Managing Global Business Environment-Free Samples For Students

Question: Explain Managing Global Business Environment? Answer: Introducation: In this modern era every business organization wants to expand their business in the global market to promote their brand name in the foreign countries and set an example in the international market (Barkemeyer et al., 2014). There are several reasons for which business organizations want to go global. Organizational management of various business organizations are incorporating new strategies into their organizations to introduce earn success in the international market. They are embracing new techniques which are beneficial for organizational development in the foreign industry and beat their rivals in market competition. In order to achieve desired target and earn reputation in the industry, it has become important for every business organizations to enlarge their business in the global market (Cummings Worley, 2014). Although, carrying out new business venture in the global market in considered as an exciting process, organizations often face various difficulties to operate thei r business in foreign countries. Various organizational management suffers from various challenges while expanding their business in foreign market (De Loecker Goldberg, 2014). The below mentioned article has concentrated on the challenges that has been faced by various companies and its managerial department while expanding business in the foreign countries. It has discussed about possible solutions that can be useful for the organizations to overcome that challenges. The concept of business has been changed in past few decades. The innovation of new technologies and communication process has changed the scenario of business organizations (Farndale et al., 2014). Business organizations are facing tough competition from their rival companies every now and then. In order to survive in the race and win the battle with the rivals, business organizations are incorporating new techniques and strategies into their rule book. Several business organizations have focused on international market. According to many organizational leaders, expansion of business in the global market is good opportunity to lead the industry and make huge profit (Ferraro Brody, 2015). There are several reasons for which a business organization aims at expanding business in the foreign country. Some of them are as follows: Expansion of business in the international market will increase sales. It will introduce the brand name to the foreign customers. Foreign consumers along with national customers will also be able to buy products from their favorite international brand. It will increase the sales margin of the business organization. One of the major reasons for enlarging business in the global market is to increase the profit margin. It will be helpful for the business organizations to earn huge amount of revenue from all over the world. Extending business internationally will improve the quality of the product and service and help the organization to adopt new technologies. Expansion of business in the global market is highly beneficial for the economic infrastructure of any country. The economic growth of the business organization by extending business in the foreign market will influence the financial condition of the country. Extension of business in the global market is beneficial for the business organizations to beat their rival companies. However, the business organizations are often facing various difficulties in carrying out business ventures in the international market. There are various factors that influence the growth of business organizations, such as- environmental, political, legal, economical and social. These factors play a crucial role in development of a business organization. According to many reports, leaders of business organizations experience many adverse forces that preventing them to achieve desired target in the foreign countries (Ferrell Fraedrich, 2015). Some of them are as follows: Communication is considered as the key element of every business organizations. It is highly important for every business organizations to maintain healthy communication with their customers, internal external stake holders, society and people around the business organizations. In order to achieve success in the foreign country the business organizations must maintain strong interaction with the people related with the organization. However, the organizational management often faces difficulties to interact with their foreign stake holders due to language barrier. Lack of knowledge about local languages leads the organizations to face massive problem in the foreign market. It is important for the organizational management to communicate with its local staff members about organizational functions, but due to lack of knowledge about local tongue the communication gap between organizational management and workers increase. Managerial department of the business organizations faces diffic ulties in communicating with their buyers as well which is harmful for organizational development (Gereffi Lee, 2016). Another major problem faced by organizational management is the currency issue. Capital plays a crucial role in business development. It is considered as the key component of every business organization. In order to achieve success in the foreign market organizational management must be financially strong. However, due to lack of knowledge about financial structure about the foreign country the organizational management may face various challenges in the foreign market (Hair, 2015). Incorrect assumption about the financial structure of international market can be a major issue for the business organization that wants to expand business in the foreign industry. It may destroy the whole planning of expansion of business in the global market. Culture is known as another major component for expanding business internationally. In order to identify the requirement of consumers, organizational management must consider the culture of the country. Culture highly influences the preferences and requirements of the consumers. Managerial department of business organizations often faces various challenges due to cultural differences between the native country and foreign country. Many organizational management fail to understand the preference of the consumers which lead them to take wrong decision regarding their organizational strategy. To deal with foreign employees, organizational management must have a clear idea about local culture. It is often evident that while distributing duties among the staff members, manager of one business organization does not address every employee individually. The employees may feel insulted due to such behavior of manager. It may lead the manager and the whole organization to face any unwelcomed o ccurrence, such as- labor strike, knock out, massive failure in the foreign market. Numerous organizational management faces various challenges in the international market due to