Integrated Management Enterprise for Organisations in Major Economies - Case Study Example

INTEGRATED MANAGEMENT ENTERPRISE FOR ORGANISATIONS IN MAJOR ECONOMIES By Location Introduction Chandler’s model sets a pace in the field of management, and towards every organisation since it develops a prospective approach to ensuring that all managerial practices seek to achieve the set obligations. Ideally, every organization operating in the global platform shows devotion towards growth in output and profitability. Chandler asserts a model of integrated managerial enterprise whereby he draws out an understanding that every multinational corporation present in the major global economic giants centres its obligations in increasing its chances in achieving profitable economies of scale (Abe & Fitzgerald, 2004, p. 77). The model argues upon the critical issue of ascertaining the business’ objectives as salient to achieving the overall goals. Further, the inclusion of strategic designs and the organizational leadership and production structure pose as other important variables. Lastly, the three approaches incline to the set systems in order to avail an organisation on a platform lenient to the environment through cohesive and integrative interactions. The following discussion is a comparative approach, seeking to reveal the practical use of Chandler’s model in managing MNCs in global economies such as America, the UK and Germany, and in Japan as well as China. Comparative analysis on integrated managerial enterprise approaches for companies in the U.S, the UK, Japan, Germany, and China Chandler’s integrated managerial enterprise model Managerial practices differ from one company to another depending on the integral practices of each company, and the long-term plans to achieve. Chandler adapted the model of managing enterprises through the integrative approach as a method necessary to guarantee organisations of success in innovation. The global business environment faces various factors that pose as threats and opportunities to every business. The political and economic approaches practiced in every global economy serve to reduce or enhance organisation’s plans in achieving the outlined objectives (Abe & Fitzgerald, 2004, p. 79). Similarly, Chandler’s model deciphers the knowledgeable and accurate information on the essential factors that the management teams in every organisation should exercise as necessary tools for achieving the set objectives. Arguably, Chandler engaged in implementing organisational managements into precise and accurate execution processes concerning the set objectives. For instance, a multinational corporation (MNC) would find it a necessity to adapt and apply its objectives in relation to the integral necessities of enhanced production and competence through innovation. The Coca-Cola Company operates in almost every nation in the global scale. Therefore, the MNC ensures that its objectives denote on the production departments’ necessity in delivering the desired beverages to the consumers present in every market segment. The managerial enterprise model enables Coca Cola’s management to engage the research and development (R&D) and the production teams to ascertaining the actual needs and preferences of their consumers in every market of orientation (Trivedi, 2012, p. 110). For example, through the Chandler model, the giant beverage manufacturer is able to develop utilities that will culminate the existing political and social-cultural restraints from halting the target benefits of the organization in its different markets. Arguably, Coca-Cola operates in the U.S.A market as the market leader in beverages with its market challenger being Pepsi. Further, the company sets its objectives and management practices necessary to operate in a mixed economy such as the UK. In the third account, the beverage manufacturer shows competence in Germany’s market and the same case is evident in Japanese and Chinese markets. Chandler asserted that through the model, MNCs could reveal abundant growth in production to meet the existing and newly born demands for their products because of their capabilities in ensuring that every production utility targets to solve an existing or evolving needs in the market (Petrie, 2012, p. 60). Coincidentally, every economy is capable of reaping substantial or abundant revenues through the management practices endeared to ensure that the certain company thrives in each global market segment despite the practices witnessed therein (Abe & Fitzgerald, 2004, p. 81). Such practices are incremental to every global economy as well as in the organisations since the achieved economies of scale translate revenues in all the identified sectors. Ideally, managerial enterprising is a necessary course of its prevalence and practice in organisations enables them to cultivate abundant and successful investments in the field. Secondly, the practice enables global enterprises to succeed in their approaches towards ascertaining successful production and distribution practices (Trivedi, 2012, p. 126). Businesses that operate at the global market segments denote that the challenges of socio-cultural factors are imminent, thus presenting the need for ensuring innovative approaches in all their planning, production, and marketing utilities. For a free market enterprise such as the US, companies’ managerial enterprise approaches seek to engage the production and marketing practices towards the establishment of innovative resolutions to ensure growth of the segments, and yield abundant profits over the threat of their similar firms. This happens because the political system and the legal practices acquaint them