Organizing in a Changing Global Environment Research Paper

Pages: 8 (2303 words)  ·  Bibliography Sources: 10  ·  File: .docx  ·  Level: Master's  ·  Topic: Business - Management

¶ … Nature of Project Organization in Global Businesses

Organizing multinational corporations

Organizing dynamic global customer relation

Organizing a global workforce

Organizing in a changing global environment: marketing as a reference point

The dynamism of the contemporary business environments seeks a well planned and executed strategy in order to ensure profitability of multinational corporations as well as other businesses that are engaged transactions on a global perspective. Proper organization and adequate planning marks the beginning of achieving a well coordinated global business environment. In this paper we analyze the global business environment and how it can be organized. We pay special attention to areas such as human resource, marketing and administration. An analysis of the relevant literature is provided and the various organization models presented. A recommendation of how to cope with the highly turbulent and predictable global environment is then provided.


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The international business environment is full of variables and uncertainties that demand every player to adopt a comprehensive strategy. It is therefore crucial managers to apply the most up-to-date knowledge as well as skills that are necessary for navigating the organizations through the ever increasing dynamism and challenges that characterize the global business environment (Lee and Carter,2005). In this paper we look at how to organize various integral component of the global business.

The nature of project organization in global businesses

TOPIC: Research Paper on Organizing in a Changing Global Environment Assignment

In the contemporary business environment, there exist various projects that dominate the operation of the participating businesses Skaates & Tikkanen, 2003). Their operations are in the form of project business which can roughly be defined using a set of common characteristics and business challenges. They are usually described using a framework that puts into consideration; the level of discontinuity, uniqueness as well as complexity. Tikkanen, Kujala and Artto (2007) for example provide a description of project business as the level of uniqueness. Most projects are characterized with an extremely high frequency of uncertainty due to the fact that they involve the marketing of ideas as opposed to the finished product itself (Welch, 2005). Most project of organizations are fractured in nature (Hellstrom & Wikstrom, 2005). In this context we explore project organization in a global context by considering the cases of multinational companies. This is because their running and operation involves projects that have a global impact and also involve various business units that are housed under the same project organization. The contemporary business environment which is dynamic is best managed with a business organization that is project-oriented and which can also be viewed as a single approach to manage the highly turbulent business environment business (Suikki, Tronstedt & Haapasalo, 2006).

Organizing multinational corporations

In order for international businesses to succeed in their operations, it is important that they be organized both internally and externally (Pernu,2009). The process of achieving a coherent and viable worldwide management of multi-projects for various organization demands an extensive coordination and integration of all organizational units (Ghoshal, Korine & Szulanski, 1994). The organization sin this category are multinational corporations who are considered a highly complex and multidimensional business entities as pointed out by Gupta & Govindarajan, 2000).They can also be identified as consisting of a network of business subsidiaries in which both knowledge as well as competencies are continuously accumulated from worldwide sources in order to enable the multinational corporations enjoy the much sort after competitive advantage as pointed out by (Holm & Sharma, 2006). Subsidiary in this case is defined as an entity that adds value in a given host country (Birkinshaw and Hood, 1998). The work of Holm, Johansson and Thilenius (1995) clearly states that it in order to acquire the necessary understanding of the multinational corporations, there is a need to study and fathom the operations that are undertaken by the different smaller units. It is therefore necessary to begin global organization of businesses form the subsidiary or rather smaller unit levels. On eof the ways the can be used in the improvement of organizations is to enhance internal competition of their processes and activities and thereby making the subsidiaries to embrace a spirit of competition both in their existing as well as new businesses and responsibilities as pointed out by (Birkinshaw & Hood, 1998).

It is therefore necessary to initiate local organization of multinational companies by making them have an acceptable level of local dynamism as well as conditions. The process of organizing global corporation therefore entails the consideration of the opinions so as to achieve a balance between the level of local responsiveness as well as global integration (Luo, 2001).

