Discuss about the Global Business And Its Various Related Aspects.
The business world, in the present times with the “advent of globalization and with the developments in the fields of technology and innovations has become much more diversified than it was few decades ago”(Hitt, Ireland & Hoskisson, 2012). It is a reflection of this that the level of competition faced by the various business organizations has also increased and therefore they resort to various forms of modern innovative strategies not only “to bring about the overall growth as well as the development of their business organizations but also to outrival their competitors in the same field of operations” (Hitt, Ireland & Hoskisson, 2012). Therefore, it would be apt to say that “the advent of globalization and the latest developments in the fields of technology and innovations have much transformed the business world in the present times” (Hitt, Ireland & Hoskisson, 2012). This paper will discuss about the impact which globalization had on the various business organizations and also about global marketing as well as advertising and the cultural paradoxes involved in the same process.
The macro as well as the micro environments of the various business organizations wields an important influence on the operations of a particular business organization. It is a reflection of this that the various business organizations in the present times need to take into consideration the various “political, economic, social, technological, legislative and environmental factors” which affect the overall operation of their business organization in a serious manner (Hirst, Thompson & Bromley, 2015). An effective consideration of these factors is important not only for the “formulation as well as the implementation of the strategies which are necessary to mitigate the impact of these factors on the business operations of the concerned business organizations but also to outrival the competitors in the same field of operations” (Hirst, Thompson & Bromley, 2015). Moreover, it is often seen that an effective consideration of the micro as well as the macro environmental factors is necessary to “bring about the overall growth as well as the concerned business organization” (Hirst, Thompson & Bromley, 2015).
The concept of globalization has been in practice since the ancient times when the various civilizations of the world following the various precepts of this particular concept used to indulge in trade relations with the other civilizations of the world (Forsgren, 2015). However, the concept in the recent times gained prominence with the development of the various means of transportation and information exchange. The real introduction of the concept came in the 1860s with the innovation of the steam boats and also the “Industrial Revolution” of the 19th century (Forsgren, 2015). It is significant to note that there are several advantages associated with the process of globalization. This particular concept has not only been instrumental in the rapid growth as well as the trade and commerce in the recent times but has also enabled the various business organizations from the diverse remote nations of the world to have a much wider customer base than their native country could have provided them. Furthermore, another major advantage of the concept of globalization is that it has strengthen the economies of the various nations of the world and these nations no longer have to depend on just the agricultural products of their nation for their sustenance. However, there are some disadvantages associated with the process of globalization as well. The primary disadvantage associated with this particular concept is that it has significantly increased the “level of competition faced by the various business organizations in the present times” (Forsgren, 2015). It is significant to note that in the present times the amount of options or the choices available to the customers are more diverse and therefore this adversely affected “bargaining power of the various business organizations” (Forsgren, 2015).
The “advent of globalization” in the recent times has much changed the role as well as the job profile of the various international managers in the present times. It is a reflection of this that the various international managers in the present times not only need to take into consideration the management of the business operations and the employees but also devise effective strategies for the mitigation of the level of competition faced by the concerned business organizations in the present times (De Wit, 2015). In addition to that, the various managers in the present times also need to take into consideration the cultural factor as well. It is significant to note that various workplaces in the present times have become much diversified due to the influx of people from diverse cultures as well as social backgrounds (De Wit, 2015). Therefore, the various international managers in the present times need to take into consideration these cultural factors.
An effective analysis of the macro as well as the micro environment related to a particular business organization not only tells the business organization about the key strengths as well as the weaknesses which galore the concerned business organization but also provide an overview of the key competencies and the threats which galore their business operations (Jenkins, 2013). Therefore, the various business organizations can utilize these “external as well as the internal factors” which affect their business operations. Thus, the various business organizations can focus as well as development of effective strategies for the mitigation of the threats faced by them to “not only outrival the competitors working in the same field of business but also to bring about the overall growth as well as the development of their overall business operations” (Jenkins, 2013). Furthermore, an effective analysis of the micro as well as the macro environment also helps the various business organizations to take the help of the successful strategies which are being used by the other companies and use them in modified form for the “growth as well as the development of their own business operations”.
