COLOGNE BUSINESS SCHOOL

Defining and coping key challenges on

international market grounds
Expos paper
Winter Semester 2012
Lecturer: Dafna Graf
Stephan Lange, 1122302049
BA12 in ICM
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Table of Contents Page
1. Introduction 3
2. Introducing the three key challenges 3
2.1 Uncertainty 3
2.2 Compleity 3
2.3 Di!ersity "
3. Coping #ith the three key challenges "
3.1 Coping #ith Uncertainty "
3.2 Coping #ith Compleity $
3.3 Coping #ith Di!ersity $
". Conclusion $
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1. Introduction
Imagine yourself being the head of the marketing department of a multinational
company. Thus, you have to manage a team of different nationalities which is spread
around the globe. In order to achieve the companys objectives you need a wide range
of competencies and you are confronted with several challenges.
Herewith, I would like to introduce the four key challenges including uncertainty,
complexity, paradoxes and diversity which leaders have to face on international market
grounds. urthermore, these challenges hide unexpected issues which I am going to
unveil and giving suitable tips for managing and preventing such occasions.
2. Introducing the three key challenges
2.1 Uncertainty
!hen dealing with unknown people from countries thy have never visited before
managers are most likely to face misunderstandings in foreign languages and cultural
differences. This culture clash creates a great deal of uncertainty leaders have to
tackle.
urthermore, it might be global financial uncertainty, lack of alignment in a matrixed
organi"ation, limited viability of a current business or profit model, or the increasing
expectations of major customers.
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2.2 Compleity
!hile working in a globali"ed environment things get more complex. It is fact that
abroad each business unit has its own processes which often do not align with
conventional procedures from the home country.
The difficulties to success are higher and more complex in global markets than in
domestic markets. *mong other things, these difficulties include sociocultural forces
when it comes to engaging employees.
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-oncerning the engaging vision leaders also need the right communication skills to
persuade their staff.
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2.3 Di!ersity
.n international market grounds diversification in the labor force has led managers to
rethink the character of a companys workforce. They also think about how to
communicate in a way that builds understanding and takes advantage o diverse points
of view.
/evertheless, there are still behavioral barriers such as stereotyping, for instance
prejudices of a persons age, or discrimination.
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3. Coping #ith the three key challenges
3.1 Coping #ith Uncertainty
* major threat of uncertainty is inaction of the workforce due to the already mentioned
culture clash and the lack of alignment in a matrixed organi"ation.
Therefore, managers need to insure that action within the workforce takes place. To do
this, they should empower their employees to deliver results, while themselves can
focus on the whole business. Hence, encouragement of creativity throughout
employees is essential. This can be reached by giving staff the opportunity to create a
considerable degree of latitude.
0tudies have shown that encouragement of creativity effectively enhanced employee
performance.
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3.2 Coping #ith compleity
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*s business gets more complicated in a globali"ed environment coping with complexity
is crucial. /ot only engaging employees is important, but also managers have to
organi"e themselves first in order to organi"e their workforce.
To make that possible following elements have to be taken into consideration1
2 * collection of back up plans that may be essential if the main idea is likely to fail.
2 The possibility to make use of a decision2making technology which is able to choose
independently what sort of action to undertake when a disruptive event occurs.
2 Having a range of long2term collected information to support powers of persuading
employees.
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3.3 Coping #ith di!ersity
The key to avoid risks of diversity is to develop an organi"ation in which members from
all socio2cultural classes provide their full potential.
Therefore, leaders have to maintain a balance between existing objectives and
retraining the individual cultures of employees.
Training programmes include awareness and skill2building to inform participants about
issues and raising their own self2awareness.
3oreover, new employees will get orientation training to get the knowledge of the
companys expectations in regard of treating fellow colleagues.
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". Conclusion
5espite the importance of defining these specific challenges and finding a way how to
solve them there is still a significant missing part.
3anagers also have to show the eager to apply these methods. This is when their
attitude gets more important then the facts they have gathered. The only way how
leaders can prepare themselves for facing these key challenges on international
markets is playing on the one string they have, and that is their attitude.
They have to use their head to anticipate, understand and analy"e new strategic
decisions, their heart to see the world from the point of view of a diverse range of
stakeholders and their guts to make tough decisions.
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'. (ppendi
I herewith declare that the following work I have prepared is my own without the use of
materials other than those cited.
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9lace, date, signature
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