MGT 420

PRINCIPLES CHALLENGES FOR MANAGEMENT IN A GLOBAL

ENVIRONMENT

PREPARED BY:

MUHAMMAD AIMAN BIN A.ALADIN 2020459482

MUHAMAD NUR FITRI BIN RUSLI 2020859452
FARISHA NERINA BINTI SAHAR 2020476434
NORHAFIEQA ALIESYA BINTI HAMZAH 2020601608
SAIDATUL ALIA BINTI SHARUDIN 2020878104
NURUL ASHIKIN BINTI ZULKIFLE 2020866646

GROUP:

PEH2257A

PREPARED FOR:

MADAM SITI NUR FATHINI BT MUHSAIN

 INTRODUCTION
Management challenge is a team-based leadership development simulation that helps
people leaders enhance their management abilities through real-world employee
interactions and coaching. The links and exchanges between cultures, individuals, and
organizations all around the world are referred to as the "global environment." Today's
global environment is a complex web of interconnected networks due to global trends such
as international business. These networks are dynamic and always changing. The
principles of strategic planning, ethical standards, diversity management, technology
utilization, and crisis management are crucial in navigating global market complexities,
maintaining ethical standards, and responding effectively to crises.

1. BUILDING COMPETITIVE ADVANTAGE

One of the fundamentals used by multinational corporations to create and preserve a

competitive advantage is strategic planning (Blake & Mouton,1982). Undertaking thorough
worldwide market research is an essential step in identifying new trends and consumer
patterns. This makes it possible for businesses to successfully modify their goods or
services to satisfy a wide range of consumer needs. Furthermore, it is crucial to utilize a
SWOT analysis on an international level (Sammut-Bonnici & Galea, 2015). Through the
process of evaluating strengths, weaknesses, opportunities, and threats, firms can
develop strong strategies that are in line with the complexities of the global market. Case
studies that demonstrate effective applications of SWOT analysis in international strategy
might offer useful advice to companies looking to gain a competitive advantage.

The integration of invention and technology is a further fundamental idea (Nirje B,1994).
Companies recognize the importance of technology for global success, leading to strategic
integration and industry leadership. Cultivating a culture of innovation and adaptability is
crucial for quick adaptation to changing global marketplaces, and analyzing successful
businesses can provide valuable lessons. Developing sustainable techniques is the third
principle (Verkerk &Nijhof,2005). Social and environmental responsibilities greatly
enhance competitive advantage in a global setting. Businesses that embrace sustainable
methods appeal to a growing global consumer base that is environmentally concerned
while also conforming to modern ethical standards (Watson & Kelly,1997). A practical
 illustration of how such practices can result in a competitive advantage in the global market
can be found by looking at case studies of companies that have successfully integrated
sustainability into their worldwide strategies.

2. MAINTAINING ETHICAL AND SOCIALLY RESPONSIBLE STANDARDS

For firms hoping to build credibility and trust with their stakeholders, upholding moral and
socially conscious norms is essential (Maclagan, 2008). Any unethical or socially
irresponsible behavior can swiftly destroy an organization's reputation and erode customer
loyalty in a world where information spreads quickly via social media and other
communication channels (Chowdhury, 2019). Organizations that uphold high ethical
standards show that they are committed to doing the right thing, which draws and retains
investors, clients, and talented employees who share similar values (Kennedy et al.,
2011). Integrity in management ensures honesty, openness, and equity in businesses.
Compliance with ethical standards fosters trust, cooperation, innovation, and loyalty,
leading to long-term sustainability, profitability, and increased sales and repeat business.

Organizations should integrate ethical standards into management processes, develop a

code of conduct, and regularly educate personnel on these standards. Internal procedures
like ethics hotlines and whistle-blower protection programs promote reporting of unethical
behavior (Aven et al., 2014). Periodic audits and evaluations should be carried out to
assess the performance of these standards while discovering areas for improvement
(Helmold, 2020). This is in tune with the idea of responsibility, which emphasizes the
significance of accountability and guaranteeing that individuals and organizations meet
their responsibilities and duties.

In a nutshell, maintaining ethical and socially responsible standards serves as a moral

obligation and an insightful business-oriented decision. Organizations that comply to these
standards can achieve a profitable and sustainable future and simultaneously establishing
trust and strengthening their reputation. Integrating these principles into management
techniques assures that ethical and socially responsible decisions are taken.
Organizations that adhere to the ideas of integrity, sustainability, and responsibility can
have positive effects on society while also certifying their long-term success.
3. MANAGING A DIVERSE WORKFORCE.

Managing a varied workforce in a global setting requires a set of guiding principles to

handle specific problems. Cultural competency is essential, and managers must develop
an awareness of and respect for diverse cultures. This includes overcoming
communication gaps and cultivating an inclusive culture that accepts different
communication styles, attitudes, and expectations (Farnsworth, 2020). In a global
workplace, individuals frequently come from various cultural origins, each with their own
set of values, communication practices, and work styles. Managers must put effort in
learning and valuing cultural diversity in order to build an inclusive atmosphere. This
entails actively working to bridge communication and work practice gaps, rather than
simply noticing them.

