Management in a Global Business Environment - University Report

This report provides a comprehensive analysis of management in a global business environment. It begins by examining organizational structures, including international division structure, global geographic structure, global product structure, and global functional division structure, and their suitability for companies expanding internationally. The report then explores the benefits of direct investment in foreign countries, focusing on the advantages of joint ventures in mitigating risks and gaining market access. Furthermore, it reflects on the importance of communication, managerial, and leadership skills in a global context, highlighting personal experiences and areas for improvement. The report also includes a letter to a manager discussing the advantages of direct investment, and a reflective piece on past experiences. The content covers various aspects of international business strategy, organizational design, and personal development within a global business setting.

Running head: MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENT
Management in a global business environment
Name of the Student
Name of the University
Author’s Note

1MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENT
Table of Contents
Activity: 1...................................................................................................................................2
Reference....................................................................................................................................5
Activity: 2...................................................................................................................................6
Activity 3....................................................................................................................................9
Reference..................................................................................................................................12
Activity 4:.................................................................................................................................13
Reference..................................................................................................................................16

2MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENT
Activity: 1
Organisation structure is a system adopted by different organisations for operating in
the target market. It communicates the work role and responsibilities. Basic structure of
anorganisation can be either centralised or decentralised. Various types of structures are
formulated holding one of the basic forms of structure.
The manufacturing company seeking entry in the international market can adopt
International Division Structure in its initial stage of internationalisation. It will help them
in keeping the domestic market uninterrupted in the process of internationalisation. The
company using international division structure creates a separate department for their
operations overseas. This particular organisational structure helps gaining advantage for the
large corporations in their early stage of international venture (Hood &Birkinshaw,2016).
However, this will also provide advantage to the small company like the hand tool
manufacturing company under consideration.There may be a number of departments under
this structure depending on their function. For example, the international division may be
sub-divided into operations, finance and marketing departments. The human resource
department however, responsible for coordinating and implementing various action related to
staffing and other related actions. This organisational structure further helps in ensuring the
attention of the top management towards developing a holistic and unified approach in the
international operation (Verbeke,2013). This provides a greater autonomy in decision-
making. This helps the organisation in its early stage of internationalisation. This is for
avoiding risk in the international market by keeping relatively low ration of foreign and
domestic sales and offering limited product lines to the international market. The growth of
international operations will seek modification in the organisational structure in the later
period for gaining advantage in the wider international operations.

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The expansion of the international market from Europe to Asia will definitely require
modification in the organisational structure to better address the operations. The company can
adopt the global geographic structure for their expansion of international market, as this
particular structure is efficient with the less diversified product lines allowing the
management to share its resources from one country to another as per requirement (Deresky,
2017). Coordination of human resource in this type is established for achieving company’s
overall strategic goals between the subsidiaries operating in different countries. However,
centralised control limits the departments from taking necessary decisions required to bring
specific innovation required in accordance to the specific country. Hence, using this structure
for the organisation will limit its potential.Global product structure on the other and is
beneficial when the organisation has a wider product line to offer to its customers. Moreover,
this reduces the cooperation among the various product lines (Deresky,2017). Short product
lines of the organisation reduces the applicability of the strategy.Hence, it leaves with the
option of Global functional division structure, which is best suited for expanding their
international market. The divisions under this structure is divided into two basic parts.
Domestic division looks after the venture within the domestic market, whereas, the
international counterparts of the divisions are responsible for looking after the activities
around the world (Cosh, Fu & Hughes,2012). The level of coordination established in this
structure is greater in their respective activities. It reflects potential success in providing
greater centralised control and greater international orientation of all functional managers.
However, it limitation of this structure lies within the operation in cross-functional
coordination. However, expanding the international market only to Europe and Asia can be
well served using this organisational structure.
The organisational structure mentioned above is likely to fail along with the evolution
of the global market. It is possible for the company to run into a situation of limiting the sale

