IBUS 4570 - Global Management: Globalization, IHRM and Strategies

This paper provides an overview of global business, focusing on the impact of globalization and technological advancements on business organizations. It discusses the importance of considering political, economic, social, technological, legislative, and environmental factors in business operations. The paper also explores the role of culture and communication in international business, the concept of Global Value Chains (GVC), and international staffing issues. Furthermore, it highlights the significance of ethical consumerism, corporate social responsibility (CSR), and ethical codes of conduct in modern business practices, emphasizing the role of managers in balancing profit with ethical behavior and maintaining relationships with employees and customers. The paper concludes by underscoring the importance of strategies in CSR and ethical decision-making for business organizations operating in diverse global environments.

Running head: GLOBAL MANAGEMENT
Global Management
Name of the Student:
Name of the University:
Author’s Note:

1GLOBAL MANAGEMENT
Abstract
This paper will discuss about the global business and its various related aspects. The paper
will give an overview of the concept of globalization and its role in the transformation of the
business world. The paper will also take into consideration the role of culture as well as
communication in the process of international business. It will also give brief ideas about the
concepts of “Global Value Chains” and its related concepts. Furthermore, the paper will also
discuss the international staffing issues and the role of strategies in the business process.
Finally, the report will conclude with a discussion of the “global management cadre”.
Keywords- globalisation, culture, communication, IHRM, GVC, strategies, labour relation

2GLOBAL MANAGEMENT
The business world, in the present times with the “advent of globalization and with
the developments in the fields of technology and innovations has become much more
diversified than it was few decades ago”(Hitt, Ireland & Hoskisson, 2012). It is a reflection
of this that the level of competition faced by the various business organizations has also
increased and therefore they resort to various forms of modern innovative strategies not only
“to bring about the overall growth as well as the development of their business organizations
but also to outrival their competitors in the same field of operations” (Hitt, Ireland &
Hoskisson, 2012). Therefore, it would be apt to say that “the advent of globalization and the
latest developments in the fields of technology and innovations have much transformed the
business world in the present times” (Hitt, Ireland & Hoskisson, 2012). This paper will
discuss about the impact which globalization had on the various business organizations and
also about global marketing as well as advertising and the cultural paradoxes involved in the
same process.
The macro as well as the micro environments of the various business organizations
wields an important influence on the operations of a particular business organization. It is a
reflection of this that the various business organizations in the present times need to take into
consideration the various “political, economic, social, technological, legislative and
environmental factors” which affect the overall operation of their business organization in a
serious manner (Hirst, Thompson & Bromley, 2015). An effective consideration of these
factors is important not only for the “formulation as well as the implementation of the
strategies which are necessary to mitigate the impact of these factors on the business
operations of the concerned business organizations but also to outrival the competitors in the
same field of operations” (Hirst, Thompson & Bromley, 2015). Moreover, it is often seen that
an effective consideration of the micro as well as the macro environmental factors is

3GLOBAL MANAGEMENT
necessary to “bring about the overall growth as well as the concerned business organization”
(Hirst, Thompson & Bromley, 2015).
The concept of globalization has been in practice since the ancient times when the
various civilizations of the world following the various precepts of this particular concept
used to indulge in trade relations with the other civilizations of the world (Forsgren, 2015).
However, the concept in the recent times gained prominence with the development of the
various means of transportation and information exchange. The real introduction of the
concept came in the 1860s with the innovation of the steam boats and also the “Industrial
Revolution” of the 19th century (Forsgren, 2015). It is significant to note that there are several
advantages associated with the process of globalization. This particular concept has not only
been instrumental in the rapid growth as well as the trade and commerce in the recent times
but has also enabled the various business organizations from the diverse remote nations of the
world to have a much wider customer base than their native country could have provided
them. Furthermore, another major advantage of the concept of globalization is that it has
strengthen the economies of the various nations of the world and these nations no longer have
to depend on just the agricultural products of their nation for their sustenance. However, there
are some disadvantages associated with the process of globalization as well. The primary
disadvantage associated with this particular concept is that it has significantly increased the
“level of competition faced by the various business organizations in the present times”
(Forsgren, 2015). It is significant to note that in the present times the amount of options or the
choices available to the customers are more diverse and therefore this adversely affected
“bargaining power of the various business organizations” (Forsgren, 2015).
The “advent of globalization” in the recent times has much changed the role as well as
the job profile of the various international managers in the present times. It is a reflection of
this that the various international managers in the present times not only need to take into

