Why Study Global Management in the 21st Century - Essay Example

Why Study Global Management in the 21st Century? Before going into the discussion regarding importance of studying global management in the 21st century, we must first get to know what global management actually is. Global management, as the name suggests, is the management of a business that is run internationally. Global management deals with the management of different issues that occur if a business is operated across international borders. Global management includes those capability and skills of that managers that are needed to operate a company’s business worldwide. The managers need to be fully aware of different cultural and political issues that may occur while running a business in foreign countries. Global management is a technique that is used to run the business processes efficiently in the international marketplace. While running a business worldwide, different types of cultural, political, and economic issues appear which need to be tackled effectively in order to gain success in the international market. It is the role of the mangers of a company to look after all emerging issues related to their businesses. The managers need to understand all cross-cultural issues and international business practices in order to make a permanent place in the market. The managers also need to know the way to optimize profitability and promote efficiency in a global marketplace. Global management is not like ordinary form of management. It not only includes the way to organize and run a business but also includes the way to operate a business in an international market where many other companies are also present for business. One of the main reasons for studying global management in the 21st century is to gain an understanding of different issues related to the businesses that are run worldwide. This is the 21st century and the concept of globalization has surrounded most of the companies of the world. Those companies have moved on to expand their businesses in different parts of the world. The main reason behind expanding a business in other countries is to increase the business and the profitability of a company. In the today’s world, people look for excellence in everything they desire. Therefore, if they have to buy something for themselves, they look for those companies, which are able to live up to their expectations, and if they find a company, which provides them with their desired products, they become the customers of that company regardless of the origin of the company. People demand excellence and quality in whatever they buy. Therefore, the companies open their branches in different parts of the world in order to gain more customers. We can take the example of McDonalds, a fast food chain, which has achieved huge success in different parts of the world. The reason behind its success is extremely talented and skilled management staff, which has a complete understanding of the global management concept. The management staff of McDonalds has a complete understanding of how a company can get success in the international market and that is the reason why the fast food chains of McDonalds have been so much successful all over the world. If a company plans to expand its business in other countries, the management of the company needs to have an in-depth understanding of all issues related to management of the business in those countries. The management staff should be skilled enough to tackle different cultural, political, social, and economic issues related to the outside world. Understanding of the culture of other countries plays a vital role in setting the dimensions of success for a company. Culture of each country is different from any other country of the world. So in order to manage a business effectively in other counties, the management staff needs to have a proper understanding of the cultures and societies of all those countries in which the business is planned to be expanded. Global management is a concept that is related to the management of all aspects of a business in the outside world, and cultural understanding is not an exception. A company cannot succeed internationally if the management staff of the company is not fully aware of the cultures of other societies. Cultural or social understanding is also important because the needs and demands of the customers living in one society are somewhat different from the needs and demands of any other society, and the company needs to operate its processes according to the demands of the people living in any specific society. Same like cultural understanding, awareness of the political issues is also very important because political affairs put a direct impact on the economic development of a country. Therefore, the management staff of a company must have complete awareness of all political issues in order to know whether the company should start the business in any specific country or not. Understanding of the economic issues is also very important because economy acts as the foundation for the success of a company in the outside world. Most of the companies like to expand their businesses in the financially stable and developed countries. It is because the economy of developed countries has very little or no chances of falling down and if a company operates its business activities in those countries, chances of its success and increased profitability are assured. Therefore, global management or understanding of all issues related to the management of a business in a foreign country is essential to get success in the international market. Studying global management is extremely important for an individual who wants to excel in his career as a business manager. Global management study makes an individual skilled enough to get success in any business field because it includes training related to development of competitive business strategies and plans that are needed to ensure sustained competitive advantage in any international market. The development of competitive business strategies is not an easy task because it requires an in-depth understanding and knowledge related to management of business in the market. Managers need to look at different business related issues in order to develop a well-organized and productive strategy for the company. Global management study makes a person skilled