Another essential element is inclusive leadership, which emphasises the need of leaders
actively advocate for diversity, equity, and inclusion, as well as supporting and engaging
personnel from all backgrounds, overcoming prejudices, and creating a workplace in
which everyone feels appreciated (Kuknor, 2022). Leaders should be leaders who stand
for these principles, addressing prejudices inside the organisation and ensuring that every
employee, regardless of background, has a feeling of belonging (Brown, 2019). This
demands a commitment to developing policies and procedures that actively encourage
diversity and inclusion at all levels, from recruiting and talent development to day-to-day
workplace interactions.

Moreover, maintaining effective communication is critical to successful management in a

varied global environment. Language barrier and various communication styles can cause
misunderstandings and impede collaboration (Srivastava, Sinha and Shukla (2023).
Establishing open and inclusive communication channels, encouraging active listening,
and cultivating a culture that values varied opinions are all critical components of this idea.
Furthermore, given that one size does not fit all, adaptable policies that cater to the
different demands and preferences of a global workforce are necessary (Pitt-Catsouphes
and Matz-Costa (2008). This includes flexible work hours, remote work opportunities, and
inclusive benefits that are relevant across cultural and regional circumstances.
 To sum up, addressing these challenges involve continuous improvement, adaptability,
and a dedication to providing an atmosphere in which every person feels appreciated and
can offer their unique insights. By proactively addressing these challenges, organisations
may build a workplace in which every person feels valued and involved, therefore
contributing to innovation and overall organisational success in a globalised world.

4. UTILIZING NEW TECHNOLOGIES

Technological advancements in robotics, information, telecommunications, and telematics

are gradually being introduced to maintain management's competitiveness in the global
economic environment, offering new opportunities for organizational procedures and
working conditions (Llorens et al., n.d.). Effective management in global companies relies
on utilizing new technologies like blockchain, IoT, and artificial intelligence to overcome
obstacles and promote success. These innovations promote cooperation and decision-
making among diverse individuals, but management must overcome obstacles to fully
utilize them.(Holmes et al., n.d.)

Language and cultural differences are major hindrances to the widespread adoption and
application of new technologies. There are various problems associated with working in
or with a technical development team, most of which stem from the dynamic nature of
technology. When new technology seems to be added to your routine every quarter, it can
be very stressful. This serves as a reminder of the reasons for implementing new
technology and its benefits.(Lekara Bayo, n.d.) A robust technological infrastructure is
crucial for real-time crisis tracking, trend identification, and informed decision-making in
international teams to build trust and foster effective communication.

Regional technological infrastructure disparities hinder globalisation initiatives,

necessitating investment in infrastructure development and innovative solutions for talent
management and global workforce collaboration.(Singh, 2021). Real-world case studies
reveal the challenges and opportunities of utilizing new technologies in a global
environment. Successful companies demonstrate adaptive management practices and
innovative solutions. Effective management of new technologies, fostering cross-cultural
collaboration, and addressing systemic challenges, is crucial for sustained growth and
competitiveness in the digital age.(Llorens et al., n.d.)
5. PRACTICING GLOBAL CRISIS MANAGEMENT

Crises in a globalized world are often characterized by their unpredictability,

interconnectedness, and rapid escalation (Coombs, 2015). The COVID-19 pandemic, for
instance, highlighted the domino effect of a single event disrupting supply chains, travel,
and entire economies across continents. This heightened unpredictability demands a shift
from traditional top-down crisis management models to agile, adaptive approaches that
can respond effectively to diverse and evolving scenarios.

Global crisis management involves proactive planning for potential scenarios, considering
regional variations and cultural nuances, to enable faster, more informed responses in
real-world situations. (Clarke, 2019). Culturally intelligent communication is essential to
emphasizing transparent, empathetic, and tailored communication with diverse
stakeholders across languages, cultural contexts, and information channels. It can
minimize confusion, panic, and reputational damage during a crisis (Gannon & Baron,
2016). Global leadership and collaboration are crucial which requiring strong leaders who
can inspire confidence, make quick decisions, and foster collaboration across
geographical boundaries and organizational silos (Drabek & Fink, 1998). Building trust
and fostering effective communication among international teams requires leveraging
technology and data for real-time crisis tracking, trend identification, and informed
decision-making, requiring a robust technological infrastructure. (Gupta & Seetharaman,
2020).

CONCLUSION

Modern organizations face challenges in the global environment, requiring a multifaceted

approach to management. Building competitive advantage through strategic planning,
innovation, and sustainability is crucial, while upholding ethical and socially responsible
standards is essential. Managing a diverse workforce requires cultural competency,
inclusive leadership, and effective communication. Embracing new technologies requires
overcoming language and cultural barriers. Global crisis management requires agile,
adaptive approaches considering regional variations and cultural nuances. Continuous
improvement, adaptability, and fostering an inclusive culture are essential for long-term
success and competitiveness.
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