Management theories help out to maintain the systematic process through the foundation and also the combination of manager's approach with their positive work climate for motivation. Kindly do answer all the learning outcomes.
- Evaluate the complexity in the influences of globalization in global strategy
- Explain the literature sources, through all the creation, sharing and utilisation in the knowledge through all the learning outcomes.
- evaluate all the areas through which the digital tools and their capacity for mass participation have been addressed.
Management theories is a systematic process to set the foundation and combination of manager's approach and positive work climate for motivation. Management philosophy is refers as the set of beliefs that uses by an individual or a group in the management position to support their decisions which are takes for their development and growth (Bailey and et.al., 2018). In this report, there are four important theories in the field of global strategy given by Peng and Pleggenkuhle-Miles. It demonstrates that whether such approaches are fully captures the complexity of the power of globalization on global strategy. In this context report covers four main approaches that illustrate the complexity of the influence of globalization.
Globalization is a critical process of segregation across economies and societies. It includes several elements like finance, labour, information, flow of products and innovation that move across the national borders. According to several economists, increase of globalization surface is depends on the different controversial and complex issues become more interdependent with more relative frequency of interactions between each other. There are many important trends that make up globalization. These are migration of work and labour, sustainability of the natural environment, flow of capital, design of cultural dynamics and development of organisational techniques for global competition.
Many authors specialized in finding each issue with having depth knowledge. In this context, Mike W. Peng and Erin G. Pleggenkuhle-Miles conducted four important debates in global strategy's field. These four debates focused on the global vs regional geographic diversification, overseas vs domestic corporate social responsibilities, cultural vs institutional distance, convergence vs divergence in corporate governance. They track down the history of these debates for each theory and it also described emerging tension for every debate. The globalization has changed and in present days it is characterized by its increasing interdependency and multi-faceted with different business aspects. Further, all such approaches describes and its influence of globalization on global strategy also discusses.
Debate on Global vs regional geographic diversification –
It is the first debate which discussed about a business that operates its operational activities beyond the scope of needs to develop the globalized strategy because it demonstrates all the aspects across the world which is difficult to ascertain (Mankin and et.al., 2018). So for this reason it has confronted that being a multinational, it can be seen as a prestigious aspect that enhances to the global power of the organisation. It is emphasis on three main aspects that is poly centric, partisanship and geocentric that contains all the chief points of a firm which eventually contributes for diversification of multinational attribute of a business activity. There is a need to have global experiment that is based on the regionalization and it provides two different facts for establishing regional multinational organisation. One of such facts is about practices held at the multinational level that is ought to be operated at intra-regional level and give up the inter-regional stage.
The another belief is related to the activities of multinational organisations whose requirements is to be organised at the location stage rather than focuses on the global level. The main reason of observing more findings at the national and inter regional level that is due to inadequate concern in order to expand foreign aspects in the specific region. In this context, the major reason behind in operation the organisation on global level is, that it develops trouble in enterprises business pattern and it helps in development of many networks with many international companies (Epstein, M.J., 2018). For support to the second fact, many explanations and studies have been reviewed on an organisation's performance, regional separation and it is a idea that the multinational business entities needs to be focused on a particular region and it will increase their performance level and work towards expansion and growth.
In this context, the attention for the regional multi-national organisation operates its activities towards getting huge contemplative for nation's income and trade practices. So for this reason, the major criticism can be seen in order to measuring different hierarchy aspects. There are many organisations that run at multinational level, should be more correctly labelled at regional level so that the value of relative region norms, culture and institutional similarities. For a detail discussion about globalized economic aspects, many researchers provide a deep suggestion to trend towards several categories of inter regionalism (Epstein, M.J., 2018). It is also undertaken the approach towards bilateral that can take place over the global boundaries. It is a special belief that international organisation have to be compete with in some multiple regional business concerns that is not connected with each other and focus on the political aspects prevailing in that particular nation.
In the another side, the main issue is comes for prevailing in the concept of regional definition because it also contains economic aspects. In this context, some other cases also articulated with multinational company that often acquire benefits from global political advantage that increase in between host and home country. The political resources can also utilized for these facts, instead of having institutional and large cultural distance. So for this reason a regional divergence requires for specify political aspects and it should also discuss its rules and norms. It is appreciated the geographical patterns of variability of an international organisation. This debate is related to the institutional and cultural distance with including both the dimension of an institutional internal and external environment and it is entirely concerned with the facts which are based on institutional view.
