International Management - Deloitte - Coursework Example

International Management Table of Contents Table of Contents 2 Introduction 3 Literature Review 4 Application - Company Analysis 8 Background 8 9 Competitive Challenges 10 Entry 10 Suppliers 11 Customers 11 Substitutes or Alternatives 11 Competitors & Rivalry 11 Worldwide Learning Challenges 12 Cultural Challenges 15 Conclusion 17 References 18 Introduction The contemporary business era is recognised as one of the most evolutional arenas, which explains about the several transformations in the business management concept. More specifically, after the imposition of globalisation, the business industry has been identified to be getting more advanced in nature. It will be worth mentioning that globalisation in the business industry has offered the new concept of international management. The concept of international management has been proved to be very helpful for businesses to operate in the international level. The concept of international management is considered as a management practice, which supports the company to operate its business in more than one country (Mead & Andrews, 2009). International management or international businesses are the encompassment of a large numbers of commercial transactions, which includes the private as well as governmental sales, transportation, investments as well as logistics between two or more than two countries. Moreover, international management denotes expertise knowledge as well as skills for operating businesses as per the international or multinational policies. As per the current business scenario, knowledge in international business management is recognised as important for the every multinational business. For conducting operations in overseas locations, certain challenges are faced by MNEs in performing international, global and transnational operations. It is in this regard that the study in international management is currently becoming more significant. Through the study of international management, a person can learn about cross cultural management, international economic system as well as international finance along with international trading system (Faria & Guedes, 2005). The principle aim of the study is to describe about the several aspects of international management. The study describes the usage of the concept of international management in the business process. Moreover, the study focuses upon the use of the international management structure by the company named Deloitte International. Literature Review As per the report of Luthans & Doh (2009), international management is recognised to be one of the major as well as useful concepts for expanding the business on an international basis. More specifically, it is elaborated that the imposition of globalisation is recognised to be an important factor accountable for ensuring that businesses are able to perform operations in overseas market segments effectively. Moreover, a strong link has been found between the imposition of globalisation as well as origination of international management. Luthans & Doh (2009) further elaborated that currently every small, medium as well as big or larger organisations are intended to establish their business with the intention of expanding on an international base. In this context, international management is recognised as a process, which depicts towards the accomplishment of activities through other people. On the other hand, international management is also recognised to be a management process of applying technology as well as management concept in the multinational environment. However, there are several other research scholars, who are providing the statements in different ways. As per the point of view of Hofstede & et. al, (2010), international business is an assimilation of the different cultural along with different business, political as well as economic context. More particularly, international business is recognised as a combination of the different business climate, which has been chiefly build for expanding a business on a global context (Hofstede & et. al,2010). As per the study of Harzing (2000), international business management is recognised to be a very important knowledge area based on which businesses can expand operations in local, national and international level. International management primarily indicates towards the existing of different types of Multinational Corporations (MNCs). As per the term of international management, global as well as transactional business frequently denotes towards those companies, which are playing the role of performing business operations in several other countries. Apart from this, Ott (2010) has provided a briefed overview relating to the concept of international management. As per the view point of Ott (2010), international business management is an assimilation of large numbers of culture in a single business background. More specifically, it elaborates that international business is an assimilation of several cultures. In this regard, cross cultural management learning is becoming one of the most important factors for every people. Besides, businesses are recognised to face challenges while conducting operations on global, multinational and transnational in terms of organisational challenges relating to organisational structure, culture and management control mechanism among others (Ott, 2010). As per the study conducted by Rennie & McGee (2012), international human resource management is a part of international management. International human resource management is recognised to be a management technique of handling global workforce in an effective manner. As per the report of Deloitte Touche Tohmatsu Limited (2014), expansion of business on multinational basis is recognised to be one of the most challenging factors for every business organisations. It will be worth mentioning that for serving clients with global footprints requires a deep knowledge about the content industry. It has also been observed that serving clients on an international basis is considered as one of the most difficult factors or vital challenges for the expansion of the company. In a similar perspective, Luthans & Doh (2009) noted that international