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to fifty percent of it output overseas. This will require the company to move to global matrix
structure. The speciality of this structure is the super-imposition of the division on each
other in multiple dimensions (Coppin, 2017). It will help in better interaction and flow of
information throughout the organisation. The structure considers the cross functional aspects
for balancing the prospective of the organisation. The structure further facilitates in easy
transfer of the technologies to the foreign operations. It also ease up the transaction of new
products into diversified markets that leads to increase the foreign sales. However, the
complexity of the structure and process of operation often lead to conflict. Hence,
transnational network structure will better serve the organisation for not only increasing
their sale in the international market, but also avoiding conflict. The three major components
that are dispersed sub-units, specialised operations and inter-dependent relationship will
enable the company in exploring information related to markets, tapping into the expertise in
the worldwide subsidiaries and sharing the information throughout the divisions (Dekker
&Engbersen,2014).
The above discussion indicates that the international division strategy is useful in the
initial stage of internationalisation. However, constant growth of the company over
international market will require a more complex organisational structure.

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Reference
Coppin, A. (2017). Organisation Structure and Design. In The Human Capital
Imperative (pp. 45-49). Palgrave Macmillan, Cham.
Cosh, A., Fu, X., & Hughes, A. (2012). Organisation structure and innovation performance in
different environments. Small Business Economics, 39(2), 301-317.
Dekker, R., &Engbersen, G. (2014). How social media transform migrant networks and
facilitate migration. Global Networks, 14(4), 401-418.
Deresky, H. (2017). International management: Managing across borders and cultures.
Pearson Education India.
Hood, N., &Birkinshaw, J. (Eds.). (2016). Multinational corporate evolution and subsidiary
development. Springer.
Verbeke, A. (2013). International business strategy. Cambridge University Press.

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Activity: 2
To,
The manager,
XYZ Company
Sydney, Australia
Date: 12/01/2018
Sub: Advantages to be gained from having direct investment in foreign country
Dear Sir,
Hope you are doing well. We have analyzed your concerns regarding the proposal of
direct investing in Malaysia given by us. In accordance to that, we would like to share some
key insights to meet your concerns.
According to our proposal, we had suggested you to initiate the process of direct
investment in Malaysia to enter that market. Though it will be a bold move, but on the other
hand, it will also have huge benefits to be gained. However, you have communicated your
concern regarding the risk involved with the direct investment. It is true that, investment in
the foreign country will involve financial risk, but we have recommended it by analyzing the
associated risk in investing in Malaysia.
In order to reduce the risk involved in direct investment, we would like to suggest you
the concept of joint venture. This is due to the reason that, initiation of the process of joint
venture will help your organization to have partnership with any local firm in Malaysia. Thus,
it will reduce the amount of investment required as the project will now be shared. Moreover,
initiation of the joint venture will also help you in effectively determining the market of the
foreign country. This is due to the reason that, in the process of joint venture, you will have

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the opportunity of partnering with the local organization of the particular foreign country.
Thus, it is to be noted that, the local partner will have more market knowledge than your
organizations and thus, they will help you in determining the market requirement. In
accordance to that, you can offer products and services in the market.
It was also being noted by us that, you have made a concern regarding the risk of the
investment in relation to the political uncertainties in the host country. This is the reason
behind selecting Malaysia as the host country. Malaysia is not very far away from Australia
in terms of the geographic distance. Moreover, Malaysia is one of the most developed
economies in the Asian region. Government of Malaysia has also initiated various business
friendly initiatives in order to attract foreign investment along with having favorable tax
structure and export incentives. The per capita income of Malaysia is also one of the highest
in the Asian region and thus, it will be beneficial for your organization to have favorable
market opportunities there.
Thus, having discussed the associated risk and ideal market entry strategies in
Malaysia, it is important to determine the advantages to be gained from investing in
Malaysia. One of the key advantages to be gained by your organization is the increase in the
market opportunities. This is due to the reason that, though the risk in the foreign investment
is more but it will also help the business organization to enhance their market presence along
with increasing the customer base. Moreover, initiation of the joint venture will help in
creating more favorable impression among the foreign customers. This is due to the reason
that, having the operational base in the host country will help to create the trustworthiness
among the foreign customers.
In addition, in the current business scenario, Malaysia is having competition in the
market and thus it is important to have cost leadership in order to offer products in

