The Major Issues Relating To Managing a Global Corporation

The Major Issues Relating To Managing a Global Corporation - Short Essay

Rising level of global competition

produces more multifaceted environments for managers of global corporations to deal with. The diversity of countries, consumer behaviour, and management styles requires local adaptations combined with a global strategy. New organisational structures and administrative methods are intended to cope with this increased diversity. Global corporations have modified a variety of solutions, such as devolution and matrix structures to condense the strategic variety that top managers have to manage with at the corporate stage, but they are not adequate. Top managers of global corporations have to widen a “world view” or “frame of mind”. In addition the executives in the top management team have the meticulous function to incorporate strategies across business sectors and geographical zones. As a result, the intricacy of top managers’ psychological maps of their contest should match the complication of their global strategic systems. (Mourdoukoutas, 1999)

Even in organisations focused on their domestic markets

executives cannot overlook the commotion created by new competitors coming from foreign countries. Ethnocentric preconceived notion leads to strategic myopia in a global market. Catching up with globalisation trends develops into extremely difficult for late movers unless they can generate considerable competitive advantages. It lessens the scope of events considered by managers and freezes the strategies learned in the home market. At the organisational level, global competition should encourage knowledge flows across borders.

In conclusion, management priorities for any organisation reflect the alignment, or fit, between the central features of an internal organisation and the demands of its external environment. In terms of dependencies, certain management priorities lend themselves to more success in some competitive environments than in others. (Johnson, 2003) Organisations that continue a higher degree of organisational consistency, that is, greater corporate-wide open-mindedness for arrangement among different management styles, should be more victorious than corporations that have a less robust competitive capability.