International management context and challenges

INTERNATIONA
L
MANAGEMENT:CONTEXT AND CHALLENGES
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INTRODUCTION
Types of international company:
 Multinational
 International
 Global
Context of the international management:
 The international management context differs from domestic
business to the international business due to the involvement of
three different environments such as international, domestic and
foreign platforms
 Three different contexts are global management, global culture
and ethical consideration and corporate social responsibility

International
Management: Context
 The situational analysis indicates that political, economical,
social, cultural and the technological environments influence
the mode of the international business operation.
 At the same time, the liberalisation policy of the operating
country also influences the trade barriers, FDI and opening up
of the economies. In addition to that, technological business
environment relates the innovative communication process and
safe business delivery practices as well. Thus, the managerial
decision making and business negotiation process get
influenced by those international business activities.
 Acquiring the foreign market knowledge by learning phase and
using a Uppsala model is found common approaches initiated
by the market players

International
Management: Context
Uppsala Model:
 A learning model in the foreign market entry
 Creates initial commitment of the resources
 Evaluates specific activities
Different Approaches of the Foreign market entry:
 Joint venture
 Mergers
 Acquisition
 Wholly owned subsidiary
 Franchising
 Licensing

Structure of Uppsala
Model and Joint Venture
Model

International
Management: Context
Cultural context:
The cultural variation occurs in four different phases such as
 Domestic phase
 Multi domestic phase
 Multinational phase
 Global phase
Cross cultural management:
 Parochialism
 Non Parochialism

International
Management: Context
 In the case of international business management system, the
issues of the social responsibility reflect the lack of equivalent
opportunity around the globe. The international social
responsibilities of the multinational companies include the
social and economic effects of the decision making process.
 The increased complexity regarding the social responsibility
and ethical behaviour of the leading companies is discontinuing
the occurrence of corruption, child labour and econo
 After analyzing the entire context it has been identified that the
social responsibilities and the ethical standards are the integral
part of the global operations of the international leading
companies. mic failure.

International
Management: Context
 The geocentric approach of the cultural model integrates the
interaction between the companies and the host countries where
the leading companies are currently operating.
 In this similar circumference, Yasin and Bélanger (2015) stated
that the ethnocentric approach of the cultural model holds the
values of the companies and the home countries to each other.
 It is the proven fact that this approach helps to improve the
business integrity while operating in the international marketplace.
In the addition, the highly accommodating polycentric approach
encourages both the companies and the home countries to adapt
the culture of each other.

Structure of Global
Mindset Model

International
Management: Context
 Lack of potential market supporting strategy force the companies
to trade in much more casual basis. In the opinion of Farred
(2011), if the property rights are protected it can help to fuel on the
innovation and more economic business growth in the international
marketplace.
 The political and legal system of the home countries opposed to
individualism and refers to a system that stresses the primacy of
the individual goals and the combined goals of the companies
while operating the business in a cross cultural environment.
 The increasing awareness of the global ethical consideration and
the social responsibility reduce the problem child labor, economic
failure and the corruption.

References
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