Global Management Challenge (GMC) is a strategic management competition for managers

and university students. Participants form teams of 3-5 members, and each team is placed in a
group of 5-8 teams, depending on the round of the competition. The teams are then given a
virtual company, initially identical to every other company in the competition. Each team then
develops their company by making a series of decisions relating to every aspect of the business,
such as how many machines to buy, or how much to spend on advertising. In each round, five
sets of decisions are taken, corresponding to five quarters. A quarter is a period said to span three
months.

These decisions - made on the Decision Sheet - are run through sophisticated business simulation
software, which generates in-depth Management Reports, showing the consequences of the
decisions. The aim is to finish the game with the highest share-price on the virtual stock
exchange.

The Challenges of Global Management

http://www.ehow.com/info_7975404_challenges-strategies-global-company.html

Also known as international management, global management involves the control of a

company's operations in the regions in which it operates. Such a company would have to
have branches or operations around the world and the management and control of the
entire organization constitutes global management. Due to its vast nature of operations,
such management has its equal share of challenges and complications that arise from
being geographically diversified.

International FInance and Currency

Money matters remain a very sensitive and delicate management issue across the borders.
Global trade and its management involve delicate gymnastics, especially when it comes to
such issues as product pricing, maintaining remuneration standards across the globe, and
fluctuation of world currencies. Any issue that involves finance and currency needs to be
looked at in perspective in relation to such things as living standards and economic levels.

Cross-cultural Barriers

Global management becomes a huge challenge when faced with how to deal with
different cultures across the world in countries in which the company operates.
Understanding of cultures around the world becomes imperative for success in global
management. Marketing across the borders presents international marketing implications,
because messages convey different meaning across cultures.
 Legal and Accounting Practices

Global management is faced with foreign legal requirements and different accounting

practices of the countries within which a company operates. It is important for management
to keep in mind that with different economic and political powers in control over their
countries, legal issues will tend to be different, favoring domestic markets over foreign ones.
Multinationals as such need to determine the protocol, legal and accounting procedures that
every country they operate in adheres to.

Global Strategy

With the differences existing across every country, no one strategy can be tailor-made to
work for every country. Due to this, global management needs to ensure that every country
of its operation has a strategy that befits efficient and effective control and management
within it.

International Competition

Some countries are hostile to multinational or foreign firms. The local firms may at times
have local advantage in terms of access to raw materials or government interventions in
which they give local firms more support than foreign ones. Global management calls for
knowledge of how to tactfully compete in foreign markets and gain acceptance.

What Are the Challenges for the Strategies

of a Global Company?
By Mathijs Van de Graaff, eHow Contributor

updated: February 24, 2011

Global companies face unique challenges when it comes to business strategy. Global

companies must use strategies that will work in a variety of markets. Key differences in
world markets can cause strategies to fail, but being aware of and understanding these
challenges can allow managers to create successful global strategies.
Cultural Differences
1. Often, cultural differences can be the cause of failed global strategies. For example,
a firm that uses a strategy of relocating employees to offices in other cities may be
successful in the United States -- where this is a common practice -- but it will likely face
problems with this strategy in European countries where transferring to another city is not
part of business culture.
Legal Differences
2. Legal differences between countries pose a serious challenge to global businesses.
Certain strategies that are effective in some markets are not allowed in other markets. For
 instance, Wal-Mart uses a strategy in many markets of selling certain products below cost in
order to attract customers into the store. While this works in the United States, it is actually
illegal in some countries.
Economic Differences
3. Economic differences between countries are a major challenge to global business
strategies. For example, a company that strategically targets affluent customers by selling
luxury goods, will have a large market in developed countries but will have difficulties in
developing countries with fewer people who can afford luxury items.
Political Differences
4. Political differences between countries will, undoubtedly, create challenges for a
global business strategy. Various political regimes around the world have different attitudes
and policies toward businesses; some make doing business very easy while others are
extremely bureaucratic. Business strategies often need to be adjusted for local politics; for
example a magazine publisher in the United States is free to pursue a strategy of providing
provocative, political articles, but in certain countries, they must conform to censorship that
is more strict.

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company.html#ixzz1FMARYqUG

The Challenges of HR Management

By Jessica Rhodes, eHow Contributor

updated: September 11, 2010

Globalization forces HR managers to look at policies from a broader perspective.

Traditional HR responsibilities have shifted from administrative tasks to strategic and

personnel development. Challenges arise from these responsibilities and their
implementation in an increasingly globalized business world.
Globalization
1. Global business requires HR managers to develop corporate policies for global
networks, build corporate culture from these policies and train employees from various
backgrounds and cultures. A 2010 article from the Young HR Manager website states that
 adapting policies to fit cultural differences is a task that takes much cultural sensitivity and
flexibility.
Technology
2. Computer systems continue to automate administrative tasks, often shifting HR
staffing needs and job descriptions, as demonstrated in the Personnel Journal's article,
"New Technology is HR's Route to Reengineering." Keeping up with these updates and
employee training requirements for the systems presents additional technological
challenges.
Personnel
3. Increasing employee turnover rates decreases benefits for HR managers, since the
longer an employee stays, the greater the company's return on investment. Therefore, HR
managers are challenged to decrease turnover rates. Additional challenges include higher
salary demands and a decentralization of traditional hierarchical management.

