Contemporary Management Issues

Contemporary Management Issues

Contemporary Management Issues

Introduction

Companies working in the global world today are facing intense competition and are compel to utilize global supply chains to gain competitive advantage. As the companies work across the borders, they are exposed numerous management issues. The companies must devise strategies to ensure that such management issues don't arise in first place and incase they do, are dealt with adequate measures. The issues of quality in the products or meeting customer demands are becoming more daunting for the companies. Due to technological advancements, and the ample amount of information available on the internet, the buyer arriving to purchase valuable goods is more informed and has high expectations. The business strategies have become more customers focused and companies are exploring untouched market segments across the globe. This has lead to the issues of cultural differences and the need for the understanding of different geographical markets. The popularity of information technology has not only made the customers more aware but some companies like Amazon, have created their competitive advantage using these technologies. Other companies are being challenged to evaluate the possibilities of growth using these technologies. Globalization has made the world economies interconnected with each other. The favorable and adverse effects are transmitted to the companies and countries around the world and the management is faced decisions to the tackle the problems while remaining globally competitive. We will be reviewing these issues of contemporary business management environment from a theoretical perspective. The long term trends in the global economies will be reviewed and their impact on the organizations will be assessed.

Discussion

Globalization

The organizations are working across continents and the product made in the far east country Indonesia are available in United States as it was produced locally. Globalization has enabled countries not only to benefit from the opportunities present in different economies, but it has caused the countries to be effected by the slow down or crisis in the economies of the world (Brune & Garrett, 2004). This especially true in case of the large economies. The housing bubble in the United States is one of the examples which are still hampering the growth in the economies of the world (White, 2010). The global markets are still recovering from the collateral of crash of the housing market, banks and the large firms. The management issues for the organizations are to understand the economies, cultures, political structures and unique supply chain dynamics of the potential country. The culture can jeopardize the operations of the organization if not assessed adequately. The McDonalds entry in the Indian market met with strong public anger when they launched the “beef” burger as the cow is considered a sacred animal. Culture can also play an important role in the management of the global, multinational organizations (Cavusgil et al, 2012). The employees coming from diverse background working in the same organization bring a part of the culture of the previous organizations and from their region. The organization must develop a culture which integrates all ...