Strategic Management in the Global Business Environment: A Report

This report examines the strategic approaches to managing a business in a global environment, focusing on international expansion strategies and organizational structures. It analyzes the ethical considerations crucial for businesses targeting countries like India, Bangladesh, and Vietnam, emphasizing the importance of fair wages, labor laws, and environmental protection. The report also explores the skills and attitudes required for effective leadership in a global context, highlighting the significance of strengths, ethical principles, and inspirational leadership. It includes a table outlining the required skill set for internationalization, covering areas such as team skills, resource management, and ethical standardization. The report also includes self-reflection on leadership traits. The report is a comprehensive analysis of the challenges and opportunities in global business management.

MANAGEMENT IN GLOBAL
BUSINESS ENVIRONMENT

Table of Contents
Activity 1.........................................................................................................................................2
Activity 2.........................................................................................................................................3
Activity 3.........................................................................................................................................4
Table of Required Skill Set for Internationalization........................................................................5
Activity 4.........................................................................................................................................6
References........................................................................................................................................7
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Activity 1
In order to expand the company’s existing market of customized local handheld tools to
European international customers, the strategic approach towards targeted market must be taken
with closer evaluation of strengths and weaknesses of both internal and external factors.
For international expansion in its initial phase, the company can choose to implement a new
independent wing under its existing hierarchical structure, to manage and take care of
development of international export, reporting directly to the chief executive officer.
Fig 1: Development of a separate wing for initial Internalization
Source: http://www.yourarticlelibrary.com/international-business/international-organizational-
structures-with-diagram/77149
If the company chooses to expand its market even further, taking the products to Europe and
Asia or any other country, the organizational structure wing can be developed to cater the
expansion. A global matrix structure would expand various functional divisions bringing overall
organizational structure change (Nölke, ten Brink, Claar, & May, 2015). The primary motivation
behind the altering structure would be to upscale the entire operations and sync-in the various
operational units. This would help in even further expansions and would help to accommodate
any growth strategy the company would like to progress with.
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Fig 2: Development of overall organization structure for globalizing the company
Source: http://www.yourarticlelibrary.com/international-business/international-organizational-
structures-with-diagram/77149
If the company identifies that most of its products have would a market in the global venues,
making most of its revenue from export of goods, the company can plan to set up smaller
operational divisions into various locations, and can decentralize the operations, limiting to a few
independent locality related decision making (Ashkenas, Ulrich, Jick, & Kerr, 2015). This form
of network structure fits best when the consumer market has geographically distant locations.
Activity 2
Additional Research Suggestions for Ethical Clothing
Ethical clothing is a term that covers a variety of concerns relating to work ethics, especially in
the field of fashion and clothing. The covered scenarios in ethical considerations are from a
variety of concerns prevailing in markets, especially economically developing market segments.
As the new targeted manufacturers of clothing is aimed at countries like India, Bangladesh and
Vietnam, where the economies are still in progressive state, concerns from fare wages, labor
laws, fair trade, resource exploitation and environment protection play an important role. With
respect to the country of China, where skilled labor is available economically, the concerns of
employee welfare are crucial to business operations (Johnston, 2017). To manage these concerns,
a deeper insight into various scenarios with global ethical considerations require a closer and
stronger ground research.
With the requirement of smaller time to market and economical production, the research is not
conducted extensively, there may be different circumstantial issues. The first and foremost being
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the governmental regulations and penalties due to breach of law and policies, for employment of
labor in the country. Another issue can be with eth environmental protection rights infringement,
as each of the country targeted are actively looking towards greener business models, rather than
