GLOBAL MANAGEMENT

GLOBAL Management in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management is also an academic discipline, a social science whose object of study is the social organization.EtymologyThe verb 'manage' comes from the Italian maneggiare (to handle, especially tools), which derives from the Latin word manus (hand). The French word mesnagement (later mnagement) influenced the development in meaning of the English word management in the 17th and 18th centuries. DefinitionsViews on the definition and scope of management include: Management is defined as the organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives Fredmund Malik defines as Management is the transformation of resources into utility. Management included as one of the factors of production - along with machines, materials and money Peter Drucker (19092005) saw the basic task of a management as twofold: marketing and innovation. Nevertheless, innovation is also linked to marketing (product innovation is a central strategic marketing issue). Peter Drucker identifies marketing as a key essence for business success, but management and marketing are generally understood as two different branches of business administration knowledge. Andreas Kaplan specifically defines European Management as a cross-cultural, societal management approach based on interdisciplinary principles. Directors and managers should have the authority and responsibility to make decisions to direct an enterprise when given the authority As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing a firm's resources to achieve a policy's objectives The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms, the board of directors formulates the policy that the chief executive officer implements.

What Is Global Management?Global management refers to the way an organization manages its business internationally, including its sales, marketing, hiring and finance practices. Many schools offer training and degree programs in global management. Read on to learn more about responsibilities in this field of management and education programs that can prepare you to enter this career. Schools offering International Business degrees can also be found in these popular choices. Overview of Global ManagementAs technology continues to connect the world, many organizations have taken advantage of the opportunity to conduct business globally. Global management combines knowledge of business, culture, history and social practices to help companies find their niches in the international business community and successfully work with other cultures. As a global manager, you'll not only need to understand business principles, but you'll also need a firm grasp of the local customs, professional life and regional policies of the countries that your company wants to partner with. Many companies also look for managers who speak multiple languages and have experience representing more than one country, as well as those who are willing to move from one location to another. Job Duties and SkillsWorking as a global manager, you'll be in the unique position of managing a company's business and staff in a land that may have vastly different cultural and professional customs. In many regions, managers are needed to help companies tailor their business to the local culture. For example, as a global manager, you might need to learn the hiring practices of another country or the specific way that people communicate in the workplace to avoid potentially offending or confusing your foreign colleagues. You'll then need to train other employees in appropriate practices, such as pitching products to foreign customers in a polite manner consistent with their culture. In order to carry out their jobs effectively, global managers need strong communication and interpersonal skills. They need to be highly sensitive to and respectful of cultural differences. Having an open mind and complex critical thinking skills is also essential. Training ProgramsIf you want to receive a global management education, graduate programs are offered by a number of accredited business schools. Some bachelor's degree programs are available, though graduate certificate and degree programs are the most commonly offered. Global management training can be offered as part of a Master of Business Administration (MBA) or Master of Public Administration (MPA) program. You also can earn a Master of Science in Global Management. These programs can introduce you to the social customs and business practices of different countries, teach you about international commerce and show you how to conduct business in foreign languages. Coursework may cover international human resources management, global supply chain management, foreign income taxes and international negotiation. Many schools can also offer you the opportunity to study abroad or complete an internship experience overseas.To continue researching, browse degree options below for course curriculum, prerequisites and financial aid information. Or, learn more about the subject by reading the related articles below:

