Question

In most cases, local managerial approaches must be modified for doing business overseas. What are three specific examples that support this statement?

Answer 1

We can see clearly that a business environment changes when a company decides to take their business overseas as well. The reasons for the change in management style can be contributed to being:-

1. Presence of diversity, which is a major factor when we consider a globalized workforce. Diversity requires a different approach as far as management goes and therefore, we can say that there would be a change in the domestic management style.

2. Cultural differences, which are seen between the different market from the home country. We can say that a cultural change would require a different form of management and as a result, changes would be brought to the management style.

3. Factors such as political and economic differences, which are relevant for any business to understand requires a change in the approach of the management and as a result. The changes are brought due to the nature of the difference between the two countries, political climate, buying potential of the consumer and the general economy of the country.