There are several challenges in doing international business. The first challenge in international business is to how to navigate the stalled global economy (Griffin 60). Today’s business manager is equally faced with the challenge of attracting and retaining the right personnel.
There is also the challenge of changing information technology (IT) and how to harness IT into the overall organizational strategy. This is coupled with a further challenge of managing and measuring organizational performance (Gareth and George 407-415). Globalization is yet another challenge faced by modern day managers.
Today’s manager faces the challenge of procurement and managing supply chain networks in the international business. Managing diverse cultures (Griffin 176) coupled with ethics and social responsibility is the other challenges. The other problem is labor shortages, market management and business financing.
Businesses also face the challenge of the right mergers and acquisitions as they seek to grow (Griffin 256). Other leadership challenges include developing effective work teams, motivating employees, managing employee attitudes, managing innovation, employee privacy, and meeting stakeholder objectives.
Lessons Learned
A company might want to go global in order to survive and grow (Gareth and George 1-548). The company may want to diversify its product offering, maximize sales or to acquire more resources. In spite of the above opportunities, going global has its share of challenges. Since the world economy has seen a downward trend, there has been a slow growth of international businesses (Griffin 60). This implies that businesses that are seeking to go international are likely to take long before they can stabilize in their international operations.
Technology keeps changing every day. The business must be able to embrace technology and harness it into the overall organizational strategy. The business needs to be able to effectively evaluate its performance (Gareth and George 1-548). The international business is characterized with diverse cultural differences. The business must be prepared to deal with diverse cultures and different value systems in international business (Griffin 176).
Today, businesses have a duty to conserve the environment and to give back to the society (Gareth and George 1-548). Today’s manager is aware of corporate social investment and is seeking to include it in the overall governance of the whole business (Griffin 117). Customer expectations, tastes and preferences keep changing every day. Hence, the business must make an attempt to cope up with these lest they lose the customer. The business must therefore determine how it will implement its marketing initiatives.
In today’s competitive world, the business must find the right methods and approaches to procurement and manage its supply chain networks. Human resource experts must plan and avert the problem of labor shortages through successful human resources planning (Gareth and George 1-548).
The business must implement effective marketing strategies and adopt the right financing methods in order to be competitive. The manager must equally be prepared to enhance teamwork and motivation to increase productivity. The business must embrace technology in enhancing its efficiency (Griffin 718).
Culture is the habit, language and norms usually passed on to new employees as they join the organization. Culture influences the way employees interact with one another as well as with the customers, suppliers and other organizational stakeholders (Gareth and George 1-548).
The business must hence be prepared to deal with different cultures and values in the international area. Values uniquely define the business and give it a competitive edge. Culture includes things like integrity, customer focus, and results. To change organizational culture, there is need for effective leadership because leaders inculcate and reinforce the organizational culture and belief systems amongst the employees (Griffin 176).
Teamwork fosters faster learning and helps in task allocation. Through teamwork, employees are able to bond and develop long lasting relationships. Gareth and George (1-548) have indicated that teamwork creates a healthy competitive environment. This brings out the inner talents and creativity hence more productivity of the employees. When working in teams, employees are more satisfied in their jobs and able to accomplish their tasks efficiently. The business must this strive to develop highly effective work groups and teams.
Managerial Implications
Going global is a challenging venture to the business because of several factors such as culture. Organizational culture defines the behavior patterns and actions of employees (Griffin 176). There is need to develop and nurture a positive culture that will act as a strong brand and a source of competitive advantage to the business (Gareth and George 1-548).
Since technology improves business performance, the business must invest in appropriate technology to remain competitive. The business must conserve the environment (Griffin 120), use right approaches to procurement and manage its supply chain networks.
The business must equally conduct an effective HR planning, implement successful marketing strategies and adopt the right financing methods. Finally, the business must develop effective teams. When employees work in teams, they become more fulfilled in their roles. They are able to meet their individual and collective responsibilities. Consequently, the business becomes more productive.
Works Cited
Gareth R. Jones., and George, Jennifer, M. Contemporary Management 7th Edition.
McGraw-Hill Education: 2011. Print.
Griffin, Ricky, W. Management 8th Edition. Houghton Mifflin Company: 2005. Print.