Managing from a global perspective requires managers to pay close attention to factors in the external environment, which may affect an organisation's success. It may be, however, that factors in the internal environment will also influence success in a global environment. It is important for global managers to be familiar with the factors of the external environment and pay close attention to the management of the internal environment because factors from both the internal and external environments will most certainly influence the success of an organisation. Most importantly, managers may need to strategically optimise the internal environment for the specific properties of the external environment in which they operate. The performance of an organisation may not be exceptional unless management of the internal environment, or the conditions existing within the organisation, is fully optimized for the external environment.
As a global manager, paying close attention to the external environment is a prerequisite. The external environment is the different forces outside the organisation able to impact on the success of the organisation. The external environment in new and different countries may have elusive properties such as technology, social systems, politics, currency, and tax which the global manager need to consider and analyse. External forces such as the social and political systems are of particular importance as they are the ones most likely to influence an organisation's success. Therefore these are the main factors to which managers should pay close attention so as to "understand the constraints under which they operate and the opportunities that exist" (Robbins, Bergman, Stagg, Coulter, 2000, 141). By studying the specific political and social systems of a particular external environment managers can use their understanding of these systems to their advantage and develop exceptional strategies based on their understanding. For instance, in some countries such as the Peoples Republic of China, one must be willing to 'open the back door if the front one is closed', in other words, managers need to understand the "importance of guanxi (connections) in doing business in China"(Robbins et al).
Managers working from a global perspective not only need to know the different laws, tradi...
... middle of paper ...
...ically integrated management decisions, especially when undertaking operations in new and different environments. The rapid spreading of telecommunications technology is a major influence affecting the compatibility of the external environment with the internal environment of an organisation. Through the use of technology in telecommunications and through paying close attention to the external environment, an organisation can operate and function as an open system and as a result the internal environment of the organisation can be optimized for compatibility with the external environment and exceptional organisational performance may be achieved.
Robbins, S. Bergman, R., Stagg, I. And Coulter, M. (2000).
Management. 2nd ed., Sydney, Prentice Hall. pp.140-150
Daft, R. L. (2001) Management, 5th ed., Sydney, Dryden press.pp.187-220
Bartol, K., Martin, D., Tein, M. And Matthews, G. (2001). Management:
A pacific Rim Focus, Roseville, McGraw-Hill. pp42-63
Davidson, P. And Griffin, R. W. (2000). Management: Australia in a
Global Context, Brisbane, John Wiley & Sons. pp. 37-54
Fulop, L. And Linstead, S. (1999). Management: A Critical Text,
Melbourne, McMillan. pp. 48-65
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- In an era where outsourcing is ubiquitous, managing a global workforce is an immense challenge. Given below are the 5 major factors/metrics that brings out the complexities of managing a global workforce. • Labor Cost • Labor Productivity • Labor Supply • Culture • Labor Market Regulation The above factors are, typically and sadly, overlooked and undervalued by companies. This paper analyses the given news stories on Foxconn, using the above framework. They are critiqued based on the factors to be evaluated by companies in their location analysis whenever they consider locating and maintaining their operations or engage in contract outsourcing.... [tags: Employment, Labour market flexibility, Labor, Law]
1896 words (5.4 pages)
- ... Having a clear view of inventory supplies in the supply chain can help management avoid overstocking, predict trends in customer demands and maintain peak performance in the assembly line process. A major component of GII that helps in management of the global supply chain is information resource management (IRM). IRM, which is comprised of several processes to help effectively operate, coordinate and manage all aspects of the global supply chain (Selig, 1982). Selig (1982) breaks out IRM planning into seven major components: 1. Gaining support of management at all levels within the organization.... [tags: cultural views, time differences]
1121 words (3.2 pages)
- ... The days of honeycombing, ingress and egress tractor trailer issues, and inadequate number of docks positions within traditional warehouse operations are moving out as the emergence of state-of-the art operations are moving in. Another key component to the selection of a state-of-the art WMS is to first conduct a business needs assessment, before you go through the process of selecting a WMS, you must match business requirements to functionality (Ruriani, 2003). Guarding against future obsolescence is a must in the selection of a state-of-the art WMS, it must be able to accommodate future sales and growth and is adaptable to the next generation of technology that is available.... [tags: operations management analysis]
679 words (1.9 pages)
- Managing the Global Supply Chain Warehousing Warehouses have been used for the storage of goods and materials that importers, exporters, and manufacturers plan to move through a supply chain. These warehouses consist of loading docks, cranes, and forklifts that are used to move the goods and materials in/out and around the warehouses. They are sometimes located close to railways, airports, and major highways to help with the efficiency of moving these goods and materials around the globe. Over the past century, technology developments, such as mechanical automation has helped to increase efficiency and productivity within the supply chain and warehouse processes.... [tags: storage and inventory management]
690 words (2 pages)
- The environment in which business competes is rapidly becoming globalized. More and more companies are entering international markets by exporting their products overseas, building plants in other countries, and entering into alliances with foreign companies. Global competition is driving changes in organizations throughout the world. Companies are attempting to gain a competitive advantage, which can be provided by international expansion. Deciding whether to enter foreign markets and whether to develop plants or other facilities in other countries is no simple matter and many human resource issues surface.... [tags: Global Business Management Essays]
2456 words (7 pages)
- This paper examines some of the economic and legal factors that can affect a company as it transitions from a private to a publically owned company. This paper, consisting of four sections; describes, discusses, and analyzes the major concerns that the owners of XYZ Construction, Incorporated have on expansion and economics. Section one covers the macroeconomic factors that influence the operations of the company. Section two focuses on the microeconomic factors that XYZ Construction, Inc.... [tags: Business Case Study ]
1910 words (5.5 pages)
- Growing international influences and the increased pace of industries means that organizations must constantly be aware of the affects managing staff has to the business. Globalization has emerged from reduced financial, political and economic barriers, which allows technological and business variation to be spread. If an organization wishes to stay competitive in the global environment, objectives surrounding efficiency and the effectiveness of job design must be critically evaluated. There are a number of different approaches to management; and the ways in which an organization decides to manage people greatly determines the success, moral and initiative of employees.... [tags: Scientific management, Management]
853 words (2.4 pages)
- Assignment 1 Managing from a global perspective requires managers to pay close attention to factors in the external environment, which may affect an organisation's success. It may be, however, that factors in the internal environment will also influence success in a global environment. It is important for global managers to be familiar with the factors of the external environment and pay close attention to the management of the internal environment because factors from both the internal and external environments will most certainly influence the success of an organisation.... [tags: essays research papers]
1506 words (4.3 pages)
- Question 3 - What role did the "Open Work" environment play in the case. Open Work helped Sun to reduce the operating cost, increase employee satisfaction and maintain a strong productivity. The program utilized the tools, technologies and support to enable employees to work from anywhere, anytime. Despite these significant advantages there are a few limitations and disadvantages of this scheme. Sun had a suitability assessment for employees willing to participate in the program. This expressed their need for a flexible work schedule and a balanced professional and private life.... [tags: Sun Microsystems Case Study]
1279 words (3.7 pages)
- We live in interesting times. Powerful forces are re-shaping the global business scene : financial and economic upheaval in the Far East, Latin America and Russia is creating a tidal-wave of change in the competitive environment. Organisations that once felt insulated from overseas low-priced competitors now find that they too must not only continue to constantly create new value for customers, but must do so at a lower price. To meet the challenge of simultaneously reducing cost and enhancing customer value, requires a radically different approach to the way the business responds to marketplace demand.... [tags: Business Supply Chain ]
1805 words (5.2 pages)