Assignment
For this assignment:
Please reply to 3 classmate's post that is below.
150 words or more
APA format
3 scholar references
In cite citation
Response 1
Why Global Managers?
In this class we have learned about the globalization of business and its intricacies. I have posted about barriers to trade, export financing, and hedging. For my last post of this class I think it proper to discuss how you manage these instances. Global manger has become a bit of buzz word in the business word as most companies seek opportunities outside of their geography. That said, you don't have to be an international company in order to have to manage people that are from a diverse background and culture. It is more important than ever the managers of a company are able to navigate cultural and social complexities that come with the world that is becoming smaller by the day. By learning what being a global manager entails it will allow the reader to understand what a vital concept this is for global business in the 21st century.
What is a Global Manager?
The term global manager doesn't necessary pertain to an actual job title, but is more of a set of skills or an idea of what a manager needs in this global marketplace. When you look at the cultural differences amongst all the countries in the world it is easy to see that the leaders of a company need to be able to deal with this. When you are managing a team that can span globally it is important for that manager to get some insight into the intricacies and nuances of those cultures. Even if a manager isn't him or herself managing those from another county they are still likely to come into contact with those from another region in the course of business. Deals can be won and loss by how they are able to deal with the diversity they face. They must think like a diplomat does.
The New Global Manger: Learning Cultures on the Fly
It has been characterized in popular culture, though many would argue some truth in, that Americans rarely take the time to take in the culture when they are travelling (Nardon & Steer, 2008). In this world that is increasingly interconnected by the advancement of travel and internet it is a major challenge for today's managers to deal with people they don't understand (Nardon & Steer, 2008). It is easy to blame this on language barriers, but that is over simplifying the matter (Nardon & Steer, 2008). The biggest issue facing those whom deal in international business is the difference in cultures (Nardon & Steer, 2008). As Nardon and Steer state in their article, "how can we trust or do business with prospective foreign business partner when we know so little about them" (p. 47, 2008). It may be easy when you deal with one or two counties only, but that is rarely the case in today's business environment. The key here is to learn to be able to adapt and learn about another culture as quickly as possible (Nardon & Steer, 2008). The first of the three proposed ways for a manager to accomplish this is called cultural fluency (Nardon & Steer, 2008). This is simply learning the language and culture of the country and to immerse yourself in it (Nardon & Steer, 2008). The second is to develop of global mindset (Nardon & Steer, 2008). To take yourself outside of your culture and region and place that in the place of a global citizen will enable you to more easily gain cultural fluency (Nardon & Steer, 2008). The last subject is one that will be touched on briefly due to constraints, but it ties the previous two together (Nardon & Steer, 2008). Learning cultures on the fly refers to the ability to use a basic framework in order to expedite the process in which one would be proficient in another culture (Nardon & Steer, 2008).
Discussion
How Does Learning Cultures on the Fly Tie into Global Mangers as a Whole?
It is easy to say that you should just study as much as you can about a culture and call it day. Maybe do some Wikipedia research and learn some basic knowledge of the country. I can tell you from personal experience in my time as a Marine rifleman in Ar Ramadi Iraq that it is not enough. I learned a lot about the history, culture, and religion of the region, but when put into practice I will ill prepared for what awaited me in real life. Just like a manager initiating trade or deals with a new foreign partner it is easy to think that you know what you are talking about. The biggest example that I had overseas in the Middle East was the concept of punctuality. Here in the United States we live such a structured life and we are about schedules. When we planned to meet a leader of a tribe and planned a date he was 4 hours late. Of course we were frustrated, but we later learned that they do not abide by schedules the same way we do. They show up and conduct business when they are ready not on someone else's terms.
Tying Together Additional Resources
Barakat, Lorenz, Ramsey, and Cretoiu's article deals with the impact of cultural intelligence plays on job satisfaction and performance. This was good example of the practical effects a successful global manager can have. Tung's article deals with examples of the success of female expatriates have had being global managers. This was good to be able to focus in on a demographic and show the diversity of the field. In line with this I chose Griffith and Hoppner's article to show a section of the industry, marketing. One of the biggest players in the global market is the marketing of the products that are sold internationally (Griffith & Hoppner, 2013). It is very hard to sell something to someone that you do not understand (Griffith & Hoppner, 2013). Finally, I chose Babu's article to show a country specific distinction in the field. India is quickly becoming an international export giant the way the China was decades ago and it is more important than ever that their managers become adept at cultural fluency (Babu, 2011).
