There are several means of making the business such as strategic business alliance with other organization or setting and incorporating the new business venture in the other country (Peterson, 2009). For instance, with the strategic alliance, Wipro and Microsoft six sigma came into the strategic alliance and strengthen the business on global level. However, this strategic alliance is set with the increased business completion and the rise of globalization as it becomes bit difficult for the MNC’s to survive in such a competitive environment without taking alliance with other organization. Moreover, rivals give cut-throat competition in terms of technological disruption to existing industry and price-leadership strategy to gain a competitive edge (Peterson, 2009). Another strategy or mean to take the business international is to set up or incorporating the new venture. This helps organization in gaining exposure, competitive edge, and lucrative opportunities in the global market. For instance, Macdonald's adaptive skills and respect to distinctive cultures in India like not delivering pork keeping in mind Indian culture assisted in gaining exposure and growth in the long run. Globalization may have an intense impact on decision making of an organization as managers need to scale up their skills and managerial skills won't be enough in long run, hence, mangers have to adopt problem-solving, decision making, risk-taking, and technical skills to perform smoothly (Peterson, 2009).
In context with international business, the existence of major issues that hinders growth of an organization cannot go unnoticed. The main professional traits and intents which are expected from the manager in the global business is that he should be more aligned or adaptive to social and cultural issues which act as an obstacle for a firm involved in international trade and adapt with the same. The manger needs to be vigilant with the strategic planning and developing policies which are more adhering with current political and economic regimes might be a challenging task which ultimately erodes profitability and sales of an organization. Moreover, technological disruption by rivals, employee’s unsatisfied behavior may impose as a big threat to an existing business. Additionally, high tax imposition and governmental intervention hinder the growth of international business. Hence, managers must have strong technical, problem-solving, and adaptive skills to compete in an uneasy environment (Chen, et al. 2017).
Example- Starbuck's cannibalization in domestic and international markets as a major business issue which is handled by the managers with the strong strategic planning. In context with international business, several social issues can be faced by managers in the business operations in terms of interpersonal conflicts, bad behavior, violence, low motivation, casualization, and increased stress which leads to negative atmosphere at workplace (Peterson, 2009). Hence, managers must possess motivating and interpersonal skills to maintain a positive environment however, the Cultural differences are one of the major socio-cultural issues which increased conflicts, misunderstanding, poor performances at workplace. On the other hand, it becomes difficult for managers and employees to manage and work effectively towards their jobs/tasks because of the cultural issues (Peterson, 2009).
Example- At workplace, a dark complexed employee might face racial discrimination, therefore, it's the duty of managers to have leadership, empathy, and persuasion skills so that positive and working environments can be maintained (Schweda, 2018).
Political factors- With international business, rigid political conditions can be a major barrier for an organization in terms of growth and lucrative opportunities. Moreover, governmental intervention, political instability, change in regimes by Government are some of the major issues that can make it hard for an MNE to survive in global market (Peterson, 2009).
Economic factors- It involves rigid/lenient economic conditions that can either hinder or encourage the growth of MNE's. Additionally, taxation, interest rates, economies of scale are some of the economic forces that influence organizational performance and decision making. Hence, such factors must be held into account before expanding one's business overseas (Peterson, 2009).
Social factors- It involves societal attitudes, purchasing behavior towards international goods hence, for some individuals MNE's are perceived positive while rest of the society might not encourage entrepreneurship or international goods which disturbs growth and decision making.
Technological factors- In context with the technical system, prompt acceptance and implementation of technological adaptation assist in staying in lead whereas technological disruption by rivals can disrupt an existing industry (Peterson, 2009).
Cultural factors- Cultural differences in terms of distinctive values, religion, skin color, behavior, language, and tradition can influence the decision making of an organization.
MNE’s cash cow criticism- MNE's get criticized for neglecting host country manager's expertise for ascertaining above external forces. Additionally, high-level strategy goes from turning star and the question mark into cash cow jobs and then leave before starting appearing like a dog. Moreover, MNE's get a citizen of high pricing goods, fraud technology, and domestic producers/employee's loss (Chen, et al. 2017).
Example- Samsung SBU’s with varied goods.
Taboo- A negative norm/practice considered unethical at workplace leading to boycott of an individual involved in the taboo norm. Moreover, such norms are generally refrained from being discussed normally or at workplace. In addition to this, it can portray a bad image, unethical behavior towards colleagues (Peterson, 2009).
Example- Drug addiction.
Folkway- These are the norms which don't create much hatred towards a person or creates a profound impact on individual being involved. Hence, it can be said that folkway doesn’t create such harm towards the victim as it doesn't much influence but, it might socially be approved but demoralize an individual.
Example- Not greeting an employee initially at the workplace.
Mores- A social norm that introspects what is acceptable or prohibited within any culture. Hence, such a socio-cultural norm includes values, behavior, religion, tradition, and ethics which either is promoted or prohibited (DeWane, & Grant-Kels, 2018).
Example- In US culture, incest is banned to an extent.
Laws- As the name suggests, these are Governmental regimes to promote just and transparency for societal welfare. Hence, adhering to such norms is vital for an international business to satisfy consumers, employees, and society at large. In context with international business, abiding by such laws can be a big issue for management but, adherence with such policies is the only way for MNE to grow and gain a competitive edge and lucrative opportunities in the global market (Chatman, et al. 2018).
Example- Employee protection act, anti-terrorism policy by the US government.
Distinctive communication style- While doing international business, the existence of diverged communications in terms of languages, accent including nonverbal communication- gestures, hence, it can create misunderstanding and misinterpretation leading to rising in conflicts and poor performances.
Example- aggressive communication style used by managers towards employees.
Attitude towards disputes- In some culture conflict is perceived as a positive activity while rest of the culture avoids conflicts and doesn't promote it at all observing it as defaming or cause of negative environment. Therefore, collaboration is encouraged by some countries whereas in some countries conflicts are perceived as a good thing.
Example- In eastern culture, conflict is perceived as demean while in US individuals are asked to deal with conflicts thereby promoting it otherwise (Schweda, 2018)
Decision-making style- Decision-making process differs from one organization to another in which some culture believes in delegation while others believe in decisions to be taken by top managers.
Example- in US culture, the existence of decisions delegate to subordinates is prompt and whereas, in European culture, decisions are made on own by managers.
Knowing approaches- When it comes to acknowledging things, epistemologies might differ in terms of counting, transcendence, or rhythms.
Example- in Asian culture knowledge perceived through transcendence whereas in European culture, epistemologies are done through counting and measurements.
Disclosure styles- Some cultures don't believe in disclosure of information i.e.; it's not approved, to be frank about conflict, emotion at the workplace while in some countries things need to be said approach is used (Peterson, 2009).
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