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competitive price range. Therefore, without having the operational and manufacturing base in
the foreign country, products cannot be offered in competitive prices. Having the joint
venture in the foreign market will help to cater to the local market effectively. Hence,
investing in Malaysia will help your organization in gaining competitive advantages in the
market.
Moreover, the sources of loans and fund management from where your organization
will have the support of capital required in the initial stage are being identified by us. Thus,
you will not have the difficulty to have the fund in the initial stage of the foreign investment.
It is being expected that, the strategy of joint venture will prove fruitful and successful
for your organization. In addition, if there are other concerns regarding the investment
process, then please feel free to contact with us. You will require more information regarding
the rules and regulations of the doing business in Malaysia. Thus, we will provide and assist
you with more information in the future and in phased manner.
Please feel free to contact with us in case of any queries and concerns. We will be
more than happy to assist you.
Your faithfully
(TO BE FILLED BY STUDENT)

9MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENT
Activity 3
Reflection on past-experience
This particular part has portrayed an in-depth overview about my past experience
while working with 3 of my office colleagues. After making an effective discussion with my
office managers I have identified some of the most important issues within me that should be
checked in order to become an efficient professional. The three most important issues that I
should improve for being accustomed with the global environment are as follows:
 My communication skill Managerial skill Leadership skill
We all are from different cultural as well as religious backgrounds associated with the
business organization. While providing services I had to face innumerable difficulties in
communicating with each other effectively due to the language barrier. I failed to make an
effective interaction with my colleagues regarding the success of business. Due to the lack of
proper communication skill, I failed to express my point of view in the group meeting as
well. As a result, I did not get motivated in performing well towards the services due to the
lack of proper communication. It is undeniable that a performer should expose every
challenge at the workplace by making an effective interaction my manager. Due to the lack of
proper communication skill, I could not interact with my managers regarding the issues I am
facing at my workplace. I faced difficulties in communicating with my colleagues as well. As
a result, I did not get enough scope in interacting with my managers regarding the
development of business due to my communication barrier. In addition, while conducting a

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group discussion I could not give a proper suggestion within my group due to linguistic
barrier.
My views and thoughts were not exposed properly. However, this kind of
communication barrier was a part of obstacles in enhancing my career growth. At the same
time, I have observed that I have least managerial skill, which enabled me to face numerous
challenges in delivering the services to the customers. Due to the language barrier, I had to
face innumerable difficulties in interacting with my managers as well as my colleagues. As a
result, I failed to deliver the services within time. Customers had to wait for a long time in
order to receive my services. In this kind of situation, I was unable to meet the needs and
demands of the customers. However, this very specific study has focused to make an in-depth
analysis on how managerial skill is highly important in order to control the entire process of
business.
Along with the time management skill, an efficient employee should have the power
of decision-making skill as well. Decision making skill helps an individual to deal with the
situation properly (Goetsch & Davis, 2014). If an individual employee has to face any sudden
crisis within the operation process, the employee should have proper skill and knowledge on
how to overcome the crisis by taking a proper decision. As an individual, I should have
proper management skill so that I can provide a clear guidance to my colleagues. The role of
a business leader is to show an appropriate direction to the employees so that they can
achieve the business target. An effective leader enables the employees in performing well
towards services. I personally prefer to select participative form of leadership style at the
workplace. With the help of participative form of leadership style, both the employees and
the leaders can equally participate within the services. The leaders do not want to impose
their own decision on the employees. Employees on the other hand can get an enthusiastic
attitude in performing well towards the services (Pereira-Moliner et al., 2012). Participative

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form of leadership style is highly effective in receiving good performances from the
employees.
I have also observed that participative leadership style is not effective in every
business situation. Employees tend to misuse the agile environment of workplace. They do
not intend to provide their best effort towards the services due to flexibility of work
environment. In this kind of situation, I as a proficient business leader should focus on
following autocratic form of leadership style at the workplace. This specific form of
leadership style is very much effective only when employees are ready to follow the decision
of leaders. This specific leadership style does not allow the employees in maintaining agile
workspace. Business leaders’ decision is considered as supreme over here. I personally
believe I do not have the quality of following autocratic leadership at the workplace due to
the lack of decision-making skill. Therefore, I can receive a training and development session
in this regard based on which my leadership skill and quality can be improved. I can apply
autocratic style of leadership at my workplace in order to overcome sudden organizational
crisis. As a result, both the employees and the employers would get equal benefits and
facilities.

