Managing Across Borders Management

Question: Discuss about the Managing Across Borders Management. Answer: Introduction This report present new techniques and strategies that will help AmericInn hotels in the management in the rising cross border business and transactions. With regards to this, there are two things that can create impact on the organization that is firstly the changes in the functional, natural, mixed and institutional change. And the second major issue is the fact that where the new business will expand. There are various types of methods, tools, models that are used while management of across borders takes place. The objectives and goals of this report is to analyze that whether the AmericInn Company would be able to manage in the changing and international business environment as it is very unfamiliar to the company. as we know, when a company tries to expand their business operations to other country than it has to face many problems regarding the culture, political parties, government interventions, nature, region, etc. The leaders and managers have to take qualitative and quantitative steps to manage all the issues and to face all the challenges. The leaders of the company take optimal decisions so that the organization will not face any major issues. It can become possible when the managers and leaders will make effective plans related to the management of cross borders. They have to design schemes and tactics that can work in the international markets of the world. It is very relevant to AmericInn to form such policies to cope up with the challenges and competition present in the across borders countries. As we know, the world has become very interactive due to the presence of technology. This results in globally challenged business organizations in which the managers and leaders have to be very effective. An overview of company: AmericInn hotel and suites AmericInn is a chain of hotels and suites that was founded in the year 1984 in the suburban twin cities. This chain is comprises of mid-price and limited service hotels. It is spread in all over United States including 240 states and cities. The majority of hotels are located in Midwestern United States with the franchises of AmericInn. The franchise of AmericInn was founded and was initiated by Jim Graves and opened in the year 1984. 20 properties of AmericInn are located in Minnesota and Wisconsin and its expansions are in the mid Midwestern United States. It has approx 240 motels and more of them are locate in the upper Midwest (AmericInn, 2016). An understanding of the impact of globalization on Managers and organizations First of all we have to understand that what globalization is? It refers to the expansion of business operations into the international markets to earn more revenue and profits. The process of globalization has a great impact on not only the business but also on the managers and other people working with the organization. Every successful business wants to expand their business operations in the global and international markets. AmericInn is a company that is a well established company of America. This motivates the company to spread its operations in to the international countries so that the company can run and earn more revenues. It is one of the common issues of all the successful businesses. there are many factors that must be considered before going global as every organization including AmericInn have to manage all these factors like the laws for the employees, the culture of the international country, terminologies and the corporate social responsibility. It creates a hug imp act on the working of the organization (Bhagat, et.al. 2002). AmericInn have to face a new environment as before they are dealing in America only. The culture of America is very different from other countries. They have to face issues related to the communication, government policies, political stability, culture differentiation, etc. The process of globalization creates a major impact on the human resource management of the AmericInn in company as they have to manage diversity of workforce who belongs to different nations and backgrounds from all over the globe. There are lots of challenges that will be faced by the managers and leaders of AmericInn (Cappellen, and Janssens, 2005). The management of the different diversity of workforce in the organization is a vital part of globalization. As they deal with different countries, the people will come from various nations. It will create problems related to the communication, culture, mindsets, etc. The other major challenges faced by the managers of AmericInn are the rights and laws for the labors in the other nations. It is very difficult for the HR managers of the company to study the rules and regulations of other countys policies. This creates a huge burden on the managers of the company (Guo and Rongxing, 2015). The outsourcing of the employees is also a reason for the challenges and issues. It is the mentality of people that they do not want to change their country for better opportunity. This will become as issue for AmericInn. The managers of AmericInn observed that the employees that are recruited for the outside country generally work for part-time of temporary basis. It results in insecurity of termination and turnover of the employees form the organization. The major reason due to which AmericInn was avoiding from expansion was management of productivity and quality in the organization. It is very easy for the company to manage both the elements in the local boundaries as they are aware of the culture of America (Birkinshaw, Brannen, and Tung, 2011). The process of globalization involves downsizing of the workforce form the organization. It is a major drawback as AmericInn has to terminate many of the skilled and intelligent employees from the organization for the sake of globalization. This is the most crucial process of international business (Scullion, and Collings, 2006). AmericInn have to manage flexibility in the working process and working hours so that the employee and other members get familiar with the environment of the company. It becomes very relevant for every company which is expanding its business operations into the global markets. An understanding of strategy issues in international Business Though, international business carries lots of benefits with it as the business can experience various types of new markets and untouched markets, new customers, policies, benefits, revenues, profits, sales, etc. Despite of all above, AmericInn have to face many types of issues regarding the planning for the strategies. There are key issues and challenges faced by AmericInn in the formation and management of strategy formation. AmericInn should identify the key issues that may come while internationalization of business operations. Key issues in the strategies are related to those issues that affects the survival of AmericInn in other countries. The companies have to study some relevant elements that effects its position that are market position on that refers to the products and services offered to the target markets. The main issue is whether the goods and services are fulfilling the customers need or not. The financial position of the company must be strong while internationalization of the company as it helps in achieving the goals of the organization. The system of production represent the technology that is used by the hotel AmericInn as the customers wants updated luxury while spending money. The managers also have to look at the human resource department of the company to continue the proces s of recruitment, selection, training, development, compensation of the employees. There is a huge difference in the domestic strategy and international strategy. In this regard, the company AmericInn has discovered four main areas where the strategies must be formed and implemented. It is done by the strategy analyst of the company. the fur strategies are the geographic spread, integration of global challenges, multinational firms, multi business firms, etc. the global factors depicts that in which global location the company wants to establish its further operations. Then the motive is to spread the business operation according to the locations. If we talk about AmericInn than the Asian countries are the best suite locations. This