According to Prestwich and Ho-Kim (29), for any company to favorably compete in any global market, the organization must be imparted with appropriate international skills, knowledge, and abilities. Crazarnecka and Szymura-Tyc (221) note that multinational corporations (MNCs) continue to central drivers for progressive globalization and development of the global economy. The global markets are incredibly diversified compared to the home markets hence the skills, knowledge, and abilities used by a firm in the home market may be obsolete in the international market. Therefore, a key ingredient for competitiveness and viability in the global market is the need for exceptional knowledge, skills, and abilities suited for the diversified global market. The market is characterized by multiculturalism, diversity, quality service and product revolution, product and service coincidences, ever-changing disruptive technologies, and global competitions among others. Kasımoğlu (394) states that due to this fact, organizations must rethink their strategies to both human resources and operations.
Kasımoğlu (397) notes that the first strategy for any multinational corporation to consider when venturing in the global market is ensuring they have a robust home market. The ability to defend the home markets can be used as a leverage to the worldwide market which is unpredictable and diverse with stiff competition. Kasımoğlu (397) cites that most successful global companies such as Unilever and Compaq as well as Cemex of Mexico and Jollibee Foods of the Philippines used their strong markets to venture into the global markets successfully. Concentrating on the already established and the advantages enjoyed in the home is critical as it cushions the firms from the uncertainties on the global markets. Prior to conquering or favorably competing in the new environment, the company needs a constant supply of resources and capital which can only be provided by the home markets.
Kasımoğlu (397) indicate that companies can use fours strategies to achieve the named ability namely dodging, contending, defending, and extending. Defending infers to the strength of the MNCs to focus and leverage on the local assets and potential in the home market while dodging emphasizes on locally-oriented products and maintaining the authenticity of local products as opposed to adapting to what other MNCs in the home market. Contending refers to regular upgrading of the available resources and capabilities whereas extending focuses on expansion to markets with similar characteristics as the home market. Defending helps create a reputable and energetic brand that can be used to tap into the global market. Having a strong brand home can be used as a point of reference for global customers to consider purchasing from the new entrants in their markets because of reputation. Dodging ensures authenticity in product differentiation by offering a unique product that meets the needs of the home markets rather than offering the same as everyone else. It promotes selling customer loyalty because the quality is guaranteed. Global markets are ever changing and extremely diverse requiring coherent skills and flexibility to upgrade the capacities and resources available with the changing times for competitive advantage. Being flexible and future-oriented ensures a company remains viable. Lastly, the strategic expansion to new markets with relatively the same characteristics as the home markets reduces a firm’s capacity to adopt new strategies but can only marginally improve on the existing ones. This reduces expenditures and helps the company to quickly acquire a competitive position in the market as opposed to venturing into a market with a vast disparity.
Secondly, Crazarnecka and Szymura-Tyc (221) indicate that cross-cultural awareness and knowledge is paramount for every company venturing or in the global markets. As alluded earlier, the global market is incredibly diverse compared to home markets with people from expansive cultural, social, political, and economic environments. The needs of the global markets vary from country to country despite the product or service offered in both nations being the same. Therefore, companies must first conduct a rigorous study on the global market in question to understand it and appreciate the values, behaviors, and patterns in the market. This ensures that the company fine-tunes its products and services to the needs of the local markets for it gain acceptability, recognition and competitively perform with other existing both domestic and international companies. Crazarnecka and Szymura-Tyc (223) note that no specific nor single management style can effectively be applied in all cultures but through coherent comprehension of the local market’s cultures; managers of MNCs have a potential to developing and fine-tuning their strategies and products on the needs of the local markets for a competitive edge.
Crazarnecka and Szymura-Tyc (223) point out that when venturing into the global markets, MNCs must acquire additional qualified personnel and companies to allow them to adequately fit in the global environment as per the local needs. Therefore, employment diversification and inclusivity are central in global markets. It is common sense that when venturing into a new market, an MNC cannot import its entire personnel especially top management to the new market but require to strategic integrate local experts and staff familiar with the local environment in its management. The local personnel often have a comprehensive understanding of the procedures and methods as well the management styles effective in the country of question hence helping the new MNC in the environment to align with the host nation effectively. Different cultures require different management stratifies and who best can ensure cultural assimilation if not including the local personnel. Diversity and inclusivity ensure convergence of strategies, customs, and values into a workable approach for competitive advantage. Russo (1) equally notes that strategic alliances of both human resource and business help MNCs to easily expand into the global markets by tapping into the knowledge of their partners about the local markets.
Crazarnecka and Szymura-Tyc (223) and Prestwich and Ho-Kim (29) notes that global managers ought to possess key intercultural competencies so as to exploit the multicultural environment effectively. Cross-cultural outlook skills and knowledge ensures they are flexible enough to manage the divergent cultural contexts. They must understand the paradoxes, dualities, and contradictions pertinent to the global business environment and align with them competitively. Essential intercultural communication skills are invaluable; successful global managers must at least understand at least one foreign language. They must equally comprehend and appreciate the dynamism of dealing with people from different cultures. This impacts up to the advertisement and promotion strategies which must be sensitive to the local customs. Therefore, cultural sensitivity is a central skill for both the firms and its managers. The MNCs must appreciate cultural diversity in order to forge and build strong relationships for a competitive edge.
In summation, based on the diversity of the global markets, firms venturing into the global markets require a coherent set of knowledge, skills, and abilities that would enable them to compete in the market favorably. Cultural sensitivity, diversity, and alliances are at the epicenter of every global strategic venture.
Works Cited
Czarnecka, Aleksandra and Maja Szymura-Tyc. "Chapter 13: The competencies of global managers in multinational corporations." Economy Today: An Interdisciplinary Approach to Contemporary Economic Challenges. Ed. Piotr Urbanek. Łódź, Poland: Wydawnictwo Uniwersytetu Łódzkiego, 2016. 222-234.
Kasımoğlu, Murat. "Survival strategies for companies in the global business world – a case study." Çanakkale 18th March University (2018): 394-403.
Prestwich, Roger, and Thu-Mai Ho-Kim. "Knowledge, skills and abilities of international business majors: What we teach them versus what companies need them to know." Journal of Teaching in International Business 19.1 (2007): 29-55.
Russo, Margherita. Strategic alliances in global markets. Doctoral Thesis. Milano MI, Italy: University of Milano-Bicocca, 2016.