management is recognised to be one of the major as well as useful concepts for expanding a business on a global context. More specifically, it is elaborated that imposition of globalisation is recognised to be very important for the business world. Moreover, with the concept of international management, an association has been found amid different variables that include globalisation, advent of technology and expatriation among others. Luthans & Doh (2009) has also stated that application of international business management by every organisation is becoming more common in nature. On the other hand, Kawar (2012) stated that in international business process, cross cultural differences have been identified to a large extent. In this regard, it can be noted that international management is recognised to be an efficient mechanism for reducing several differences in the cross cultural business processes. International business is also popular as a cross cultural business (Kawar 2012). On the other hand, a multinational company also face a large number of challenges in its business process. The major problem lies in the business process is transitional problem. As per the report presented by Deloitte Touche Tohmatsu (2003), the transitional deficit is the major problem that has been faced by very multinational company. It has been also observed that the major problem lies within the process of supply chain management. In addition, equal distribution of quality services is the major problem as the company is required to meet up with the expectations of its customers. International management is also useful in identifying the large numbers of areas where the actual difference has been observed in terms of culture and business management techniques among others (Kawar, 2012). As per Kawar (2012), in international management, differences have been observed in terms of behaviour, attitudes, functioning of a business as well as communication. Moreover, the business world is currently becoming a global village, where the implications of technology as well as cultural differences are also observed in the business process. Apart from this, Gerhart (2008) presented his point of view in a research study. According to Gerhart (2008), culture of a country is broadly recognised as a restraint of management practice. In this regard, the implication of the cross cultural international business refers to be a new approach of eliminating all kinds of the barriers from the way of management process. Gerhart (2008) further elabotatared that the identification of cross country differences are recognised to be a very vital problem for the people, as it has an influences over managing people. These are the various factors based on which MNEs are identified to be facing challenges while operating on a global, transnational and multinational basis. Key Challenges Possible Interventions International Challenges or reactive challenges The international challenges or reactive challenges are highly depending upon the several regulatory factors of the respective country. In this regard, the company should try to adopt the new regulation of the new country (Gales, 2008). Global Challenges or Linear- active challenges The liner-active challenges rely on the cross cultural issues. It will be worth mention that to eliminate the cross cultural issue, the company should adopt the new cultural base of the respective country (Gales, 2008). Transnational Challenges The transnational challenge can be eliminated by implementing an effective as well as efficient supply chain management (Gales, 2008). Application - Company Analysis Background Deloitte is an international private company, which is headquartered in New York City, United States of America. The actual name of the company is Deloitte Touche Tohmatsu Limited. The company is recognised to be a professional service firm, which was founded in the year of 1845 by William Welch Deloitte in London, United Kingdom. The name of Deloitte is renowned as one of the ‘big four’ professional services international firms along with Ernst and Young, PwC as well as KPMG. On the basis of revenue, Deloitte is recognised to be one of the largest professional service networks on a global context as well as among the several others professional services networks. The company is expertise in providing large numbers of financial services to its customers. It is a multinational company operating in different market segments. Deloitte majorly deals in providing support in terms of enterprise risk, audit tax, consulting as well as financial advisory to its all clients. The company is efficiently providing services with more than 200,000 professionals among the 150 countries around the world. In the financial year 2013-2014, the company has generated huge revenue by creating a record of $34.2 billion USD. It will be worth mentioning that as per the report of the Accountancy Age, Deloitte has become one of the most famous companies of the UK having the largest number of clients in the midst of the nearly 250 FTSE companies (Deloitte Touche Tohmatsu India Private Limited, 2015). International location of Deloitte Source: (Deloitte Touche Tohmatsu India Private Limited, 2015) Competitive Challenges As per the modern business concept, globalisation not only brings internationalisation in the business management process, but also made the business environment more competitive in nature. It has been also recognised that customers in the present contemporary era are becoming more concerned relating to their selection of products and/or services. Apart from this, it is observed that in management consulting field, the business environment is recognised to be more competitive. The actual reasons behind the competitive environments are due to large number of players having the opportunity to enter as well as perform operations in different countries without many barriers. For instance, Deloitte has been facing several challenges in its international business process (Deloitte Touche Tohmatsu India Private Limited, 2012). In this regard, the challenges faced by the company can be examined with the use of Porter’s Five Forces. Entry The management consulting industry is quite barriers free. More