The complexities and responsibilities of running a business and managing employees is the first priority for managers, as it holds the highest repercussions, both personal and fiscal, for all parties involved. As the decades passed, this focus shifted from a legal requirement to a social expectation. Tishta Bachoo, Accounting Professor at Curtin University in Australia, explains that companies w… Describe competitive strategies such as low cost, differentiation, and internal competition and the role of the external competitive landscape in developing them. First and foremost in corporate governance is the strict adherence to business ethics on a professional level. For example, in China it is quite important to understand the concept of guanxi (face), particularly as it pertains to paying respect to guests or superiors. Besides economic crunches and staff reductions, there are other issues that continue to plague even the most people-smart managers. Consumers and governments both penalize companies that adversely affect the environment. Economic factors are metrics which measure and assess the health of a given economic region or environment. GET THE APP. High Staff Turnover. ), while forecasting is more critical for the users/consumers of these industries on the business level. Recognizing the potential technologies available to optimize internal efficiency is a powerful asset in management. That is not to say that management has not responded; it has, in two ways: 1. Multinational companies cumulatively employ nearly half of the world’s population, creating a need for managers with a strong international awareness. Businesses also compete internally, an intrinsically complex issue. In the U.S., a strong handshake and self-introduction is a polite start to a meeting. An example of internal competition is PepsiCo. Managers must understand a company’s competitive advantage and build a strategy that takes into account the competitive landscape. Managers must understand their own competitive advantage (what they do better than the competition) to adopt the appropriate competitive strategy to gain market share and remain profitable. Management is at fault for … In such a situation, companies compete directly. This is often difficult for a new mid-level manager who has never quite understood herself. 2. Employees need to know what the stakes are, what the game is and how it’s played. Globalization has resulted in enormous cross-cultural relationships, along with high percentages of domestic diversity. The discussion leads to many further management questions to explore concerning the setting, sector, startup stage, rigor, training, impact, and measurement of outcomes. Change is an invariable fixture of the universe. Differentiation is a competitive tactic wherein companies approach certain niche needs within an industry to capture a segment of the market share. The articles focus on using data to make clinical decisions, finding noninvasive ways to screen healthy adults, and patient-reported side effects and tolerability of a specific assessment technique. Politics play a role in business, as there is a balance between free markets and systems of control. In panel B, both companies’ products have the same value, but Company I’s product has lower cost. Encompassing a macro-environmental perspective, these factors can be effectively summarized with the acronym PESTEL. Let’s look at eight common issues. Economist Milton Friedman makes an insightful observation when he states “…the only entities who can have responsibilities are individuals…A business cannot have responsibilities.” Though this sounds like common sense, it is a fact often overlooked that the only parties capable of acting ethically are those in charge. Critics of globalization cite the way in which it motivates an international culture over established domestic ones, as well as the negative environmental effects that result from business expansion. From a managerial perspective, the global workplace implies an enormous amount of diversity management. There are four key issues that all project managers must resolve when managing projects, issues focused on ensuring project success, preventing project failures, enhancing project team competencies, and cultivating effective project managers. Conversely, in Japan, it is appropriate to wait to be introduced and then bow following the greeting. The figure highlights the primary responsibilities of corporate managers; the upper left corner—accountability—is of particular significance. It is driven by a reduction in trade barriers, advancements in information technology, and transportation technology. Finally the idea of equality became a societal norm that recognizes both the importance and the value of diversity. This chart illustrates the process of moving from an international product to a localized product step by step, making note of the element of production that can be universally applied compared to those that need a localized touch. The opportunity cost is precisely these different viewpoints. Differentiation is an alternative strategy to low cost in which companies fill a specific need that is not being filled or generate a brand image that increases their value-added proposition. As a result, managers should carefully consider how to best localize products to retain cultural identity in the regions they operate. However, as the global economy requires businesses to understand varying perspectives, it also necessitates the cultivation of these diverse perspectives internally. It provides the opportunity to streamline operations and produce higher quantities of quality information. Uncertainty in the global economy, uncertainty in the credit markets, uncertainty in how new regulations will affect business, uncertainty about what competitors are doing, and uncertainty about how new technology will affect the business—these are just the start of a never-ending list. Assess opportunities and threats within the context of external factors using the PESTEL framework. The speed of modern globalization is often attributed to technological developments in communication and transportation, tasking managers with appropriately leveraging these technologies internally. Globalization101.org defines globalization as: a process of interaction and integration among the people, companies, and governments of different nations. Managers are the responsible parties in ensuring these are delivered to the employees in an equitable and legal way. Ethics is at the core of corporate governance, and management must reflect accountability for their actions on a global community scale. The ease of modern globalization is often attributed to rapid technological developments in transportation and communication. Managers must also realize the importance of acquiring technology talent that can keep pace with the environment. As innovation continues to demand a central role in businesses, research and development will continue to be critical to a healthy organization. Consumers and governments both penalize companies who have a large adverse affect on the environment (or reward those who have a positive impact ). Globalization is the international integration of intercultural ideas, perspectives, products/services, culture, and technology. CC licensed content, Specific attribution, http://en.wikipedia.org/wiki/PEST_analysis, http://en.wiktionary.org/wiki/macro+environment, http://en.wiktionary.org/wiki/gross_domestic_product, http://s3.amazonaws.com/figures.boundless.com/509b05c0e4b075bd784056d2/PESTEL.jpg, http://en.wikipedia.org/wiki/Globalization, http://en.wiktionary.org/wiki/Intercultural, http://www.boundless.com//management/definition/localizing, http://en.wiktionary.org/wiki/Multinational+Enterprises, http://upload.wikimedia.org/wikipedia/commons/e/e3/Globalisationchart.jpg, http://en.wikipedia.org/wiki/Professional_ethics, http://en.wikipedia.org/wiki/Business_ethics, http://en.wikipedia.org/wiki/Corporate_governance, http://en.wiktionary.org/wiki/accountability, http://en.wiktionary.org/wiki/profitability, http://en.wikipedia.org/wiki/Diversity_(business), http://en.wiktionary.org/wiki/group+think, http://en.wiktionary.org/wiki/Cross-cultural, http://upload.wikimedia.org/wikipedia/commons/thumb/d/d2/Ethnic_diversity.jpg/1024px-Ethnic_diversity.jpg, http://en.wiktionary.org/wiki/competitive_advantage, http://en.wikipedia.org/wiki/Business_technology_management, http://en.wikipedia.org/wiki/Information_technology_management, http://www.boundless.com//management/definition/synergy, http://www.innovationmanagement.org/Wiki/images/3/3a/Subsequent_Technology_Life_Cycles.jpg, http://en.wikipedia.org/wiki/Business_competition, http://en.wikipedia.org/wiki/Porter_five_forces_analysis, http://en.wikipedia.org/wiki/Competitive_advantage, http://www.boundless.com//marketing/definition/branding, http://www.boundless.com//management/definition/differentiation, http://upload.wikimedia.org/wikipedia/commons/3/3f/TypesofAdvantage.png. 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