Global Business Management: Challenges, Opportunities, and Strategies

This essay examines the multifaceted landscape of global business management, exploring the challenges and opportunities that arise in an increasingly interconnected world. The report delves into the complexities of market diversity, human resource issues, and the risks associated with international business expansion, using real-world examples such as Qantas Airways to illustrate these points. It identifies key challenges faced by managers in adapting to diverse market needs and managing a global workforce. The essay also highlights opportunities, such as increased market size, global identity, and reduced business risks. The author recommends strategies like aligning business practices with global trends and adopting market-responsive approaches. The essay concludes with a critical analysis of the company's strategies, offering insights into how businesses can navigate the global environment effectively. The essay is a response to an assignment brief that requires an understanding of the international environment, challenges faced by managers, and the application of management principles to analyze and critique solutions.

Running head: GLOBAL BUSINESS MANAGEMENT
Global business management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the challenges and opportunities being faced by the
managers due to the initiation of global business environment. Different major challenges and
opportunities are identified and evaluated in this report. Different real world examples are also
being included in the process. It is identified that Qantas airways of Australia are facing the
challenges in terms of their international business expansion. The major reason for this conflict is
identified and on the basis of this, a few strategies are discussed. It is recommended that they
should effectively align their business strategies and policies along with the current market
trends in different countries.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the opportunities...................................................................................................4
Increase in market size.................................................................................................................4
Global identity.............................................................................................................................4
Reduction in business risks..........................................................................................................5
Identification of the challenges........................................................................................................6
Market diversity...........................................................................................................................6
Human resource issues................................................................................................................7
Risks involved in the business expansion....................................................................................7
Reflection of mitigation measures...................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
The current business state of affairs are being heavily affected and influenced by
globalization due to the reason that the current worldwide business scenario is globalized in
nature. Contemporary business entities are operating in different countries across the world and
doing business worldwide. Hence, the business opportunities of the contemporary business
organizations got increased with the emergence of the globalization. However, it should also be
noted that with the emergence of the globalization, managers are facing a number of challenges
that were not evident a few years ago (Pikhart, 2014). For instance, the diversity of the
challenges that are being faced by the contemporary businesses in the current time was less a few
years ago. Thus, with the emergence of the globalization, managers are facing both opportunities
and challenges in their business operation.
It is well publicized that initiation of the globalized strategies and practices will only
positive implications on the business but the major challenges are skipped. This should be noted
that there are number of instances where the business firms got challenged due to the
globalization. Some of the companies are forced to wind up their foreign businesses due to the
challenges that got emerged. In this report, both the opportunities and challenges being faced by
the managers from the emergence of the globalization will be discussed and evaluated. In
addition, a few mitigation measures will also be reflected in this report, which will further help in
resolving the conflict in the process.

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Identification of the opportunities
Increase in market size
There are number of opportunities being tapped by the managers due to the emergence of
globalization. One of the major opportunities is the increase in the market size. This is due to the
reason that with the help of globalization, business managers are being enabled to increase the
footprint of their business in the foreign markets. Thus, the more will be the market size, the
more will be the revenue and sales volume for the companies. For example, majority of the
companies from the developing countries such as the brands from India and China are tapping
the most of the globalization. Mobile vendors from China are creating stir in the global
smartphone markets such as OnePlus and Huawei (Doh, McGuire & Ozaki, 2015). These brands
have expanded their business across the world and Huawei already got the position of second
biggest smartphone brand in the world in terms of sales volume. This feat by them is only being
achieved due to the advantages of globalization. They got the free trade opportunities with
different countries and tapped the larger market segments beyond their national boundary of their
home country (Uchihira, Ishimatsu & Inoue, 2016). Thus, it can be concluded that managers are
getting more market potentialities from the emergence of globalization.
Global identity
In the current competitive business scenario, gaining the global identity is also important
to gain competitive advantages. The more will be the global identity of the companies, the more
will be their attractiveness across the world. In this case, emergence of globalization is beneficial
for the managers because they are getting the opportunity to tap the new foreign markets and
increase their global identity (Liu, 2013). For example, Tata motors are one of the leading

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commercial and passenger vehicle manufacturers in the Indian subcontinent but had limited
market presence across the world. However, with the increase in the globalization trends, Tata
motors have been able to gain their presence in different markets mainly in the Latin American
countries. In addition, Tata Motors also leveraged on the advantage of globalization in terms of
lower barriers in international trade. This is due to the reason that Tata Motors acquired the
Jaguar Land Rover business in the United Kingdom and gain the global recognition. This is
being made possible due to the lower trade and business barriers for globalization (Cavusgil &
Knight, 2015). Hence, it can be concluded that with the help of globalization, managers are
having the opportunities of increasing the global business presence and gain competitiveness by
means of global brand identity. Currently Tata Motors are known across the world and is
considered as latest automobile multinational in the block.
Reduction in business risks
Another opportunity being gained by the emergence of globalization is business
potentiality over risks. This is due to the reason that managers face certain challenges in
maintaining their position in the domestic market. Moreover, with the increase in the inflow of
the competitors in the domestic market, market scenario is becoming more challenging for the
managers. In this case, with the help of globalization, they are being able to tap the foreign
markets (Deng et al., 2014). Hence, the business risks associated with operating in a single
market are getting segregated across different markets. There are number of instances where it is
seen that loss made by the certain companies in one market got adjusted with the profits made in
another region. For example, the loss being incurred by Volkswagen in the American and
European markets due to their emission scandal are steadily getting adjusted from their revenue
from the Asian region (Clarke, Tamaschke & Liesch, 2013). Hence, due to the emergence of