The inclusion of the subsidiaries in the process of organizing changing global organizations is attributed to the fact that they are very aware of almost all the relevant dynamics as well as conditions. This therefore means that the MNCs can easily benefit from competitive advantages as well as location-specific ones by allowing their subsidiaries to be flexible in adapting to their specific business environments as well as in maintaining an acceptable level of internalization as well as integration. The element of local responsiveness emanates from the dynamism of the market conditions as well as the complexity. This is coupled with the macroeconomic and sociopolitical parameter of the host country's environment. The maintenance of the necessary and acceptable level of local responsiveness as well as a degree of subsidiary initiatives aids in the process. The strategic goals adopted by the MNCs can be used effectively in the proactive quest of new and better business opportunities that are optimized in a manner that is allined to their mission (Andersson, Forsgren, & Holm, 2002.

The MNC's development is to be on the basis of different units. These units are to be developed in a rather inconsistent manner that is unique to each of the units. This therefore makes it necessary to include an element of headquarter coordination and control in the developmental process (Holm, Johansson & Thilenius, 1995). The order to adequately organize themselves on a global scale, the MNCs must have an in-depth knowledge of their subsidiary network a spointed out by Andersson, Forsgren, & Holm (2002). The work of Birkinshaw et al. (2002) shed light on how challenging it is to manage and structure the relationship that exists between the MNCs and their subsidiaries. This is because the relationship is never simple.

Organizing dynamic global customer relation

As more organizations become deeply involved in global commerce, there is a need for them to gain a more in-depth understanding of their customers as well as engage in a meaningful process of initiating a constructive dialogue at an increased rate as pointed out by Young & Javalgi ( 2007). The global customer base of the multinational requires contracts, products and prices that are global in perspective and not just country-specific as pointed out by Harvey, Myers & Novicevic (2003). One of the main issues that concerns the management of the relationship between the customers and the MNCs is the need for a highly coordinates and controlled system that takes into account the customer needs at a local level.This should be done amidst the highly complex organization processes and cultural diversity as pointed out by Wilson & Weilbaker, (2004).

The dynamism of the global business landscape coupled with the complex organizational processes do affect the customer relationships on a global scale. It is therefore necessary to institute strategic approaches as well as appropriate organizational structures that are designed to specifically address the global customer related issues as pointed out by Millman and Wilson (1998). The management of worldwide customer relations requires a high level of customer coordination as well as control that addresses the issues from the local perspective. The other factors include complexity of the business landscape that is dominated with new technologies as well as cultural diversity that easily sways and changes the global customer preferences. The procurement techniques have also been subject to changes on a global scale . This is coupled with the increase in the demand for a relatively uniform global pricing and uniformity of goods and services offerings. The failure of organizations to serve their customer global also means that they cannot serve them locally (Wilson & Weilbaker, 2004). Dynamic customer management system should therefore be adopted in the organization of the multinationals (Harvey Myers & Novicevic, 2003).

Organizing a global workforce

The worldwide marketplace is rapidly evolving and is characterized by a high level of uncertainty, technological changes, diversifies global competition and price wars which demands an endless number of reorganizations as postulated by Ilinitch et al. (1998). The twenty-first century business environment whether domestic or global, requires a dynamic outlook that considers various factors (Rhinesmith, 1993). The level of complexity and dynamism associated with the business landscape require certain strategic maneuvers to be taken by organizations so as to successfully evolve by adopting business moves such as Mergers and Acquisitions (M&a).This is in line of changes in organization culture and change management that must be handled appropriately. The global HRM is therefore marred with complexities which range from different variables in the… [END OF PREVIEW] . . . READ MORE

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APA Style

Organizing in a Changing Global Environment.  (2011, January 28).  Retrieved August 4, 2021, from

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"Organizing in a Changing Global Environment."  28 January 2011.  Web.  4 August 2021. <>.

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"Organizing in a Changing Global Environment."  January 28, 2011.  Accessed August 4, 2021.