Global Management– Managing Global Business: Challenge of Building an Effective Global Business Team…

Global business management is the fundamental principles and practices of conducting global business activities, the proper evaluation of international business opportunities and the optimum allocation of resources so as to attain business objectives in a global environment…

In the rapidly changing global economic and business landscape, the need for effective global business management is an imperative. For businesses to remain competitive, they must continually evolve to tap into the global markets and emerging world opportunities.

According to EconomyWatch; strategic business management in the present turbulent world economic conditions has to be more pro-active as technology, production, consumption patterns are changing, daily… In the wake of globalization and a rapidly integrated world in terms of tastes, preferences, culture… organizational and geographical complexity of global-multinational companies are getting even more pronounced… 

The idea of ‘change’ in order to effectively conduct global business in far-flung areas of the world, and to evaluate the business opportunities in remote corners of the globe have to be dealt with in collaboration with the new sociological, political and economic trends that emerge almost daily on the international front…

Global corporations are transforming themselves into ‘transnationals’ and moving work to the locations with the talent, time, right cost… to do the job. Moving people across borders and ensuring that workers’ visas and permits are compliant with local immigration rules are also vital to the tasks of globalization…

According to Robin I. Lissak; you’re not just moving people from the U.S. and Europe to the rest of the world anymore… you’re sending people from all continents to all continents… the companies that play this global, mobile game best will emerge the winners…

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In the article What Is Global Manager? by Christopher Bartlett and Sumantra Ghoshal  write: It’s hard today to use the word ‘globalization’ without a certain sense of irony, rueful or otherwise. Riven by ideology, religion, and mistrust, the world seems more fragmented, more at odds, than at any time since, arguably, World War II. However even with the deep political divisions; business operations must continue to span the globe and executives still must figure out how to run them well and efficiently…

Then, the question: What is a global manager? The answer: There is no such thing as a universal global manager! Multinational companies instead require three kinds of specialists– business manager, country manager, and functional manager– and senior executives to nurture the specialists and coordinate efforts… Success in today’s international climate– a far cry from only a decade ago– demands highly specialized yet closely linked groups of global business managers, country or regional managers, and worldwide functional managers.

This kind of organization characterizes a ‘transnational’ rather than an old-line multinational, international, global company. Transnationals integrate assets, resources, and diverse people in operating units around the world. Through a flexible management process in which business, country, and functional managers form a triad of perspectives that balance one another; transnational companies can build three strategic capabilities: global-scale efficiency, competitiveness; national-level responsiveness, flexibility; and cross-market capacity to leverage learning on a worldwide basis…

According to Cynthia Churchwell; global managers need to see the world not just as a collection of national marketplaces, but also as a source of scarce information, knowledge, and expertise—the key resources required in the development and diffusion of innovation worldwide. So this increasingly important capability really is about using one’s global presence to promote worldwide innovation and learning…

The role of the global manager is shaped by strategic imperatives of the multinational company’s capability. Having open-mindedness is critical, but also recognizing that global management is all about legitimizing diversity. We often talk about diversity in terms of race or gender, but it is really about a total perspective. It is about legitimizing diverse views in an organization, including those based in cultural differences. People from other cultures think, argue, and perceive things very differently. A manager who is sensitive to that will understand and respond much better in a global context…

In the article Managing Employees in a Global Marketplace by Virtual Advisor writes:  The business world isn’t going global– it’s already there. As growth-minded companies are climbing aboard the international business bandwagon, they are grooming their future corporate leaders to successfully manage operations on a worldwide scale. In the global arena, business deals are heavily influenced by culture, and the contrasts are multifarious.

Accomplishing the same task from one country to the next may be achieved with very distinctive approaches… According to Daniel Orchant; we are clearly a global economy… Companies have to look at things from a global perspective rather than from a unique set of country-specific facts and circumstances that apply worldwide... Cultural issues are paramount to the successful patriation of an international employee…

Companies must view foreign employees as the next generation of global business leaders… To be sure, successful supervision of international employees will depend largely on the degree of management’s understanding of the distinct cultural differences. With employees coming and going on an international level, establishing a global corporate culture is essential to the overall success of the company.

