Globalization in the World Today Essay examples -- essays research pap

Globalization is changing the way of doing business in the world today. It is the new era of business opportunity. For many major companies, going global is a matter of survival, and it means radically changing the way they work. Economic globalization changes both spatial dimension of MNE’s (Multinational Enterprises) and creates a need for more flexible production of marketing systems and new forms of organization. Firms trying to position themselves as global players face problems such as the cost of building a simultaneous presence in several product areas and foreign markets. They must also be able to manage cultural difference and be able to carry out effective cross-cultural communication. Global skills must be an integral part of an enterprise; these skills must be integrated throughout all operations of the company. Managements handling of diversity will be the most significant factor affecting MNE’s success in the global marketplace. Whether a company is conce rned about the supervisors of minority employees, world trade, joint ventures or global economic cooperation, culture will have a great impact on the relationships and the operations. Edward H. Schein states it perfectly: Consider any complex, potentially volatile issue-Arab relations, the problems between Serbs, Croats, and Bosnians, corporate decision-making, getting control of U.S. deficit or health care coasts, labor/management relations, and so on. At the root of the issue we are likely to find communication failures and cultural misunderstandings that prevent the parties from framing the problem in a common way, and thus make it impossible to deal with the problem constructively (Schein 40). Every company that becomes global should have global leadership. Culturally skilled leaders are essential for the effective management of emerging global corporations. They should have persons in management that are capable of operating effectively in a global environment and they must be respectful of cultural diversity. In China, the conflict in management has been addressed as a major problem for the global-player, such as US and Chinese joint ventures. Joint ventures are designed to improve and eliminate misunderstanding of global-culture differences in management. Some Chinese and American companies try to adapt to one another, but it is not easy. Both sides have found that cultural diff... ...nt issue, such as how will they serve customer, finding local business partner and geographic concern. For example, " Henkel has several join venture across China manufacturing cosmetics, detergents and other product" (Tse, 13.Works Cited Http://www.Chinatoday.com [accessed] 1/08/00 Czinkota, Michael R. The Global Marketing Imperative. Lincolnwood ILL, NTC Business books, c1995 Daniels John L. Global Vision: building models for the corporation of the future. New York: McGraw-Hill, c1993 Dunning, John H. The Globalization of Business. Routeledge Press, New York. c, 1993 Harris, Phillip R. Moran, Robert T. Managing Cultural Differences. Gulf Publishing. Houston TX, c1996 Itoh, Fumio. China in the twenty-first century: politics, economy, and society. Toyko, New York. United Nations University Press. C1997 Maddox, Robert C. Cross Cultural Problems in International Business. Greenwood Publishing. Westport Ct, c1993 Schein, EH. â€Å"on dialogue, culture and organizational learning† Organization Dynamics, Fall 1993. Vol 32 pp, 40-51 Tse, Edward. Strategy and Business & and the right way to achieve profitable growth In the Chinese market. London Press, c1994