Debate on Convergence vs divergence in corporate governance –
This debate is discussed about corporate governance that needs to focus on the Pleggenkuhle-Miles and Peng that there are many people and they believe in the economic philosophy that is generally encourages their values. In other words, it is considers with the concepts of convergence perspective (Epstein, M.J., 2018). In the other aspect, there are different individuals in any society and they are in the favour of the fact that culture of a country initiates values that follow divergence perspective. This type of debate has been around for long period but still many authors and researchers are unable to find out any answer. So for this reason it often seems as to be a growing gap in between philosophies as well as thoughts of these different approaches. In addition to this context, there is always a lively argument run in the corporate governance whether it is diverging or covering. So in this regard those persons who follows occurrence argue that globalization is the systematic process that unleashes the finest and fittest corporate major participant.
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It is always seen that many organisations are being forced to follow the practices that are reliable and suitable to sustain globally for example Anglo – American practices. The major codes of governance are enacted around the world through the above concept of that practises. In this context, all investors across the world are interested in paying some amount for premium to only those organisations which are follows the base of Anglo-American style of administration procedures (Bailey and et.al., 2018). It is rapidly increasing trend that indeed affects to the pedagogy of those business entities who are not abiding with such concepts. Due to the wants and needs of many shareholders, it may remain unheard in most of the part of corporate scenario that is consistently becoming more visible. Apart from all these things, the greatest quarrel is lashing with this aspect of the discussion consist of different market forces that are raising their operations with transversal national convergent to reach at the stage of establishing the worldwide standards.
Looking for the current situation in united state and united kingdom, many multinational organisations are operates its business activities to high promoting the rigorous regulation and ownership that is always considers as the important answer to the issues of combat primary agent. In this context, divergence followers that determine the main two concepts of concern in the study of cross listed company that is compared to the United State's companies (Mankin and et.al., 2018). Every multinational companies have larger boards, focuses on more concentrated ownership method and integral directors. So, it is not necessary that, those cross listed companies in US abide by their government after and before listing. With including all those aspects, many regulations and rules are makes regards to the cross listed foreign companies in US and UK, such acts and laws rarely affect to the course of functioning of that organisations.
In the another side, convergence followers refers that all corporate governmental rules and norms are being applied across the world. It has a contradicting statement that is divergence clearly determines that it is viable to export the formal UK and Us style regulations around the world but it is complicated to implant foreign norms and laws with in the countries (Epstein, 2018). This situation is more critical because business operates with having integral directors, larger boards and focus on more concentrated leadership style. Now, it can be said that by considering the global economic view these are following comprehensive separation is possibly the impractical approach. In addition to this, those organisations which operates at the large level and often in quest of raising investment from international investors can not undertake the standards and concept of divergence in the corporate governance.
Debate on Cultural vs institutional distance –
The culture is refers as the imperative part of multinational business administration and it is underpins the worldwide applicable strategy of any organisation because the culture is lies in the small feature. So these strategies is highly associated with the macro forces (Giddens, 2018). There is a new approach of globalization technique has to come to the existence has emerged with it and this argues that global strategy requires to be properly shaped by the conventional and it formalized in institutions. The main important thing of this debate on the emphasizes on the role of cultural aspects in the institution based view of global strategy. It is considers here for the classification of national culture and it also specifies the benefits of cultural facts in worldwide business environment. It is also demonstrates the cultural aspect in which it is associated with the communal values and social beliefs. It includes interactions among different social values in the multinational company which are transactions based concerned. In this context, both are the cultural aspects predominant in international and national level and uses as attribute that affect most of the business practices. It concludes business management, resource concerned artefact and a systematic process of internationalization (Hirst Thompson and Bromley, 2015). This approach is also lay down on the emphasizes on culture and institution distance that is another dimension for better improvement in measurement. The cultural distance engages to the concept of primary divergence in two side international and regional countries in which countries follows several cultural values. The institution distance embraces social aspects, difference and it also includes different forces for example cognitive identification, normative pressure and regulatory differences. There are many influences raise from the cultural values and it is categorised on the basis of social cultural, politics and market forces. It can be examines that the contribution of cultural spatial arrangement that conjecture on social values that are varies in international and national level even if international companies grow increasingly. It is also underlines that the ability of multinational organisation effectively if it operates its business activities in host market. In this context, it cultures distance is grow than the multinational companies faces more problems in addressing their goals and operations (Peng and Pleggenkuhle-Miles, 2009). So for this reason, the cultural distance creates huge degree of complexness in systematic work process and it can also influence the management decision making process.