Read more: The Challenges of HR Management |

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Challenges of Global Financial

Management
By Will Gish, eHow Contributor

updated: September 30, 2010

1.

Global financial managers oversee a world-wide economy.

The rise of globalization in the final decade of the 20th century precipitated a need for global
financial management. Simply defined, globalization is progress toward one large,
conglomerated, international market for trade, finance, communications and the economy.
 In order for such a system to subsist, it must be managed. Thus was born the need for
global financial managers who are faced with many challenges in their ongoing efforts to
maintain healthy equilibrium within this globalizing framework.

Agency Cooperation
2. Former Federal Reserve Board governor Laurence H. Meyer identified cooperation
as a major challenge of global financial management. According to Meyer, the global
financial market is a network of entities, from private corporations to third party monitors to
governmental agencies. Successful global financial management requires cooperation from
all of these agencies. However, this proves a difficult task, given that each agency is
ultimately pursuing a different end result. Thus a primary challenge facing global financial
management is juggling this panorama of desires, and reaching acceptable compromises,
in an effort to create a cooperative environment.
Price Risk Management
3. Jerry R. Skees, University of Kentucky H.B. Price Professor of Policy and Risk,
identifies price risk management as a major challenge facing global financial management.
Price risk management is a challenge facing global financial managers working in future
markets. Simply put, a future market is a framework in whichparties agree to an exchange of
goods for a set price, to be delivered at a future date. If the price of these goods increases
dramatically in the interim period, the buyer is the better for it. If the price of these goods
decreases dramatically, the seller is the better for it. Successful financial mangers working
in global future markets are charged with predicting market trends in order to increase
profits.
Disaster Risk Management
4. In "Understanding the Economic and financial Impacts of Natural Disasters: Disaster
Risk Management," published by the World Bank, authors Charlotte Benson and Edward
Clay identify the disaster risk management challenges facing global financial management.
Global financial mangers from, and working within, disaster-prone regions of the world must
predict the cycle of natural disasters, have a firm understanding of which areas of a nation
or industry will and won't be affected by such disasters, and have enough capital to cover
the losses incurred by potential disasters

Main Challenges of Global Financial

Management
By Walter J. Johnson, eHow Contributor

updated: May 15, 2010

1. The global financial situation, as of 2010, continues to struggle. The main issue is
bank "write-downs," that is, the admission that a huge percentage of loans on the current
books will not be repaid. All theories on recovery must take this specific challenge into
 account: how to restore creditworthiness to the financial sector, especially small and
medium size businesses.
Real Estate
2. One major challenge of financial management is the continued deterioration of real
estate markets globally. Falling prices and vacancies remain a problem, especially in the
U.S., Spain and Western Europe as a whole. Foreclosures continue to rise in the western
world, which is, in turn, harming global financial markets.
Consumer Credit
3. Consumer debt and insolvency in Western Europe and (especially) America is
another huge challenge for financial management. Americans are saddled with low or non-
existence savings, high debt and irrational consumption patterns. As unemployment grows,
those millions living on razor-thin margins are certain to foreclose or default on debt.
Corporate Credit
4. High yield defaults, according to the International Monetary Fund (IMF) reached 12
percent in 2009. The main challenge here is to assist in the restructuring and refinancing of
firms seeking to avoid default. In Europe, the real problem is that about 75 percent of all
bank loans are from small and medium size business, which have a 50 percent higher
chance of defaulting than big business.
General Credit
5. According to the IMF, a full 30 percent of American debt and 40 percent of Western
European debt is expected to be written down, or slated as non-repayable. This includes
both loans and securities. The main challenge is that banks must be able to support any
kind of recovery. Keeping interest rates low is not a problem in the developed world so long
as output is low. But these low rates drive competition in debt trading and refinancing,
maintaining profits for banks at thin levels.
Banks
6. Global credit management must deal with banks that are barely limping along, and
now have to face further heightening of costs from insurance premiums and new regulatory
systems. The IMF holds that the real challenge is for banks to get out of risky markets and
focus now on simple businesses and plans and spend money to increase risk management
systems.
Emerging Markets
7. While Western banks can hold rates low without fear of inflation, this is not possible
in the Third World (including Eastern Europe), according to the IMF. The financial, macro-
level infrastructure is not as well developed. As of 2010, Western banks are pumping
liquidity into emerging markets, hoping to stabilize them. Nevertheless, states like China
and Taiwan are likely to maintain state control (rather than bank control) over their
currencies. The real challenge in emerging markets, according to the IMF, is that loans are
channeled only to the highest quality borrowers, leaving many enterprises without support.

