Leadership in a Globalized Market - Essay Example

Leadership in a Globalized Market Insert Name Institution The emergency of a global village is a reality that has world-wide felt impacts that have lead to a multi-faceted approach in business strategy in the world all over. There is no aspect of business in the modern world that does not entail an aspect of globalization maybe be in term of products or customer base and the manner of service delivery and packaging to suit the target market. Unlike the old days of the post world war II bureaucracies which were characteristic by power imbalances and economic domination; the post cold war decades of the 20th century have been an enigma of reconstruction of world economies wherein a collections of nations through structured institutions such as G-7 the G-20 and others interact and influence business across the globe. It is noteworthy how emerging economies have set pace in the globalization of the word market in industries such as energy, computers and automobiles. However, there is a notable gap in the integration of economies around the world in the globalization arena. For instance, most emerging markets and the central bank monetary policy are taking the fiancé industry in great force and are in the forefront of supplying savings for the first world economies in which they are investing strategically in the treasury bonds. Globalization has taken the shape of intertwined business activity and strategies such as the trend in the U.S stock exchange and treasury bonds wherein most of the cash flow comes from foreign investors. Te stock market indexed are no longer dominated by eminent markets but tend to be more prone to fluctuations and this phenomenon varies significantly. For instance, the global financial crisis or rather the economic recession that illustrated the global business cycle (Sparke, 2012 ). The sequential and inexorable change in the way of doing things has had a fundamental and instrumental role in engineering leadership change. In fact, globalization has changed the business environment and expanded it to encompass factors that are relevant to the entire world such that management matters have been rendered inadequate without a global perspective of the business world. Thus, this has given rise to a wide variety of overwhelming challenges that cannot be overlooked. It is undeniable that the challenges caused by globalization have been unprecedented and extensively intricate for leaders in both the public and the private sector who are in managerial or rather leadership positions. The response to the birth of globalization has been regional and market oriented to some extent. For instance, countries in Europe have since formed the European Union with a single uniform currency, the Euro. This has been a positive response somewhat and has benefited member countries in the long run especially in the aspect of managing foreign debt. Other sectors such as the education systems in the world have also embarked on programs of reaching the business world and linking it with the education community across the world to promote a corporate social responsibility that facilitates a mutual exchange program that links talent with opportunity. The modern environment today is made up of non-rich backgrounds such as Europe or North America; in actual fact, the global response has been directed to countries in the Middle East Asia as well as Africa due the opportunities in the emerging influence of emerging markets that are an equal player in the global context (Lucas, 2007). In the wake of globalization, some economies and industries have been apprehensive to some degree adopting a cautious counter globalization technique combining conservative strategies in governance and business strategy alongside emerging business methods. North America, especially Canada has been dominated by a conservative strategy in the world market in most its responses to globalization. The need to have highly-skilled players in managerial positions and tapping into the information technology infrastructure as a core investment sector has turned out as a consequence of globalization in order to match the world market and trends. This has also be reflected in the education arena in which universities have embraced a globalized curriculum in training managers with apt skills to approach, understand and execute business with a global perspective mindset. The transformation of business schools to bridge the gap in managerial skills that match a global perspective. In addition, the slim economy base of Canada lacking in diversification turned on greater investment in research and development to exploit the potential of technology, the driving factor in globalization and the global market. Defensive, aggressive and creative responses have been interwoven in the management of leadership challenges in the globalized context (Ernst & Young Global Limited, 2013) In most cases, the corporate world had a conservative response to the global financial crises in which the prominent effort aimed at budget cutbacks and laying off of workers to ease the financial crisis. This was rather unforeseen given that it wa the first of its kind in the global context and major corporate in the world such General Motor and American Insurance Group (AIG)did not manage to get out of the crisis prior to government bailout and considerable subsidies. Novel corporate strategies has been a remedy to many organization specially through improved customer service and relation in t and service localization various regions in both which corporate models encompass a process of product and service localization to meet the needs and culture of markets all over the world. This is a trend that is exceedingly evident in multinationals in which application of technology is at peak. In actual fact, most corporate firms are reaching their customers through internet by creating localized web content. For the business environment that were at the core of the superpower countries, globalization posed a rather intricate challenges since these firms had a sense of domination in terms of human resource and capital which crumble due to the emergence of new markets and the imbalance between savings and investments and consequent competition from new players in the