In the present times “with the advent of globalization” it is commonly seen that the various business organization has its centers in the diverse nations of the world and therefore with the rise of the various centers in the diverse nations of the world it is commonly seen that the concerned “corporation’s obligations toward its various constituencies around the world” has increased in a significant manner (Brush, 2013). It is significant to note that these business organisations not only need to follow the cultural as well as the ethical norms of the nations in which they are operational but also of the ones in which they have opened their subsidiary centers. Furthermore, following the various precepts of the policies of “corporate social responsibility” they also need to contribute towards the development of the society of the concerned nation and also to take care that they do not damage the environment of that particular nation in a significant manner (Brush, 2013). Moreover, the recruitment of the employees in those host countries is also a major area of consideration for these companies as it is seen that there are various kinds of recruitment policies which are available to these business organisations like “ethnocentric staffing, polycentric staffing and geocentric staffing” (Brush, 2013). Therefore, it would be apt to say that the various business organisations need to take into consideration several factors for their operations in the other nations of the world.
The most important concept related to the international business which has emerged in the recent times is that the various business organisations apart from taking into consideration their own business and the profit margins also needs to take into consideration the planet or the earth using whose resources it is making profit (Pieterse, 2015). Therefore, the concept of ethical consumerism has gained special prominence in the recent times. It is a reflection of this that the various customers in the present times apart from taking into consideration the diverse attributes of the products or the services offered to them by the business organisations also take into consideration the way those products or the services have been manufactured. Thus, it would be apt to say that the focus in the recent times has shifted more towards the human rights and the various business organisations need to take into consideration the human rights factor not only for the manufacture of the products or the services offered by them to the customers but also for the related promotional processes (Pieterse, 2015). In the present times with the rise of the concept of ethical consumerism it is also seen that the various customers do not opt for the products or the services manufactured by the business organisations irrespective of the benefits of the products or the services.
Strategies play an important role in both the “CSR and codes of ethics” which a business organisation must follow for their operation within a particular nation or continent. It is generally seen that the focus of most of the business organisations is on the increase of the annual profit earned by them and the focus of most of these business organisations is on the quality of the products or the services offered by them to the customers and not on the aspect of quality (Hirst, Thompson & Bromley, 2015). However, in the present times with the rise of the various precepts of “CSR and codes of ethics” the focus seems to be shifting from the concept of quantity to the concept of quality. Therefore, the various business organisations need to develop effective strategies so that they not follow the various precepts of the “ethical code of conduct” but also the “corporate social responsibility” in the most effective manner while focusing on the concept of profit at the same time (Hirst, Thompson & Bromley, 2015). Thus, it is seen that most of the business organisations follow various innovative by which they not only take into effective consideration the various CSR policies but also the various precepts of “ethical code of conduct” while gaining the same amount of profit as outlined by them in their yearly report.
The role of the various managers in this particular context therefore becomes very important as they not only need to focus on the management of the business organisation but also develop strategies so that the concerned company maintains as well as the follows the various ethical standards as well as behaviours which are required of them in the present day business world (Jenkins, 2013). It is generally seen that the various present day managers are often in a dilemma between the concepts of quality and quantity while focusing on the concept of ethical behaviour. The various managers not only need to focus on the concept of ethical behaviour for the management of the business operations but also in terms of the maintenance of the relationships with the various employees related to the concerned business organisation but also in terms of the manufacture of the products or the services offered by them to the customers but also for the process of the promotion of them (Jenkins, 2013). Therefore, it would be apt to say that the concept of ethical behaviour wields a considerable influence on the business process of the various business organisations in the present times. Thus, the various preset day managers need to this particular concept into consideration along with the other important ones for the process of the management of their business.
