Management Theories & Philosophies

Management Theories & Philosophies

R1510D1061519

INTRODUCTION

Over the years, Globalization has been the driving force that connects the world together, using the interchange of the right information, goods, culture etc. The pace of Globalization has become really fast due to the advancement in communication, technology, industry, transport. She has also been a channel with a driving force in enforcing advancements from innovation as it gives a clear understanding of things to the management of any firm on how to deal with challenges that may arise with the innovations. Innovativeness in Globalization can also be described as the capacity to produce new goods and services that will bring positive change in an organization’s existing business. In other words, it refers to the overall capability of the introduced product and service to meet the market needs strategically with the innovation process (Wang & Ahmed, 2004). Globalization is about the inter-connection, interdependence between people, organizations and government.

Globalization brings a lot of opportunities but it also has a lot of challenges it faces as well. One of the major challenge is the appreciation and understanding of cultural practices and values in other parts of the globe (Cole and Kelly 2016)

The main debates in the field of global strategy consists of four (4) points namely:  (1) Cultural versus Institutional distance (2) Domestic and Overseas Corporate Social responsibility (3)Global versus Regional geographic diversification and (4) Convergence versus Divergence in Corporate governance. These four debates meet the criteria for this debate as each of them are related in a broad and global strategic view as each of them tend to address specific groups.

Definition of Global Strategy

In this essay debate, we are more concerned about the definition of global strategy as a strategy organizations apply all over the globe (Peng, 2006)

Global Strategy is a kind of MNE (multinational enterprise) strategy that compares and relate to countries all around the globe as a universal market (Yip, 2003). In another definition, it is the strategy of firms around the world that explicitly incorporates both international which is across the border and domestic firm strategy. According to Business today online, global strategy can also be defined as the strategies in which businesses and organization can be engaged in a global environment and serving the end users all over the globe.

Global strategies are very close in understanding between relation to strategies in business which is adopted by the business to enhance their goals and aim of the business. In improving the lesser goals, the organization needs to improve on its daily operations and for the long term goals which is targeted mainly towards increasing sales and profits of the organization by ensuring the growth and stability across the global market.

CULTURAL vs. INSTITUTIONAL DISTANCE

According to Peng 2009, institutional distance is viewed based on its ranking as the third and most leading perception in the management strategy and resourced which has been condemned for the failure in recognizing that innovation is a key strategy for the organization. This current debate that comes out from the wider debate between culture and institutional distance is if the institutional or cultural distance is a really a good measurement tool. Cultural distance is the revise of the most important discrepancy in cultures of a nation, its MNE (multinational enterprise) and host countries of its operations.

While in institutional distance, it encompasses cultural difference and some other features as cognitive identification, regular differences and normal pressures (Xu and Shenkar 2002). In general, cultural distance has been used to explain why joint ventures between different countries are usually short lived than the ones from the same country (Tihanyi et al.2005)

GLOBAL vs. OVERSEAS CORPORATE SOCIAL RESPONSIBILITY

CSR (Corporate Social Responsibility) is a prolonged debate differentiates itself from two major parts is the responsibility of the organization. Firstly, because the organization gathers resources from the society, they have an obligation to the public that is beyond increasing the income of the organization equity holders. From a global point of view, the most important focus is to stabilize the regular disagreeing demands between the domestic and overseas CSR.

Around the globe, more MNE are not only involving them in overseas CSR practices, but they are also rebranding their strategies by working with NGO’s (Non-Governmental Organization) especially at the BOP, which has created new paths for potential developments(Chesbrough et al.2006).

CONVERGENCE Vs DIVERGENCE IN COPORATE GOVERNANCE

The pending issue between the divergence and convergence debate in corporate governance is when the national culture drives the public values or the economic ideology. Also, the main point of argument moving this part of this debate is the market generates convergence on cross-national standards within the same ideology convergence sponsor the argument that globalization releases a failsafe process by which the organization will be forced to adopt globally best practices[especially the essential Anglo-American](witt,2004)