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Management Principles - Essay Example

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What are the international management challenges of globalisation? The main challenges in globalisation context come from management, cultural adaptation, and economic framework. Globalisation has resulted in emergence of increased numbers of multinational corporations…
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Management Principles
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Download file to see previous pages Thirdly, on one hand, organisations are trying to take advantage of globalisation by setting up their businesses in multiple locations, and on the other hand, varying economic statuses and governmental regulations are creating disturbances in wealth distribution across different countries. These are further creating inflation, unemployment, competition and privatization (Schermerhorn, 2010). What are the forms and opportunities of international business? In order to sustain globalisation and competition, organisations have adopted a variety of business strategies. Based on these, businesses can be categorized into market entry strategies and direct investment strategies (Schermerhorn, 2010). Businesses based on market strategies include global sourcing, export and import businesses, and licensing and franchising businesses. Global sourcing firms base their strategies on purchasing patterns of their materials or services. Export-import businesses are conducted by selling to or acquiring products/services from other countries. Licensing involves provision of rights to make or sell the company’s products in other locations. Franchising involves provision of all requirements for conducting a specific business in other countries. ...Download file to see next pagesRead More
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