Managerial Function in International Business
Importance of managerial function in international business
When it comes to international expansion of a business, there are many things that the organization must keep in mind. An international business may function similar to a domestic business, however, the procedures and technicalities differ. Due to level of increasing competition between the global companies, it is of utmost importance that the employees are trained to be flexible enough to change and adapt to the changing conditions of the market. The management of the company also changes with developments in the company and managers are required to communicate the changing and new vision of the company to the other employees of the company.
An employee designated to be the international manager of an organization will have similar roles to that of a domestic manager however with the exception of changing work environments and other varying conditions. Depending on the same, the major functions of an international manager will be as follows:
The first and the basic step of any work is proper planning. An international manager is responsible for planning a business goal and functions depending on the global scenario. Whether it is profitable to export materials or import domestic goods, enter into joint ventures or work through licensing agreements, or function as a multinational business entity with facilities available in international locations, all must be planned according to the business requirements and global vision of the company. Certain factors such as study of close competitors, governmental pressure, currency stability as well as ongoing political scenario should be accounted for properly.
One of the major concerns that may pose a concern to a functioning international business is that of response from the host country. When a company plans an international venture, the manager should keep in mind and