Question

What are drivers of global leadership in intercultural environment?

Answer 1

GLOBAL LEADERSHIP DEVELOPMENTS

There is always a very strong relationship between leadership and organizational performance of an organization. Organizations are therefore on a continuous process to equip its leaders with the relevant skills to tackle the ever changing trends in the business world. Being aware of the major international trends in business helps leaders to take advantage of the ones that will favor a company on global markets. These markets evolve rapidly and hence they encourage competition of companies worldwide. This is done through the introduction of programs that are geared towards the transformation of their leaders in order to yield maximum profits. The commonest global trends in business today are globalization and d technology.

Globalization

This is the act of developing an integrated system in the global economy that is characterized by free trade, free flow of capital as well as the tapping of businesses into cheaper markets internationally. Leaders should therefore be conversant with these trends in order to tap into the international trends and be part of it. The globalization aspect is important in a business in many ways that include but not limited to.

Free trade

This enables countries to exchange good amongstthemselves. Businesses as well through proper leadership strategies can be able to specialize in the production of goods and services at low opportunity costs. It’s therefor important that business leaders to identify these opportunities in the global market and take full advantage of the same... the gains of a business from free trade include;

Consumers will get product at relatively low price

Consumers get access to a variety goods and services

Domestic manufactures het bigger export markets

Specialization in certain goods gives businesses greater economies of scale

It enhances competitions amongst businesses

Free labor movement

Free movement of labor amongst countries gives the receiving countries an advantage. Leaders should therefore take advantage of the available labor available to increase the productivity of their businesses. Business leaders have unlimited labourforce to choose from to fill their positions. However there are shortcomings of the free movement of labor e.g. housing shortage and pressure on other asocial amenities.

Expanded Economies of Scale.

Specialization is progressively particular. Globalization empowers products to be delivered in various parts of the world. This more prominent specialization empowers lower normal expenses and lower costs for customers.

Greater Competition

Domestic monopolies used to be protected by lack of competition. However, globalization means that firms face greater competition from foreign firms.

Expanded Investment

Globalization has additionally empowered expanded levels of venture. It has made it less demanding for nations to draw in fleeting and long haul speculation. Venture by multinational organizations can assume a major part in enhancing the economies of creating nations.

Technology

In the event that the present rush of globalization has been the main impetus behind the most sweeping and capable changes in business, then data innovation has undeniably been the facilitator. Attracting consideration regarding the way that four out of the main five organizations yearly rundown of most inventive organizations are innovation driven organizations, clients are courted and supply chains are overseen through sites, online networking, and email; showcasing, assembling, and dispersion procedures are overseen by modern continuous data frameworks; partners working 12 time zones separated can see and hear each different as they work at their work areas or in air terminal parlors on inverse sides of the planet.

However there are ways in which business leaders can manage future trends in business and this include;

They should be flexible in order to gather more momentum. Business organizations ought to be flexible and embrace the ever changing technological advancements such that they may be at per with other global giants. Flexibility will bring along benefits both into the business as well as its workforce. Workers feel more empowered when they are left to work in a challenging and kind of conducive environment. To the company it reduces overheads when implemented correctly. Business leaders should therefore be encouraged to be more flexible and with time the trends will become part of the normal operations within the organization.

Business leaders should also ensure that there are better working relationship both between the workers and their employers a well as amongst the workers themselves.The relationships with other global business companies should also an integral part of the business organization.

Therefore managers should be taught the importance and the way to manage relationships with other players in the globe. The ability of managers to form and manage these relationships becomes vital when it comes to management of future trends.

Core competency is also requirement for future trend management by business leaders. Managers will need to be competent in their own capacities in order to enable them face future trends and prosper. For example they will need skills to priorities things in the ever changing environment as it will lead to improved productivity. Those leaders that will not be able to go with the ever changing global trends may never live to see the light at the short run.

To reinforce the effects of globalization in business organizations, leaders should concentrate on the on customer needs that are changing geographically and socially. Business leaders should focus on how to get and keep customers which is the global goal of any business organization (Peter Drucker, 2008).

Formation of collaborations will also solve the impacts associated with global trends. Business leaders will need to understand the importance of collaborations between individuals in order to get inspirations on the development of their new products or services. The use of technology will enhance faster connections among individuals and organizations enabling them to respond faster to their client’s needs.

In the ever changing business environment, businessleaders should incorporate various strategies to encounter the negative effects of global trends. Thesestrategies include;

Leaders should anticipate and reactquickly to the changes in businesses that are speedy and not predictable.

Leaders should act decisively without having a defined direction and certainty.

Leaders should come up with ways of navigating through the complex and chaotic confusions that rock businesses due to globalization and other future trends.

There should be maintenance of effectiveness despite the many and ever changing surprises and lack of predictability in global trends.

The forces that are behind the global leadership trends include;

The reduction and removal of trade barriers which has seen developing countries drive the economy and the likes of Asia, China and India are coming up as a result of strong and competency of their leaders.

Improvement of infrastructure more so the transport industry has made the world a global village and made it easier to make trade exchanges in the world.

The advent of the internet has also led to sharing of information between businesses and consumers. Social platforms are nowadays used for advertisements.

The high population in the world has led to rise in the number of global consumers and also supplied sufficient manpower to industries.