THEORETICAL SCOPEManagement involves the manipulation of the human capital of an enterprise to contribute to the success of the enterprise. This implies effective communication: an enterprise environment (as opposed to a physical or mechanical mechanism), implies human motivation and implies some sort of successful progress or system outcome. As such, management is not the manipulation of a mechanism (machine or automated program), not the herding of animals, and can occur in both a legal as well as illegal enterprise or environment. Based on this, management must have humans, communication, and a positive enterprise endeavor. Plans, measurements, motivational psychological tools, goals, and economic measures (profit, etc.) may or may not be necessary components for there to be management. At first, one views management functionally, such as measuring quantity, adjusting plans, meeting goals. This applies even in situations where planning does not take place. From this perspective, Henri Fayol (18411925) considers management to consist of six functions:1. Forecasting2. Planning3. Organizing4. Commanding5. Coordinating6. ControllingHenri Fayol was one of the most influential contributors to modern concepts of management. In another way of thinking, Mary Parker Follett (18681933), defined management as "the art of getting things done through people". She described management as philosophy. Critics, however, find this definition useful but far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions and the connection of managerial practices with the existence of a managerial cadre or class.One habit of thought regards management as equivalent to "business administration" and thus excludes management in places outside commerce, as for example in charities and in the public sector. More broadly,every organization must manage its work, people, processes, technology, etc. to maximize effectiveness. Nonetheless, many people refer to university departments that teach management as "business schools". Some institutions (such as the Harvard Business School) use that name while others (such as the Yale School of Management) employ the more inclusive term "management".English speakers may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a corporation. Historically this use of the term often contrasted with the term "Labor" - referring to those being managed.NATURE OF MANAGERIAL WORKIn for-profit work, management has as its primary function the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing rewarding employment opportunities for employees. In nonprofit management, add the importance of keeping the faith of donors. In most models of management and governance, shareholders vote for the board of directors, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers, but this is rare.In the public sector of countries constituted as representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States political appointees lose their jobs on the election of a new president/governor/mayor.HISTORICAL DEVELOPMENTSome see management (by definition) as late-modern (in the sense of late modernity) conceptualization. On those terms it cannot have a pre-modern history, only harbingers (such as stewards). Others, however, detect management-like-thought back to Sumerian traders and to the builders of the pyramids of ancient Egypt. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises, given their small scale, did not feel compelled to face the issues of management systematically. However, innovations such as the spread of Hindu-Arabic numerals (5th to 15th centuries) and the codification of double-entry book-keeping (1494) provided tools for management assessment, planning and control.With the changing workplaces of industrial revolutions in the 18th and 19th centuries, military theory and practice contributed approaches to managing the newly-popular factories.[6]Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial revolution, it made sense for most owners of enterprises in those times to carry out management functions by and for themselves. But with growing size and complexity of organizations, the split between owners (individuals, industrial dynasties or groups of shareholders) and day-to-day managers (independent specialists in planning and control) gradually became more common.Early writingWhile management (according to some definitions) has existed for millennia, several writers have created a background of works that assisted in modern management theories. Some ancient military texts have been cited for lessons that civilian managers can gather. For example, Chinese general Sun Tzu in the 6th century BC, The Art of War, recommends being aware of and acting on strengths and weaknesses of both a manager's organization and a foe's. Various ancient and medieval civilizations have produced "mirrors for princes" books, which aim to advise new monarchs on how to govern. Examples include the Indian Arthashastra by Chanakya (written around 300BC), and The Prince by Italian author Niccol Machiavelli (c. 1515). Written in 1776 by Adam Smith, a Scottish moral philosopher, The Wealth of Nations discussed efficient organization of work through division of labour.[8] Smith described how changes in processes could boost productivity in the manufacture of pins. While individuals could produce 200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day. 19th centuryClassical economists such as Adam Smith (17231790) and John Stuart Mill (18061873) provided a theoretical background to resource-allocation, production, and pricing issues. About the same time, innovators like Eli Whitney (17651825), James Watt (17361819), and Matthew Boulton (17281809) developed elements of technical production such as standardization, quality-control procedures, cost-accounting, interchangeability of parts, and work-planning. Many of these aspects of management existed in the pre-1861 slave-based sector of the US economy. That environment saw 4 million people, as the contemporary usages had it, "managed" in profitable quasi-mass production.Salaried managers as an identifiable group first became prominent in the late 19th century

OBJECTIVES To give a broader understanding of the Global marketing management concepts and main issues of Global business. This unit gives students an understanding of the factors that how the international trade system and the economic, political, legal and cultural environments affect a company\u2019s international marketing decisions. The main objectives of the chapter are: 1. To provide an overview of strategic concept of marketing with the major principles of global market 2. To analyse the driving forces and various complexities of international marketing 3. To evaluate the various entry strategies to international market 4. to identify the essentials of international market in the context of economic development of less developed countries organization on global market opportunities and threats. Two decades ago, the term global marketing did not even exist. Today, global marketing is essential not only for the realization of the full success potential of a business, but even more critically for the survival of a business. A company which fails to go global is in longer of losing it\u2019s domestic business to competitors with lower costs, greater experience, better products and in a nutshell, more value for the customer. The importance of going global to ensure company survival is a more powerful motive for many companies than the attraction of opportunity abroad. Industries that were entirely national in scope only a few years ago are dominated today by a handful of global companies. This unit concentrate on the major dimensions of global marketing namely meaning and the strategic concept of marketing, the principles of marketing, transition from the domestic to transactional marketing, driving forces and complexities in International Marketing, Global Marketing Imperative, Global Marketing plan, International market orientation (EPRA) and International Market Entry Strategies. MEANING OF MARKETING Marketing is essentially a creative corporate activity involving the planning and execution of the conception, pricing, promotion, and distribution of ideas, products, and services in an exchange that not only satisfies customers\u2019 current needs but also anticipates and creates their future needs at a profit. Marketing is not only much broader than selling, it also encompasses the entire company\u2019s market orientation toward customer satisfaction in a competitive environment. In other words, marketing strategy requires close attention to both customers and competitors. MEANING OF GLOBAL MARKETING

