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:
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Author’s Note:

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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

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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

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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

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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

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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

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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

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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.

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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,

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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,

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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).

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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

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not enable the organisation to understand the employees from the other backgrounds but
would also enable them to communicate with them in a much better manner. The
management of the organisation can also take the help of the various forms of face-to-face
communication which will help them to communicate the information to the employees in a
much better manner (Ponte & Sturgeon, 2014). The implementation of the feedback system
can also help the various organisations to understand whether the message conveyed by them
have been understood in an effective manner or not.
It is significant to note that for the process of effective cross cultural business
negotiations the various business organisations need to take into consideration several
factors. The most important factor which the business organisations need to take into
consideration is an understanding of the cultural as well as the business ethics of the nation
which with they are conducting their business (Gereffi, 2014). Furthermore, an understanding
of the society structure and the behaviour of the people is also essential in the process of
negotiating business with the business organisations belonging to different cultural and social
backgrounds.
Trust forms one of the most important aspects during the process of conducting any
form of business negotiations. However, they attain a more significance during the process of
cross-cultural negotiations. It is significant to note that the trust factor plays a very significant
role in the process of business negotiations as it is often seen that if the various business
organisations do not effective trust among themselves then the business negotiations fail in a
significant manner (Gereffi, 2014). Therefore, it is very important for the business
organisations entering into a business relationship to have a significant amount of trust
among themselves. Furthermore, this particular concept helps the various business
organisations to transact business with each other in a much better manner and also helps the
organisations concerned to build long-term relationships.

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It is significant to note that there are “culturally-based behavioural differences,
values, and agendas of the negotiating parties”. It is a reflection of the not only in the
differences in the cultural as well as the social sphere but also in the business ethics of the
various nations (Kalinic & Forza, 2012). Therefore, if a particular organisation belongs to a
nation which scores high on the individualism index on the “Hofstede’s cultural dimension”
then that particular organisation will want the other organisation to work in the same manner.
Furthermore, the people belonging to different cultural often show differences in the field of
behaviour as well. It is significant to note that the people of the nation of Japan are very
reserved. Therefore they would like to enter into negotiation with an organisation that also
follows the same kind of behavioural pattern.
The nation of China on Hofstede’s model score very low on the individualism index
(China - Hofstede Insights, 2018). This means that the Chinese people are not individualistic
and like to indulge in group work. Furthermore, the Chinese people score very high on the
masculinity index which means that the Chinese people are motivated by the concept of
achievement, success and competition (China - Hofstede Insights, 2018). Moreover, the
Chinese people score very high on the power distance index which means that the Chinese
people are very much influenced by the power structure of the society (China - Hofstede
Insights, 2018). The Chinese people also score very high on the “long-term orientation”
which means that the people of the nation of China like to maintain their links with the past
(China - Hofstede Insights, 2018). Therefore, the various business organisations need to take
these facts into consideration while transacting business with the organisations belonging to
the nation of China (China - Hofstede Insights, 2018). An analysis of the nation of China on
the “Hofstede’s cultural model” would reveal the following facts-

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Figure 1: China on “Hofstede’s Cultural model”
Source: “Hofstede’s cultural insights”
It is significant to note that culture plays a significant role on the decision making
process of the various organisations. It is interesting to note that the various workplaces in
the present times have become much more diversified and therefore the decisions which they
make related to their workplace or the business as a whole should take into consideration the
interests of all these people. The organisation also needs to take into consideration the
cultural differences of the various employees within the workplace during the process of
communicating important messages to the employees of the concerned organisation.
Therefore, it would be apt to say that in the recent times the various organisations need to
take the differences in the cultural sphere more ardently than ever.
The “advent of globalisation and the recent developments in the field of technology
and innovations have drastically transformed the way the various business organisations as
well as the companies conduct their business”. It is significant to note that “in the present day
competitive world” it is not longer enough for the various business organisations to be
operative in just one nation of the world. Therefore, the various business organisations in the
present times follow the path of globalisation and operate in various diverse nations of the
world. This particular policy not only helps the various business organisations not only to

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have a much wider customer base for their products but also allows them to use the
technology and the innovations of the nations in which they are operational. These in short
are some of the key reasons why the various business organisations follow the path of
internationalisation.
Strategic planning forms an important part of the business process of the various
business organisations and it is generally seen that the various business organisations often
take the help of the various kinds of innovative strategies not only to “outrival their
competitors in the same field of business operations but also to bring about the overall growth
as well as the development of entire business operations”. Furthermore, the process of
globalisation as well as the process of internationalisation followed by the various nations of
the world has made it very important for the various business organisations to take the help of
the process of effective strategic planning. Furthermore, the various business organisations
while entering into the market of the other nations of the world also need to consider the
mode of their entry into the business market of that particular nation of the market. The most
important models of entry which are available to the various business organisations are the
means of merger and acquisitions, collaborations and others. However, it is significant to note
that all these methods should be based on a thorough market research and the competitive
framework of the concerned nation’s business market.
In the present business world the “techniques of environmental assessment,
internal and competitive analysis” form an important part of the overall strategic plan of the
various business organisations. It is significant to note that the results of these analysis not
only reveal the “strengths as well as the weaknesses of the concerned business organisations
but they also reveal significant amount of information about the competencies of the
concerned business organisation and also the opportunities and the threats which galore
them”. It is significant to note that an effective knowledge of these factors is very essential

