Section 2: Managing International Business
Oppel (as cited in Torres, 2009) argues that global business in the future will require leaders, and managers, to be like explorers, guiding their organizations through unfamiliar and turbulent environments. With markets, suppliers, competitors, technology and customers around the world constantly shifting, traditional leadership models no longer work. In their book titled, Global Explorers, Hal B. Gregerson, Allen J. Morrison & J. Stewart Black (as cited in Torres, 2009) argue that global leaders, and managers, will need to be proficient with languages and have knowledge of multiple cultures and experiences in other countries. “They must also have multidisciplinary perspectives, which are essential for problem solving in complex and changing environments. They must transcend the old ways of transactional relationships and seek more enduring, sustainable and transformational relationships. Leaders must empower their employees and seek to facilitate the employee’s development interests” (Oppel, as cited in Torres, 2009).
As the world becomes more economically global, leaders, and managers, must be more culturally diverse-oriented in avoiding ethnocentrism and self-reference criteria approaches and in understanding cross-cultural behaviors and motivations in mobilizing the support of all employees, regardless of geographical and cultural differences. This is a basic requirement for developing effective global organizations.
To this end, Strategy is probably the most basic and the most advanced discipline in management. The basic purpose of strategy is to make a series of moves designed to achieve sustained competitive advantage, which consists of superior performance in comparison to competitors over extended periods of time. Therefore, the fundamental principles of international business strategy should be regularly reconsidered by managers at the highest levels and understood by individuals just starting their business careers.
Please refer to each Activity for required readings within Activity Resources.