Global Leadership: Issues and Recommendations for ABC Company

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This report is a consulting analysis of ABC Company's global expansion challenges, focusing on strategic goals, market expansion, and competitive analysis within the mining industry. It identifies issues related to change management, transformational leadership, and the importance of a global mindset. The report explores strategies such as word-of-mouth marketing, social platforms, and the value of interest-driven professionals. It also addresses rationalization, prioritization, and the role of cross-sectional teams. Limitations faced by the company are discussed, followed by recommendations for improvement, including the importance of leadership in global teams and the need for effective communication. The report emphasizes the need for strategic planning, understanding of internal capabilities, and the implementation of a roadmap for successful international revenue generation.
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Running head: GLOBAL LEADERSHIP
Global Leadership
Name of the Student:
Name of the University:
Author Note:
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Executive Summary
This paper will analyze the various issues which are faced by ABC Company. The client and the
stakeholders had several meetings with the managers to find out solution to the various
problems. The manager tried to adopt all the possible measures which could be taken so as to
expand rapidly in other countries and gathering international revenue in a short span of time. It
has been found that the various kinds of application portfolio and the rationalization of the
business must be done strategically. This is necessary for global expansion of business condition.
A framework must be implemented by the company and it must focus on the understanding and
analysis of the opportunities and implementation of the desired roadmap. The company must
identify the internal capabilities so as to succeed in the long run.
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2GLOBAL LEADERSHIP
Contents
Introduction......................................................................................................................................3
Issues identified...............................................................................................................................3
Literature review..............................................................................................................................4
Change in management................................................................................................................4
Transformational change management........................................................................................4
Leading with a global mind set....................................................................................................5
Leading change in global teams..................................................................................................6
Strategy of the company..................................................................................................................6
Word-of-mouth strategy..............................................................................................................6
Social platforms...........................................................................................................................7
Importance of interest value for the business professionals........................................................9
Rationalization and prioritization................................................................................................9
Importance of cross sectional teams..........................................................................................11
Limitations faced by the company.................................................................................................12
Recommendations..........................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
ABC Global is a consulting business and it had offices in many parts of the world. The
aim of the company is to help the clients to achieve the goals in data management, mining
operations, corporate advice, exploration and many more. This paper will analyze the various
issues that were faced by ABC Company in global expansion. The solutions to these issues and
problems are also highlighted in the paper. The report is a consulting report from the consultant
of the company to the client. Although the company has identified certain strategic goals for
expanding in other countries, but it was not considered feasible. There was steep competition in
the mining industry and ABC Company had to find out solutions to overcome these problems.
The international marketing director of ABC Company had several meetings and discussions
with the clients and the stakeholders of the company and he tried to find out innovative solutions
for further expansion of the company. The mission of the company was to gather international
revenue from all parts of the world. The manager also tried to adopt all the possible measures
which could be taken so as to expand rapidly in other countries and gathering international
revenue in a short span of time. Though the company has adopted inefficient and ineffective
means for further expansion, but the manager conducted further analysis of the company and
thus found out further ways for expansion1.
Issues identified
ABC Company had planned to grow their business and increase the volume of sales and
profitability of the company. The company has used certain methods for implementing the
growth strategies and expanding the business globally. The company has used market expansion
1 Adekola, Abel, and Bruno S. Sergi. Global business management: A cross-cultural perspective. Routledge, 2016.
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as the growth strategy so as to sell its products in the market. ABC has adopted this strategy
because there was no room for further expansion in Australia. This is because ABC Company
did not find any new product or strategy so as to expand in its own country.
Literature review
Change in management
Change in an organization is the ladder of growth and expansion for a company every
company at one point has to go through a change in the management which can give rise to
several issues within the internal as well as the external environment. According to An effective
Change Management is obtained by employing a continuous and reliable strategy. Some of the
challenges are resistance, impatient behavior, internal conflicts etc. These problems of the
organization should be handled by using tactful strategies which should be formulated out before
taking the decision of change2.
Transformational change management
Motivating the subordinates is an important job of a leader. A leader can inflict both
intrinsic and extrinsic motivation among the people who look up to him or her. In order to
initiate transformational changes, a company has to go through a number of research and
developmental procedure. Assessment of the SWOT and understanding of the status quo of the
company and its business environment plays the key role in the transformational change.
Generally there is a risk factor that is associated with transformational changes and a plan and
2 Valackiene, Asta. "Significance of Business Continuity in Change Management: Theoretical
and Practical Perspective." In European Conference on Management, Leadership & Governance,
p. 504. Academic Conferences International Limited, 2015.
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well organized strategies are required to generate transformational changes. Leadership plays an
important role in this sector as it guide the people through the changes that will bring about a
transformation in the management. A single change doesn’t transform a management system3.