The “advent of globalisation as well as the recent developments in the fields of technology and innovations has not only transformed the way the various business organisations conduct their business but also diversified the workplaces related to these business organisations as well” (Forsgren, 2015). It is a reflection of this that the concept of culture wields a significant influence on the business process of the various business organisations. It is generally seen that the various business organisations in the present times operates in business environments which are drastically different from their own native countries not only in terms of the business environment but also in terms of the culture as well as society (Forsgren, 2015). Therefore, for the effective operation of their business in these nations the concerned business organisation needs to take into consideration the culture as well as the society of the nation as it often seen that the business culture as well as the ethics of the diverse nations varies in a significant manner from each other. In addition to this, the management of the organisation also needs to take into consideration the cultural factor for the management of the employee related to the diverse cultural backgrounds and also for the resolution of any conflict which might arise on the score of the cultural factors.
The various international managers in the present times need to have cultural intelligence to interact in a much effective manner with the diverse entities of the host nation in which they are operational. It is significant to note that the style of conducting business varies from culture to culture and also the same words or phrases have different meanings in different cultures. It is here that the various models of culture like the “Hofstede’s Cultural Model”, “Globe Model” and others come into prominence (De Wit, 2015). Therefore, the various business managers need to take into effective consideration these cultural models for the conduct of their business in the nations belonging to other cultures or social backgrounds. Furthermore, knowledge of the social structure as well as the way of life of the people of the concerned nation is also very important. The knowledge of these factors is not only important for the management of the business operations but also for the management of the various employees belonging to the other cultural or social backgrounds (De Wit, 2015).
The major dimensions which affect the business of a particular business organisation in a foreign nation as per the “Hofstede’s Cultural Dimensions” are the “individualism, masculinity, long-term orientation, power distance, uncertainty avoidance and indulgence” (De Wit, 2015). It is significant to note that these factors play a significant role in the business operations of a particular company or business organisation. The individualism quotient of a particular nation gives an idea about the fact that whether the citizens of a particular nation like to indulge in individual work or group activities. The masculinity index, on the other hand, gives an overview whether the society will be influenced by the factors of competition, success and achievement or not (De Wit, 2015). The “long-term orientation”, on the other hand, gives an overview of whether the people of a particular nation will be influenced by the factors of its past or not. The power distance index, on the other hand, gives an idea about the fact whether the society will be influenced by the power factor within its social structure or not. Furthermore, the uncertainty avoidance factor, on the other hand, gives an overview of the fact that whether the people of the society feel “threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these” (De Wit, 2015). The indulgence factor, on the other hand, gives an overview of the fact whether the members of the society “try to control their desires and impulses” (De Wit, 2015). Therefore, it would be apt to say that various international managers in the present times need to take into consideration these factors for the conduct of their business.
The people belonging to workplace in the present times have much more diversified in the present times not only on the score of the cultural factor but also on the score of the social factor as well. Therefore, it is generally seen that the various organisations take the help of effective strategies for the management of these diverse workforce. The primary differences in opinion among the various employees within the workforce emerge on the fact of the cultural differences as it is often seen that the different people within the workforce having diverse cultural backgrounds and also they follow diverse work ethics and behaviour at the workplace (Brush, 2013). It is significant to note that due to these differences in values and opinions conflicts often arise within the workplace. Many business organisations follow the method of stereotypes for the effective management of these workplace employees (Brush, 2013). However, on the other hand, there are business organisations which follow the policy of active intervention for the control of the various conflicts on the basis of the cultural factors.
Communication forms an important part of the various business organisations and is necessary not only to convey the relevant information to the various employees of the business organisations but also to have an effective relationship with the diverse shareholders of the business organisations and the customers or the end users related to the business organisation who form an important part of their business organisation (Kinloch & Metge, 2014). However, it is often seen that the various business organisations when they are conducting business in the other nations of the world which are different in terms of culture from their parent nation needs to take into consideration the various cultural as well as social factors as well for the process of communication. It is generally seen that same words or the phrases have different interpretations in different cultures and therefore the management of the concerned organisations as well as the managers need to devise effective strategies for the consideration of these particular factors (Kinloch & Metge, 2014). Furthermore, the managers as well as the management of the organisation also needs to take into consideration the various barriers to the process of effective communication like the use of too many technical terms or jargon, background noise, ineffective medium and other factors. It is significant to note that there are several factors which can lead to noise in a particular type of communication like the use of ineffective medium for the conveying of the desired message, unclear or ineffective background and others and it is generally seen that these factors tend to decrease the understanding of the message which is being delivered.