specifically, it can be elaborated that any new firm can make entry in this industry with minimum restriction. Restriction in entry option in the industry has been recognised to be a very good advantage for the companies willing to enter new market segments. On the other hand, old as well as existing companies are recognised to operate as free entry facility within the industry with less numbers of restrictions. In this respect, due to less or minimum numbers of restriction for entrance in the industry, the level of competition within the industry has increased to a large extent (Deloitte Touche Tohmatsu India Private Limited, 2012). Suppliers Deloitte is identified to face intense competition from suppliers. The suppliers of the company comprise consultants providing accounting services. In addition, the company face challenges in terms of cost as the consultancy offers services at economical rate as compared to it (Deloitte Touche Tohmatsu India Private Limited, 2012). Customers The preferences of the customers are also identified to be changing in a rapid manner for availability of services from different organisations and consultancies. In this respect, the customers are able to have their needed services from various consultancy firms, which are also increasing the level of competition for the company (Deloitte Touche Tohmatsu India Private Limited, 2012). Substitutes or Alternatives Substitutes as well as alternatives option are also identified as important consideration towards raising competition. In this regard, the small firms are recognised to be major competitors for Deloitte. It has also stated that most of the people should opt for small consulting firms for their personal financial relating problems. More specifically, it can be stated that most of the firms are appointing personal auditors as well as personal management consultant for the purpose of financial management consulting (Deloitte Touche Tohmatsu India Private Limited, 2012). Competitors & Rivalry The competitors or rivals are the major as well as vital challenge for the development of Deloitte. It has been observed that other companies belonging to the same industry are providing same services as well as products are regarded to be the major competitors for the company. The major competitors of the company are PWC, KPMG as well as Ernst and Young. It has also been observed that PwC is most popular as the Cadillac of the industry. It is one of the most prestigious companies within the content industry. It has also stated that people prefer PwC for its good as well as efficient products services. Moreover, PWC provides a very good working place, which influences people to works more efficiently. On the other hand, ‘Ernst and Young’ is recognised as one of the top firms of the respective nation. The company is moving its business processes towards the right direction. Moreover, the company provides a friendly environment to its employees for working as a team. Besides the company also serve customers in a good as well as affectionate manner. In this regard, the company will also be a rival for Deloitte (Deloitte Touche Tohmatsu India Private Limited, 2012). Worldwide Learning Challenges Deloitte is popular among several other management consulting companies in the UK and the US. The company is having a good reputation in the market of the UK and the US region. It has been also noted that the company is having several strong factors for making itself a good as well as long running company among the several others companies belonging to the financial consultant industry. Though the company is having a good reputation as well as earning from the business processes, but it has few problems relating to its expansion of business. It has been also stated that during the establishments of the business in a new separate country, every business has been facing major challenges relating to establishments of its business (Deloitte Development LLC, 2010). It has also been observed that Deloitte faced several problems relating to the establishment of its business in the Asian region. The major problem is associated with organisational structure of the company. More evidently, it has been identified that the company is experiencing the problem relating to alignment of its international configurations. It will be worth mentioning that Deloitte is facing the problem relating to expansion of its business among the several region of Asian region due to governance challenges. The actual problem relating to establishing the business in the Asian region by Deloitte is for the different market structure as well as different working culture. It has also stated that before establishing its business Asian region, the company has been facing a lot of problem relating to market penetration. Moreover, Deloitte is a big or a large company, which is becoming one of the vital problems for business expansion of the company. In addition, the company is also facing the issue relating to regulatory pressures (Jester & Heng, 2014). On the other hand, the company is also having several problems in its two departments situated in the UK as well as in the US. It has been also noted that the company has its several offices approximately in over 150 countries all over the world. In this regard, the company is having few international organisational challenges. In this regard, Deloitte has been identified to be facing challenges due to structural and management style differences while operations in other countries. It has also stated that Deloitte international has also faced a large number of challenges in its business process. The key challenges are matching pace with the continuous transformation in the regulatory changes. It has also stated that the organisation may face problem relating to cultural changes as well as transaction of cost and budget (Deloitte LLP, 2011). Global Functional Structure of the Company (Source: Dowling & et. al., 2013) Besides, during the establishment of the business process within several others country, the company have to face a large numbers of problems. It has been also stated that the company faced a large numbers of challenges during entering several different nations. It will be worth mentioning that the