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Introduction: Business world is much more competitive nowadays. The world is being closer by influence of technology. Companies are expanding their business across the world. To operate their business they are adopting new strategies and new policies. In every organisation there should be one or more responsible person to manage the organisational activities; making plan, staffing, monitoring, leading and resource allocating. In the recent time management has been changed as the business world is changing. The person who is operating the business is facing all the environmental change and doing his/ her job managing the situation arising every day
Globalisation: according to Richard pettinger "Globalisation is the capability and willingness to act and operate anywhere in the world according to circumstance, market presence, and potential and the demand for the given range of products, services and expertise."
Harvard scholar and Rosabeth Moss Kanter described globalisation as "one of the most powerful and pervasive influences on nations, businesses, communities, and lives"
John R. Schermerhorn,jr. management,8th edition, nice printing press, Delhi.
Strategic change refers to a shift in the firm's strategy, mission, and vision. A strategic change may then lead the company's strategy, culture, structure, tasks, technology and the attitudes and skills of the company's people.
(Gary desseler; Management; prentice hall, New Jersey,)
So globalisation is a process in which the companies operating their business worldwide. In the process companies can apply different strategies to gain maximum profit and can introduce their services to the different people and also can employ different cultural people as they can understand different countries demand across their boundary.
This trend improved radically in last two decades as the technological infrastructures are growing very quickly. Nowadays distance does not matter as communication system has been improved. And the top management of the companies can monitor the activities of the lower level which might locate in the different places or countries.
Globalisation introduces us to many new changes which are operated by the managers.
The changes are like as:
External change and
Competitive environmental change
Internal change: As globalisation refers business worldwide and for those companies expanding their business across their country, they are recruiting new people for the new country or city to operate business. So there are some new changes like diversity. Diversity introduces many changes. When people works outside of their region there are many new problem arise; language, cultural, different technological level. So this change has to operate by the mangers.
Language is another problem in diversity among with global change. When people work in different place across their own locality there is some change in language. This is very important in communication to operate the business for manager. For example, any international company extended its business in India. So in this case the manager has to think who is going to work in his team. Most provably mix people. So he/ she have to prepare to learn that language or train/ employ the unique language people. But in this case management has to think about the local language.
Secondly, cultural environment, according to dessler "cultural difference can have very practical consequences, such as affecting how disagreements are resolved. Consider the challenge of negotiating with people aboard". The writer in his book also shown that "a researcher at Georgetown University found that Japanese, German and U.S. managers tended to use very different approaches to resolving workplace. He also added that Japanese prefer the power approach, Germans tend to emphasize a more legalistic and in the same hand the U.S. managers tend to try to take all parties interest into account and to work out a solution that maximise the benefits for everyone".
Dessler G.(2001); Management; prentice hall ,upper saddle river.
So it shows us cultural environment plays a very important role in globalisation and which operates by the mangers.
In multicultural environment there are some other problems. Internationally Saturday and Sunday are public holiday at weekend. But in some country they have Friday at weekend holiday instead of Saturday and Sunday. So managers have to manage those situations to operate their business in those country and they have to manage upper level communication and some other festival and cultural activities as well.
Different technology level, in developing countries modern technology is not so advanced like developed countries. So to operate the business managers might face some problems to overcome the situation.
External change: external change refers to that change in the business environment which is related to the business and which influence in the business of organisation. For example, law and political change, currency up and down, structural change etc. among them law and political change affect too much in business. Like new government might introduce new rules and legislation for international companies in their country and managers are entitle to maintain the new rules and regulation to operate their business. So in this case controlling external environment is much more important for the managers. Sometimes the currency of different may a factor to operate international business. It is because sometimes its goes low comparatively the international currency like as dollars and pounds. So manager has to operate their business with the situation. Again Law and political systems are not same in every country. As for the globalisation, companies expanding their business across their boundary so managers have to consider the legal and political environment of those countries where they are operating their business. For example, the price of one product might not the same in different countries. Desseler in his book ,"management" given an example like, "A Chrysler LeBaron is sold in America at$18,176 but the same product in Japan is $33,077". And it happen is because the trade barriers which is local governmental influence.
Dessler G.(2001); Management; prentice hall ,upper saddle river.
As a manager any person should keep in mind that the price is depends on particular countries export and import system and its tax and levies on shipping products. And another thing is in some country nowadays the political environment is comparatively worse. So doing business in those countries company and their managers should be must aware about the political environment. As an example, it can be Afghanistan, Iraq and Pakistan etc. In those countries no one can guarantee when terrorist attack can happen.
Competitive environment: If we think about business we can't forget the competition. There is no place in the world where is no competition, competition in sell and supply, competition in production and delivery, competition everywhere. In "management an introduction, by Boddy" Porter (1980a, 1985) said "the ability of a firm to earn an acceptable return depends on five forces" and they are as follows
Potential new entrant
(Boddy D. Management an Introduction, Pearson education limited)
In competitive business environment managers have to concern about these five forces.
Every single day new threat new entrant is coming in the environment, as a manger anyone has to face the situation and operate the business making maximum profits and giving maximum services as new entrant cannot take the advantage. Another thing is among the industry there is someone who is dominant and the dominant always face the high pressure from the other companies. So as a manager he or she has to operate the business with the rising pressure. Buyers and suppliers are always seeking highest facility forcing fewer prices. And substitute plays a vital role in the global business environment which operates by the manager. Porter also argued about the five forces in the same book "the stronger the forces, collectively, the less likely an industry is to be profitable in the long term; conversely the weaker the forces the greater the opportunity for high profits".
(Boddy D. management an introduction, Pearson education limited.)