Non-verbal behaviours form an important part of the process of “inter-cultural communication” (Manyika et al., 2016). It is significant to note that the during a conversation the various people belonging to diverse cultural backgrounds often resort to non verbal behaviours in a bid to make themselves understood in order to make themselves understood as that the behavioural signs are common in almost all the cultures of the world. Therefore, this particular aspect forms an important part of the cross-cultural communication. The attitude of the people are also of considerable importance in the process of intercultural communication as it gives an idea to the people whether their views and opinions are accepted by the people belonging to the other cultural and social backgrounds or not (Manyika et al., 2016).
The Western Arab people as per the “Hofstede’s Cultural dimensions” are very conservative people and do not like to take the help of the technology for the process of communication. Furthermore, they are very group oriented and do not like to indulge in individualistic activities. Moreover, their society is segregated on the basis of the division of power and the structure of the society. The people of this particular community are very specific about their culture and have a great deal of respect for their culture and traditions (Waldinger, 2015). Therefore, they do not like any deviations from their cultural traditions. Therefore, if a particular organisation is planning to indulge in business relations with a particular business organisation related to this particular sector then the concerned business organisation needs to take into effective consideration these factors.
The “information technology” plays a significant role in the process of cross-border communication. However, it is often seen that the use of the information technology instead of facilitating the process of communication contributes much to the misunderstandings which arise when the people involved in the process of communication are from diverse cultural backgrounds (Ponte & Sturgeon, 2014). As already mentioned, that same words as well as phrases have different meanings in different cultures therefore if the message is being delivered over the IT then that is likely to add significantly to the confusion as well as the misunderstanding of the people. However, this particular problem might not arise if the process of communication is conducted on a face-to-face basis. Thus, the various business organisations in the present times take the help of the various forms of face-to-face communication processes rather than the communications over the IT systems.
The various “cross-cultural communications” can be managed effectively by various means. The first method which the various organisations is learning the cultural trends as well as the values of the people from the diverse cultural and social backgrounds (Ponte & Sturgeon, 2014). It is significant to note that a consideration for these factors will not enable the organisation to understand the employees from the other backgrounds but would also enable them to communicate with them in a much better manner. The management of the organisation can also take the help of the various forms of face-to-face communication which will help them to communicate the information to the employees in a much better manner (Ponte & Sturgeon, 2014). The implementation of the feedback system can also help the various organisations to understand whether the message conveyed by them have been understood in an effective manner or not.
It is significant to note that for the process of effective cross cultural business negotiations the various business organisations need to take into consideration several factors. The most important factor which the business organisations need to take into consideration is an understanding of the cultural as well as the business ethics of the nation which with they are conducting their business (Gereffi, 2014). Furthermore, an understanding of the society structure and the behaviour of the people is also essential in the process of negotiating business with the business organisations belonging to different cultural and social backgrounds.
Trust forms one of the most important aspects during the process of conducting any form of business negotiations. However, they attain a more significance during the process of cross-cultural negotiations. It is significant to note that the trust factor plays a very significant role in the process of business negotiations as it is often seen that if the various business organisations do not effective trust among themselves then the business negotiations fail in a significant manner (Gereffi, 2014). Therefore, it is very important for the business organisations entering into a business relationship to have a significant amount of trust among themselves. Furthermore, this particular concept helps the various business organisations to transact business with each other in a much better manner and also helps the organisations concerned to build long-term relationships.
It is significant to note that there are “culturally-based behavioural differences, values, and agendas of the negotiating parties”. It is a reflection of the not only in the differences in the cultural as well as the social sphere but also in the business ethics of the various nations (Kalinic & Forza, 2012). Therefore, if a particular organisation belongs to a nation which scores high on the individualism index on the “Hofstede’s cultural dimension” then that particular organisation will want the other organisation to work in the same manner. Furthermore, the people belonging to different cultural often show differences in the field of behaviour as well. It is significant to note that the people of the nation of Japan are very reserved. Therefore they would like to enter into negotiation with an organisation that also follows the same kind of behavioural pattern.
