GLOBAL BUSINESS ENVIRONMENT
8.6 Able to demonstrate expertise in receipt of
the business cards from the Chinese
business clients by accepting business
cards
 3.10.2018
8.7 Able to demonstrate ability to shake with
both hands
 3.10.2018
8.6.2 Able to spent 20-30 seconds reading the
cards
 4.10.2018
8.6.3 Able to demonstrate engage in
conversation on one of the skills on the
card and past expertise or role highlighted
on the business cards
 4.10.2018
8.6.4 Able to demonstrate placing business card
in a business card holder sign of
importance
 5.10.2018
Skill gaps:
The skill gap of the first respondent, (name) is that he required further training in
business decision making. The manager is required to take further training regarding
macroeconomic environment analysis which would contribute to strengthening his business
decision skills. The training should include developing of understanding among the
customers regarding cultural diversity of employees. This would enable him to lead his team
of subordinates better.
The second skill gap existed in the field of customer management, once again due to
lack to cultural intelligence. Thus, the training should also incorporate study about different

9MANAGING GLOBAL BUSINESS ENVIRONMENT
cultures of the host countries. This would enable the manager under trained named (name) to
deal with customers better.
The third skill gap exists in the area of technological knowledge as far as the manager
(name) is concerned. He is required to develop knowledge about the various technical
resources he could use to gain and manage business information. He is also required to take
training about holding meetings on the teleconferencing systems and to exchange confidential
data with the senior management in a secure manner.
The fourth skill gap existed in the area of decision making of ,,,,(name of manager) in
the area of financing decisions. The manager should undergo financial training under the
guidance and supervision of the finance department. He should be trained with different
methods of costing and accounting. He would be taught budgeting and several other
important accounting aspects.
The fifth skill gap identified was conflict management skill deficiency with ….(name
of manager). He would be given training on developing his communication skills and ways of
communicating with his subordinates more effectively. This would enable him to manage
conflict more effectively and ensure smooth production.

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Reference List
Drucker, P. (2018). Managing Oneself. [online] Irpublicpolicy.ir. Available at:
http://irpublicpolicy.ir/wp-content/uploads/2018/05/Managing-oneself-irpublicpolicy-
1.pdf [Accessed 11 Sep. 2018].
Elshandidy, T., Fraser, I., & Hussainey, K. (2015). What drives mandatory and voluntary risk
reporting variations across Germany, UK and US?. The British Accounting
Review, 47(4), 376-394.
Goldsmith, M. (2018). Being an Effective Global Leader. Retrieved from
https://hbr.org/2009/07/being-an-effective-global-lead
Herd, A. M., Alagaraja, M., & Cumberland, D. M. (2016). Assessing global leadership
competencies: the critical role of assessment centre methodology. Human Resource
Development International, 19(1), 27-43.
Lafley, A. (2018). What Only the CEO Can Do. [online] Harvard Business Review. Available
at: https://hbr.org/2009/05/what-only-the-ceo-can-do [Accessed 11 Sep. 2018].
Raible, S. E. (2016). Entrepreneurship Ecosystems: A Comparison of the United States and
Germany.
Saxena, H. (2018). Three Skills CEOs Need Most | Ivey Business Journal. Retrieved from
https://iveybusinessjournal.com/three-skills-ceos-need-most/
Zenger, J. (2018). The 6 Competencies Global Leaders Need To Succeed. Retrieved from
https://www.forbes.com/sites/jackzenger/2014/06/26/the-6-competencies-global-
leaders-need-to-succeed/#3f15041c56f1