For a multinational company the challenges become more complex as the operations of the
management are segregated. The coordination and communication process with the leader and
the managers at any level is regarded as the most important aspect.
Leading with a global mind set
Globalization has enabled companies with resources to expand into the international
areas. Expansion into the foreign lands require different approaches for different nation states
and the people of those country who will be employed will be looking forward to a leader or a
style of leadership that they are used to. There are countries which are used to having an
authoritative leaders where as there are countries who appreciate the leaders being transactional
and democratic in nature. The companies who are a global player are observed to employee
managers even in higher from the country of operation. The higher management of the company
should have a mind set to work and co-operate with the other stakeholder of the country of
expansion in order to ensure the smooth working of the operations4.
Leading change in global teams
The senior executives of the company are collectively called TMT or top management
team, these are the people who are responsible for taking any kind of decision and policy making
3 Van der Voet, Joris. "The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational structure." European
Management Journal 32, no. 3 (2014): 373-382.
4 Winning, Orchestrating. "Developing a Global Mindset: The Five Keys to Success." (2014).
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changes in the organization. Unusually depending on the sector and segments in the industry the
managers are placed and this structure depends on the nature and scale of business. In order to
incorporate the changes the company has to go through resistance and to combat the situation
planning and formal approach is required5. The higher management should be well are of the
grievances and challenges faced by the employees so as to develop a solution and increase the
commitment towards the transition.
Strategy of the company
Word-of-mouth strategy
The word of mouth strategy played an important role in the global expansion of business
of ABC Company. The managers and the higher authority of the company must be aware of their
competitors so as to stay ahead of them6. It is important to understand the industry and the
problems that will emerge in this industry. The word of mouth strategy provides long term
benefit to the business. There are many customers who purchase the products of the company on
the basis of referral by the prior customers. These consumers stick to the product or the brand
and they prefer to choose this company rather than selecting other company. By analyzing the
competitors, the manager would be able to determine what the company is doing and what are
5 Hoch, Julia E., and Steve WJ Kozlowski. "Leading virtual teams: Hierarchical leadership, structural supports, and
shared team leadership." Journal of applied psychology 99, no. 3 (2014): 390.
6 AlAali, Abdulrahman, and David J. Teece. "International entrepreneurship and the theory of
the (longlived) international firm: a capabilities perspective." Entrepreneurship Theory and
Practice 38, no. 1 (2014): 95-116.
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7GLOBAL LEADERSHIP
the loopholes of the company. This will help them to strengthen their business and thus
successfully adopt the word-of-mouth strategy. It is also important to analyze the needs of the
customers so as to run the business successfully. It is also the duty of the manager to keep a track
of the customers about the reviews of the company. This effective and successful word of mouth
strategy requires a lot of effort and hard work7. If the marketing manager knows the target
group, it will help him/her to analyze the likes and dislikes of the client. Thus, the company can
build the marketing strategy accordingly and provide services according to the preferences of the
client.
Social platforms
The social platforms are regarded as the easiest way for direct communication with the
targeted customer group. It has been found that there are more than 70% of the internet users
who use social media. It is also important for the manager to keep an eye on the brand promotion
content on the social media sites. These content sharing inspires the customers of other barnd and
they eventually get attracted to the brand. Moreover, the success of word-of-mouth marketing
will increase if the opinion makers in the community influence the people and they shape the
opinions in the society. Thus, it can be said that the word-of-mouth strategy plays an important
role in communicating the information to the audience. It has been found that ABC Company is
encouraging the customers for the promotion of their product and the customers are also happy
7 Cavusgil, S. Tamer, Gary Knight, John R. Riesenberger, Hussain G. Rammal, and Elizabeth L.
Rose. International business. Pearson Australia, 2014.
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in sharing their experience. This is considered as the most influential and powerful marketing
strategy8
The growing market, improvement in the business climate, rise in the consumer spending
are the major factors will help the business for global expansion in a short span of time. It is also
important that the company must choose the higher authorities i.e. people who are engaged in the
management in such a way that they have a good educational background in that particular field.
This will help them to solve the problems or to discuss the problems with the clients or the
stakeholders so as to find out further solutions to the problems9. Moreover, the person must also
have relevant experience in that field so that they can handle any situation. Moreover, the
manager must also be confident when they are taking any important decisions. This is necessary
because the managers need to convince the team members and the employees so that they can
adopt these steps. There must certain candidates in the team who can inspire the other workers or
has the capability to convince the team members. The new initiatives must be taken by the
manager of the company and they must focus on these initiatives before giving priority to any
other. Moreover, ABC Company must also choose such mangers who can think something
creative and come up with amazing ideas so that the company can expand globally in a short
span of time10.