The nation of China on Hofstede’s model score very low on the individualism index (China – Hofstede Insights, 2018). This means that the Chinese people are not individualistic and like to indulge in group work. Furthermore, the Chinese people score very high on the masculinity index which means that the Chinese people are motivated by the concept of achievement, success and competition (China – Hofstede Insights, 2018). Moreover, the Chinese people score very high on the power distance index which means that the Chinese people are very much influenced by the power structure of the society (China – Hofstede Insights, 2018). The Chinese people also score very high on the “long-term orientation” which means that the people of the nation of China like to maintain their links with the past (China – Hofstede Insights, 2018). Therefore, the various business organisations need to take these facts into consideration while transacting business with the organisations belonging to the nation of China (China – Hofstede Insights, 2018). An analysis of the nation of China on the “Hofstede’s cultural model” would reveal the following facts-
It is significant to note that culture plays a significant role on the decision making process of the various organisations. It is interesting to note that the various workplaces in the present times have become much more diversified and therefore the decisions which they make related to their workplace or the business as a whole should take into consideration the interests of all these people. The organisation also needs to take into consideration the cultural differences of the various employees within the workplace during the process of communicating important messages to the employees of the concerned organisation. Therefore, it would be apt to say that in the recent times the various organisations need to take the differences in the cultural sphere more ardently than ever.
The “advent of globalisation and the recent developments in the field of technology and innovations have drastically transformed the way the various business organisations as well as the companies conduct their business”. It is significant to note that “in the present day competitive world” it is not longer enough for the various business organisations to be operative in just one nation of the world. Therefore, the various business organisations in the present times follow the path of globalisation and operate in various diverse nations of the world. This particular policy not only helps the various business organisations not only to have a much wider customer base for their products but also allows them to use the technology and the innovations of the nations in which they are operational. These in short are some of the key reasons why the various business organisations follow the path of internationalisation.
Strategic planning forms an important part of the business process of the various business organisations and it is generally seen that the various business organisations often take the help of the various kinds of innovative strategies not only to “outrival their competitors in the same field of business operations but also to bring about the overall growth as well as the development of entire business operations”. Furthermore, the process of globalisation as well as the process of internationalisation followed by the various nations of the world has made it very important for the various business organisations to take the help of the process of effective strategic planning. Furthermore, the various business organisations while entering into the market of the other nations of the world also need to consider the mode of their entry into the business market of that particular nation of the market. The most important models of entry which are available to the various business organisations are the means of merger and acquisitions, collaborations and others. However, it is significant to note that all these methods should be based on a thorough market research and the competitive framework of the concerned nation’s business market.
In the present business world the “techniques of environmental assessment, internal and competitive analysis” form an important part of the overall strategic plan of the various business organisations. It is significant to note that the results of these analysis not only reveal the “strengths as well as the weaknesses of the concerned business organisations but they also reveal significant amount of information about the competencies of the concerned business organisation and also the opportunities and the threats which galore them”. It is significant to note that an effective knowledge of these factors is very essential for the development of the key strategies which are likely “to help them not only to outrival the various competitors in the same field of business but also to bring about the overall growth as well as the development of their business process”. Therefore, these analysis are very important for the business organisations which are planning to follow the “path of globalisation”.
In the present times various kinds of strategies are available to the managers not only at the “global level but also on the level of specific entry strategies for different markets”. The most important strategy which the various managers use for the process of entering into a new market is the policy of collaboration with the leading business organisations of that particular area. This particular strategy offers the various managers a kind of an upper hand over the various other business organisations operational in the same field of business in that particular area. Another important strategy which the various managers often take the help of is the policy of “merger and acquisition”. It is significant to note that this particular strategy is usually taken the help of by the various business organisations if they have the necessary or the adequate means to buy the leading business organisations in that particular area. In addition to these, the various managers also need to take into consideration the competitive business market of the particular nation or the area in which they are trying to expand.
