Global Operations Management
Dr. David Tibbetts
March 30, 2013
PPQ Parts 2 Abstract
Culture barriers and diversity issues are commonly encountered by managers. It is important for managers to know all aspects of the business. Issues often involve infrastructure, business law, business practices, foreign trade, international exchange rates, and politics of other countries. Issues related to legal and illegal payments are important to know as well, including extortion and bribes. Social cultural barriers are also of importance. These include values, beliefs, and demographic trends of the host country. Diversity is also an important topic. It is vital to encourage diversity in the workplace. If multiculturalism is ignored employees may not feel they are being treated fairly. The turnover rate could be high, morale could be low, potential lawsuits, walkouts, and eventually failure. Taking in all of these considerations could help make a company successful in foreign countries. Other countries educate themselves with our values, needs and wants, we should do the same, if businesses want their company to expand globally from the United States.
PPQ Parts 3 PPQ Parts
There are a number of issues that must be addressed when introducing expansion into a host country. External and internal factors affect a nation’s rate of utilization and absorption rate of technologies. Obtainable human and physical resources are comprised internal factors, the country’s infrastructure and its growth rate and state of development the host country must provide. Commerce is conducted into the country by external factors, and the accessibility and amount of global aid aimed at the transfer of such technologies.
The communications infrastructure is of most importance. Intercontinental and domestic links may not be effective or the machinery may not be sustainable. The electrical power may not be dependable. Computers may not be adequate. Transportations and communications may delay progress due to inadequacies. Upgrades may be needed in the host foreign country. The necessary skills will be needed to set up and operate and international company. Cultural environment will be important in formulating how workers are utilized. Often times in less developed countries specialized knowledge is inadequate. There is much competition for the limited, capable individuals within the various sectors. Cultural barriers and diversity issues are encountered by international, multinational and global organizations. Culture is extremely important and should be treated as such. If mishandled it may deteriorate a specific company. More issues may include values, etiquette within business practices, trust and social habits.
Expanding a business globally can bring up a lot of issues both internally and externally. The issues that arise internally for the host country are usually cultural barriers, human resources and production. Local standards become important when hiring people. The PPQ Parts 4
necessary skills need to be available to run a successful company. Hiring local people and using local supply companies would benefit the country and will welcome the new company.
Culture barriers and diversity issues are commonly encountered by managers. It is important for managers to know all aspects of the business. Issues often involve infrastructure, business law, business practices, foreign trade, international exchange rates, and...