standard business structures. Raw material availability along with logistic facilities at these
venues, would also play crucial role in decision making. If the research is avoided, there can be
many scenarios that would be undermined, and which may result in delays and penalties at the
later stage.
The research would start with understanding the existing laws and ethical requirements to
operate business units at the targeted venues, including cost of taxes, wages, import and export
duties, and other financial measurable units (Mea & Sims, 2018). The research would also
measure the training and development cost of employees along with other expenses to maintain a
safe and secure work environment. Once the information is collected, the research would
compare the benefits and disadvantages, considering the economic structure and progress rates of
the countries in consideration.
Activity 3
The skills and attitude required to manage in a global environment start with one’s own strengths
and capabilities. A motivated, goal oriented and experienced individual with concentric focus at
the organizational objectives would help in laying down a path for success, even in global arenas
(Drucker, 2005). The strengths would not only help in overcoming the challenges but would also
suggest scope of improvement and growth strategy formation, with minimal risk and
contingency plans. Along with strengths, sharp and strong ethical principles, an inspirational
energy to raise the work standard, and to motivate team members for excellent performance is
the key to a good leadership (Lafley, 2009).
Ethics cannot be learnt in one day; they need to be practiced and character is to be built by
consistent effort (Gonin, 2015). A good leader must have strong roots with ethics and
experience-based learnings, that drive the success for any organization (Sazena, 2015). A self-
taught, time managed and strong character person with charismatic leadership style is an ideal
management vison which I must practice and learn to develop. I am optimistic that I will be able
to reach to these bars created for becoming a good leader.
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Colleagues from different cultural backgrounds stand by these shortcomings, in support for me,
agreeing on the inspirational image drawn by me for myself. They also extended their support by
motivating me for progressing on the right path. The suggestion for better time management was
reflected by many.
Table of Required Skill Set for Internationalization
Factors/Skillset Category Comment
Upscaling Team Skills Training and
Development
- Multi-tasking skills for abled
employees
New Learnings Training and
Development
- New technology and growth
opportunities
Size and Resource Management Infrastructure - Sitting, equipment, office
space
Global Ethical Standardization Training and
Development
- International standard
operations policies
Salaries, Incentives, Wages and
Compensation
Financial
Management
Policies and Process Enhancement Human
Resourcing
- Global policy, recruitment
and selection procedures
Internal communication systems Infrastructure - Integration of technology
Information Technology Cohesion Infrastructure - Trainings, utilization and
control measure to limit
exploitation
For internationalization and expansion strategies, the current premise needs to be upscaled on a
various category to cater to the needs to sustain a global market demand. These requirements are
majorly from the infrastructure perspectives, human resourcing requirements and training and
development needs of employees. Under all the various categories, the organizational culture
would be required to meet the global ethical standards for business operations. These
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shortcomings can be dealt with strategic approach and a growth and expansion strategy can be
devised.
Activity 4
For an effective business leadership, there are a few characteristic traits that I have identified
from the previous sessions with fellows from the class. The first and foremost is the openness to
learn and grow, at any age. The interactions with various culturally different people in the class
helped me to have different insights to a scenario. Also, a strong character, motivated with
ethically driven principles sets one apart as a leader. These two characteristics bring the best out
of a person, in actions, which is a sign of a good leader.
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References
Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The Boundaryless Organization.: Breaking
the Chains of Organizational Structure. John Wiley & Sons.
Drucker, P. F. (2005). Managing Oneself. Harvard Business Review, 13-32.
Gonin, M. (2015). Adam Smith’s contribution to business ethics, then and now. Journal of
Business Ethics, 129(1), 221-236.
Johnston, L. M. (2017). Introduction to the Ethics of Clothing and Clothing Production. Siegel
Institute Ethics Research Scholars, 1(1), 7.
Lafley, A. G. (2009). What Only the CEO Can Do. Harvard Business Review.
Mea, W. J., & Sims, R. R. (2018). Human Dignity-Centered Business Ethics: A Conceptual
Framework for Business Leaders. Journal of Business Ethics, 1-17.
Nölke, A., ten Brink, T., Claar, S., & May, C. (2015). Domestic structures, foreign economic
policies and global economic order: Implications from the rise of large emerging
economies. European journal of international relations, 21(3), 538-567.
Sazena, H. (2015). Three skills CEOs need most. Ivey Business Journal.
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