lack of knowledge about local culture (Hill, Cronk Wickramasekera, 2013). Foreign rules, regulations plays vital role in development of any business organization in the foreign country. Organizational management of many business organizations often faces various obstacles due to norms and regulations and other government practices. Government of every country wants to ensure a healthy and safety environment for local people. In order to maintain healthy society for the local residents, government often acts as villain for the foreign and local business organizations. Many business organizations enter into various legal issues due to tiff with government and breach any rules of government. This may destroy the whole planning of the business organization to expand business in the international market (Luthans Doh, 2014). Environmental issues are also considered as one of the biggest influence that harms the development of many business organizations in international market. Sometimes business organizations fail in the foreign market due to natural forces of the foreign country (Yeung Coe, 2015). There are various examples of business organizations that have faced several challenges in the global market. An exemplary example of such organization is Qantas airline. Qantas is a renowned airline company of Australia. It is known as the worlds third oldest airline company. It has been founded in 1920 and it has started operation since 1921. It possesses various subsidiary airlines like Qantas Link, Jetstar Airways. Headquarter is situated in Sydney, Mascot. Being a renowned airline company in Australia as well as World, Qantas possess a huge work force ("Qantas.com", 2017). The organizational management of Qantas has planned to expand their business in the international market, but it has faced massive failure in the global perspective. While expanding business in the international market, management of Qantas has set a treaty with TWU. The employees of TWU have demanded extra wages and improvement in the organizational environment to start working. However, this proposal has bee n refused by the organizational management of Qantas. It has influenced a dispute between the staff members and the managerial department of Qantas. This is considered one of the major issues that have led Qantas to face major failure in the foreign market. In 2010, Qantas has faced massive crisis due to natural calamity. The natural forces have spoiled the flight routes of Qantas airline. This is highly responsible for the failure of Qantas in foreign industry. The increment in fuel price is also considered as a key reason that has led the Qantas to face challenges in international market. The price of petrol has been increased which has led the organization to face massive financial crisis. Thus, it can be stated that there are various environmental, cultural and financial issues that has influenced the failure of Qantas in global market (Meyer Peng 2016). There are number of ways that can be helpful for the business organizations to resolve the challenges the management faces in the international market. Some of them are as follows: To overcome the language barrier, organizational management must prepare a master plan for marketing. Instead of translation, good marketing can be beneficial for the organization to resolve the language issue with the foreign buyers and other stake holders (Peng, 2016). In order to resolve another major issue of international business operation that is cultural barrier, the organizational management must pay special attention to understand the behavior of the foreign consumers and stakeholders. The managerial department of any business organization must consider the issue while establishing organizational strategy It will be beneficial for the growth of the organization in the global market (Wild, Wild Han, 2014). The business organization must set partnership with the local franchises. It will be highly beneficial for the development of the organization in the international market. Local franchises will act as a mediator between the business organization and the local consumers. They will help the organizational management to understand the requirement of the buyers. These mediators will convey the messages of the companies to their consumers. The business organizations that want to expand their business in the global market and set an example must consider the fact that effective partnership can be helpful to put a strong foot print in the international market, while establishing organizational strategy (Rothaermel, 2015). The organizational managements that want to put a strong foot print in the international market must implement conduct a research works on the foreign market before making business strategy. It will provide a vivid picture of financial structure of foreign market and government rules and regulations for foreign industries. This research is highly required for every business organization to earn desired position in the foreign market. It is important to have a clear idea about the economic and political condition of the country where any company wants to expand their business. This will be helpful to establish effective strategies for organizational management to make huge profit in the foreign market (Ritchie, 2016). As per the previous discussion, it can be concluded that although it has become very important for every business organization to expand their business in the international market, many organizations are experiencing difficulties to set their business in the foreign market. There are several issues that lead the organizations to face challenges in the global market, such as- language barrier, cultural gap, currency issues, rules and regulations, environmental issues. Though there are many companies that have set their business in the international market successfully, there are many examples of such organization that have faced various challenge in international market. One of such business organization is Qantas Airline. This Australian renowned airline company has faced massive crisis in international market due to natural calamity, high fuel price and communication gap between employees and organizational management. Such issues have led the organization to face failure in the glo bal market. Some strategies can be used by organizational managements to overcome the challenges, like- partnership with local franchises, strong marketing plans and conduct research in the foreign market. These strategies can be incorporated by the managerial departments of business organizations that want to extend their business in the global market and earn huge revenue by selling products to the foreign consumers. Reference: Barkemeyer, R., Holt, D., Preuss, L., Tsang, S. (2014). What happened to the developmentin sustainable development? Business guidelines two decades after Brundtland.Sustainable Development,22(1), 15-32. Cummings, T. G., Worley, C. G. (2014).Organization development and change. Cengage learning. 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