It’s vital that all employees view foreign entities as an integral part of the corporation; therefore, global-minded companies must take care to communicate organization’s commitment to international growth… Still, experts agree the rewards are worth the risks and offer one fundamental guideline to consider when doing business in international arenas: Paradigms of success are different worldwide… don’t take cultural baggage into a global marketplace…

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In the article Challenges Managing Global Business? by Robert Price writes: Developing organization and human resource strategies across multiple borders should not simply be a matter of adapting a domestic model to accommodate changes in distance and global scale. Starting with a global mindset you will have to develop a fresh perspective in order to take into consideration the unique challenges of doing business globally…

There are certain human resource management issues, such as; selecting the right people with the right mixture of local versus home experience; managing the expatriate manager; and dealing with particular problems like repatriation. Others issues include understanding the challenges of living and working cross-borders, performance appraisals from distance, training and management development, compensation packages, and labor relations and organized labor laws…

According to Susanna Kass; we are not looking to be in twenty-four markets all at the same time. We are looking to have a very successful community for every market we enter. So it’s more important to us to be the leader in the market we are in versus being in every continent… In fact, the hardest aspects of circumnavigating the business world fall into two broad categories: how to get an order from one place on the globe to another, and how to negotiate the Byzantine bylaws of trade and customs regulations…

In the article Building an Effective Global Business Team by Vijay  Govindarajan  and Anil K. Gupta write: Every global company’s competitive advantage depends on its ability to coordinate critical resources and information that are spread across different geographical locations. Today there are myriad organizational mechanisms that global corporations can use to integrate dispersed operations. But most effective tool is the global business team: a cross-border team of individuals of different nationalities, working in different cultures, businesses and functions that come together to coordinate some aspect of multinational operation on a global basis…

It’s virtually impossible for multinational corporation to exploit economies of global scale and scope, maximize the transfer of knowledge, cultivate global mind-set without understanding-mastering management of global business teams. However this is easier said than done. Domestic teams and global teams are plagued by many of the same problems, for example; misalignment of individual team members’ goals, a dearth of necessary knowledge, skills, and lack of clarity in team objectives…

But global business teams face additional challenges resulting from differences in geography, language, culture… Teams can fail when they are unable to cultivate trust among members or when they cannot break down often-formidable communication barriers… According to Vijay Govindarajan and Anil K. Gupta; trust is critical to success of global business teams in that it encourages cooperation and minimizes unproductive conflict… One of the first concerns for any global business team must be to explicitly discuss the team’s agenda and ensure that it is defined clearly and correctly. Many teams doom themselves from the start because they don’t fully resolve the issues involved…

Establishing ground rules that reflect desired norms of behavior can serve as powerful self-policing mechanism to overcome communication barriers, enrich the content of team discussions and keep the team operating as an integrated whole… Global business teams are ubiquitous throughout multinational corporations. But managing them effectively and steering them toward their intended goals is not easy…

In the rapidly changing global economic and business landscape, the need for effective global business management has become even more important. For businesses to remain competitive, they must continually evolve to tap into the global markets and emerging world opportunities… According to Jean-Pierre Jeannet; business leaders must move out of domestic mindsets into a more international-global type of thinking… Regardless of size of a company’s operation, location, role in business… global imperative must be accommodated or the enterprise risks decline in competitiveness. Companies that are engulfed by extensive global pressures need executives who possess global mindset and who are able to view business opportunities from a global perspective…

According to Charlene Solomon and Michael Schell; if you want to advance in a global enterprise, then cross-cultural understanding has to be part of your toolkit… When dealing with other cultures the challenge is to recognize the cultural pitfalls; and that isn’t always easy Tracking the routes to corporate globalization is like watching the contrails of jet planes: They come from anywhere and go everywhere. Yet whatever direction a global expansion takes, companies face common challenges, all related to how their people– who ultimately execute business strategy, innovate and serve customers– are sourced, developed and managed…

One of the most profound but also subtle issues companies face as they expand is adopting a genuinely neutral global perspective, without presumptions about whose role is dominant. Assumptions about economic influence and cultural preference are anything but benign… Executing a global business strategy requires having the right talent in the right places; it requires specialized leadership skills– managing the work of people with different backgrounds and customs.

Different kinds of organizational and governance structures are required to operate as a global company rather than just a company that happens to have a lot of different locations around the world… For a company to execute globally, its governance structures must allow decisions to be made locally… Processes and governance structures should be redesigned to put more decision-making into the hands of managers in local markets…. Leadership development is critical; the next generation of executives needs to be exposed to other cultures…

According to Julian Dalzell; when it comes to delivering on global growth plans, a company’s reach too often exceeds grasp. Everyone knows that expansion into other markets isn’t simply a matter of sending a sales force on an overseas mission. What exactly is required? Most important, companies must be credible to the customers they are seeking to win.