the mandate to engage in ethical development and sound marketing of the ideal products to the human society (Whalley, 2011, p. 102). The practice of integrated managerial enterprise approach deepens in the UK since a multinational corporation operating in such a market must be knowledgeable of the present elements in the environment that must be honoured for it to produce and market effectively while keeping competition at a reduced level. The integrated managerial enterprise approach is salient for organisational development in the field of innovation and market growth in different global economies (Zhang, 2006, p. 54). Chandler clarified integrated management approach as an incremental method for MNCs since through its application the companies would be capable of using similar materials in their production courses to develop differentiated products that would eventually lead to the acquisition of successful and profitable market segments. Ideally, the differentiated products would decipher beneficial and value-based resolutions to companies since they would be knowledgeable about the market’s needs and preferences. The necessity of the enterprise managerial model for the integration of vital aspects in the management process is to engage an organisation towards a process of reducing its unit costs of production with every increment in the marginal output. A company operating in a country such as China would benefit abundantly from reduced costs of production with every increment in its output holding to the fact that China is the largest consumer market globally (Abe & Fitzgerald, 2004, p. 85). Arguably, it is essential for the Chinese economy to appreciate e every company’s managerial practice if they are worthwhile and realistic to the economy. Despite of China is a communist country engaging in socialist practices, integrated managerial approaches enables companies to identify objectives and strategies necessary to ensuring peaceful co-existence with the Chinese environmental factors. Comparative approaches to show the relevance of Chandler’s enterprise model in organizations and the long-term competitiveness of nations The economies of scope approach declare that companies are always in the demand for raw materials in order to grow. Secondly, the method clarifies the essential need of every producing firm to integrate into the decision-making process to its long run plans and the acquisition of efficient supplies of the required raw materials necessary for the manufacture of various products. Certainly, it is through the sale of these products that companies are capable of yielding favourable profits (Malhotra, 2008, p. 41). A comparison of the UK, Japanese, Chinese, German, and the U.S.A economies sets a platform on the economic, environmental needs that each of the nations establishes in order to accrue profitable outcomes from the present companies’ practices in their environment (Zhang, 2006, p. 58). Objectively, businesses operating in the UK market are likely to amass all relevant resources, and match them to the socio-cultural and the political requirements of the country. With the end of the Second World War, the Western and East Asian nations turned into a period of alarming economic crisis that forced to increased inflation rates, and reduced gross national production. They resolved to benefit from involvement in the international monetary fund to boost economic productivity among the local industry and overseas involvements (Bernus, Nemes, & Schmidt, 2003, p. 61). This led to the period of golden age capitalism, which led to double generation of economic development upon the citizens and the countries accordingly. The integrated managerial approach served as an incremental resolution to the U.S.A, the UK, Japan, China, and German nations as they were able to cultivate proper economic practices to draw the investment of foreign firms into their nations (Whalley, 2011, p. 104). Contextually, focuses on monetary practices, trade, and GATT systems and the advent of innovation, industrialization, and foreign practices of the European nations and the Japanese, U.S.A, and Chinese countries are born to the managerial model asserted by Chandler. A comparative study on the nations sets to benefit accordingly from the set enterprise managerial program set to influence their economic platforms. The nations practice different approaches towards the available enterprises, but all of these practices tend to illuminate the purported nature of proficiency in economic growth and competence against each other and this propels fluency in economic growth (Trivedi, 2012, p. 130). European nations assumed divisions in accordance to alliances, as there were those allied to the communists and those allied to America (Zhang, 2006, p. 59). The United States and the United Kingdom shifted their economic practices towards the dwindling market economy practices in order to stimulate even growth and initiate the importance of capitalism through management of the economies in accordance to the Chandler’s model. Economists argue upon the European and American practices of capitalism through cohesive and integrated managerial approach because of the resulting hike of production factors all focused to enhanced economic growth (Qiu, 2013, p. 78). Labour and capital derive importance to the innovation, production, and implied on reducing unemployment levels. While the US focuses on increased economic growth in its community and to its allies in the western European nations, their ideologies differ accordingly as they focus on improving economically ahead of each other, and also in drawing abundance investments (Whalley, 2011, p. 112). The