Management for Global Business – GBM

In the rapidly changing global economic and business landscape, the need for effective global business management has become even more important. For businesses to remain competitive, they must continually evolve to tap into the global markets and emerging world opportunities. Strategic business management in the present turbulent world economic conditions has to be more pro-active as the as technology, production and consumption patterns are changing by the day. In this context, global business management can be defined as the fundamental principles and practices of conducting global business activities, the proper evaluation of international business opportunities and the optimum allocation of resources so as to attain the individual business objectives in a global environment.

It is associated with large national companies attempting to make it big on the global stage. Domestic businesses in an attempt to become Multinational or Transnational corporations face numerous concerns which can be duly addressed by global business management. In the wake of globalization and a rapidly integrated world in terms of tastes, preferences and even culture the organizational and geographical complexity of global or multinational companies are getting even more pronounced. The idea of change-to effectively conduct the global business of the company in far flung areas of the world, and to evaluate the business opportunities in remote corners of the globe have to be dealt with in collaboration with the new sociological, political and economic trends that emerge almost daily on the international front. Some of the burning issues in the aspect of global business management include international trade, global human-resource management, global investment and global finance.

International trade constitutes an integral part of the global business management due to the increased restrictions imposed by many of the developing and developed countries hampering the movement of goods and services across the world. Global business management is greatly affected as the supplies of raw materials and essential commodities to various branches of a global operating company in different countries of the world can be stifled thus reducing the production capacity of the subsidiary companies. GBM is enmeshed in the principles of global human resource management which deals with the issues of factor movements, namely migration from the less developed to the developed world. International migration is a hot issue in many of the developed nations around the world with the overflowing of immigrants in these countries. Global business management has devised a unique method of tackling the issue of international human resource management with engaging in outsourcing of activities from the developed to the developing countries with abundant supply of cheap labor.

The issues of global investment and global finance are closely related and are an integral part of the activities of the global corporations engaged in effective global business management. Global Finance explains how exchange rates and foreign investment affect international trade and the supply of materials across the globe thus affecting the wealth or income of the global business corporation. Global finance is in many ways a reflection of global business management with the effective allocation of financial resources in stocks, bonds and other portfolio investments to maximize the assets of the company. Global business management is also affected by movements of capital and currencies between countries and the difference in the exchange rates between different currencies.

Global business management is closely linked with business management strategy and business process management. While business management strategy is concerned with the accomplishment of the operational goals of the business through planning, organizing, directing and controlling, Business Process Management (BPM) is interested about the control, analysis and monitoring of the operational business processes. Most importantly, adequate knowledge and experience are needed to accomplish the operational goals.