Challenges which organisations and managers face

Challenges which organisations and managers face This report aims at understanding the challenges that managers and organisations face in going international, and will offer some recommendations and possible solutions that can be considered by the organisations. The number of corporations that are going international is on a steady increase, as the world is opening up for foreign firms and there is more opportunity to expand to new destinations across the globe. Most times, multinational companies operating abroad face much more difficult tasks than before, due to high competition. A lot of companies form partnerships with foreign distributors in order to expand internationally, but they might not have the necessary resources and international experience it takes to sustain an international presence as the whole process can be a very demanding task, especially on the part of the managers Countries of the world are now interacting more rapidly in the globalized business environment of today. Thus the problems involved in managing a cross diverse cultures affects not only the multinational corporations, but also domestic companies, as a large number of domestic corporations also face multi-cultural environments because they seem to be constantly selling their good or making purchases in the international markets. Some domestic corporations also employ a lot of staff and management who are from different cultures. Thus when managers fail to fully appreciate and deal with the resulting differences in behavior, attitudes and values of those with whom they work or interact, especially in international business transactions, then that would be a major source of difficulties. According to Charles Perrow â€Å"Interactive complexity is the measure of the degree to which we cannot foresee all the ways things can go wrong. This may be because there are just too many interactions to keep track of. More likely, it is because our various theories are simply not up to the task of modeling socio-technical interactions. Seco nd, coupling is a measure of the degree to which we cannot stop an impending disaster once it starts.† (Perrow, C 2000) This might be as a result of managers not having ample time, or maybe because it is not physically possible, or due to a lack of experience. The capacity of managers to prevent any surprises that may arise from doing business on an international scale diminishes as the interactive complexity increases. Therefore, as the level of interactive coupling and interactive complexity continues to increase in a corporation. Then the whole system can be seen as an accident waiting to occur. This is what Charles Perrow refers to as â€Å"normal accident† in the sense that errors of operation will merely serve to trigger the events. Therefore, the management techniques and strategies employed to resolve international business problems have to differ from the management techniques for resolving local and domestic problems. As such mangers are to improve upon their managerial capacity to prevent unanticipated interactions and components, the system has to be firstly simplified, then there has to be and effort to increase the capacity to handle international problems, building in longer response times, and decoupling of major components. Apart from convergent problems which are problems which show promise for solution, multicultural corporations also face divergent problems. Divergent problems don’t promise a solution and tend to lead to more differences. According to Tylor (1977)