Global Challenges for Business, Management and Leadership

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Global Challenges for Business, Management and Leadership

Individual Assignment


2.0.The Challenges5
2.1. Challenge 15
2.2. Challenge26-7
2.3. Challenge 38
2.4. Challenge 49
4.0.Bibliography/ List of References11

The aim of every business set-up is to maximise productivity, which is why efficient business management becomes important. Although, the purpose of having a management theory is to drive an organisational workforce in achieving a certain goal, however, it does not necessarily result in people becoming more productive towards that goal. Boddy (2008) defines management as: ‘... the activity of getting things done with the aid of people and other resources’ Hence, to achieve a business goal a manager needs the help of other people (employees) and resources. There are different levels of management in different organisations – depending on the size of the work to be done – which enables management to be seen as a distinct role; Boddy (2008) states that: ‘Management as a distinct role develops when activities previously embedded in the work itself become the responsibility not of the employee, but of owners or their agents’. This means that different levels of managers perform specific roles that lead to the whole team achieving their target at the end of the day; therefore managers at the top level are responsible for those at lower level. The different levels of management in a typical large organisational setup include: * General managers

* Functional managers
* Line managers
* Staff managers
* Project managers
Many managers use earlier approaches to management models which are known to be the successive models; they include: * Rational goal model
* Internal process model
* Human relations model
* Open system model
According to Boddy (2008, p. 38), ‘Most management problems can be understood only by examining them from several perspectives, so no model offers a complete solution’. Hence, the different models should be taken into consideration, and should be integrated in order to achieve successful business management. This notion is however, supported by Boddy (2008, p. 43) which states that ‘While each model adds to our knowledge of management, none is sufficient in itself – the four are complementary elements in a larger whole'. (Quinn et al., 2003 cited in Boddy, 2008, p.43) therefore, presents a diagram of the integration of the various models in what it termed as the ‘Competing values framework’, as can be seen in Appendix 1. This report, however, highlights some challenges facing some organisations and based on the four management models, a solution is offered to that challenge.

2.1.Challenge 1: BMW and the credit crunch
Company Background
BMW, abbreviation for Bavarian Motor Works, was originally as a manufacturer of aircraft engines and was founded by Karl Friedrich Rapp in October 1916. The company is well known as one of the world’s best manufacturers of luxury sedans, SUVs and sports cars under the BMW, MINI and Rolls-Royce brands. With its headquarters in Munich (Germany) and other branches including the U.S., the U.K., Austria and South Africa, the company sold a record number of BMW, MINI and Rolls-Royce brand vehicles to customers in 2007, with sales volume rising by 9.2% to 1,500,678 units (2006: 1,373,970 units). ( According to BMW’s ‘Annual Report 2007’ the company generated revenue of €56.02 billion and a net profit of €3.135 billion at the end of the trading year. The credit crunch

As of August 2007, the global economy was faced by the greatest downturn as house prices were falling at their fastest rate on record, unemployment was rising, food prices were rising and businesses were facing...
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