system of Chandler, Andrew controls these nations to adhere to the implemented set of objectives in inducing interaction between the existing producing firms and the environmental aspects necessary for growth. The system emphasizes that the countries would uphold to the set rates that tame individual currencies to stabilize with the global foreign exchange media. The countries would reduce the sell their currency in order to assume the equity with neutral media of exchange if it measures below the European currency (Zhang, 2006, p. 65). On the contrary, Europeans nations such as the UK and Germany practice their integrated management, enterprise to conform to the goal of economic growth and competence. The system is the reserve management approach for all global nations and during the period of implementation, the system tames all the economic and political systems among the countries to coincide with the value held on the economic proficiency through management of the necessary systems of development (Qiu, 2013, p. 88). The system was crucial for the rapid economic growth in the European continent that allied US. During the period, economies grew accordingly in both gross national production and gross domestic production (Xu, Tjoa, & Chaudhry, 2008, p. 61). However, the economies engaged in new tariffs during the early 1970s, which led to inequities in economic growth fluctuations of the minor currencies because of further trade blockades (Zhang, 2006, p. 68). The author argued that America observed on the neo - industrialization of the European economy as of importance to economic growth through the provision of necessary objectives and strategies in managerial enterprise approaches. Through the system, the American nation invests and manages the practices of different nations while ascertaining on the existing beneficial outcomes that its domestic companies may yield following globalisation (Jones, 2004, p. 5). The aspect of technology sharing implicated on advanced levels of production and enhanced value of the products. The European economies were able to derive competence foreign trade platform, which further reflected to increase returns on foreign exchanges (Bernus, Nemes, & Schmidt, 2003, p. 86). With the increase in education in the new technologies, the European nation established growth rates both in per capita approaches and from the countries’ infrastructures. However, the American approach to wage moderation reflected to curbing possible inflation had a late influence to the GDP of the individual citizens (Zhang, 2006, p. 74). The author argues out that America focused on economic growth in the value of capitalism in favour of the dollar, with lesser concern to individual welfare of the citizens. The system ascertains on the nation’s comparative practices on a similar basis. For instance, the management of these nations in the economic sector draws a basis that each of the countries, including China and Germany engages on factors, realistic in drawing foreign and domestic competence in investment (Casson, 2004, p. 142). The objective and strategic approaches of companies to grow profusely are welcome by these nations as necessary resolutions to innovative developments and overall competences in the global platform. Andrew Chandler’s model argued that the managerial practices would lead to the destruction of established embargoes in the economies, industries, and people resolved to agriculture as the way of livelihoods (Del, Carayannis, & Della, 2012, p. 72). The European nations, mainly the UK and Germany are on the verge of economic progression thus US integrated managerial enterprise system to economize serves to bolster neo-industrialization accordingly. He argues out that the incentives were critical to deviation of production from ordinary to enhanced innovative and technology based practices, thus enhancing income levels and reshaping eventually (Phisalaphong, 2004, p. 55). However, Chandler argued out that the basis of prosperity in the dawn of innovative industrialization is dependent on individual country’s practices. The system approaches the management of organisations and a nation’s economy in the capitalist perspective in an endeavour to establish the values and contrasts that the different countries engage in integrated management (Cruz-Cunha, Cortes, & Putnik, 2007, p. 15). He establishes Japan as the Asian nation allied to the capitalist economy that experienced rate of economic growth. Chandler derived that Japan grew economically following the inclusion of an integrated managerial enterprise system, despite the economic recession towards the early 1990s (Lee, 2009, p. 9). Japan differs from the European nations and China based on the approach towards the set managerial system. However, all of the highlighted global economic giants seem to be aggressive in the adoption of the system, hence accruing beneficial outcomes from the prevailing economic practices. Bibliography Abe, E & Fitzgerald, R 2004, The development of corporate governance in Japan and Britain, Aldershot, Ashgate. Bernus, P, Nemes, L, & Schmidt, G, 2003, Handbook on enterprise architecture, With 23 tables, Berlin, Springer. Casson, M 2004, Enterprise and leadership, Studies on firms, markets, and networks, Cheltenham, Elgar. Cruz-Cunha, MM, Cortes, BC, & Putnik, G, 2007, Adaptive technologies and business integration, Social, managerial, and organizational dimensions, Norwood Mass, Books24x7.com. Del, GM, Carayannis, EG, & Della, PM, 2012, Cross-cultural knowledge management, Fostering innovation and collaboration inside the multicultural enterprise, New York, Springer. 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