International businesses
Several international businesses may include franchising, exports, hotel, and hospitality. Global business management entails the management of business entities that are in more than a single country. An international manager is a person that oversees a company’s operations globally.
International managers play significant roles in the success of a business. It is their role to plan the company’s global strategy. They instill the company’s work culture globally and ensure that the several companies they run globally are following company, regional, and international regulations. They have to ensure the organization’s performance is at par with its goals and objectives.
Globalization is a process where businesses are recognized internationally and start to operate on an international scale. It is also a process of integration and interaction of organizations and people worldwide. On a positive note, globalization encourages business competition, which leads to higher bargaining power for consumers and more top-quality production of goods and services.
The adverse effects of globalization include job insecurity, where a company would prefer to outsource its employees. It hurts labor laws, and workers’ rights management as different countries have different legislation hence might affect the company’s image.
Culture is the customs, ideas, and social behavior of specific people or societies. There are four types of organizational cultures: the clan culture, the adhocracy culture, the market culture, and the hierarchy culture. Culture is transmitted vertically and horizontally. Vertical culture transmission occurs between children and their caregivers, while horizontal culture transmission is between peers.
Different cultures will, without a doubt, have an impact on international management. A businesses’ communication strategy has to put into consideration different nationalities to avoid misinterpretation and language barriers. They also have to take into account the cultural attitude of the foreign country towards their products. International businesses have to learn different national cultures and integrate them within their own corporate cultures to succeed in foreign countries.
Understanding the foreign market’s economic environment paramount as this will advise you accordingly on the feasibility of your venture. The legal environment is the attitude of a government towards business. It includes taxation laws, commerce regulation, and freedom of contract. To carry out a legally recognized and adhering business, international business managers must familiarize themselves with the rules and legislation of a nation.
Government actions are bound to affect the operations of a business. Business is affected by political stability and instability. The government in power often has control over corruption, bureaucracy, funding grants, and trade restrictions. Therefore, a manager must stay politically up to date and forecast the political climate.
A business needs to formulate strategies to succeed in new markets. This is by setting goals and objectives. A company has to identify its products and relate and sell well to the foreign market. Thorough research of the target market is also fundamental to allow you to deliver. Plan and put clear your organizational structure to avoid hierarchical inconsistencies. Determine a proper distribution channel for your goods.
To implement the strategies, however, one has to enter the market successfully. Market entry strategies into international markets include direct exporting, which involves selling directly into the market. Licensing is also a strategy of entry; it is an arrangement where a firm transfers rights to use a product to a firm. Another approach is through franchising, where a business allows another to use its name, merchandise, and intellectual property. Through partnering, one can also gain entry into a foreign market; you can partner with a local company.
To be an international business manager, one has to have a particular set of traits, ethics, and leadership behaviors. They need to possess a deep sense of self-awareness not to be swayed from the company’s culture. An international business manager has to be time orientated. They need to be an excellent communicator and be sensitive to cultural diversity. This will help them relay a message clearly with no room for misinterpretation and without insulting the foreign market’s culture.
One needs to have fundamental personal morality.it will guide their ethics. Maintaining ethics in international business management is very critical. One has to have a moral stand on issues religion, politics, corruption, and equal opportunity. An ethically weak manager is undoubtedly bound to fail in international business.
Negotiation skills allow for one to reach a compromise. This is very important, especially when negotiating for contracts. A manager needs to know and have the proper skills of negotiation. Have a right listening ear, be emotionally stable, and have a good sense of collaboration and teamwork.
To prosper in a foreign market, an international business manager has to be politically aligned. One has to have proper political skills. These need for one to be socially astute, have interpersonal influence, and networking ability. For one to be well politically aligned, one must be sincere.
Finally, one has to be a motivator. This will encourage employees to work towards the goals and objectives of international business. Find out what employees need and give them a sense of staff involvement. Give praise where necessary, and provide the employees a sense of autonomy. One has to understand everyone’s personality and treat them accordingly.
Strategic evaluation is a process of assessing the performance of a business to its goals and objectives. It attempts to see past the common factors and seek a study into the trends that will determine the business’s future failures or successes. It reexamines goals and objectives that are set at different times.
A strategic review is a process of identifying new value-creating opportunities within an organization. One needs to look at the original strategic plan closely and review the plan details. One can then make a report on the improvements that ought to be made and then communicate the organization’s changes.
Strategic control involves step by step assessment of implementation activities. Implementation activities include carrying out and executing strategic plans. There are three significant steps in strategic control:
- Measurement of organization performance.
- Comparison of performance to goals
- Taking corrective action.
Therefore, to run a global strategy from its start to success, one needs to have the proper information on strategic planning, which in the end will lead to the evaluation, review, and control of the strategic plan.