4GLOBAL MANAGEMENT
consideration the management of the business operations and the employees but also devise
effective strategies for the mitigation of the level of competition faced by the concerned
business organizations in the present times (De Wit, 2015). In addition to that, the various
managers in the present times also need to take into consideration the cultural factor as well.
It is significant to note that various workplaces in the present times have become much
diversified due to the influx of people from diverse cultures as well as social backgrounds
(De Wit, 2015). Therefore, the various international managers in the present times need to
take into consideration these cultural factors.
An effective analysis of the macro as well as the micro environment related to a
particular business organization not only tells the business organization about the key
strengths as well as the weaknesses which galore the concerned business organization but
also provide an overview of the key competencies and the threats which galore their business
operations (Jenkins, 2013). Therefore, the various business organizations can utilize these
“external as well as the internal factors” which affect their business operations. Thus, the
various business organizations can focus as well as development of effective strategies for the
mitigation of the threats faced by them to “not only outrival the competitors working in the
same field of business but also to bring about the overall growth as well as the development
of their overall business operations” (Jenkins, 2013). Furthermore, an effective analysis of the
micro as well as the macro environment also helps the various business organizations to take
the help of the successful strategies which are being used by the other companies and use
them in modified form for the “growth as well as the development of their own business
operations”.
In the present times “with the advent of globalization” it is commonly seen that the
various business organization has its centers in the diverse nations of the world and therefore
with the rise of the various centers in the diverse nations of the world it is commonly seen

5GLOBAL MANAGEMENT
that the concerned “corporation’s obligations toward its various constituencies around the
world” has increased in a significant manner (Brush, 2013). It is significant to note that these
business organisations not only need to follow the cultural as well as the ethical norms of the
nations in which they are operational but also of the ones in which they have opened their
subsidiary centers. Furthermore, following the various precepts of the policies of “corporate
social responsibility” they also need to contribute towards the development of the society of
the concerned nation and also to take care that they do not damage the environment of that
particular nation in a significant manner (Brush, 2013). Moreover, the recruitment of the
employees in those host countries is also a major area of consideration for these companies as
it is seen that there are various kinds of recruitment policies which are available to these
business organisations like “ethnocentric staffing, polycentric staffing and geocentric
staffing” (Brush, 2013). Therefore, it would be apt to say that the various business
organisations need to take into consideration several factors for their operations in the other
nations of the world.
The most important concept related to the international business which has emerged in the
recent times is that the various business organisations apart from taking into consideration
their own business and the profit margins also needs to take into consideration the planet or
the earth using whose resources it is making profit (Pieterse, 2015). Therefore, the concept of
ethical consumerism has gained special prominence in the recent times. It is a reflection of
this that the various customers in the present times apart from taking into consideration the
diverse attributes of the products or the services offered to them by the business organisations
also take into consideration the way those products or the services have been manufactured.
Thus, it would be apt to say that the focus in the recent times has shifted more towards the
human rights and the various business organisations need to take into consideration the
human rights factor not only for the manufacture of the products or the services offered by

6GLOBAL MANAGEMENT
them to the customers but also for the related promotional processes (Pieterse, 2015). In the
present times with the rise of the concept of ethical consumerism it is also seen that the
various customers do not opt for the products or the services manufactured by the business
organisations irrespective of the benefits of the products or the services.
Strategies play an important role in both the “CSR and codes of ethics” which a
business organisation must follow for their operation within a particular nation or continent.
It is generally seen that the focus of most of the business organisations is on the increase of
the annual profit earned by them and the focus of most of these business organisations is on
the quality of the products or the services offered by them to the customers and not on the
aspect of quality (Hirst, Thompson & Bromley, 2015). However, in the present times with the
rise of the various precepts of “CSR and codes of ethics” the focus seems to be shifting from
the concept of quantity to the concept of quality. Therefore, the various business
organisations need to develop effective strategies so that they not follow the various precepts
of the “ethical code of conduct” but also the “corporate social responsibility” in the most
effective manner while focusing on the concept of profit at the same time (Hirst, Thompson
& Bromley, 2015). Thus, it is seen that most of the business organisations follow various
innovative by which they not only take into effective consideration the various CSR policies
but also the various precepts of “ethical code of conduct” while gaining the same amount of
profit as outlined by them in their yearly report.
The role of the various managers in this particular context therefore becomes very
important as they not only need to focus on the management of the business organisation but
also develop strategies so that the concerned company maintains as well as the follows the
various ethical standards as well as behaviours which are required of them in the present day
business world (Jenkins, 2013). It is generally seen that the various present day managers are
often in a dilemma between the concepts of quality and quantity while focusing on the

