martes, 15 de enero de 2013

WHAT IS INTERNATIONAL MANAGEMENT?


Business is becoming increasingly global. The barriers to trade continue to fall, and level of trade among countries continues to rise. The result is that a firm’s competitors may no longer be in the next state or province but in a country that it hardly knew existed a few years ago.

Nowadays many products are purchase in a different country where it produces. This is actually what it happen around the world. For instance, the cars that we use, all the parts are from different country or region; tiers made in United States, the technology that the car  is using is from japan, after  car is assembled in Mexico and finally the car is ship it to Colombia to sell it. The example show us how the business manages today, the majority of the product are made in one country, and then is commercialized in another one. Today, we can see that the business is global. Companies around the world must be interdependent network in order to be competitive in the market.
Other example that show us the idea of globalization is; “Product such as marble monuments and headstones could previously be produced in the United States in Vermont or Georgia and be assured of a relatively secure market. Yet today it is cheaper to mine in china, produce a monument there, and ship it to the United States than to produce the same product domestically”[1]. These two examples previously mentioned show us the way of produce many product today, due to the globalization the way to produce and do business is completely different, in the way that now your competition is not local, but global. Nowadays this is one of the main reasons that many companies around the world declare in bankruptcy, the competition is too aggressive, and if you are no prepared to be competitive in the market ,the only way that companies has is to shut down the factory and every day will be harder to maintain in the market.

Furthermore, we can see the difficult assignment that Managers and CEO of different enterprises or medium-size company face  it in nowadays, they must think global, as a manager we need to think what is the best for our company, in order to succeed and be competitive with our competition, for instance, if we produce shoes, we need to think where can we get our raw materials, machinery, technology and so on in lower prices to get a minor prices in our final product and be more competitive in the market, to accomplish this aim, is possible that we need to import this material from a foreign country where is “cheap” or we can purchase a lower price than our country, in this process we need to interact with other culture, persons with other way to do business and different way of thinking, with political issues, logistic, social and economic aspects, that we need to manage perfectly, if we don’t want to fail.

According with I mentioned before, an international manager need to have several new skills that permit him adapted with the different countries and cultures they might deal with. They need to understand the different political, cultures, social and economic aspects of the countries in which they are going to do business with.
Due to the globalization, the way of doing business is changing, in order to succeed in this process, companies would need skilled management able to take advantage of the opportunities propose by the globalization and not to take the globalization as obstacle.
The book International management: concepts and cases define, “international management as the determination and completion of specific actions and transaction conducted in and/or with foreign countries in support of organization policies”[2]. In other words international management it is the practice of managing business operations in more than one country, as I showed in the past examples. In order to succeed there is a particular  type of skills, knowledge and understanding needed by managers who are in charge of operations that involve people from different countries and cultures, this will be the daily basis for many manager how are in charge of many companies around the world.

Other definition of  international management is :“Management is about people working in organizations, and international management is about people from many cultures working together, competing against one another, or trying to cope with another’s differences. “[3]As we see in this concept international management go beyond than local managing with people of the same culture or way to do business than yours. to accomplish a successful international management it is important to make a process of adaptation, because as the definition says, now you might be working with people that have a different  way of thinking,  languages, politics and ways to doing business so is important to be open minded and find the way to manage this situation the best possible. Because of this, is important to investigate and understand how thing work in those countries.
The international management encompasses all activities of an enterprise in locations outside it is home country. These include the operation of branch offices, working with companies or the posting of workers or might be your position that now needs you to move abroad, According to this, Managers must have the ability to managing and controlling all the operation abroad and have excellent relation with the new labor forces, that might be different that yours, as we know labor force is an important part inside of the companies.

“Decisions made within the organization are influenced by internal factors such as strategy and the skills held by the labor force, and factors within is business environment , including the market and he activities of competitors.”[4] Due to this, we must consistently comply with the new work atmosphere that gives the work abroad and find the best way to manage and control any situation that arises with co workers. Additional to this is the best strategy for achieving put us in the best position in the market and our competitors. It’s important to apply management concepts and techniques to their contexts in firms working in multinational and multicultural environments.

“The primary factor that has prevent the creation of a culture of excellent in many international business firms is that they have tended to be over managed and underled. Managers in these organizations may excel in the ability to handle the daily routine, yet never question whether the routine should be done at all. In this regards, there is a profound difference between management and leadership, but one should readily organize that both are important. To “manage” means to bring about, to accomplish, to have charge of or responsibility, for and to conduct. Leading is influencing, guiding in direction, course, action, and opinion. The distinction is crucial. Managers are people who do things right, and leaders are people who do the rights things. The difference may be summarized as activities of vision and judgment, which facilitate effectiveness as a leader, versus activities of mastering routines, which facilitate efficiency as a manager. “[5]

In conclusion, there is no questionable doubt of the important of international management in the international and national context. Nowadays companies need manager’s skillful Sound business skills and expertise are essential to address internationalization. As open as a result of globalization, more and more companies looking to get into new markets thus increase the demand for qualified employees. You need both a solid business knowledge base and a corresponding know-how regarding the way of dealing with specific cultural characteristics and socio-economic circumstances. Language skills and mobility are just as indispensable as the joy of dealing with other cultures.




[1] Ahlstrom , D & Bruton, G 2009 , International management: Strategy and culture in the emerging world, Cengage Learning, United States
[2] Thakur M , Burton G &  Srivastava N, 2001 International Management: Concepts and cases, McGraw-Hill Education,
[3] Holt, D, J 1998,  International Management: Text and cases, Dryden Press.
[4] Mead, R & Andrews, T 2009, International management, 4th ed. John Wiley & sons Ltd , England.

[5] Raimo, W & Darling, J 1997, International management leadership: the primary competitive advantage, International business press, New York.



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