8 Ruggie, John Gerard. "Global governance and “new governance theory”: Lessons from business and human
rights." Global Governance 20, no. 1 (2014): 5-17.
9 Mainela, Tuija, Vesa Puhakka, and Per Servais. "The concept of international opportunity in international
entrepreneurship: a review and a research agenda." International Journal of Management Reviews 16, no. 1 (2014):
105-129
10 Grant, Robert M. Contemporary Strategy Analysis Text Only. John Wiley & Sons, 2016.
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9GLOBAL LEADERSHIP
Importance of interest value for the business professionals
It is also important that the top most leaders of the company must be of that particular
country in which the company was set up initially. This is necessary because the leaders will
have a clear idea of the problems and threats that will be faced by the company in the long run.
This problem was faced by the manager of ABC Company because the manager was from South
Africa but she had worked in Australia with many global teams on various projects such as retail,
tourism. agriculture, finance and agribusiness. There were some business professionals who were
engaged in the business because of their interest value rather than professional development.
This has helped the company to gather various projects which were of different types and
patterns because there were different professionals who were eager to solve problems of various
kinds. They had keen desire so as to overcome the problems and find out relevant solutions for
the company. This has helped in the business expansion of the global. Moreover, this has also
enhanced the skills of the professionals and although they did not have much experience but due
to their keen interest, they were able to handle them.
Rationalization and prioritization
Rationalization and prioritization were the main expansion activities which were
followed by many businesses of Australia. It is important to establish a quantitative baseline on
the effectiveness and efficiency of the business environment so that the management committee
can take important decisions on the current and future development of the business activities.
The management committee must also have options for translating the applications for further
value improvement which will help the company for further development and yield meaningful
results. There must be clear communication of the expectations and objectives off all the relevant
resources between the management and the clients of the company. These objectives must be
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10GLOBAL LEADERSHIP
designed in such a way so that they are specific, measurable, realistic and achievable within a
short span of time11. The managers must also co-operate with the client and this is seen in case of
ABC Company. The manager supported the employees and took various initiatives for
development of the organization. The team must also align with the various kinds of application
portfolio and the rationalization of the business must be done strategically. There were certain
experts who agreed that strategic planning must be done according to the requirement and the
financial position of the company12. There must also be higher degree of confidence in
maintaining the financial data and the information. The decisions must be based on the
recommendations which are to be implemented and these must be done accordingly i.e. it must
be specified on which order it will be done and on the basis of the transformed financial benefit.
These will be important not only for the realization of the benefits but it will be considered as
robust and thus must be reinforced with a much higher degree of confidence. This will help in
supporting and strengthening the financial information of the company13.
11 Brannen, Mary Yoko, Rebecca Piekkari, and Susanne Tietze. "The multifaceted role of language in international
business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance."
(2014): 495-507.
12 Meyer, Klaus E., and Mike W. Peng. "Theoretical foundations of emerging economy business research." Journal
of International Business Studies 47, no. 1 (2016): 3-22.
13 Verbeke, Alain. International business strategy. Cambridge University Press, 2013.
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11GLOBAL LEADERSHIP
Importance of cross sectional teams
There must also be a cross sectional team in the company and these team shall comprise
of the business consultants, process consultants and domain experts who can provide relevant
solutions for the development of the business. These will help in driving the synergies and thus
improve collaboration which will help in gaining more alignment and solve the multiple
perspectives which was faced by the company. ABC Company had experienced team of
consultants and they took important decisions on which certain recommendations were
implemented. It must also be checked that there is proper availability of sufficient budget and
resources so as to implement the recommendations in the company. If there is lack of budget or
resources, it will be difficult to implement the appropriate recommendations. The company must
also assess the level of involvement and the cost which are necessary before the execution of the
various rationalization initiatives. Moreover, it must also be ensured that these desired benefits
are realized in proper time and condition. A necessary framework, if required must also be
implemented by the company and it must focus on the understanding, transformation and
analysis of the opportunities and implementation of the desired roadmap14.
The management committee must also try to identify the opportunity grid which is
created for categorization of the business initiatives and the opportunities which are identified by
various frameworks. ABC Company also does not have any hidden cost included and if they are
surfaced, they try to reveal the potential cost cutting opportunities in the market. This
rationalization process is not followed by ABC Company and thus it does not allow the company
14 Venter, Oscar, Richard A. Fuller, Daniel B. Segan, Josie Carwardine, Thomas Brooks, Stuart HM Butchart,
Moreno Di Marco et al. "Targeting global protected area expansion for imperiled biodiversity." PLoS Biology 12,
no. 6 (2014): e1001891.
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