International Business Essay
International Business Essay
International Business Essay
In the 1980s, the leading industrialized countries in the world started a period in which they exploited the opportunities of doing work together in order to improve their general economies. They went on to seek comparison in terms of advantages and disadvantages in regard to the county's ability to produce some services and products that are cheap, but of high quality. Therefore, it is easy to find that competition arises when one company has realized that it expand its business to another country, or investors open a new business in another region, after monitoring how a company of the same production performs in a different region. What does come in business people's minds is that there are two different governing bodies in these two regions.
In this paper, I am going to investigate two similar firms that operate in two different regions, and exploit the challenges that they may be facing while in the regions.
Body
I have identified two airbus firms that are situated in Country X and Y. Country X is in Europe, while country Y is in Asia. The two firms, in terms of operations, offer very similar services, except that they are situated across two different continents. These two continents experience a lot of cultural, political and social aspects.
Country X is very politically stable, and has an ample environment that is ideal for tourists. Their diverse cultures are a tourist site and because of security, visitors throng this country in large numbers. On the other hand, country Y is faced with a civil crisis, since they have been going through long periods of civil strife. Different countries have also warned their citizens against visiting that country, lest they be caught in the melee of the war. The civil strife has pulled down its economy, since their major income earner-tourism- is adversely affected. The hotel industry is in the verge of shutting down since there are no visitors to enjoy their nights in the town suburbs. The legalities are also different, since in country X, there is no cumbersome procedure of securing travelling documents, while in country Y, one must undergo an intensive security scrutinizing before being given travelling documents. Moreover, country X experiences very stable winter period, whereas country Y experiences a lot of winter, accompanied by snows.
It is imperative to ascertain that prospective individuals in the managerial positions in the two firms have different ideologies in relation to their management. Contemporary international managers must show their will to depict a higher level of skill that those demonstrated by the ancient traditional managers. The managers must exhibit multilingual skills that can assist them in comprehending the diverse linguistics in the world. The managers must be sensitive to the differences that occur in cultural aspect and must be well conversant about the current global management theory, philosophy, psychology and their practical modes of applications (Earley,1997).
The managers must be able to acquire skills that are intended to become successful in international levels more so because the global market will continue to expand in the near future (Rhinesmith, 1996). In order to be successful managers who operate the same businesses under different environments. There are three approaches that must be applied by international managers; ethnocentric, polycentric and geocentric.
The ethnocentric approach is whereby the management applies the same practical styles that would significantly work in their own home country. Through using such an approach, managers may be left vulnerable to very devastating mistakes. This is because what may work in country X may not necessarily work in country Y. a wide range of companies have made various mistakes simply because the some managers have tried to carry with them their management techniques to different countries, and they ignore the advise given to them in the foreign land.
In the polycentric approach, the management should strive to employ as much as possible, the local people as possible. This is because the local people are very conversant with their country's culture, language and work ethics. The local population stands the best chances of becoming the candidates in the managerial positions. However, this approach can be successfully applied in developing countries, but in the already developed countries, the local workers may at times not have the best business skills as well as management skills (Deresky, 1997).
Finally, another approach that can be implemented is the geocentric approach. In this approach, the best candidates, irrespective of their country of origin, should be placed in the management positions. This theory asserts that business problems tend to be the same irrespective of the current business region. This approach is considered as the most difficult method to apply, since the aspiring managers must learn pretty well the local and global problems (Hodgetts, 1994).
International managers must be able to know what underlies in their home country. They should be able to evaluate their own country and ascertain whether the country in described as developed, less developed and newly industrialized. Once they have assessed and analyzed their business country, they turn their efforts in analyzing other aspects such as political and socio-cultural features. Politics are an important factor in determining the fate of a business. It is imperative to note that developed countries tend to be stable in regard to politics, as compared to the developing and less developed countries which are more prone to political and civil strife (Griffen, 1996).
It is equally important for international managers to be aware of socio-cultural elements such as attitudes of the local people, values, norms, beliefs, behaviors and demographic trends. In order to easily learn these aspects, it is important for the managers to acquire self-awareness so that they may recognize and be able to culturally control specific behaviors.
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