The Necessity of Understanding Business Management in a Global Contextby Samiksha S. Author
The academic discipline of Business Management has evolved by leaps and bounds since its inception in the early 20th century. At first, it pertained to the aspects of businesses in the domestic economy, but that isn't the case anymore. These days, it has become imperative for the aspirants of this discipline to understand the subject and its impact on a global scale to make a difference in today’s highly competitive globalized world.
So, in this article, we at the Indian School of Business and Finance, positioned among the best b schools in Delhi, will shed light on why has it become all the more essential for the youth today to try and understand the arena of business management in a global context instead of limiting themselves to merely domestic level know-how. Read on.
A Brief Introduction to the Discipline of Business Management
Although the subject of Business Management has existed since the early 1900s, it gained massive popularity during the 1980s. These days, it is among the most popular degrees among young adults. However, before mentioning anything further, it is better to have a brief understanding of the subject.
Business management as an academic subject focuses on business administration, management, and operations. It concerns how firms can best use their resources to generate profits or losses. Administration refers to managing people, administrative tasks, and other resources. In addition, it is the process of organizing or managing large groups of employees who work together under a common authority. Management generally involves planning and controlling an enterprise's activities using appropriate inputs and technology. Operations refer to the organization of production processes such as manufacturing, merchandising, and distribution.
Why is International Know-How Necessary for Management Students?
The world is getting smaller. The markets are converging, and the global economy is becoming more interconnected. The world has become a global marketplace where business opportunities are created, seized, and lost in seconds. The following section will provide an overview of business management in a global context for today's executives, managers, entrepreneurs, and students looking to prosper in this new environment.
The process of making business decisions is now more global than ever before. When the global economy began to take shape after World War II, corporations could capitalize on the new market and grow their business in countries where they were nonexistent. This process is known as outward international expansion. However, today's corporate executives must do more than expanding into a new market. They must also understand the implications of their global decisions. The first step to understanding these implications is knowing where to look for information. While the internet has made this process easier and more accessible, resources are still available to help executives become successful in their roles and create better business opportunities for themselves and their companies.
As one of the top b schools in Delhi, we at ISBF would also like to emphasize the fact that international know-how is particularly necessary for today's economic landscape because of the global economy and the globalization of trade. Thus, as a business management professional, it is necessary to have a good understanding of the international culture. If you lack this, you will not be able to negotiate with foreign partners or hire foreign employees. This idea is called internationalization. It is a process that helps companies in today's highly competitive market to achieve global competitiveness. With globalization and increased mobility of capital and goods, internationalization has become an important tool for business survival.
A Perfect Example of a Globalized Manufacturing Business
Let us take an example of a hypothetical manufacturing unit of a company in India that deals with Chinese and US companies. The company's workflow consists of the following steps:
- The concerned Indian company procures orders from US companies.
- It imports high-quality raw materials from China at cheap rates.
- It produces the finished products in its factories in India.
- It ships goods to the end-user in the US and makes a substantial profit.
Such businesses must cater to the buyer's needs differently from what we are used to. For instance, suppose an Indian company produces temperature measuring instruments for an American company. In that case, it has to follow the US production guidelines and calibrate the instruments at °F instead of °C, as followed in India. This is just an example, but hopefully, you have gotten a brief understanding of the process and its importance.
Understanding the Facts Will Bear Rich Fruit
For the past few decades, international trade has been a major factor in the economic development of many countries. With increasing globalization and rapid economic growth, more and more companies have been looking for opportunities to expand overseas. Thus, this is the perfect time for aspiring minds willing to make a career in the arena of business management to seize this opportunity and enter this field.
However, before you venture into this process, you must remember to respect and understand the importance of Business Management in the global context. Hopefully, through this article today, we, at ISBF, ranked among the leading b schools in Delhi, have been able to shed some light on the topic. We are sure that if you understand our reasoning, you'll surely soar to unimaginable heights of success very soon in your career ahead.
Created on Jul 19th 2022 07:23. Viewed 124 times.