Business Advantages to Companies Derived from International Managerial Capabilities
Multinational companies derive many business advantages by operating on a global platform. The drive to decentralize business operations into other nations’ markets boosts not only business profitability, but also creates awareness on the activities of the company. There is a need for research and proper study on new markets before operations are set up. This is because international business often brings with it a myriad of challenges that could give rise to massive losses. It is with this notion that multinational companies engage strategic management experts to design global strategies that are effective in specific markets. Our international survey revealed that companies that invest in international managerial capabilities derive numerous business advantages that facilitate its growth and operations.
One of the business benefits derived is cultural understanding that is crucial when doing business. Most of our respondents acknowledged that individual countries have their set of beliefs and culture that need to be considered before any business is ventured in. The main challenge in global countries operation would be how to manage local employees successfully without infringing on their culture. This is significant as it can determine employee retention rates in organizations. Our correspondents suggested that experts in international management should research consumer demographics and only propose business destinations where business is sustainable.
International managerial capabilities provide an avenue for intercultural communication. Managers who are tasked with the formulation of globalization strategies should identify with the formal language used in a country. One of the correspondents suggested that it is easier to relate to people when you can communicate effectively in their language. But learning a foreign language can take time which might not be available. According to the respondents, managers should at the very least learn how to say “thank you,”“please” and “your welcome” in a foreign language so as to appeal to the market segment through intercultural communication.
Embracing managerial international capabilities increases awareness on the company’s profile and provides it with more opportunities for business. When companies go global, they get to interact with a lot of individuals in the quest for contracts and healthy business. This encourages long-term business relations and facilitates future growth and development. We asked our respondents what was most rewarding when working as an international manager; 40 percent of them agreed that international connections were the most rewarding. When they are exposed to such ventures they get to build their reputations and learn novice strategies that enhance their management techniques and interpersonal relations. Creation of professional relationships in business is central to the success of any business. When companies can approach partners confidently with business proposals, it makes it way easier to sustain its operations and boost revenue flow and sustainability.
Operating on a global platform also promotes international ties in the global front. For instance, developing companies have a lot of challenges when it comes to fully employing its citizens, mainly because they have inadequate resources to do so. Such countries often end up with a populace that is largely unemployed. Massive unemployment can create political strife and encourage a lot of social evils. Multinational companies in the quest for global growth can help solve these challenges. When they expand their operations into such countries, they get to employ the locals and improve not only their economic status but also that of the country. Developing countries often encourage such initiatives and offer incentives to boost operations. Our correspondents agreed that the company that invests on international managerial capabilities can save on its costs of business by taking advantage of economies of scale in production. In the end international relations between countries is improved thus providing a conducive environment for trade.