7GLOBAL MANAGEMENT
concept of ethical behaviour. The various managers not only need to focus on the concept of
ethical behaviour for the management of the business operations but also in terms of the
maintenance of the relationships with the various employees related to the concerned
business organisation but also in terms of the manufacture of the products or the services
offered by them to the customers but also for the process of the promotion of them (Jenkins,
2013). Therefore, it would be apt to say that the concept of ethical behaviour wields a
considerable influence on the business process of the various business organisations in the
present times. Thus, the various preset day managers need to this particular concept into
consideration along with the other important ones for the process of the management of their
business.
The “advent of globalisation as well as the recent developments in the fields of
technology and innovations has not only transformed the way the various business
organisations conduct their business but also diversified the workplaces related to these
business organisations as well” (Forsgren, 2015). It is a reflection of this that the concept of
culture wields a significant influence on the business process of the various business
organisations. It is generally seen that the various business organisations in the present times
operates in business environments which are drastically different from their own native
countries not only in terms of the business environment but also in terms of the culture as
well as society (Forsgren, 2015). Therefore, for the effective operation of their business in
these nations the concerned business organisation needs to take into consideration the culture
as well as the society of the nation as it often seen that the business culture as well as the
ethics of the diverse nations varies in a significant manner from each other. In addition to
this, the management of the organisation also needs to take into consideration the cultural
factor for the management of the employee related to the diverse cultural backgrounds and
also for the resolution of any conflict which might arise on the score of the cultural factors.

8GLOBAL MANAGEMENT
The various international managers in the present times need to have cultural
intelligence to interact in a much effective manner with the diverse entities of the host nation
in which they are operational. It is significant to note that the style of conducting business
varies from culture to culture and also the same words or phrases have different meanings in
different cultures. It is here that the various models of culture like the “Hofstede’s Cultural
Model”, “Globe Model” and others come into prominence (De Wit, 2015). Therefore, the
various business managers need to take into effective consideration these cultural models for
the conduct of their business in the nations belonging to other cultures or social backgrounds.
Furthermore, knowledge of the social structure as well as the way of life of the people of the
concerned nation is also very important. The knowledge of these factors is not only important
for the management of the business operations but also for the management of the various
employees belonging to the other cultural or social backgrounds (De Wit, 2015).
The major dimensions which affect the business of a particular business organisation
in a foreign nation as per the “Hofstede’s Cultural Dimensions” are the “individualism,
masculinity, long-term orientation, power distance, uncertainty avoidance and
indulgence” (De Wit, 2015). It is significant to note that these factors play a significant role
in the business operations of a particular company or business organisation. The
individualism quotient of a particular nation gives an idea about the fact that whether the
citizens of a particular nation like to indulge in individual work or group activities. The
masculinity index, on the other hand, gives an overview whether the society will be
influenced by the factors of competition, success and achievement or not (De Wit, 2015). The
“long-term orientation”, on the other hand, gives an overview of whether the people of a
particular nation will be influenced by the factors of its past or not. The power distance index,
on the other hand, gives an idea about the fact whether the society will be influenced by the
power factor within its social structure or not. Furthermore, the uncertainty avoidance factor,

