Management a Global Perspective

  • Jul 26, 2021
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Inside the book of Management a Global PerspectiveInternational administration is studied, which focuses on the operational process of international companies from the host countries.

It focuses on management issues that are directly related to the fluidity of people, finances and assets, with in order to optimize the administrative system within the situations where the confluence of national borders is involved.

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In general, environmental factors that adversely affect national companies tend to be more critical for international companies that find operational activity within that country.

The manager's job is to continuously interact with the workers in a professional, ethical and educated way, since they are people with different cultures and value systems.

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Another part of his job is to face the different political, legal and economic factors that are involved and influence the development of functions at the business and managerial level.

In this article you will find:

Purpose of international companies

Management a Global Perspective

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International companies include a series of purposes such as the following:

  • Although companies are moving towards an international level, they have gained greater importance, thanks to the increase of multinational organizations.
  • International companies carry out different operations across national borders. The various operations allow the execution of transfers of services, managerial knowledge, goods, technology and capital to other States.
  • The relationships that a certain company has with the host country can be performed in a variety of ways. One could be the license agreement to carry out the production of goods in other countries and the other deals with the process of exporting goods and services.
  • Another way to relate is through the investments that are made together with other companies that are within the country host, which would lead to a strategic alliance that would help geographic expansion or also increase the level of products and services.
  • Multinational companies can form wholly owned branches and production facilities within the host country. In this sense, the international company that implements a strategic world development, will be able to count on a great variety of favorable options.

Unifying effects on companies

Unifying influences can be realized when the host country facilitates and shares its technical knowledge and administrative, in this way it is possible to improve the development of material and human resources of the company national.

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In the event that a company arises, it would be a great benefit, since business development would be integrated under an international structure.

Regardless of the type of interaction that is, company policies have a duty to provide a adequate balance, so that the results can benefit the company and the host country and thus consolidate the relations.

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Possible business conflicts

A high number of factors allows the possibility of conflicts arising in the headquarters and in the host country within the business system, some of these factors are:

  • The increase in national interests may affect the benefits that are acquired through cooperation.
  • Different socio-cultural customs could make communication difficult and cause mistakes in the future.
  • A multinational company could have such a high economic impact on a small host country that it could cause you discomfort.
  • There are international companies that have been noted for the acquisition of excessive profits, for work against social customs and to eradicate important elements of the companies local. This allows administrators to develop social and diplomatic skills to avoid and resolve conflicts.

Global competitive benefit through quality management

Quality is today a favorable strategy within the global market. United States companies have achieved global productive leadership, however, many companies around the world have managed to overshadow it.

This has been caused by the large number of companies in the United States, which have become complacent and have left overlook the diverse needs that have changed in the global market that every day demand products of greater quality.

This type of complacency, together with the decrease in the level of prevention, gave the opportunity to competition such as Japan to use effective and quality strategies, which helped them increase their participation in the US market and European.

Before managers modify production development, they must first make changes in the way they think about quality, as it is It is a vital need to achieve a high level of products that allow satisfying customers and demonstrate the excellence of the business.

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