enough to operate different business processes and develop effective strategies for running a business in an international market. Some of the key issues that the managers need to understand while running a business include global competition, ties or relations between interdependent companies, and the international networks. Global competition is one of the major reasons why companies tend to operate their businesses in international markets. Companies want to deliver high quality products to the customers in order to attract more customers belonging to other countries and that is only possible if the management of a company has an awareness of what needs to be done to increase the number of customers of the company. Understanding the ties between interdependent countries is also very important in order to extend the roots of a business to other countries. So these were some of those issues that the managers need to know in deciding whether to extend the business to some other country or not. Studying global management in the 21st century is very important for all business managers because the world has become a global village and there is hardly any big company, which has no plans to expand the business in foreign countries. But that can be only possible if the management of a company knows what global management is and what those benefits are which a company can get from global management of a business. Global management study makes the managers understand all issues related to management of a business in an international market. Some companies open their franchises and call centers in other countries in order to sell their products or services to the customers located in those countries. Sometimes they hire services of some subsidiary companies, which operate in foreign countries exclusively. Global management techniques play an effective role in managing the business operations under different circumstances. Global managers need to be proficient in dealing with the suppliers and traders of companies operating in other parts of the world. Global managers’ roles and responsibilities are somewhat different from the roles and responsibilities or traditional managers. Global managers deal with the issues, which companies face while operating their businesses in the outside world. Their main focus is on understanding the cross-cultural customs and business applications in order to make their companies operate effectively in any international market. Global managers target international customers in order to achieve higher profits as compared to those managers who carry out the business activities within their home country. Global managers are much more effective and business minded as compared to other types of managers. They focus on expanding their businesses in order to gain higher profits. They have a key understanding of all social and economic issues that a company may face while operating its business in an international market. An important point, which is to be mentioned here, is that global managers need special training in order to become efficient and successful managers. Without studying global management and getting training from a training institute, it is very hard for anyone to become a global manager. Therefore, it is very necessary for every manager to study global management in order to become a successful global manager. Those people who want to become global managers or those who want to make their businesses grow in international markets must posses some basic qualifications in order to be successful. Those qualifications or skills include knowledge of the language that is spoken in the country in which the business is planned to be expanded, work permit of that country, relevant work experience in a business field, a complete understanding of cross-cultural and economic issues, and advanced degrees in the field of international business management. If a person possesses these skills and qualifications, he is likely to achieve his goals and objectives in the international markets. Proficiency in speaking one or more foreign languages plays a vital role in achieving success in the foreign world. It is because if a manager will have knowledge of foreign languages, he will not face any difficulty in communicating with the people belonging to foreign countries. Having work permit and work experience is also very important for the global managers because without a valid work permit, the managers will not be able to operate the business processes in foreign countries. Similarly, work experience is also beneficial for the managers to run the business processes effectively and efficiently. One of the most important things for the business managers is to have an advanced degree relevant to the field of international business because it not only helps the managers run business activities efficiently but also helps them refine their managerial skills and abilities. While talking about need of studying global management in the 21st century, let us talk about those problems, which global managers usually face while operating their business activities in a foreign country. These problems make it difficult for the managers to operate their businesses in any international market. Some of those problems include difficulty to obtain work license, difficulty in complying with the rules for foreign employees, securing the right to manufacture and sell a product, difficulty in understanding the business culture and social values of other countries, difficulty in understanding the employment laws, and determining the advertising needs while operating a business in some other country. All of these issues create various problems for the global managers such as low profitability, reduced business opportunities, and business expansion problems. Global managers need to have a complete understanding of all of these problems not only to make their businesses expand in other countries but also to increase productivity and profitability for their companies. I believe that global management study and its training make global managers skilled enough to deal with all kinds of issues that may exist for them in the international markets. Therefore, I would say that studying global management in the 21st century is extremely important for any individual who wants to make his business recognized worldwide. References Not required. Read More