could provide advantage to enlarge the operations of the hotel to international market. So we can say that the practice of international business and its strategy is not very easy for AmericInn as there is a very thin line between the general strategy of the business and the international strategy of the business operations. The managers are facing a huge amount of competition that results in failure of the strategy formation for the organization. An understanding of the skills required by managers to Manage in a global context To succeed in todays fast moving world, AmericInn has to prepare their leaders and managers to cope up with the challenges and issues that come across while internationalization of the business takes place. There are certain qualities that must be developed in the managers and leaders of AmericInn. They re the set of skills and knowledge that must be found in the working style of them. To manage the pressure from the global economy, the managers have to diversify their mind sets according to the regions, nations, and substantial boundaries of the global economy. AmericInn wants to set up effective business operations in the overseas locations. This can be achieved through broad senses and technical knowhow. The specific qualities that must be required by the managers are- The overseas experiences The overseas experiences that reflect the knowledge and skills of managers about the counties in which the business operation is taking place or will take place in future. To become an international manager, it is very relevant to develop knowledge about the international markets, international cultures, policies, etc. (Javidan, et.al. 2005). Self-awareness Self-awareness is also the most important quality that must be present in AmericInns manager. This represents the beliefs and values of the manager on himself. The company has to chose such individual a manager who is confident about himself and must be aware about his or her powers. Without such quality it is not possible o manage the tough environment of international business. Cultural diversification There must be sensitivity in the cultural diversification of the staff and other members. As we know that a manager is an individual who promotes unity in the organization. AmericInn have to develop a sense of diversification in the minds of the managers so that they can respect the diversities in the company. Humility It is very relevant to manage humility in the organization. This helps in the unification and satisfaction of the employees. The hotel industry is one where it is vital to manage a decent and sophisticated behavior for their clients. It can be possible only when the staff will maintain good hospitality in AmericInn. Strategic thinking Global strategic thinking is the key factor that can help the managers and leaders of AmericInn to succeed in the global environment. It helps to make strategies according to the international environment of the country in which the company is dealing with. Good communication and well spoken Good communication and well spoken are the factors that helps in attracting new customers and clients in the organization. Communication has a power that can connect two different people together. Hence, it becomes very relevant for AmericInn to have effective communication power to deal in international business (Pettigrew, Woodman, and Cameron, 2001). A good negotiator A good negotiator is a best quality of a manager or a leader. If these skills are added to the managers of AmericInn than the company can easily tackle with the unfavorable environment of new locations. While going global it is the basic requirement that must be found in every leader. Attractive and pleasing presence Presence is the first thing that comes in the notice. Mangers should be presentable as he is a representative of the entire organization. The managers of AmericInn should develop their personality in a way that they look charismatic and presentable (Soderberg, and Holden, 2002). An understanding of major entry and exit strategies of International business There are various ways through which AmericInn can entry and exit from the international business Exporting as an entry strategy Direct- Direct entry refers to initiate the operations directly in the international business or country. It is the most risky way as the entire operations and the business organization is new for the location. Indirect- Indirect refers to firstly start the operations from the domestic nation to develop the knowledge and skills of the other countries (Adler, 2006). Foreign production as an entering strategy Licensing- It is almost similar to the contract manufacturing. In case of AmericInn it refers to provide license to any other company who wants to start operation of the same company (Lu, and Beamish, 2004). Franchising- It is one of the special forms of licensing in which the franchisor use the entire pan of the main company and promote it in the other nations. This concept is the most updated and expanding rapidly as it has many advantages. Local manufacturing- It refers to the manufacturing in which the company manufactures the local products and services instead of any international brand and multinational companys product pr services. Owners entering strategies Joint ventures- Joint venture refers to the investment are done in any foreign firm. It is a type of partnership. In this the firms get advantage to manage the other firms on their own basis. Strategic alliance- Strategic alliance is an updated version of joint ventures. They are different from traditional way joint ventures. Entering into the markets through the mergers and acquisitions- Instead of building the base, many companies direct merge or acquire the business operations of the other international companies. It is one of the attractive ay to enter into the global markets (Werner, 2002). Exit strategy There are no particular strategies for the exit of the firms form the national as well as international markets. There are various types of circumstances that force the companies to exit from the market or country. Failure is one of the major reason due to which the companies take exit but there are other reasons too that may force the companies to exit from the markets. They can be political reasons, financial problems or lack or finance, economic reasons and legal reasons. They are the reasons due to which the companies want to dissolve the operations and sell the entire or partial organization. High cost of operation sis also major issue in the international business as it is not possible to initiate the business operations wit out the investment of money and finance (AmericInn, 2016). Conclusion At last we can conclude that the company has managed the changes that has takes place while changing and expanding the business operations from one country to another country. Though, it is not an easy task for any company. But the AmericInn hotels and suites somehow proved that they have done across border management in a prominent way. The managers and the leaders of the company AmericInn are very effective while drafting the policies and strategies of management takes place at the time of across borders. They have a good knowledge of international markets. The managers of the company know well to manage the international business transaction in an effective and efficient ways. We have an understanding of the impact of globalization on Managers and organization, an understanding of strategy issues in international Business, an understanding of the skills required by managers to manage in a global context, and an understanding of major entry and exit strategies of International busi ness. As we know that the across border business has created a huge impact on the managers and the entire organization. It has become relevant for the managers to cope up with the challenges that have come at the time of management. The leaders and managers have to take qualitative and quantitative steps to manage all the issues and to face all the challenges. The leaders of the company take optimal decisions so that the organization will not face any major issues. It can become possible when the managers and leaders will make effective plans related to the management of cross borders. References Adler, N.J., 2006. 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