9GLOBAL MANAGEMENT
on the other hand, gives an overview of the fact that whether the people of the society feel
“threatened by ambiguous or unknown situations and have created beliefs and institutions
that try to avoid these” (De Wit, 2015). The indulgence factor, on the other hand, gives an
overview of the fact whether the members of the society “try to control their desires and
impulses” (De Wit, 2015). Therefore, it would be apt to say that various international
managers in the present times need to take into consideration these factors for the conduct of
their business.
The people belonging to workplace in the present times have much more diversified
in the present times not only on the score of the cultural factor but also on the score of the
social factor as well. Therefore, it is generally seen that the various organisations take the
help of effective strategies for the management of these diverse workforce. The primary
differences in opinion among the various employees within the workforce emerge on the fact
of the cultural differences as it is often seen that the different people within the workforce
having diverse cultural backgrounds and also they follow diverse work ethics and behaviour
at the workplace (Brush, 2013). It is significant to note that due to these differences in values
and opinions conflicts often arise within the workplace. Many business organisations follow
the method of stereotypes for the effective management of these workplace employees
(Brush, 2013). However, on the other hand, there are business organisations which follow the
policy of active intervention for the control of the various conflicts on the basis of the cultural
factors.
Communication forms an important part of the various business organisations and is
necessary not only to convey the relevant information to the various employees of the
business organisations but also to have an effective relationship with the diverse shareholders
of the business organisations and the customers or the end users related to the business
organisation who form an important part of their business organisation (Kinloch & Metge,

10GLOBAL MANAGEMENT
2014). However, it is often seen that the various business organisations when they are
conducting business in the other nations of the world which are different in terms of culture
from their parent nation needs to take into consideration the various cultural as well as social
factors as well for the process of communication. It is generally seen that same words or the
phrases have different interpretations in different cultures and therefore the management of
the concerned organisations as well as the managers need to devise effective strategies for the
consideration of these particular factors (Kinloch & Metge, 2014). Furthermore, the managers
as well as the management of the organisation also needs to take into consideration the
various barriers to the process of effective communication like the use of too many technical
terms or jargon, background noise, ineffective medium and other factors. It is significant to
note that there are several factors which can lead to noise in a particular type of
communication like the use of ineffective medium for the conveying of the desired message,
unclear or ineffective background and others and it is generally seen that these factors tend to
decrease the understanding of the message which is being delivered.
Non-verbal behaviours form an important part of the process of “inter-cultural
communication” (Manyika et al., 2016). It is significant to note that the during a conversation
the various people belonging to diverse cultural backgrounds often resort to non verbal
behaviours in a bid to make themselves understood in order to make themselves understood
as that the behavioural signs are common in almost all the cultures of the world. Therefore,
this particular aspect forms an important part of the cross-cultural communication. The
attitude of the people are also of considerable importance in the process of intercultural
communication as it gives an idea to the people whether their views and opinions are
accepted by the people belonging to the other cultural and social backgrounds or not
(Manyika et al., 2016).

11GLOBAL MANAGEMENT
The Western Arab people as per the “Hofstede’s Cultural dimensions” are very
conservative people and do not like to take the help of the technology for the process of
communication. Furthermore, they are very group oriented and do not like to indulge in
individualistic activities. Moreover, their society is segregated on the basis of the division of
power and the structure of the society. The people of this particular community are very
specific about their culture and have a great deal of respect for their culture and traditions
(Waldinger, 2015). Therefore, they do not like any deviations from their cultural traditions.
Therefore, if a particular organisation is planning to indulge in business relations with a
particular business organisation related to this particular sector then the concerned business
organisation needs to take into effective consideration these factors.
The “information technology” plays a significant role in the process of cross-border
communication. However, it is often seen that the use of the information technology instead
of facilitating the process of communication contributes much to the misunderstandings
which arise when the people involved in the process of communication are from diverse
cultural backgrounds (Ponte & Sturgeon, 2014). As already mentioned, that same words as
well as phrases have different meanings in different cultures therefore if the message is being
delivered over the IT then that is likely to add significantly to the confusion as well as the
misunderstanding of the people. However, this particular problem might not arise if the
process of communication is conducted on a face-to-face basis. Thus, the various business
organisations in the present times take the help of the various forms of face-to-face
communication processes rather than the communications over the IT systems.
The various “cross-cultural communications” can be managed effectively by
various means. The first method which the various organisations is learning the cultural
trends as well as the values of the people from the diverse cultural and social backgrounds
(Ponte & Sturgeon, 2014). It is significant to note that a consideration for these factors will