There are various issues which the managers need to take into consideration when they are planning to enter into the new emerging markets of the world. The primary factor which the various managers need to take into consideration is that whether the products they are offering to the customers is going to find a sustainable market in the nations in which they are entering. Furthermore, the managers also need to take consideration the market size as well as the economic framework of the nation in which they are entering into business. Moreover, another issue which the managers face is the lack of adequate number of customers in the markets in which they are entering into. Another issue which the various managers face in to the various markets of the world is the lack of technological development of the concerned nation. These in short are some of the issues which the various managers face while entering into business in the various emerging markets of the world.
The “Global Value Chain” can be defined as the concept which gives an overview of “the full range of activities that are required to bring a product from its conception, through its design, its sourced raw materials and intermediate inputs, its marketing, its distribution and its support to the final consumer” (Elms & Low, 2013). Therefore, this particular concept is utilized by the various business organisations for the launch as well as the sustainability of their products in the global market. It is significant to note that the business market of the nation of Canada is a very competitive one and almost every year new start-up companies emerge in the market. Furthermore, the nation of Canada is the host to some of the largest industries of the world on the score of its technological as well as economic developments (Elms & Low, 2013). Therefore, it would be fair to say that the business market of the nation of Canada is a very competitive one and thus the new products or the services will find it very hard to sustain themselves in this particular market.
It is generally seen that the due to the excessive demands of the customers in the business market the various business organisations had to shift their products or the services from the “final goods to intermediate goods”. Therefore, it would be apt to say that due to this particular process the quality of the services provided by the various goods or the services of the business organisations are deceasing considerably in the present times (Losonc, 2016). Thus, in order to “cater to the ever increasing demands of the customers in the various growing markets in a much better the various companies have lower the quality of the products or the services offered by them” (Losonc, 2016). The various business organisations in the present times therefore in the present times deliver the products to the customers without even checking the adequate quality requirements of the goods or the services manufactured by them.
The increasing global market as well as the ever increasing demands of the customers has made the concept of “management of the global production network (GPN)” a very important one in the present times (Lechner & Boli, 2014). The various business organisations therefore in the present times not only need to focus on the process of manufacturing the increased amount of products as well as services in a bid to “cater to the needs and the requirements of the customers in the most effective manner” but also to manage the global production network as well (Lechner & Boli, 2014). The concept of GPN refers to the “the nexus of interconnected functions, operations and transactions through which a specific product or service is produced, distributed and consumed” (Lechner & Boli, 2014). Thus, the major focus of the various business organisations in the present times is on the management of this particular network. Therefore,, it would be apt to say that the management of the GPN has become very important for the various business organisations operational in the international market.
The terms “Cooperation, competition and coopetition” have become very significant in the present day business world. It is significant to note that “with the advent of globalisation and the recent developments in the field of technology and innovation the business world has become much more competitive than it was a few years ago” (Rugman, 2012). Therefore, it is often seen that the various business organisations focus on the concept of cooperation as well as coopetition in the various business markets of the world in a bid to sustain themselves in the competitive business world. These concepts are generally seen a reflection of the globalisation and its associated processes.
The concept of manufacturing refers to the production of the goods or the services on which the major business of a particular business organisation depends (Benería, Berik & Floro, 2015). The end users or the customers of these particular products or the services are the primary source of income of these business organisations as they are the ones who purchase the products or the services offered by them. The service industry, on the other hand, is the kind of industry which relies on providing effective services to the customers or the end users of their business and it through them that the business derives the major source of its income (Benería, Berik & Floro, 2015). Furthermore, the services offered by these business organisations can be of several types like the telecom industry, education industry and others.
