What Is Global Management
What Is Global Management?
Global management is about maximizing resources to reach the goals and objectives of the business on a global scale.
International and global management consists of the strategies to administer organizations that operate internationally. Global management requires an understanding of the following factors:
Political environment
Legal environment
Economic environment (Eg. free market vs. planned economy, currency, tax, etc.)
Cultural environment
Managing a global organization presents several challenges, including:
Managing and being open to unique cultural elements
Managing cross-cultural Teams
Developing a cultural intelligence and global mindset
It’s very important for global managers to understand world institutions, which can have a huge impact on their decision making. This can be directly through negotiation or indirectly through decisions made by the world bodies.
Who Is a Global Manager?
Global managers not only need to understand business principles, but also need a firm grasp of the local customs, professional life and regional policies of the countries that the company operates in.
Global Manager Job Duties and Skills
As a global manager, you'll be in the position of managing a company's resources in a place with different cultural and professional customs.
As a global manager, you might need to learn the hiring practices of another country or the way that people communicate in the workplace to avoid offending or confusing colleagues, customers and partners.
Global managers need strong communication and interpersonal skills. They need to be sensitive and respectful to cultural differences. Open mindedness and critical thinking skills are essential skills.
Many global managers can speak multiple languages and have experience representing multiple countries.
What Is a Global Strategy?
A global strategy is a detailed plan for how a business or product can be successful all over the world.
Businesses pursue a global strategy when they want to compete and expand in other countries.
The term “global strategy” covers three strategies — international, multinational, and global — that companies must pursue to expand internationally.
Three Types of “Global Strategy”
International strategy: the organization focuses on its home market but it has some overseas objectives.
Multinational strategy: the organization operates in several countries beyond its home market but it uses different strategies for each of these markets
Global strategy: the organization treats the world as one market and source of supply, with little local variation.
Most companies do not have a global strategy, as this takes years to develop and requires large resources. For most companies that want to expand into new geographic markets, it’s more realistic to develop an international or multinational strategy.