A Report on Management Issues in a Global Business Environment

This report examines the challenges and opportunities faced by managers in a global business environment. It discusses issues like local market knowledge, foreign laws, and international competition, while also highlighting opportunities such as technological advancements, talent sourcing, and economies of scale. The report uses the Myer case study to illustrate these points, analyzing the company's challenges with brand identity and market fragmentation. It then proposes solutions, including the application of Keller's brand equity model to regain brand identity and the adoption of a new strategy. The report concludes with a summary of the key issues and opportunities, emphasizing the importance of strategic management in the global market.

Management in a global business environment
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Management in a global business environment
In dynamic environment, there are wide ranges of companies who are expanding their
business operations across the world. These companies perform their business operations
with the motive to attain the high amount of profit as well as success or growth of companies
while performing business across world. The aim of the paper is to determine the major
international issues and possible opportunities for the managers of the companies while
operating their business in the global environment. The opportunities and challenges are
majorly discussed in terms of the managers because they are the one who highly interact in
the global market on behalf of their company. In addition, the challenges of the international
competition as well as the expansion are easily understood with the help of the real life
example of Australian company that is Myer. In the end of paper, the personal view on some
of the conflicts that are generating as well as their solutions are discussed so that it can easily
be managed in the effective manner.
Most of the large companies are performing their business operations in numerous
countries in international market. The managers of companies handles the operations in the
global market which make them to find the different challenges as well as opportunities in the
market which are discussed further. The major challenge which is faced by the managers in
the global market is related to the local knowledge or expertise about the country (Kakabadse
& Bank, 2018). It has been found that different countries are equipped with diverse culture
and languages which are not easy to understand by manager which leads to issue while
managing the business. This issue force companies to appoint an expert who can work as
agency and helps them to perform the business in the international market (Cascio &
Boudreau, 2016). The knowledge of the local market leads to the influence of the efficient
marketing as successful expansion of the business in international market.

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Another major challenge which is witnessed by the managers of the company include
the foreign laws as well as regulations as every country as their own regulations which
influence the working (Binder, 2016). The company structure is place with the motive to get
the comprehensive understanding related to the local laws as well as regulations that govern
the target marks. The tax implications are faced by the managers in the different countries
which include the trading laws, navigating legal requirements which are considered as the
central function of any successful international business (Stone & Deadrick, 2015). The
managers of the company need to consider the eligibility of the trade which is essential to be
considered by the managers of the companies because of the availability of the potential
tariffs as well as legal cost that is linked with the entry of the business in the new as well as
emerging markets.
The manager majorly needs to look towards the employment as well as the legal
requirements that differ from one country to another (Latukha, 2015). This can easily be
understood with the help of the example that include European countries stimulate the
minimum of 14- workers on the maternity leave that is offered to the employees while on the
other hand such sort of requirement for the US employers (Lasserre, 2017). The manager
witnesses the challenge in operating the business in the global market because they have to
deal with the complexity that is linked with the foreign trade as well as the employment laws.
The managers need to understand where they can make their investment by ensuring
investing in the experienced as well as the knowledgeable with the experienced corporate the
counsel that can prove invaluable.
One of the major challenges that are witnessed by the managers in international
market includes the high competition among the global companies. It has been witnessed
when the company decides to expand the business operations then they ensure that they
engage with the different companies present in market who can give the competition while

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operating the business in the market (Deresky, 2017). The managers of the company also
witness the wide range of opportunities when they perform their business operations in the
market. These opportunities are discussed further in an effective manner.
The changes or up-gradation in the technology is one of the opportunities that are
attained by manager while operating the business in international market. There are most of
the countries that are ahead in terms of the technology which is effective utilized by them in
their own business operations. However, the managers have the opportunity to adopt the new
and up-dated technology for their business operations as this contribute in improving the
efficiency as well as leads to the success of business (Trivikram, 2016). The new
technologies with the advancement that are implemented by the companies majorly include
Big data, cloud computing and many others.
In addition, managers of company have opportunity of sourcing the effective talent
from the different countries. The major strategic option related strategy for the business is
that they are majorly looking to overcome the hurdle of accumulating the local knowledge as
well as hiring the staff majorly from outside their home country. This opportunity can be
adopted by manager so that they can effective perform their business operation by optimum
utilization of the skills and knowledge of the talent that is sourced by the managers from the
international market (Hamilton & Webster, 2018).
Another opportunity that can be avail by the managers in the international market is
linked to the economies of scale. The firms who are expanding their business operations can
have the opportunity to reduce the total cost associated with the product as well as the
integration of the different critical resource functions that leads to the optimal economies of
scale (Frynas, & Mellahi, 2015). The managers have the opportunities to consider the
economies of scale. This helps the companies to gain the core competencies with the