Strategies form an important part of the various business organisations and it is often seen that “the use of effective business strategies can lead to the overall growth as well as the development of the various business organisations whereas a mistimed business strategy can severely hurt the prospects of a particular organisation in a considerable manner” (Vahlne & Johanson, 2017). Moreover, it is seen that in the present times the various business organisations enter into strategic alliances as well as collaborations with the other business organisations in a bid to gain competitive advantage over their rivals. The growth of the concept of international business has made it very important for the business organisations to enter into strategic alliances with the other business organisations “not only to sustain themselves in the competitive business market of the present times but also to outrival their business competitors operational in the same field of business” (Vahlne & Johanson, 2017).
In the present times the various business organisations seek the help of powerful as well as successful international business allies to enter into the business market of other nations of the world (Knight, 2015). It is significant to note that the association with the other international business organisations provides various benefits to the business firms which are trying to enter into the market of other market. They not only make the path of entry of the business organisations into the concerned market but also help the concerned company to gain a competitive advantage over the other already established business organisations operational in the same field of business (Knight, 2015). Furthermore, they also provide valuable technological and other kinds of assistance to the business organisation entering into a new market.
A recent trend seen among the various SMEs of the business world is that they try to get merged or get associated with the major MNCs of the nation in which into which they are trying to expand. It is significant to note that this particular process provides them a considerable amount of benefit to the SMEs. They are not able to use the name of the MNC with whom they are getting but also the various resources of the concerned MNC like the technology, innovations, brand image and others for the process of their business (Maringe & Foskett, 2012).
The nation of Russia is a Communist one and the major industries of the nation are controlled by the government of the nation itself. Therefore, it can be said that the scope for the “growth as well as the development of the private as well as the small scaled industries in the nation of Russia is very low” (Aykin, 2016). Thus, the various joint venture business organisations in the nation of Russia find it very hard to sustain themselves in the business market. The major threats which they face are on the score of the political as well as the legislative factors. However, these business organisations can utilise the technological advancements of the nation to “bring about the overall growth as well as the development of their business organisation”.
The structure of the various business organizations plays a significant role in the “effective strategy implementation”. It is generally seen that a business organisation which is open to change offers a better ground for the implementation of the various strategies which are likely to “bring about the overall growth as well as the development of the concerned business organisation” (Briscoe, Tarique & Schuler, 2012). Furthermore, it is generally seen that the organisations which are more flexible in their structure and also the ones which the various employees are willing to work in the rotational basis offer better chances for the effective implementation of the strategies.
In the present times with the emergence of the various theories of management diverse structures of organisations have also evolved. However, it is significant to note that not all of them are very suitable for “the level and scope of internationalization of the firm” (Cavusgil et al. 2014). The organisational structures which are open to change and the ones which are willing with to work with the various diverse entities from the different cultural backgrounds are the ones that are suitable for the process of internationalisation.
The concept of “organizational restructuring” has gained much prominence in the recent times. It is significant to note that the various business organisations take the help of this particular concept when they are about to follow the path of internationalisation or their profit margins have gone down drastically (Hay & Marsh, 2016). Therefore, the various business organisations with the help of this particular concept hope to bring about a change in their fortunes.
Technology plays a significant role in the process of networked structures and also in the concept of human networks. It is significant to note that with the rise of the various platforms of technology the various employees as well as the customers and the shareholders related to a particular business have become much more connected and therefore they can convey their messages to the concerned company in a much better manner (Carbaugh, 2013). Therefore, it would be apt to say that with the rise of the various kinds of technology the human beings seem to form a kind of a virtual network and therefore help in the effective conduct of the business operations of a particular business organisation.
The organisational design or the structure plays a significant role in the decision making process of the various managers. It is significant to note that if the concerned organisation with which the manager is associated is one which is open to change, then the manager will feel encouraged to make decisions which are more risk taking and require a greater support from the various employees (Moghadam, 2012). On the other hand, if the organisation with which a manager is associated is a traditional one then the manager will be forced to make traditional kinds of decisions (Moghadam, 2012).
“Control and monitoring systems” play a significant role in the international operations of a particular business organisation. It is significant to note that when a business is having its centers in the other nations of the world then it is very important for them to not only control the operations of the foreign business center of the concerned business organisation but also to monitor their activities (Amin, 2014). This particular feature is very essential as it not only helps the organisations to maintain high standards of quality but also helps them to have an effective control over their foreign centers.
