Global Ecosystem and its Impact



Over the past decade, the business framework and environment has undergone dramatic changes. Due to the intensification of globalization, international organizations are faced with unprecedented competition and pressures.

Organizations and respective managements have to understand that operating in the global marketplace multiplies the variables and interdependencies to be considered while making decisions. The volatile global dynamics make the decisions and plans of today outdated by next month.

Global Ecosystem Impact

The need for companies in this environment is global executives and managers who apart from analytics, skills and technical insights are able to be effective in such diverse and dynamic settings.

Thus, international managers are required to operate in the global context with changing workforce while dealing with unknown rules and regulations that are subject to unprecedented changes. The development in transnational trade has resulted in higher global standards of productivity and quality. This has changed the guidelines of leading and managing businesses internationally, making it much more complex and challenging.

Challenges Faced by International Managers

International managers are constantly faced with multiple challenges, which need to be properly understood and dealt with. Some of the challenges are −

  • Conduct business under local legislations in different countries, languages and currencies, for serving local markets while complying with global company standards.

  • Location-specific risks like unstable economies and governments, security concerns and labor availability.

  • Work and deal with employees from different nationalities and cultures, which requires a lot of understanding.

  • The ever volatile global markets, its infrastructure and the technological disparities among countries.

Overcoming Global Challenges

Organizations have to understand these challenges and work on ways to overcome them if they are to conduct successful business globally. The have to develop competencies that will enable them and their managers to effectively manage and lead international companies.

Global Competencies

Multinationals should develop global competencies based on factors like the kind of global presence the company desires, the number and type of international or global jobs it requires, etc.

Business Competencies

Business competencies involve developing business knowledge and understanding of the global business environment.

  • Understanding how the company fits into the global marketplace, including business strategies and products, and the organizational resources to pursue global market opportunities.

  • Understanding international business issues, global social, political and economic events.

  • Balancing global versus localization issues.

  • Creating learning systems for management focused on managing and leading global organizations.

  • Effective strategic planning and analysis of global trends to manage uncertainty.

  • Developing flexible policies and procedures adaptable to changing situations.

  • Groom globally competent managers through global leadership and development programs.

  • Ability to change leadership and management styles and approach based on global situations.

Personal Competencies

Personal competencies are cognitive and affective abilities that enable managers to operate in the global environment.

Learning − An important trait that enables managers learn about the work environment, the organization, the external environment and how these elements interact.

Global attitude − Sharing information, knowledge and experience across national, functional and business boundaries, and balancing business and functional priorities that emerge in the globalization process. Also includes flexibility to change leadership style and approach based on the socio-cultural behavior patterns.

Intercultural competency − Knowledge of the culture, language, cultural standards, and behavioral skills such as optimism, empathy, human warmth and the ability to manage anxiety and uncertainty.

Every international organization therefore has to carefully consider its vision and long-term strategy suitably and develop its competencies. Successful multinationals are those that have been able to break the cross-border, cultural and socio-economic barriers, aligning and localizing themselves to the countries they operate in.

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