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for the development of the key strategies which are likely “to help them not only to outrival
the various competitors in the same field of business but also to bring about the overall
growth as well as the development of their business process”. Therefore, these analysis are
very important for the business organisations which are planning to follow the “path of
globalisation”.
In the present times various kinds of strategies are available to the managers not only
at the “global level but also on the level of specific entry strategies for different
markets”. The most important strategy which the various managers use for the process of
entering into a new market is the policy of collaboration with the leading business
organisations of that particular area. This particular strategy offers the various managers a
kind of an upper hand over the various other business organisations operational in the same
field of business in that particular area. Another important strategy which the various
managers often take the help of is the policy of “merger and acquisition”. It is significant to
note that this particular strategy is usually taken the help of by the various business
organisations if they have the necessary or the adequate means to buy the leading business
organisations in that particular area. In addition to these, the various managers also need to
take into consideration the competitive business market of the particular nation or the area in
which they are trying to expand.
There are various issues which the managers need to take into consideration when
they are planning to enter into the new emerging markets of the world. The primary factor
which the various managers need to take into consideration is that whether the products they
are offering to the customers is going to find a sustainable market in the nations in which they
are entering. Furthermore, the managers also need to take consideration the market size as
well as the economic framework of the nation in which they are entering into business.
Moreover, another issue which the managers face is the lack of adequate number of

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customers in the markets in which they are entering into. Another issue which the various
managers face in to the various markets of the world is the lack of technological development
of the concerned nation. These in short are some of the issues which the various managers
face while entering into business in the various emerging markets of the world.
The “Global Value Chain” can be defined as the concept which gives an overview of
“the full range of activities that are required to bring a product from its conception, through
its design, its sourced raw materials and intermediate inputs, its marketing, its distribution
and its support to the final consumer” (Elms & Low, 2013). Therefore, this particular concept
is utilized by the various business organisations for the launch as well as the sustainability of
their products in the global market. It is significant to note that the business market of the
nation of Canada is a very competitive one and almost every year new start-up companies
emerge in the market. Furthermore, the nation of Canada is the host to some of the largest
industries of the world on the score of its technological as well as economic developments
(Elms & Low, 2013). Therefore, it would be fair to say that the business market of the nation
of Canada is a very competitive one and thus the new products or the services will find it very
hard to sustain themselves in this particular market.
It is generally seen that the due to the excessive demands of the customers in the
business market the various business organisations had to shift their products or the services
from the “final goods to intermediate goods”. Therefore, it would be apt to say that due to
this particular process the quality of the services provided by the various goods or the
services of the business organisations are deceasing considerably in the present times
(Losonc, 2016). Thus, in order to “cater to the ever increasing demands of the customers in
the various growing markets in a much better the various companies have lower the quality of
the products or the services offered by them” (Losonc, 2016). The various business
organisations in the present times therefore in the present times deliver the products to the

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customers without even checking the adequate quality requirements of the goods or the
services manufactured by them.
The increasing global market as well as the ever increasing demands of the customers
has made the concept of “management of the global production network (GPN)” a very
important one in the present times (Lechner & Boli, 2014). The various business
organisations therefore in the present times not only need to focus on the process of
manufacturing the increased amount of products as well as services in a bid to “cater to the
needs and the requirements of the customers in the most effective manner” but also to
manage the global production network as well (Lechner & Boli, 2014). The concept of GPN
refers to the “the nexus of interconnected functions, operations and transactions through
which a specific product or service is produced, distributed and consumed” (Lechner & Boli,
2014). Thus, the major focus of the various business organisations in the present times is on
the management of this particular network. Therefore,, it would be apt to say that the
management of the GPN has become very important for the various business organisations
operational in the international market.
The terms “Cooperation, competition and coopetition” have become very
significant in the present day business world. It is significant to note that “with the advent of
globalisation and the recent developments in the field of technology and innovation the
business world has become much more competitive than it was a few years ago” (Rugman,
2012). Therefore, it is often seen that the various business organisations focus on the concept
of cooperation as well as coopetition in the various business markets of the world in a bid to
sustain themselves in the competitive business world. These concepts are generally seen a
reflection of the globalisation and its associated processes.