The various employees one of the most important part of the various business organisations and therefore it is generally seen that the diverse business organisations of the world take the help of effective strategies for the development of the IHRM polices as well as principles (Cronin, 2013). It is a reflection of this that the various HRM related to the diverse companies not only take care of the processes of recruitment and selection but also helps the various business organisations with the processes of induction, training, enhancing the “employee engagement”, rewards and incentives and various others. (Cronin, 2013) Therefore, it can be said that in the present times the role of the modern day IHNRMs have undergone much transformation.
The three major international staffing options which are available to the various companies are “Ethnocentric staffing, Polycentric staffing and Geocentric staffing” (Burbules & Torres, 2013). In the ethnocentric approach the employees from the home nation are given preference and thus they have all the important posts of the organisation. In the polycentric staffing the employees of the host nation are given preference and thus they occupy the top positions. However, in the geocentric approach the best person suited for the job is given preference (Burbules & Torres, 2013).
Expatriates workers are the ones who are sent to the various offshore locations of the company and therefore it becomes very important for the company to provide them with the best quality training as their performance in their job role will depend on the kind of training they will (Kraidy, 2017). Furthermore, compensations also play a significant role in the process as most of the expatriates are motivated significantly by the monetary factor.
The host nation managers also play a significant role in the business process. It is significant to note that in case the business is facing any crisis or issue it is they who are responsible for the resolution of the conflict and also for the effective management of the employees belonging to the host nation (Fujita & Thisse, 2013). Therefore, there is a need for effective training so that they can handle the tough situations in a much better manner and also for higher compensation packages.
There are two major kinds of HRM policies namely the domestic and the international one. The domestic HRM policies deal with the domestic business of the concerned business whereas the internal HRM deals with the international HRM of the concerned company (Bochner, 2013).
The expatriates play a significant role in the management of the business operations of the home nation in the host nation. They are required to convey the information from the home nation to the host nation and vice versa (Killing, 2013). Furthermore, they are entrusted with the role of the management of the interests of the home nation in the host nation of the business. Moreover, they also play a significant role in the “control as well as monitoring process” of the home nation over their business in the host nation (Killing, 2013).
“Global experience and perspectives” form important attributes of the various top managers in the present times. It is significant to note that these attributes can be developed by the effective handling of the international assignments of the various companies (Cascio, 2018). Therefore, with this particular view the various business organisations give international exposure to their top managers so that they can gain “global experience and perspectives”.
The expatriates form an important part of the business of the various companies and therefore they should take effective care for the “repatriation of the expatriates and any accompanying family, as well as programs for career management and retention” (Cascio, 2018). This will help the business organisation not only to effectively satisfy the needs of this particular employee but by doing this the company will be setting an example and the other expatriates will feel more motivated to work in a better manner and thereby will enhance the organisational performance.
Cross-border communication has become an important part of the present day business world and it is generally seen that the various business organisations take the help of “global management teams”. It is significant to note that these teams not only simplify the process of the negotiation but also help whenever there is an intercultural miscommunication (Papastergiadis, 2018).
Women in the present times play a significant role in the process of international management. Therefore, it is seen that the various international business organisations in the present times like the company Pespsi Co and others have women as the head of the organisation. It is significant to note that the women not only help in the process of management of the organisation but also help in the process of negotiation (Cerrato & Piva, 2012).
The variations in the labour relations in the host nation are likely to affect the role of the manager in a significant manner. Therefore, the manager will not only have to take into consideration the rules as well as the regulations of the company under consideration but also the labour relations of the host nation for the effective maintenance of the business (Madhok & Keyhani, 2012).
To conclude, there are several factors which affect the business organisations operating in the other nations of the world. The process of internationalisation of business began with the “developments in the fields of technology and innovations and also due to the advent of globalisation”. However, there are several factors which these business organisations need to take into consideration like the cultural factors, ethical factors, communication and others for the operation of their business in the other nations of the world.
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