Globalization and Management

Globalization and Management

Abstract

         21st century global managers are faced with challenges that are the direct result of a connected world.  A global economy brought together by technological advances that allow us to communicate half way around the world, with the touch of a key, on a computer that fits in the palm of our hand. Everyone’s voice can be heard in today’s global marketplace, so managers must implement strategic plans that appeal to the customer. Rapid growth in third world countries challenges business leaders to adapt to culturally diverse markets and establish binding friendships that will establish longevity in competitive foreign markets.

Globalization and Management

        Globalization is the integration of culture, products, services, ideas, and technology internationally. Today’s modern day business must compete and intermingle as a multinational corporation to compete in even the smallest of product markets. The idea of a completely American made product is long gone, as manufacturers must outsource and establish a means of producing a commodity that can compete in quality and price on a global scale.  International trade organizations such as the World Trade Organization, The World Bank, and The International Monetary Fund promote a free trade world economy, attempting to bring the world together as one interdependent world market. Oldemeinen claims, “It is now easier for companies to set up branches internationally as globalization has opened borders and encouraged free trade”(2011). Globalization has its benefits, but it also creates many challenges for management. Global managers must overcome cultural diversity, environmental impacts, trade and compliance regulations, and technological barriers to succeed in a changing world marketplace. Global efficiency in the 21st century poses modern challenges for today’s multinational corporations.

    Companies that are multinational are challenged by cultural differences as they operate outside of the United States. It can be very challenging adapting to a foreign market values, beliefs, knowledge, and ideologies, but free trade can change a culture. As we become more interconnected through the Internet, social media, and e-commerce, we are affected by our perceptions of the world outside our borders. However, local cultures and language barriers still pose a challenge for international management. Goh and Sullivan declare, “Cultural misunderstandings arising from miscommunications are one of the biggest challenges that foreign companies face”(2010). Being able to speak a language is not always going to translate into an understanding of the subtleties of a culture. In addition to language barriers, management must understand the customer. In a global market, managers must be humble and accept the cultural differences that exist outside of our borders. How we perceive to run a business at home will certainly be different in a foreign state. Goh and Sullivan believe, “to be able to achieve success you must have patience, cultural understanding and perseverance”(2010). Once a business has entered the global market, management should look to establish positive relationships. The easiest way to overcome cultural diversity and gain a better understanding of the culture is by getting to know the local populace. By building friendships, a manager can establish trust and often break through cultural barriers.