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There are a wide range of inconsistent and criticism findings related to the cultural distance have been explored in its performance. Many theories and studies show an opposite relationship among both of the facts. In this context, cultural distance is significantly important because is comes by the lowest stage when it is reviewed on the basis of organizational view approach. The main critics on this approach contains different dimensions in order to construct institutional that can be done on the basis of cultural distance (Ramsfield and et.al., 2016). This will be entirely embraces cultural difference through incorporating all the perceptive and legal rules of an institutional situation. For ascertaining the association of institutions and culture, it can be said that these are the concerned with social and legal norms and crystallization that further also changes will be makes for the right methods of institutional approaches and cultural divergence. So for this reason many authors claims that causality is connected to the cultures and institutions is ineffectual until it is decently managed in the organisational environment. The actual problem is that each aspect relates to the subsequent divergence and it is special because it contains different cultural and institutional explanation that also offers comprehensive aspects about a particular organisation's performance.
Debate on Domestic vs Overseas corporate social responsibility –
Corporate social responsibility is one of the important element for every organisation that irrespective of running in overseas and domestic target market segment. It is one of the continuous and greatest source of debate in between policy makers and different scholars (Pieterse, 2015). It is essential for the companies to uphold equilibrium among overseas and domestic Corporate Social Responsibility related activities by considering global perspective. There are often focus on the special fact that if in situation where a company has only limited corporate resources than it defines about their priorities domestic market as well as international target market place. In this context, according to the higher level management team of an organisation whose general interested in more important terms of future sustainability and it will be complicated to emphasis on regional stake holders with comparison to the overseas communities and workforces. Some authors also gave many examples and illustrate it for cover up the requirement of a multinational enterprise and it is essential to be socially responsible for each communities where it runs and operates.
In each company, there are two primary stakeholders that are social public and employees or staff members. For expanding their business out of the overseas with emerging economies, the organisation is tends to avoid the domestic stake holders. In this context, the growing to the international grounds not only assess in enhancing the return and profitability of many stakeholders but also leads to generate new job opportunities to the host nations (Sassen, 2016). It can be achieved at the expenses of interior stakeholders for the future growth and enlargement. Some organisations have huge amount of resources and it tends to operate its corporate social responsibilities in the home as well as overseas countries. There are too much competition so pressure will cut the reformation and costs to the managers and have to prioritize their focus. It is unexpected due to emergence in CSR because of globalization, movement of employment from highly-developed economies is increasing at the speedily stage. In against to this the corporate social responsibility is essential aspect of any organisation to its irrespective to its level of business operations because it useful in providing profits to the company as well as societies. So for this reason the main combat zone for the company should be expand its business activities to the overseas boundaries. It may attain desired sustainability and growth. The main hazard of globalization to the particular country's employees which mainly focuses on the duties of multinational companies in order to growth of inland forces and societies.
All these debates or approaches produced by Pleggenkuhle – Miles and Peng, are influences the globalization on worldwide strategy. From a particular organisation perceptions, the globalization has two major characteristics that are it contains interdependency among various nations and other is multi faceted with some business aspects (Sassen, 2016). It includes different areas economic, sociological, cultural, finance, political, technological and production. Over the last two decades, many techniques have laid emphasis on the networks that are informal and formal links which exist both the side internal and external. The main issue with these strategies is that interdependence means more than just a network connect to the other organisations, It simply means that one thing is happens in a company will have an influence on what happens in another business entity. The globalization may become one of the most important factor in developing different strategies in many big organisations and it develops the growth of that particular business entity. Many big international business entities for example aircraft manufacturing companies and pharmaceutical companies requires a systematic process for sales their products across the globe in order to support the top levels of capital investment funds in the growth and development of such products and services. There are so many research's and development programs conducts in these big companies that are useful in gaining their desired targets and goals. Some observer says that this means that globalization is essentially concerned with the warrant the concept of free market competition.