Global Management

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American InterContinental University

MGMT415-1004B-01 Global Operations Management

Strategic Management Plan for PPQ Parts

By

Ivelise Torres

October 16, 2010

Vision Statement

Within the next four years, PPQ Parts goal is to grow and expand globally, increase revenue and their profit share. PPQ Parts corporate value is to contribute to all the local communities in which they do business by donating a percentage of the total company profit and plans in the next four year to increase that percentage. PPQ Parts strive to provide excellent customer services and deliver quality product and will improve its services, especially once global, by increasing employee retention and minimizing turnover by providing training and to all employees and properly train management on multiculturalism and diversity.

Cultural Barriers and Diversity Issues in Global Organizations

Globalizations provide diversity in business as different channels of operation like customers, suppliers and partners to meet the demands, comes from different background of language, culture, religion, race etc. Language issue can be barrier in communication between American and Koreans as they have totally different accent. Political, social and cultural differences also need enough adjustments for workers from different countries which can be stressful to cope with. As Korean bows their head to show respect where as American shakes hand (Billings-Harris, 2007). Shelar (2008) states that manager should show great flexibility and understanding to realize individual differences from different countries and act accordingly to handle them.

Rationality behind Importance of Diversity in International Business

Diversity is the essential component of functional strategy of the organization to promote its presence among the people of various ethnics. The equal employment opportunity commission (EEOC) defines the criteria for defining the diverse workforce in the companies to provide equal opportunities to all. But the diversity in organization also brings management issues due to differences in culture, communication style, belief, style of working, value of time etc for members belonging to different ethnic ground. There should be emphasis on accommodating the differences of people to convert it into strength rather than weakness. The discrimination between employees of certain ethnics creates hostile environment to affect the productivity of business unit. Corporate philosophy is crucial along with management principles to increase the effectiveness and efficiency of the business operation to maximize the profitability of the company. Vision, mission and values of the organization defines the strategy for creating the presence of diverse workforce for exploiting the markets and increasing the revenue of the company (Billings-Harris, 2007). Harris Sussman quotes in his keynote on “The Future of Diversity and the Work Ahead of Us”, "Diversity is about our relatedness, our connectedness, our interactions, where the lines cross. Diversity is many things - a bridge between organizational life and the reality of people’s lives, building corporate capability, the framework for interrelationships between people, a learning exchange, a strategic lens on the world."

Consequences of Ignoring Multiculturalism and Diversity in Global Organizations

Corporate world of USA has realized the importance of cultural perception in effective management. Cross-cultural communication has such a wide range of subtleties and differences; it can become a research topic in any sociologic course. Understanding the cultural views towards work, time and ways of sharing information are focal points in identifying the challenges and opportunities of multicultural workforce. It helps in collaboration of employees to work effectively (Nish, 2005, p. 13).

Work Culture

Individual psyche is created by deep impressions of community and surroundings of his...
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