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Reference
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Pereira-Moliner, J., Claver-Cortés, E., Molina-Azorín, J. F., & Tarí, J. J. (2012). Quality
management, environmental management and firm performance: direct and mediating
effects in the hotel industry. Journal of Cleaner Production, 37, 82-92.

13MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENT
Activity 4:
Reflection on cases over the past
After evaluating several cases of pasts, I got to know what should be the effective
quality of a business leader. The proper skills based on which a business leader can survive
within the organization of global environment include managerial skill, decision making skill,
time management skill, communication skill, problem solving skill and so on (Alharbi &
YusoffZ, 2012). In order to interact with every single employee at the workplace leaders
should have appropriate communication skill. Language barrier is one of the most effective
factors due to which I failed to communicate with every individual employee equally. While
expanding the entire business in the global environment human resource managers have to
recruit large number of employees from different cultural backgrounds. It becomes very
much difficult for business managers in maintaining effective interaction with the employees
if they have language barrier. Therefore, as an efficient leader I should have proper skill and
competency in communicating with my team members.
I can use non-verbal communication as well. Non-verbal communication is effective
enough in interacting with my team members. After that, I can recommend the human
resource managers for providing an effective training and development session to the
employees so that I do not have to struggle in maintaining verbal communication with them.
At the same time, training session always helps in developing my career progression plan.
Non-verbal communication is not sufficient in maintaining effective communication between
two individuals (Talib, Rahman & Qureshi, 2013). Therefore, by taking an effective career
development session I can enhance my skill and level of competency. This very specific

14MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENT
study has focused to critically evaluate the past group experiences so that I can get the scope
to enhance my skill and level of competency.
After conducting different assignments, I have gathered several experiences about the
role of an efficient leader while providing services. I have faced several negative experiences
as well that helped me immensely for becoming an efficient professional. I have observed
that while working within the team the organizational managers are facing innumerable
difficulties in dealing with every individual effectively due to cultural barrier and language
barrier. Due to huge psychological gap, they could not make a collective decision. I as a
leader feel very difficulties in making a proper decision due to the lack of psychological
barriers. However, after evaluating the issue I have decided to conduct a group session where
I explained the importance of making group decision. After conducting an effective group
discussion session, I was successful to convey the message why collective decision is
valuable in teamwork.
While leading the team I have understood that maintaining a team motivation and
encouragement is one of the most important factors for getting good performances from the
employees. As a leader, I have tried to follow a complete agile work environment within the
team. Colleagues did not have to face difficulties in interacting with each other. They could
make their sitting arrangement as per wish. I did not like to fix any kind of time schedule for
work hour. After completing the assigned task, team members could get the flexibility of
leaving the work floor. After maintaining this kind of flexible work environment, I have
identified some of the negative effects as well. I have observed that people were intending to
misuse my leadership style. They did not intend to utilize the work hour effectively. As a
result, the team productivity was getting hampered immensely. After identifying the
drawback, I had decided to render a change on the leadership skill so that team could meet
the productivity properly by maintaining an enthusiastic attitude within them.

15MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENT
In this very specific part, I have identified some of the most prominent features that an
efficient business leader should have. At the same time, I have realized that those specific
characteristics should be improved within me as well if I want to become an efficient
business leader. The primary features that I should render in developing my personal
leadership kill include confidence and body language, quality of interaction and
communication, time management and so on. As a proficient business leader, I should bring
more confidence within me so that I can easily deal with any kind of sudden crisis or
technological barrier. Only proper career progression training can help me immensely in
enhancing my level of confidence. My body language and voice modulation should be
thrown in such a way that people working under me intend to give respect on my decision. I
should maintain a personality within the work floor in order to grab the attention of my team
members. At the same time, I should be more approachable towards my members based on
which they can share their work issues without being hesitated. Moreover, as a business
leader I should focus on developing my time management skill as well. I should instruct my
team members in delivering the services within proper deadline by maintaining quality.

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Reference
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