Managing in a Global Environment
International market growth has become a significant priority for a large number of companies. Therefore it has become necessary to create a strategy that makes the company compete with effectiveness in global markets to become successful. The company would have to create a strong competitive base in a wide range of disparate markets keeping in mind competition that is bound to arise from regional and local competitors as well as other companies that are operating on a global scale. For example when Coke, went to India it had to face locally entrenched competition from Thumbs Up and from Pepsi that had already started operations. When setting up a global competitive position it is necessary to keep in mind the spatial configuration of assets and resources and to analyze not only the similarities and differences in the operating environment, but also take into consideration the rhythms of market interdependence and the forces that are pushing towards more market integration. (Configural Advantage in Global Markets)
Quite often, when markets are located far away from each other and independent fro each other too, the company will have to compete in several different markets and have to alter its positional advantages based on the requirements of the local markets. Simultaneously it is necessary to have mechanisms to coordinate these positions developed by improved harmonization and integrating and interlinking activity processes across the markets. This could provide an additional bonus in that the company develops capabilities for crossing international borders with the competitive edge in managing activity systems in global markets. These become very important as markets get integrated as it provides the capacity to effectively leverage the spatial configuration of the company's assets and resources in the international markets. (Configural Advantage in Global Markets)
By itself this creation of a configurable advantage in international markets and the development of efficient strategy to take on competition are not sufficient. Along with this it is necessary that the company develop management systems and capacities to build and keep tat advantage and give strategic flexibility in the possible changing market dynamics, resource conditions and competitor configurations. It is also essential to develop information transfer systems that enable experience and ideas from one area of operation to another to provide a stimulus for organizational learning. It is only then that the company can make use of the diversity of its experience and exposure and the knowledge base of its resources to develop a strong configurable advantage in global markets. (Configural Advantage in Global Markets)
McDonalds is among the most recognized brands in the world. It has almost 29,000 restaurants spread over 120 countries and with $40 billion as revenue every year. McDonald's had humble beginnings selling hamburgers in the heartland of America in 1955. In those days its founder Ray Kroc would not have envisaged the phenomenal growth of the brand and its spread into international markets. Now more than fifty percent of McDonald's operations are outside the U.S. And a similar percentage of the operating income coming from off shore. Faced with domestic market saturation and the requirement of growth from shareholders McDonald's started globalizing aggressively and did it successively. The first entry barrier it faced was funding, as McDonald's is a capital-intensive operation. McDonald's invest in the land and building to the tune of $1 million for each restaurant, the franchisee contributes $500, 000 towards the other costs in setting up the operation. (Expanding Across Borders)
Most of this funding comes from multinational and local banks. The policy at McDonalds is to as far as possible create the necessary finances for an operation in the same currency that their sales will give them. So there is a large level of interaction required between the financial executives at McDonald's and the local financial institutions. This liaison for McDonalds starts at the time of researching the location before the start of the operations and has proved successful. Another area of concern for McDonalds initially was currency volatility. They still carried on with the dependence on local currency for operations in any country, as it was a part of their strategy theirs was a long-term investment and it would pay off in the long run. Brazil is an example where this strategy has paid off. McDonalds has been in Brazil for more than 20 years and now Brazil has turned out to be one of the largest markets. (Expanding Across Borders)
Looking at the operations of McDonalds in Asia it is easy to discern a different approach...
Rather, the organizations or the future will have to create mutual dependencies and new organizations structures that enable networks of management and "virtual" or "boundary less" organizational structures that facilitate organizational effectiveness in the "turbulent" business environment (Mccann, 2004: 42). This means that organizations must become more agile to act more decisively, cultivating and aligning resources more quickly and creating and transforming as well as sharing knowledge more efficiently (Mccann,
Global Environment Thousands of companies compete in the global environment. Some of the most prominent global companies are Exxon Mobil, Microsoft, Nestle, Honda, Coca-Cola, Anheuser-Busch InBev, and HSBC. These companies all operate in different industries, and many are based outside of the United States. For companies, operating in the global environment gives them access to a wide range of customers, providing not only growth opportunities but geographic diversification. Global presence can
With the will of the board of directors, anything can actually be achieved within the company. Having referred to General Electrics, there were two issues that Jack Welch wanted accomplished, as mentioned in his own autobiography: removal of bureaucracy and a certain restructuring of the business. Even if believed impossible to realize, through methods and concepts such as "boundaryless" or the Six Sigma formula, Jack Welch implemented change despite
As the national and regional cultures form a broad base of expectations of how important commitments and their fulfillment are and how their importance varies by culture, the individual relationships of managers in outsourcing provider and client companies also goes through a fine-tuning process on how deadlines of projects are handled. It is common knowledge that one of the most difficult aspects of attaining CQ is overcoming the major
International Management: Managing Global Virtual Teams The global fiber optic network and the internet have played a key role in the development of long-distance communication, which has facilitated work interactions among people from all over the world. It offers global platforms through which people can, at the touch of a button, share work and knowledge, compete, play and collaborate with colleagues across national borders. The creation of virtual teams is one
Balanced Scorecard The global environment continues to be very contentious as organizations compete for market share around the world. As business continues to become more integrated, it is necessary to have standardized rules and processes. This standardization however must be adapted to fit local constituency within a given market. The balance scorecard is no different in this regard. A balanced scorecard allows businesses to better ascertain their particular strengths within a
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now