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assistance of the appropriate knowledge as well as resourcing that they are sharing with the
different countries among the international market. The sharing of the knowledge within the
market assists in expanding its business operations with the motive to manufacture the
products as well as services efficiently at cost effectiveness (Meyer & Peng, 2016). Thus, the
challenges and opportunities in the market can easily be understood with the help of real life
example of the company which is Myer that perform the business operations in the
international market.
Myer is a well-known upmarket Australian department store chain that is trading in
all the Australian states as well as one of the Australia’s two self-governing territories. The
case which recently look place include “Myer has lost sight of who its customers are” in the
business environment. Considering the big part of the retail group, it has been found that
Myer problem is that it has tried to be all things to entire customers. The company has put
efforts to hang on its high-end clients of old while trying appeal to value-conscious, bargain
oriented customers who can majorly shop on sale (Sands & Beverland, 2018). For centuries,
the department stores have ruled retail and retailer of Australia was majorly the ruled by the
Myer as well as David Jones.
One of the major challenges that are witnessed by Myer includes brand identity which
has been slowly chipped away. In the international market, every brand has the unique place
which is occupied in the mind of the customer who is majorly targeted as it is considered as
the essential value (Cho, Fiore, & Russell, 2015). It majorly through light on the unique
selling proposition which shows the way brand will compete in the marketplace that consists
of all its subsequent activities like wide product range, pricing of the products and others
(Sands, 2018). However, Myer Company found the greater market fragmentation with the
wider range of the needs majorly to appeal to and with the emergence of the wide numbers of
well positioned local brand which made the company to struggle hard in the market for their

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identity as well as business. It has been witnessed that Myer company lack in terms of the
clarity in unique selling of brand’s which means that they are being attacked at the top and
bottom end of the market.
Considering the case of Myer, it has been witnessed that much of the problem stems
from looking outward too much as they are looking for something to entice customers, talks
about the recent trends as well as adopt the up-dated technology or respond to the recent
competitive threat. It has been found that there is nothing wrong with linked approaches as
they must be enclosed through the lens of the brand. Another challenge which is faced by the
company include the fast fashion brands like H&M, Primark and Zara that are the major
brands have the strong characteristics with the identified brand names along with the very
clear sense that to who they are selling their products (Sands, 2018).
Myer Company has the opportunity to expand the business considering the growing
needs of the customers in the market. The rise and change in needs of customers is one of the
way through which they can think of the growth in the market. Along with this, by meeting
the needs of the customers they can recover the brand identity in the market as more and
more awareness can be generated. In addition to this, this has been found that they are
considering companies like Zara, H&M and many others as their competitors which give
them the opportunity to review their strategy and to bring the improvement in their own
strategy (Sands & Beverland, 2018).
The upcoming issue and as well as present issue can be handled by company while
dealing in the international market for which the company has brought the New strategy.
Myer’s new strategy is considered as transition of the operations as well as activities in the
new business strategy (Sands & Beverland, 2018). The new strategy of the company majorly

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focuses on female shoppers with high-profile brands as well as improved services with in-
store experiences complemented by strong online shopping platform.
I observed that there is need for this to be carefully reframed as well as updated for
the current day. In case, the brand stood majorly for the middle class aspirates then the
company needs to consider thinks the way middle class customers has been changed and also
determine the need of the role for an iconic Australian brand to service new updated of the
requirement for the new generation of clients. It has been found Myer Company should apply
the Keller’s brand equity model to regain the brand identity. The model is majorly known as
the customer-based brand equity (CBBE) model which is adopted with the motive to form
strong brand and reshape the same in the eyes of the customers towards the product
(Anselmsson, Burt & Tunca, 2017).
(Source: Anselmsson, Burt & Tunca, 2017)
The below given image of Keller’s brand equity include different steps which can be
apply by Myer to maintain the brand identity which will help in further dealing with issues. I
believe that according to the new strategy of the company Myer can avail the benefit by
applying the Keller’s brand equity model.
In the end, this can be concluded that in the global market the managers of the
company perform different operations where they can find different challenges as well as

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opportunities. The manager of the company remains aware that they can grab opportunity and
convert the same into competitive advantage. The challenges and opportunity that are
witnessed can be understood with the help of the Myer’s case that shows the challenge of
competitive as well as benefit of the opportunity that is attained by the company. In the end,
the personal view has been provided for strategy the company should bring in to reduce the
challenges as well as to make the strong position in the market.

Management 8
References
Anselmsson, J., Burt, S., & Tunca, B. (2017). An integrated retailer image and brand equity
framework: Re-examining, extending, and restructuring retailer brand equity. Journal
of retailing and consumer services, 38, 194-203.
Binder, J. (2016). Global project management: communication, collaboration and
management across borders. Routledge.
Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: From
international HR to talent management. Journal of World Business, 51(1), 103-114.
Cho, E., Fiore, A. M., & Russell, D. W. (2015). Validation of a fashion brand image scale
capturing cognitive, sensory, and affective associations: Testing its role in an
extended brand equity model. Psychology & Marketing, 32(1), 28-48.
Deresky, H. (2017). International management: Managing across borders and cultures.
Pearson Education India.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.
Hamilton, L., & Webster, P. (2018). The international business environment. Oxford
University Press.
Kakabadse, A., & Bank, J. (2018). Working in organisations. Routledge.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.

Management 9
Latukha, M. (2015). Talent management in Russian companies: domestic challenges and
international experience. The International Journal of Human Resource
Management, 26(8), 1051-1075.
Meyer, K., & Peng, M. W. (2016). International business. Cengage Learning.
Sands, S. & Beverland, M. (2018). Myer once stood for the aspirational middle class but now
it’s lost sight of who its customers are. Retrieved from:
https://theconversation.com/myer-once-stood-for-the-aspirational-middle-class-but-
now-its-lost-sight-of-who-its-customers-are-91832
Sands, S. (2018). Myer has lost sight of who its customers are. Retrieved from:
http://www.swinburne.edu.au/news/latest-news/2018/02/myer-has-lost-sight-of-who-
its-customers-are.php
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), 139-145.
Trivikram, S. (2016). Business Opportunities in the International Markets. Retrieved from:
https://myventurepad.com/business-opportunities-international-markets/