Response of managers to the challenges of globalisation

Abstract

Purpose – This article aims to emphasise the increasing need for managers operating in international business to respond effectively to the challenges of globalisation and to provide suggested responses and training of global international managers. Design/methodology/approach – The paper summarises the main driving forces behind globalisation and, in particular, the increasing influence of Brazil, Russia, China and India (the BRICs). It analyses the main challenges and associated political and economic factors. Findings – Main challenges include strategic, geopolitical issues, working effectively in multinational teams, ethical and environmental considerations, the vulnerability of global supply chains and the ever-present requirement for wider understanding of the cultural background. Training required includes language skills, special competencies and the development of global leadership skills. Research limitations/implications – The paper was written against a background of swiftly changing circumstances and inherent problems in interpretation of governments' statistics. Practical implications – Practical implications are the difficulty of assessing change in a period of general sluggish growth in a global recession and a basic lack of business confidence. Social implications – Social implications include the rise in the potential spending power of developing countries, especially the BRICs, who now have a sizeable affluent middle class. This is against a background of latent social unrest as the gap between the rich and poor is tending to increase. Originality/value – This paper is an attempt to summarise the key challenges and the current economic factors which can threaten the successful operation of international management in the globalised economy.