Response 2
Key Term and Why You Are Interested in It
I am interested in the key term "Expanding Into the Global Marketplace" because of its diversity. If a company wanted to expand their business they would have to do research and talk to experts about the next steps. The company can ask their Human Resources department to look into who to contact in order to talk about plans. This is where someone like me who is hoping to jump into this field comes into play. Plus, I have always wondered how companies are able to make that transition when wanting to take their brand global. In my recent GBCA paper Australia was having trouble with their businesses going global and losing jobs.
Explanation of the Key Term
Expanding Into The Global Marketplace is when a company decides to consider opportunities to try promoting and selling their products overseas. Before making this transition a organization must first consider a few possibilities. They should start by identifying their strengths and weaknesses and understand how it could apply overseas.( Satterlee, 2014) By doing this it will tell if their product will have any profit in the area they are researching. The transition would go smoother if foreign relations were established before hand and willing to adapt is easy to agree with. When first starting off execution from all levels of management is going to be the most important part. There is going to have to be times where hours are much longer, and sometimes you will have to travel overseas in order to insure a smooth transition.
Major Article Summary
The article I chose deals with Netflix finally branching out into the global marketplace. In 2016 Netflix CEO Reed Hastings set a goal for his business, wanting to make Netflix available everywhere in the world. Netflix is now available in every major market in the world except for China sparking research into why this has not yet happened. In order to expand Reed Hastings and his management had to do research on which markets had available broadband. A nation/territory needs to have internet in order to be able to use Netflix.
Also some nations/territories try to shy away from using things like the internet due to lack of money so it could be less entertained. Before trying to branch out to unfamiliar markets Netflix chose to work with local languages. Netflix is dedicated to adding a few dominant languages to their repertoire that could move their expansion forward: Chinese, Korean, and Arabic.(Levine-Weinberg, 2016) It does not appeal to many markets that a English only version will be able to succeed. After doing research Netflix realized that they would have to worry about spending a lot of money on content licensing because they own most of it already. Their worry is going to be adding languages which is going to take expenses in rounds of expansion.
The cost of entering a new market from now should become lower which will make it an easier transition. Their will be major expenses when it comes to marketing themselves in other regions. It will not be able to branch out and succeed if nobody will extend a hand in helping promote this product. As of now Netflix is experiencing international loses but expect for it to be for a good cause due to expansion. If domestic streaming starts to slow then a problem could occur with finances.
Discussion
The cited work relates to my key term because it deals with expanding business. Netflix went through the protocols to figure out how they can become a more global business. The factors of depending on domestic income to stay stable was very important due to loss of revenue Netflix has to experience in global marketing transition. Netflix going global relates to this module just based off Chapter seven's title "Global Market Entry". Entering into a global market has to be taken very serious by major businesses because one slip up could mean a bad reputation. This module explains options for a CEO to consider when wanting to research how their products can benefit other territories.
The first work I cited dealing with Expanding Into The Global Marketplace deals with reasons why many companies do not succeed. It explains some steps in which a CEO leaves out when considering options for relocation. Staying local will keep a steady income and products will become well known. Sometimes a CEO does not have enough revenue in order to keep up the transition. The second cited work deals with ten reason companies decide to try branching into global marketing. They feel that once their product succeeds in one territory it could open up a field of foreign relations in order to keep growing. Some territories offer really cheap labor which could mean more money for a CEO to think of future expansion. My third citation explains why Starbucks is expanding its business in China even though their economy is slowing. Starbucks is thriving in a slow growing economy and tends to build more businesses in this territory. My final citation is about why American businesses are failing to succeed in China's economy. China is seen to be a nation where businesses can not get a clear angle on how to transition. Netflix is going to transition into this economy hoping to prove that they can be viewed in every part of this world.