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The concept of manufacturing refers to the production of the goods or the services
on which the major business of a particular business organisation depends (Benería, Berik &
Floro, 2015). The end users or the customers of these particular products or the services are
the primary source of income of these business organisations as they are the ones who
purchase the products or the services offered by them. The service industry, on the other
hand, is the kind of industry which relies on providing effective services to the customers or
the end users of their business and it through them that the business derives the major source
of its income (Benería, Berik & Floro, 2015). Furthermore, the services offered by these
business organisations can be of several types like the telecom industry, education industry
and others.
Strategies form an important part of the various business organisations and it is often
seen that “the use of effective business strategies can lead to the overall growth as well as the
development of the various business organisations whereas a mistimed business strategy can
severely hurt the prospects of a particular organisation in a considerable manner” (Vahlne &
Johanson, 2017). Moreover, it is seen that in the present times the various business
organisations enter into strategic alliances as well as collaborations with the other business
organisations in a bid to gain competitive advantage over their rivals. The growth of the
concept of international business has made it very important for the business organisations to
enter into strategic alliances with the other business organisations “not only to sustain
themselves in the competitive business market of the present times but also to outrival their
business competitors operational in the same field of business” (Vahlne & Johanson, 2017).
In the present times the various business organisations seek the help of powerful as
well as successful international business allies to enter into the business market of other
nations of the world (Knight, 2015). It is significant to note that the association with the other
international business organisations provides various benefits to the business firms which are

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trying to enter into the market of other market. They not only make the path of entry of the
business organisations into the concerned market but also help the concerned company to
gain a competitive advantage over the other already established business organisations
operational in the same field of business (Knight, 2015). Furthermore, they also provide
valuable technological and other kinds of assistance to the business organisation entering into
a new market.
A recent trend seen among the various SMEs of the business world is that they try to
get merged or get associated with the major MNCs of the nation in which into which they are
trying to expand. It is significant to note that this particular process provides them a
considerable amount of benefit to the SMEs. They are not able to use the name of the MNC
with whom they are getting but also the various resources of the concerned MNC like the
technology, innovations, brand image and others for the process of their business (Maringe &
Foskett, 2012).
The nation of Russia is a Communist one and the major industries of the nation are
controlled by the government of the nation itself. Therefore, it can be said that the scope for
the “growth as well as the development of the private as well as the small scaled industries in
the nation of Russia is very low” (Aykin, 2016). Thus, the various joint venture business
organisations in the nation of Russia find it very hard to sustain themselves in the business
market. The major threats which they face are on the score of the political as well as the
legislative factors. However, these business organisations can utilise the technological
advancements of the nation to “bring about the overall growth as well as the development of
their business organisation”.
The structure of the various business organizations plays a significant role in the
“effective strategy implementation”. It is generally seen that a business organisation which

21GLOBAL MANAGEMENT
is open to change offers a better ground for the implementation of the various strategies
which are likely to “bring about the overall growth as well as the development of the
concerned business organisation” (Briscoe, Tarique & Schuler, 2012). Furthermore, it is
generally seen that the organisations which are more flexible in their structure and also the
ones which the various employees are willing to work in the rotational basis offer better
chances for the effective implementation of the strategies.
In the present times with the emergence of the various theories of management
diverse structures of organisations have also evolved. However, it is significant to note that
not all of them are very suitable for “the level and scope of internationalization of the
firm” (Cavusgil et al. 2014). The organisational structures which are open to change and the
ones which are willing with to work with the various diverse entities from the different
cultural backgrounds are the ones that are suitable for the process of internationalisation.
The concept of “organizational restructuring” has gained much prominence in the
recent times. It is significant to note that the various business organisations take the help of
this particular concept when they are about to follow the path of internationalisation or their
profit margins have gone down drastically (Hay & Marsh, 2016). Therefore, the various
business organisations with the help of this particular concept hope to bring about a change in
their fortunes.
Technology plays a significant role in the process of networked structures and also in
the concept of human networks. It is significant to note that with the rise of the various
platforms of technology the various employees as well as the customers and the shareholders
related to a particular business have become much more connected and therefore they can
convey their messages to the concerned company in a much better manner (Carbaugh, 2013).
Therefore, it would be apt to say that with the rise of the various kinds of technology the