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globalization, the managers are having the opportunity of increasing their profit margin and
reducing the loss making probability.
Identification of the challenges
Even though there are number of advantages to be gained by the managers from the
emergence of globalization and current global business environment, there are few challenges
also to be faced. The following sections will discuss about a few challenges.
Market diversity
In the current global business scenario, most of the brands and entities are operating in
different countries. However, each of these countries or markets is having different and diverse
social factors. For example, the taste and preference pattern of the customers is different in each
of the regions. In this case, it is a challenging situation for the managers to cater to these
differences and diversity. This is due to the reason that standardization strategy will not be
effective in meeting the diverse needs of the global markets and customer segments. In this case,
multinational companies are initiating differentiation strategy to design products and services
according to the different trends in different markets (Sinkovics et al., 2014). However, this is
causing more cost incursion for the companies along with the increase in associated risk. For
example, Ford is having diverse portfolio of vehicles for countries such as performance and high
end pickup trucks in the American market and cost efficient urban cars in the Asian regions. This
is being made according to the different country trends and requirements. However, this factor is
reducing the effectiveness of Ford in adjusting the loss in one country because of the fact that
products designed in one country cannot be offered in another country. Performance of Ford in
key developing countries such as India and China are not at par the desired level and hence they

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are forced to get in to joint venture in the Chinese market and same is probable for the Indian
market as well (Cravino & Levchenko, 2017). Thus, the managers are facing the challenges of
initiating the strategies for meeting the diverse needs in the global business environment. In
addition, current global business trends are changing at a rapid pace, which is further posing
challenges for the managers in changing their strategies in different regions.
Human resource issues
In the current global business environment, managers are also facing the challenges of
diverse human resource factors. This is due to the reason that global companies are having their
employees from different social and cultural backgrounds and are having different approaches.
Hence, it is a challenging task for the managers especially for the human resource managers to
manage the employees in diverse workplace. For example, large fashion brands such as Primark
and Zara are long accused for underpaying their employees at the manufacturing facilities in the
third world countries (Kramar, 2014). However, these issues for them are not getting emerged
from the developed countries mainly due to the differences in the employee management
process. The human resource management approach of these leading fashion chains is different
in each of their operating countries. In addition, the human resource managers are facing the
problem of meeting the individual needs and expectations of the employees from different social
and cultural backgrounds (Podsiadlowski et al., 2013). This issue is getting emerged because of
the global business trends and international trading practices.
Risks involved in the business expansion
Business expansion is the key strategy of getting succeeded in the current global
business environment. This is due to the reason that the more expanded will be the business, the

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more will be their potentiality to get succeeded in the global market. However, in this case as
well, there are number of challenges being faced by the managers. One of these challenges is the
risks involved in the business expansion. Prior to the entry in the new foreign country, there are
number of factors being checked by the managers to ensure the success (Alessandri & Seth,
2014). However the rapid change in the market scenario might change the market status of the
targeted country and cause loss for the companies. For example, Qantas pride itself as one of the
economically sustainable Australian brand in the recent time. However, due to their extensive
business expansion plan, they faced loss in 2012, which is the first in since their privatization. It
is reported that due to the extensive business expansion plan of Qantas airways, different regions
are covered by them, which are less profitable to operate (Lynch & Jin, 2016). Hence, according
to the concept of globalization, the profits made by them from their domestic operations are
getting eaten up from their losses in the international market. The overall business viability of
Qantas is getting affected by this.
Reflection of mitigation measures
On the basis of the issues being faced by Qantas, it can be reflected that non-alignment
between the market trends and business policies is the key to loss for them. This is due to the
reason that the business practices being followed by Qantas are no getting aligned with the
change in the global trends. In this case, the Barlett and Ghoshal matrix can be effective for
initiating the mitigation measures. According to this matrix, business approaches should be made
according to the need for market responsiveness and integration. In the case of Qantas, the need
for the local market responsiveness is high due to the customized trends in each of the markets.
Hence, it is recommended that Qantas should follow the multi domestic strategy of international
business. According to this strategy, they should have different and market adaptable approaches

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in different regions. For example, if the particular host country is getting preferred towards the
low cost carriers, then Qantas should change their business strategies accordingly and vice versa.
On the other hand, if the particular host country especially the developed markets are
having more demands for premium services, the Qantas should initiate the transnational strategy
and offer the premium services. Thus, it can be concluded that in order to get succeeded in the
international market, it is important for Qantas to get their business strategy according to the
market trend of the local market. In terms of the human resource management challenges, it is
recommended that they should have geocentric staffing policy from their top level management
to the lower level employees. This will ensure that the employees are getting managed according
to the global diversity.
Conclusion
This report concludes that in the current global business environment, business managers
are facing both the challenges and opportunities in terms of designing of the strategies. This
report identified the major opportunities and challenges being faced by the managers from the
global business environment. In addition, a few recommended steps are also reflected in this
report that can help the business managers in resolving the major issues. In this case, the issue
being faced by Qantas of Australia are considered and based on these issues, a few steps are
discussed. These steps with the effective implementation will ensure the proper resolution of the
identified challenges.

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Reference
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