Response: 3
Key Term and Why You Are Interested in It
This week I have chosen to discuss the concept of Standardization vs. Adaptation. I am interested in learning more about this term because I believe it can apply to any aspect of life. The key decision I believe is whether we chose to standardize or adapt. It is within this aspect that I what to gain a better understanding of the causes and factors of each. With regards to international business, I am curious to better understand if there are any key points or deciding factors that cause international companies to choose to standardize or adapt, whether it be cultural, social or economic factors.
Explanation of the Key Term
Standardization versus Adaptation is a concept or even requirement within international businesses. The idea stems from various cultural, social and economic factors that must all be considered when introducing a new product on a global scale. The idea behind the key term is that companies must choose whether they want to standardize or adapt. Standardization is concept that a product and its manufacturing remain uniform throughout the entire process regardless of various outside influences. Adaptation is where a company realizes potential shortfalls within a specific area and amends the product or manufacturing process to increase the product marketability. An example of this would be various vehicle manufactures. Vehicles sold and produced overseas have different requirements than those sold in the United States. Because of this, vehicle companies are forced to adapt to US standards in order to sell vehicles with United States borders.
3. Major Article Summary
The debate of whether companies should standardize versus adapt is one that continues to rise as the global economy continues to strengthen. Authors Marios Theodosiou and Leonidas Leonidou present a well-established argument in their review Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. They discuss how standardization forces market similarity and technological uniformity while offering additional benefits of the following:
Significant economies of scale in all value-adding activities, particularly in research and development, production, and marketing; (b) the presentation of a consistent corporate/brand image across countries, especially in light of the increasing consumer mobility around the world; and (c) reduced managerial complexity due to better coordination and control of international operations.
The authors then discuss that the adaptation approach varies based upon consumer needs, societal infrastructure, cultural traditions, laws and infrastructure. They criticize that the idea of standardization overcomplicates an already simple concept and contradicts the marketing concept. They end their discussion about adaptation by stressing how the objective of a company should be to earn profits. While standardization might offer the potential for a company to reduce costs within specific areas, long-term sales through adaptation would likely far outweigh the potential savings from standardizing a product or service by allowing companies to exploit specific consumer needs across countries and cultures.
By discussing the findings of a group of third party researchers, the authors validated that the decision to standardize or adapt is situation dependent. The third part researches concluded, "the decision to standardize of adapt the marketing strategy is situation specific, and this should be the outcome of thorough analysis and assessment of the relvant contingency factors prevailing in a specific market at a specific time." (Theodosiou & Leonidou 2003)
The authors conclude their study by stating that the strategic goal for international companies, with regards to standardization versus adaptation, remains unresolved and inconclusive.
4. Discussion
A. The above work by authors Marios Theodosiou and Leonidas Leonidou relates to my explanation of the key term by posing similar questions. The authors conducted a study on the topic and primarily found that their results were inconclusive in presenting a definitive argument or reason as to why companies should standardize versus adapt. The authors give adequate pros and cos for each reason, but the findings from the third party researchers relate most the explanation above. In regards to the content assigned in the course, the book, Cross Border Commerce, focuses primarily on the definitions of standardization and adaptation. The assigned reading offers no insight as to what factors may potentially be beneficial for companies to choose one or the other. This further strengthened the claim by the third party researchers that the various cultures, social and economic factors play a significant and deciding role as to whether companies standardize or adapt.
B. The primary concept that was most common when doing continued research on the subject is defined by Rekha Rao-Nicholson and Zaheer Khan in the article Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions. The author's conclusion states "institutional factors have a stronger effect than organizational identities on global marketing strategies, including branding." (Rao-Nocholson & Khan 2017) This statement is supported by the additional sources researched for a better understanding of the key term. The overall consensus of the debate is that the decision to standardize versus adapt depends solely on the goals and vision of the company, combined with the social, cultural and economic values of the region. The debate will likely continue as companies continue to invest and produce products within economies, cultures and societies that are vastly different from the parent company. As globalization continues, firms will be forced to decided which products to standardize, and which to change.