Global marketing refers to marketing activities by companies that emphasize the following:

1. Reduction of cost inefficiencies and duplication of efforts among their national and regional subsidiaries 2. Opportunities for the transfer of products, brands, and other ideas across subsidiaries 3. Emergence of global customers 4. Improved linkages among national marketing infrastructures leading to the development of a global marketing infrastructure. Although Levitt\u2019s view that global marketing does not necessarily mean standardization of products, promotion, pricing, and distribution worldwide, but rather, it is a company\u2019s proactive willingness to adopt a global perspective instead of a country-by-country or region-by-region perspective in developing a marketing.

The Strategic Concept of Marketing During the past three decades the concept of marketing has changed dramatically. The marketing concept has evolved from the original concept, which focused marketing on the product. The objective was profit, and the means to achieving the objective was selling, or persuading the potential customer to exchange his or her money for the company\u2019s product.

Global Marketing Management

The new concept of marketing, which appeared about 1960, shifted the focus of marketing from the product to the customer. The objective was still profit, but the means of achieving the objective expanded to include the entire marketing mix, or the four Ps as they became known: product, price, promotion, and place (channels of distribution). By 1990 it was clear that the consumer concept of marketing was updated and that the times demanded a strategic concept. The strategic concept of marketing, a major evolution in the history of marketing thought, shifted the focus of marketing from the customer or the product to the customer in the context of the broader external environment. Knowing everything there is to know about the customer is not enough. To succeed, marketers must know the customer in a context including the competition, government policy and regulation, and broader economic, social, and political macro forces that shape the evolution of markets. In global marketing this may mean working closely with home-country government trade negotiators and other officials and industry competitors to gain access to a target country market. Another revolutionary change in the shift to the strategic concept of marketing is in the marketing objective-from profit to stakeholder benefits. Stakeholders are individuals or groups who have an interest in the activity of a company. They include the employees and management, customers, society, and government, to mention only the most prominent. There is a growing recognition that profits are a reward for performance (defined as satisfying customers in a socially responsible or acceptable way). To compete in todays market, it is necessary to have an employee team committed to continuing.THE THREE PRINCIPLES OF MARKETING

MBA-IB Global Marketing Management innovation and to producing quality products. In other words, marketing must focus on the customer in context and deliver value by creating stakeholder benefits for both customers and employees. Profitability is not forgotten in the strategic concept. Indeed, it is a critical means to the end of creating stakeholder benefits. The means of the strategic marketing concept is strategic management, which integrates marketing with the other management functions. One of the tasks of strategic management is to make a profit, which can be a source of funds for investing in the business and for rewarding shareholders and management. Thus, profit is still a critical objective and measure of marketing success, but it is not an end in itself. The aim of marketing is to create value for stakeholders, and the key stakeholder is the customer. Finally, the strategic concept of marketing has shifted the focus of marketing from a microeconomic maximization paradigm to a focus of managing strategic partnerships and positioning the firm between vendors and customers in the value chain with the aim and purpose of creating value for customers. This expanded concept of marketing was termed boundaryless marketing. The notion of boundaryless marketing is shown in Figure 1-1. Figure 1.1 Value Chain Boundaryless Marketing 1.4 THE THREE PRINCIPLES OF MARKETING The essence of marketing can be summarized in three great principles. The first is customer value, the second is competitive advantage and the third principle is concentration of customer need. 1. The Principle of Customer Value The essence of marketing is creating customer value that is greater than the value created by competitors. Value for the customer can be increased by expanding or improving product and or service benefits, by reducing the price, or by a combination of these elements. Companies that use price as a competitive weapon must have a strategic cost advantage in order to create a sustainable competitive advantage. This might come from cheap labor or access to cheap raw materials, or it might come from manufacturing scale or efficiency or more efficient management. Knowledge of the customer combined with innovation and creativity can lead to product improvements and service that matter to customers. If the benefits are strong enough and valued enough by customers, a company does not need to be the low-price competitor in order to win customers3. The Principle of Competitive advantageThe second great principle of marketing is competitive advantage. A competitive advantage is a total offer, vis-z-vis relevant competition, that is more attractive to customers. The advantage could exist in any element of the companys offer: the product, the price, the advertising and point-of-sale promotion, and the distribution of the products. The total offer must be more attractive than that of the competition in order to create a competitive advantage. A company might have a product that is equivalent in quality to that of the competition but no better. If it offers this product at a significantly lower price, and if it can get customers to believe that the quality of the companys product is equal to that of the competition, the price advantage will give the company a competitive advantage. The competitive advantage must exist relative to relevant competitors. If the company is in a local industry, these competitors will be local. In national industry, they will be national, and in a global industry, they will be global. The Principle of Concentration of customer need: The third marketing principle is focus, or the concentration of attention. Focus is required to succeed in the task of creating customer value at a competitive advantage. All great enterprises, large and small, are successful because they have understood and applied this great principle. IBM succeeded because it was more clearly focused on customer needs and wants than any other company in the emerging data processing industry. One of the reasons that IBM found itself in crisis in the early 1990s was because its competitors had become much more clearly focused on customer needs and wants. Dell and Compaq were giving customers computing power and low prices IBM was offering the same computing power with higher prices. In earlier days, the IBM name was worth the difference today, in the maturing computer market, the value of the IBM name is simply not worth much as compared to a name like Compaq or Dell. A clear focus on customer needs and wants and on the competitive offer is needed to mobilize the effort needed to maintain a differential advantage. This can be accomplished only by focusing or concentrating resources and efforts on customer needs and wants and on how to deliver a product that will meet those needs and wants.1.5. TRANSITION FROM DOMESTIC TO TRANSNATIONAL MARKETThis section outlines the differences between domestic, export, international, multinational, global, and transnational marketing.