global sector (Spring, 2012). The input of new players in the globalization of industries has been quite immense where a reverse of the 20th century economy has been driven by the exploitation f natural resources in emerging markets such as Africa and it rich rangelands. In additional, there is also the emergence of multinationals in these emerging markets such as Mobile Telephone Network (MTN) are changing and impacting the global supply chains and transfer of technology alongside business management solutions which has been mainly biased in outsourcing of talent. In this scenario, China has been the leading phenomenal example in which government, corporate and state agencies seek out long-term energy and food contracts in Africa. This has been in a commercialized business platform wherein the involved countries are benefiting in infrastructure development hence a transformation of business operation in which the investor acquires deals pertaining to exploitation of natural resources. Other investors in this spectrum are Japanese and Indian investors are shifting their attention especially reliance for resources from rich countries and opting to trade with emerging markets. In fact, the U.S and the European major economies have suffered a shift in market share. In essence, Japan and China are more inclined to trade with Japan and both have profound and strong relations in power and corporate. This business relation has been more than a chief changer in the global context since their multinationals have driven growth and development in emerging economies whilst acquiring immense capital and authority in the finance industry wherein the Chinese currency market and finances proved unmovable by global financial crisis (Zheng, 2004). Interesting, these economies have specialized in technology especially the electronics industry which has received sensational response from emerging markets and awarded them immense share of the industry revenue hence propitious savings and which has been fueled by the economic strengthening due to Arab investors in Africa as well as foreign wealth funds. In essence, Arab investor have also been instrumental in the middle-eastern countries economies whereby they have escalated the volume of business and extended the scale of middle businessmen form stewardship to large scale such that new projects in the Arab world are quite unprecedented world class to an extent of attracting global attention in the tourism and capital venture industries. The developments vary from development of infrastructure such as luxurious hotels, banking institutions and large scale farming in floriculture, meat, rice and horticulture. The influence of Persia and Russia on Arab countries has contributed extensively in their independence in financial and development efforts to some extent. In this scenario Gulf States in Arab world have development and sustained multinational in the transport, telecommunications and real estate which is a trend that is replicated in Africa and the Middle East countries (McMillan, 2009). The response to the impact of globalization has also been exemplary in South America. Elite managers have sought to extensively extend their commodities to a global mindset by transforming them into value-added sectors. The most groundbreaking examples in South America range from Argentina’s Tenaris which major in steel and pipe and Embraer which a Brazilian firm specializing in aerospace as well as Perdigao which produces food products. In realty, there several number of multinationals that are fresh in the South America market as well as the global market which they are influence having been developed in the past few decades. These multinationals have made a key contribution to globalization wherein thy have expanded to new markets in the developing world and rich world countries as well. These new players have impacted the global market in an unexpected manner and magnitude. In fact, a Brazilian multinational now possesses Canadian INCO. The impact of technology in fields such as fiber optic and satellite systems have lead to a new market in which investor have been instrumental in the global economy. All these phenomenal changes have lead to globalization and made it mandatory and essential to have a global mindset for those in leadership positions especially in response to trends in management trends and competition worldwide (Biju, 2006). The irreversible trends in globalization mainly influenced by financial capital, technology and lucrative overseas business have lead to an integration of countries in a radical way. Leadership has shifted most of its attention to technology and investment in overseas businesses in which participation in the global market is assuming considerable prioritization. In fact, countries such as Canada are looking in to exporting human resource following after countries such as China and India. There is considerable risk in investing in markets such unstable conflict prone areas in the middle east and Africa wherein religion and ethnicity threatens stability, but players around the world have change their mindset and made their bet on the markets to fit in the global arena (Corbett, et al., 2009), Strategic management has been another facet of leadership that undergone a series of changes in the advent of globalization in which sophistication has been adopted at all level. This is mainly to improve operations and ensure poor execution of operation is curbed and problems in the operations of the business are fixed promptly and precisely such that they do not cripple the innovative processes and mission critical projects. The top management especially chief execute officers are taking on branding their leadership so that they are known to the public and acquire a sound public image for the consumers to reckon with. The reality of globalization has affected the manner of management especially human resource hereby international employee transfers are rampant to various destinations in the world to suit various business global opportunities (Mendenhall, 2008). Thus tapping talent from the pool of employees in the global arena demands an iconic chief executive officer to stand and emerge successful in the stiff competition that the global community has to put up with. Leaders are makes