22GLOBAL MANAGEMENT
human beings seem to form a kind of a virtual network and therefore help in the effective
conduct of the business operations of a particular business organisation.
The organisational design or the structure plays a significant role in the decision
making process of the various managers. It is significant to note that if the concerned
organisation with which the manager is associated is one which is open to change, then the
manager will feel encouraged to make decisions which are more risk taking and require a
greater support from the various employees (Moghadam, 2012). On the other hand, if the
organisation with which a manager is associated is a traditional one then the manager will be
forced to make traditional kinds of decisions (Moghadam, 2012).
“Control and monitoring systems” play a significant role in the international
operations of a particular business organisation. It is significant to note that when a business
is having its centers in the other nations of the world then it is very important for them to not
only control the operations of the foreign business center of the concerned business
organisation but also to monitor their activities (Amin, 2014). This particular feature is very
essential as it not only helps the organisations to maintain high standards of quality but also
helps them to have an effective control over their foreign centers.
The various employees one of the most important part of the various business
organisations and therefore it is generally seen that the diverse business organisations of the
world take the help of effective strategies for the development of the IHRM polices as well
as principles (Cronin, 2013). It is a reflection of this that the various HRM related to the
diverse companies not only take care of the processes of recruitment and selection but also
helps the various business organisations with the processes of induction, training, enhancing
the “employee engagement”, rewards and incentives and various others. (Cronin, 2013)

23GLOBAL MANAGEMENT
Therefore, it can be said that in the present times the role of the modern day IHNRMs have
undergone much transformation.
The three major international staffing options which are available to the various
companies are “Ethnocentric staffing, Polycentric staffing and Geocentric staffing” (Burbules
& Torres, 2013). In the ethnocentric approach the employees from the home nation are given
preference and thus they have all the important posts of the organisation. In the polycentric
staffing the employees of the host nation are given preference and thus they occupy the top
positions. However, in the geocentric approach the best person suited for the job is given
preference (Burbules & Torres, 2013).
Expatriates workers are the ones who are sent to the various offshore locations of the
company and therefore it becomes very important for the company to provide them with the
best quality training as their performance in their job role will depend on the kind of training
they will (Kraidy, 2017). Furthermore, compensations also play a significant role in the
process as most of the expatriates are motivated significantly by the monetary factor.
The host nation managers also play a significant role in the business process. It is
significant to note that in case the business is facing any crisis or issue it is they who are
responsible for the resolution of the conflict and also for the effective management of the
employees belonging to the host nation (Fujita & Thisse, 2013). Therefore, there is a need for
effective training so that they can handle the tough situations in a much better manner and
also for higher compensation packages.
There are two major kinds of HRM policies namely the domestic and the
international one. The domestic HRM policies deal with the domestic business of the
concerned business whereas the internal HRM deals with the international HRM of the
concerned company (Bochner, 2013).

24GLOBAL MANAGEMENT
The expatriates play a significant role in the management of the business operations
of the home nation in the host nation. They are required to convey the information from the
home nation to the host nation and vice versa (Killing, 2013). Furthermore, they are entrusted
with the role of the management of the interests of the home nation in the host nation of the
business. Moreover, they also play a significant role in the “control as well as monitoring
process” of the home nation over their business in the host nation (Killing, 2013).
“Global experience and perspectives” form important attributes of the various top
managers in the present times. It is significant to note that these attributes can be developed
by the effective handling of the international assignments of the various companies (Cascio,
2018). Therefore, with this particular view the various business organisations give
international exposure to their top managers so that they can gain “global experience and
perspectives”.
The expatriates form an important part of the business of the various companies and
therefore they should take effective care for the “repatriation of the expatriates and any
accompanying family, as well as programs for career management and retention”
(Cascio, 2018). This will help the business organisation not only to effectively satisfy the
needs of this particular employee but by doing this the company will be setting an example
and the other expatriates will feel more motivated to work in a better manner and thereby will
enhance the organisational performance.
Cross-border communication has become an important part of the present day
business world and it is generally seen that the various business organisations take the help of
“global management teams”. It is significant to note that these teams not only simplify the
process of the negotiation but also help whenever there is an intercultural miscommunication
(Papastergiadis, 2018).

25GLOBAL MANAGEMENT
Women in the present times play a significant role in the process of international
management. Therefore, it is seen that the various international business organisations in the
present times like the company Pespsi Co and others have women as the head of the
organisation. It is significant to note that the women not only help in the process of
management of the organisation but also help in the process of negotiation (Cerrato & Piva,
2012).
The variations in the labour relations in the host nation are likely to affect the role of
the manager in a significant manner. Therefore, the manager will not only have to take into
consideration the rules as well as the regulations of the company under consideration but also
the labour relations of the host nation for the effective maintenance of the business (Madhok
& Keyhani, 2012).
To conclude, there are several factors which affect the business organisations
operating in the other nations of the world. The process of internationalisation of business
began with the “developments in the fields of technology and innovations and also due to the
advent of globalisation”. However, there are several factors which these business
organisations need to take into consideration like the cultural factors, ethical factors,
communication and others for the operation of their business in the other nations of the
world.

26GLOBAL MANAGEMENT
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