Challenges Faced By Global Managers-Free-Samples for Students

Question: Challenges faced by Managers in Global Business Environment. Areas to be focused Political, Social and Economic aspects of challenges as a Global Manager. Answer: Introduction: A person positioned as global manager should have knowledge of domains existing in world. A successful global manager possesses all the key skills required to face the challenges. The report will define issue like political rules, social responsibility and economic environment. A global organisation success depends on various factors like management, policies and key areas. There is huge amount of risk present in all areas of business. Challenges faced by global managers In political environment: A permanent risk for international business existing is political uncertainty and instability. Emerging businesses which provide huge opportunities face more challenges politically then an established business do. Changes in government brings changes in policies, regulations and interest rate that proves damaging to foreign business and investment and creates difficulty for global managers to come out with a solution. Political Issues also occur when ill-defined and unstable policies are present in market (Adger, et ol, 2001). Global managers have to deal with regularly with some risk like confiscation, expropriation and domestication when doing international business. Boycotting of trade or products by one country also creates difficulty for global manager to handle business in other countries. Sometimes extreme nationalism adopted by any country creates issue for managers in that country, as survival becomes difficult (Krishna, Sahay, and Walsham, 2004). Instability of government i n a country make managers confuse to adhere to which policy which directly affects company profits. Global trade practices also include undefined cultural practices like corruption in different countries, which proves challenging for new business. In some countries government has convention of scattering of news and data of organization to public, which organisation may not want. Other risk can be violence, terrorism, cybercrime, import restrictions and price control practices affecting company global business. In economic environment: Global managers not having information about international laws and regulation creates negative effect on freely floating of its funds. Numerous investment opportunities available for organisation will be denied if there is restriction on free flow of funds. Many countries in world do not allow business with other companies if they are not following international business laws. Energy and environmental security also nowadays existing, due to which extra fund for disposing waste and green environment practices is required by global manager (Ghoshal, 1987). A proper disposal waste management policy helps managers to attract customer towards it. Poverty in a nation also decreases the growth of an organisation because lower availability of fund will not allow people to go for another country's product. Global health crisis also affects a business existence because unhealthy population will be reluctant to purchase new products and therefore hesitant to adhere to new practices (Handfield, and Nichols, 2004). Currency and exchange rate of every country affects a manager decision regarding price policy for products and services. In Social environment: Social responsibility is an obligation which every organisation has to fulfil to create a balance between economy and business. Every business has to follow all the customs, beliefs and practices existing in an environment (Lubchenco, 1998). There are numerous issues globally which have to face by managers because of multicultural society, diverse population and unique approaches towards every business. If a business refuses to adapt towards different customs and beliefs then business sales will drop down by significant percentage and will create difficulty for business to grow. In a country where social infrastructure is lacking like housing, schools and basic amenities creates difficulty for a manager to grow business. It may account for huge investment and costs if organisation tries to provide all amenities. Government interference in decision of company also creates an issue as taking permission each time may affect the business. In some countries attitude towards foreign invest ment is still negative. Thus imposing stringent rules for a business and hampering its expansion (Stokols, 1992). The various issues like war between trading and home country also stops trading between them, corrupt leader leading in trading country creates difficulty for global manager to expand business. Conclusion: From the above report, various factors affecting business are discussed like political, economic and social affects business existence globally. Political issues create difficulty in survival of business by imposing different regulation. A social issue hampers the growth of country due to various customs, beliefs and practices adopted by trading country. And in last economic issues creates difficulty in trading freely and fund requirement of an organisation. Sometime funds are not easily available globally to invest in some business and many more. Thus global manager should be provided training with every tic-tacks of business to deal with above issues efficiently References: Adger, W.N., Benjaminsen, T.A., Brown, K. and Svarstad, H., 2001. 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