company has been facing a large number of problems relating to collaborative aspects. More evidently, it has been recognised that during making entry in a totally separate country, the company has faced a large number of issue that has become a barrier in the way of its development. More specifically, it can be elaborated that every country is having separate trends of doing businesses. In this regard, Deloitte has faced a large number of problems relating to its business processes. The major challenges are related to the managerial challenges. More specifically, it has also been stated that the managerial problems are recognised to be a vital problem, which made an impact over the internal as well as external environment of the company. It will be worth mentioning that the countries belongs to the Asia pacific regions are having an entirely different business trend. The economic structures of these countries are entirely different in nature. In this regard, Deloitte has been facing vital challenges in terms of governance and regulatory provisions (UK Trade and Investments, 2013). The company also face the problem relating to strategic alliance, which can be depicting as a vital problem for the development of the company. The major problem is relating to make collaboration with the different company, which can be a major threat of having future merger or takeover for better expansion of operations. There is also a vital risk associated with joint ventures and partnership. By the making a joint venture, the company have to share its proprietary information with the other company. The external factors related to management power over having the ability of controlling environment, political as well as economical factors. In this regard, if the external environment changes, the management of the company will also face different problems (Deloitte Touche Tohmatsu India Private Limited, 2012). Moreover, legal liabilities as well as risk relating to the partner companies are recognised as one of the major issues relating to strategic alliances (Jester & Heng, 2014). Cultural Challenges Every country is having different culture as well as different trends of doing business. National culture is highly influenced a business to operate in several companies. It has also stated that every company should pay more attention towards developing its business process. In this regard, the company will pay more attention towards adopting the culture of the respective nations. It has been also observed that Deloitte has been facing a vital problem relating to entering a separate country for the business purpose. The company has faced problem relating to the adoption of cultural aspect of that respective countries, which impact over the development of new business segments for differences in workplace culture and behaviour (Deloitte Touche Tohmatsu India Private Limited, 2015). Cultural differences have been notified to more vital for the development of a company. As Deloitte belongs to entirely different cultural country, it has faced a vital challenge during adopting several cultural attributes for the business process. The Asia Pacific countries are having a unique culture or trend of doing business. The business focuses upon maintaining a culture within the business operations. Moreover, the business trends of these countries are very flexible in nature. Moreover, the attitudes of several people are different in nature. People of the Asia Pacific regions are having keen interest in adopting the new culture as well as also make a new cultural trend by mixing both ethnic as well as modern business trends (Kawar, 2012). Deloitte is a financial service providing company, which mainly attracts its clients through effective communication as well as by establishing very strong relationship with customers. It has been also stated that the company has its business relationship with the large number of countries such as Italy, Latin American Countries, Arab Countries, Sub- Saharan Countries and many more. Deloitte has faced certain challenges in its operations in Italy due to ineffective communication. The adoption of Italian language style is recognised to be one of the most vital challenges for the company. Apart from this, Deloitte has also established its business within the country i.e. Turkey. It has also stated that the country has enormous potential in providing growth in the business by eliminating a large number of challenges. The actual challenges have been relating to the cultural perspective. The business culture of Turkey is highly associated with traditional cultural aspect. In this regard, Deloitte has also faced challenges during adopting the culture of the company. Conclusion By reviewing the study, it can be comprehended that the application of international business has become one of the vital significant factors for the development of any company. It will be worth mentioning that after the imposition of globalisation in the world economy, businesses have changed from the large number of transformations. It is also stated that after the imposition of internationalisation in the business industry, the companies started expanding its business in several countries. Most of the companies started to adopt the concept of international management for managing international as well as cross cultural business process very successfully. International management is useful in understanding several attributes relating to cross cultural business process. It has been also observed that Deloitte has adopted the concept of international management, which has proved to be helpful for the company in establishing its business in a worldwide basis. It can be concludes that adoption of international business management is very useful for the development of a new business process. References Dowling, Peter J. & et. al., 2013. International Human Resource Management. Cengage Learning EMEA. Deloitte Touche Tohmatsu India Private Limited. 2015. 2015 Global Life Sciences Outlook Adapting in an Era of Transformation. Global Documents, 1-20. Deloitte Touche Tohmatsu Limited. 2014. Market Immersion Program A Gateway To China Opening Doors For Multinational Clients. 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