Challenge of International Business

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TABLE OF CONTENT

Abstract............................................................................................................................2 Introduction......................................................................................................................3 Background......................................................................................................................3 Problem Formulation........................................................................................................4 Objectives.........................................................................................................................4 Contents………................................................................................................................5 The Significance of Culture for International Management …........................................5 Factors that influences Management Decision-Making...................................................9 Strategic Decision-Making – the PESTEL Framework..................................................10 The Significance of Culture in Strategic Decision-Making............................................12 Comparing Cross- Cultural and International Management…………………...............14 Implications for International Management Practice…………………………...............16 Conclusion……………………………………………………………………...............21 Index...............................................................................................................................22

ABSTRACT

Effective use of cross cultural teams can provide a source of experience and innovative thinking to enhance the competitive position of organizations. However, cultural differences can interfere with the successful completion of projects in today’s multicultural global business community. To achieve project goals and avoid cultural misunderstandings, project managers should be culturally sensitive and promote creativity and motivation through flexible leadership. This paper describes the most well known and accepted cross cultural management theories. These theories consider relations between people, motivational orientation, orientation toward risk, definition of self and others, attitudes to time, and attitudes to the environment. We discuss motivation and training of multicultural project teams and relevant implications for project management. We provide examples of success and failure in international, multicultural projects. The paper concludes that global project management can succeed through culturally-aware leadership, cross cultural communication, and mutual respect. Without them, it is destined to fail.

CHAPTER I
INTRODUCTION

BACKGROUND
The diversity of the world’s population is stunningly apparent nowadays, as the growth of globalization, technology, communication, trading, and economy. The globalization of business and commerce has become an increasingly significant reality worldwide. The rise of globalization posits a number of important challenges to a business seeking international presence. Numerous strategic aspects must be taken into account prior to commitment at an international level, and afterwards. Constant flexibility is required to adapt to changing patterns at local, regional and international levels. Commerce and the exchange of ideas is the essence of international business, and as global corporations compete to provide superior goods and services, they initiate change and development in national marketplace. The term international business refers to commercial activities performed to promote the transfer of technologies, goods, services, resources, people, and ideas across national boundaries. International business occurs under many different formats, from the movement of goods from one country to another (exporting and trade); to contractual agreements giving firms in foreign nations legal permission to use products, services, and processes from...
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