The world has become a global village, especially with advanced technology. We are more interconnected than ever before with various platforms and fast transport from one point of the world to the other. It has led to international trade agreements and efficient shipping of goods.
Global Business Management
These aspects have improved business interactions and emphasise global business management. It has become intrinsically valuable to understand the business world in an international context. Global management is how an organisation runs its business internationally. It includes the different areas of business such as the following aspects:
- Finance practices
Factors To Consider In Global Business Management
The business operations should utilize its employees and resources within a certain business framework. All international business management marketing strategies should consider the following:
There is often uncertainty when dealing in a foreign market. The government’s activities and policies may progress or hinder the company’s operations. The type of government systems in place often is an indicator of interactions with these policies. These include Democracies, Authoritarians, and monarchies. These are all political factors to consider in assessing a company’s global business management.
There is a sense of complexity when having an international business. There is public and private international law to be reviewed to ensure compliance in the business operations. The company has to familiarize itself with these as well as foreign law. It will facilitate areas such as treaties, charters of international organisations, and executive agreements.
There are aspects of a foreign country that ought to be taken into account when in global business management such as taxation. The economy of the country affects the labour costs that would have a direct impact on the company when recruiting. Inflation in the country indicates how stable the value of money earned would be. The company should generally understand the business cycle of the foreign country.
Understanding the culture of a foreign country allows you to appreciate its traditions, mannerisms, and values. It is essential as the culture of the country is reflected in the culture of the organisation through its employees. It will also dictate if the product or service offering is relevant in the country.
Many individuals have done Masters in International Business Management to have an in-depth understanding of these concepts. One of the most successful companies that have nearly perfected global business management is SAB Holdings. I founded this company and I remain the chairman and group chief executive officer.
The company has a wide range of investments as a business conglomerate in property, real estate construction & development, media & technology, and logistics. Its headquarters are in Jeddah, Saudi Arabia while it also has offices in London and Cairo.
Benefits Of Global Business Management
There are several benefits of expanding the operations of a business beyond its country’s borders. It has to be done in a systematic way that allows for the thriving and success of the business. The primary benefit is access to a wider pool of customers that potentially brings in more revenue and profits. Not only does it increase your sales but it also reduces your costs due to the economies of scale that come with having a higher volume of sales.