extra efforts to employee the best in the market since having a propitious top management team in a particular country does no translate into success in other countries since every business environment is unique due to its regional characteristics. Thus, the prevalence of good leadership qualities is not conventional worldwide and that makes leadership skills vary from one country to another. In essence, what leadership entails in particular country is not necessarily acceptable or applicable in another. However, professional leadership skills such as awareness and sensitivity to culture and cultural values, business knowledge and integrity are key for business success in this era of globalization. An iconic CEO would proof to be of great significance in realizing a connection between the company brand and the cultural values of a particular society of consumers. Powerful leadership is exceptionally fundamental in the globalized economy and most leaders are exploiting available avenues to better their leadership skills to conquer markets for their products and services (Mazumdar & Sarkar, 2008). Microsoft is a reputable company with a presence of several decades in the technology industry. It has been quite a dominant player in this industry, but the recent decades two decades have been clouded by drastic challenges ranging from competition to industry reorganization and the shift of the technology software market to non-personal computer devices such as tablets and smart phones. Arguably, the change has been gradual and merely noticeable until its hit in the last few years of the first decade of the 21st century. Under the leadership of a charismatic leader and Chief Executive Officer, the company has maintained its reputation and position in the technology industry; despite the ever accruing challenges and acquired immense wealth threefold before Steve Ballmer became its CEO (Bertho, 2008). In his position as the leader of Microsoft at the senior most position, Steve Ballmer has put into use all the avenues and resources at his disposal to engineer a superior brand of the company in the global market. With his visionary leadership, Steve Ballmer lead the Microsoft team into developing world class solutions to its customers ranging from its great invention of the Windows 8 operating system to its search engine Bing that is ranked second after Google worldwide and its recent scramble for market share in its invention of tablets and smart phones namely the Surface RT and the Windows phone. Under his leadership at Microsoft, Ballmer has created a corporate culture in which Microsoft employees are empowered as innovators to provide its customers with devices and services that empower them to achieve their goals both at work and home. The corporate culture has also embraced learning form the technology industry and adopted new techniques such as direct corporate social responsibility that Microsoft has lead across the world. For instance, Microsoft has organized technology completion in various continents such as Africa where access to technology have been promoted due to this effort. In addition, such efforts have promoted the Microsoft Brand closer to its consumers and facilitated a cultural organization that puts its consumers on the forefront as per their culture (Ballmer, 2013). Steve Ballmer has lead Microsoft in a visionary manner and integrated its business partners who major in hardware production and consume Microsoft’s software products. It is quite remarkable to note Ballmer’s vision of the future of the technology industry lead Microsoft in the acquisition of Nokia, mobile manufacturer so as to sustain its position as software firm and use the hardware platform to promote its software authority in the new era of mobile devices. It is expected the acquisition of Nokia is a stepping stone for Microsoft and will definitely offer more capabilities to Microsoft and realize a profound platform for Microsoft mobile enterprise which faces stiff competition from Apple, Android and Intel phones as well. As Microsoft’s Chief Executive Officer, Ballmer has depicted business knowledge and dynamism that has held the Microsoft workforce as a compatible family flourishing in it s endeavors whilst preparing for the future market in the global context (Godowsky, 2013). In the most challenging times for the player in the technology industry, Ballmer’s global mindedness, his team building ability and orientation to external constituencies of the software industry has brought and energizing visionary collection of employees at the most crucial time for Microsoft to tackle the competition in the global environment. The alignment of organizational structures which Microsoft has had in the era of Ballmer has lead to realization of its vision and mission to a great extent. Although this has been a daunting task for the company, his tenacious approach to business and pursuit of success has brought the company to a successful position in the most complicated situation for a multinational in the technology industry (Kelly, Rajan & Goh, 2006). All through the changes and transformations that Microsoft has undergone in the recent decade were successfully overseen by Ballmer owing to his exchange relationship with the Microsoft team. This has facilitated product development and in the most standard quality from Microsoft experts. This is definitely a foundation for business success since the market is on the on the outlook for satisfactory goods and services (Wingfield, 2013). References Auer, P., Lu, M. E., & Leschke, J,. (2005). Active Labour Market Policies Around the World: Coping with the Consequences of Globalization. International Labour Organization. Ballmer ,S. (2013). One Microsoft: Company realigns to enable innovation at greater speed, efficiency. Microsoft News Center. Retrieved from http://www.microsoft.com/en- us/news/press/2013/jul13/07-11onemicrosoft.aspx Bertho ,M., (2008). The Impact of Globalization on the United States: Culture and society, Volume 1. London: Greenwood Publishing Group. Biju, M. R. (2006). Development Management Under Globalization. Mumbai: Mittal Publications. Black ,J. S., Morrison , A. J., & Gregersen, H. B., (1999)Global Explorers: The Next Generation of Leaders. 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