Question

Research any literature/articles that address globalization and its challenges in the context of management…..Discuss in specific terms the challenges and how they are or can be overcome and their respective applicable solutions. Highlight the strategic approaches that managers develop and implement to gain a sustainable competitive advantage. Is globalization a greater challenge or threat to dynamic organizational structures than static organizational structures? Elaborate how you could device a workable method to resolving the challenges or threats. Provide logically-connected organizational management leaders who have made history in this regard.

Answer 1

Answer:

The main challenge of globalisation as per times magazine of New York City is becoming globalised. Most of the organisations want to become globalised and expand their reach to the customers of different location but they fail while entering in the global market. The main challenge is the entry in the new market. Organisations fail at this initial step only. It becomes highly difficult for the organisations to manage the customers from the remote locations when they opt to sell their products from the domestic market into the foreign markets through the use of channels such as strategic alliance with the foreign company, export and franchise and through e-commerce.

One of the solutions to this problem is to establish a strategic business unit in the foreign country, but that requires huge amount of investment to be made and there is a uncertainty related to the product life cycle in the foreign markets. Another solution and the best among the one is to establish an e-commerce website in lines with Amazon. Organisations, if fail to become a successful globalised company through e-commerce, then it is because of the design and economies of scale. Company should design a highly attractive website which could be exceptionally easy to operate by the customers. It should also support the grievance redressal system where the issues and feedbacks of the customers should be effectively handles. Moreover, company should implement the cost leadership strategy to become successful in the foreign markets.

Globalisation is a greater challenge to the static organisational structure as globalisation requires the change in the system according to the cultures of the countries in which the organisation is pitching in. In order to effectively handle this challenge, organisations are required to hire and train the culturally diverse workforce that could get adapted to all the cultures of various countries.

There are exceptional examples that have set benchmark in terms of getting globalised. To name few, the list includes StarBucks, Amazon, Unilever, BMW, Mercedes, etc.