1. Domestic Marketing Marketing that is targeted exclusively on the homes-country market is called domestic marketing. A company engaged in domestic marketing may be doing this consciously as a strategic choice or it may be unconsciously focusing on the domestic market in order to avoid the challenge of learning how to market outside the home country. 2. Export Marketing Export marketing is the first stage of addressing market opportunities outside the home country. The export marketer targets markets outside the home country and relies upon home-country production to supply product for these markets. The focus in this stage is upon leveraging home-country products and experience. A export marketer will study target markets and adapt products to meet the specific needs of customers in each country. 3. International Marketing The international marketer goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business. For example, the international marketer is prepared to source product outside the home country in order to gain greater competitive advantage. The international marketer is less likely to rely upon intermediaries and is more likely to establish direct representation to coordinate the marketing effort in target markets. 4. Multinational Marketing The international marketing organization begins by focusing on leveraging a companys experience and products. As it focuses upon this task, it becomes aware of the differences and unique circumstances in the country, and establishes a new role for itself adapting the companys marketing to the unique needs and wants of customers in the country. The multinational marketing organization would develop a unique communication program for its market. 5. Global/Transnational Marketing Global/transnational marketing focuses upon leveraging a companys assets, experience, and products globally and upon adapting to what is truly unique and different in each country. It recognizes cultural universals and unique market differences. Instead of an international company approach of applying theNational Controls/Barriers to Entry Every country protects local enterprise and interests by maintaining control over market access and entry. Today, tariff barriers have been largely removed in the high- income countries. The significant barriers are the so-called nontraiff barriers that make it difficult for foreign companies to gain access to a domestic market. The worldwide movement toward deregulation and privatization, by breaking the link between government and enterprise, is an initiative that will lead to a significant opening up of formerly closed markets. SIGNIFICANCE OF INTERNATIONAL MARKETING AND ECONOMIC DEVELOPMENT The role of foreign trade in economic development is considerable. The classical and neo-classical economists attached so much importance to international trade in a countrys development that they regarded it as an engine of growth. We shall discuss how international trade helps economic development towards the progress of less developed countries. (LDCs) This section focus on direct and indirect benefits on foreign trade to LDCs International trade possesses great importance for LDCs. It provides the urge to develop the knowledge and experience that make development possible, and the means to accomplish it. Herberlier opines, My overall conclusion is that international trade has made a tremendous contribution to the development of less developed countries in the 19th and 20th centuries and can be expected to make an equally big contribution in the future. And that substantial free trade with marginal, insubstantial correction and deviations, is the best policy from the point of view of economic development. When a country specializes in the production of a few goods due to international trade and division of labour, it exports those commodities which it produces cheaper in exchange for what others can produce at a lower cost. It gains from trade and there is increase in national income which, in turn, raises the level of output and the growth rate of economy. Thus the higher level of output through trade tends to break the vicious circle of poverty and promotes economic development. An LDC is hampered by the small size of its domestic market which fails to absorb sufficient volume of output. This leads to low inducement to investment. The size of the market is also small because of low per capita income and of purchasing power. International trade widens the market and increases the inducement to invest income and saving through more efficient resource allocation.