How to Manage Global Financial Risk

 By an eHow Contributor

Consult with an advisor if you are not interested in learning the background knowledge need to manage global financial risk.

Global financial risk is deceptively simple to manage yet extraordinarily difficult to

understand. Global financial risk fluctuates depending on the nature of a country or region's
economic standing, the status of the companies with which the risk is associated, and the
intelligence and skill of the financial planner devising and maintaining the financial portfolio.
Those factors notwithstanding, people have been managing global financial risk as part of a
financial portfolio for decades, and a substantial amount of quality literature has been
written on the subject. Ultimately, witheducation and practice, anyone can manage global
financial risk.

Difficulty: Moderately Challenging

Instructions
1. 1
Study economics to the highest level practically possible for you. For example, if you are an
undergraduate, then it would be to your benefit to complete a full major in economics and even some
advanced courses in mathematics. However, at the very least, a manager of global financial risk
should study microeconomics, macroeconomics, microeconomic theory, macroeconomic theory,
econometrics (at the introductory level at least) and financial markets. Financial markets theories and
related equations are built on a framework of those aforementioned courses in economics.
2. 2
Review your current global financial risk situation in correspondence with the status and context of
your investments. For example, if you are investing in stocks belonging to companies that are based
in emerging market economies such as India or China, you should constantly update yourself on the
status of those economies. Read financial magazines and news services such as The Economist,
Forbes, Kiplinger, Investor's Business Daily, The Wall Street Journal and Reuters. Combine your
knowledge of the countrywide and regional economy with the information most specifically related
to your investments. For example, if you own stock in the Indian energy giant Reliance, then you
should spend substantial time reviewing earnings reports and important financial ratios (e.g. price-to-
earnings ratio, price-to-book ratio, etc.). Buy and sell your investments in accordance with the
information you learn.
3. 3
Broaden the scope of your financial portfolio in order to decrease your exposure to particular
investments. For example, you could invest in index funds in order to decrease your exposure to the
singular failure of an investment. According John Bogle, investor and owner of the Vanguard Group,
the best way to decrease the risk of your financial portfolio is to own the entire economy in an index
fund instead of trying to pick individual stocks. After all, over time, companies rise and fall, whereas
the economy continues to grow long term. Consider investing in domestic index funds in order to
decrease your exposure to fluctuations in international markets

Read more: How to Manage Global Financial Risk |

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Read more: Main Challenges of Global Financial Management |

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management.html#ixzz1FHNqX

What Is Global Management?

Global Management is a capability that multinational businesses
value and need in the international marketplace. Companies that
operate across international borders need executives and
managers who understand cross-cultural customs and business
practices and how to promote efficiency and optimize
profitability in a global environment.
Global Management goes beyond how to organize and run a
business. It also includes how to operate it in today's business
world where many corporations work across international
borders.
Global Management: Needs of Companies in the
International Marketplace
Many corporations purchase supplies or sell products in other
countries. They may have subsidiary companies that operate
exclusively in a foreign country. Many companies have call
centers located in other countries. Global Management
techniques are needed in order to operate under these conditions.
Some of the problems with which a global manager deals may
include:
Obtaining appropriate permits to operate a business in
another country
Securing the right to sell a product in another country, in
compliance with that country's laws
Complying with the rules for foreigners working in other countries
Understanding the employment laws of other countries
Managing international tax consequences of importing and
exporting goods and services
Understanding the business culture of other countries
Understanding the social customs of other countries
Determining international branding and advertising needs
Educational Development for Global Management

More and more companies are looking for people with experience or
training in Global Management. People who work in international
management may have some of the following qualifications:

Knowledge of one or more foreign languages

Work experience in a foreign country
 Understanding of social and business customs in other countries
Advanced business degrees with emphasis on international
business operations

According to the Wall Street Journal, business schools are recognizing

these needs by providing more training for those who may work in
international management. Many business schools actively recruit
students from other countries so that students can interact with people
from other cultures. Many business schools incorporate study or work in
foreign locations for students who want to learn about Global
Management firsthand.

Global mang chall in india

The Global Management Challenge is the largest Strategy and Management Competition in the

world. It's the largest international event based on business simulations, in which more than 420
000 university students and company managers participating in this event throughout the
world.
The concept of the competition emerged in 1980 in Portugal by SDG – Simuladores e Modelos de
Gestão – in partnership with the weekly newspaper EXPRESSO. EXPRESSO has not only given a
great amount of national coverage on the competition, but has also contributed immensely to the
internationalization process.
At this present time there are 34 countries participating in the contest: Angola, Australia, Belarus,
Belgium, Benin, Bolivia, Brazil, Czech Republic, Denmark, France, Germany, Ghana, Greece,
Hong Kong SAR (China), Hungary, India, Italy, Ivory Coast, Latvia, Macao SAR (China),
Mexico, People's Republic of China, Poland, Portugal, Puerto Rico, Romania, Russia,
Singapore, Slovak Republic, Spain, Turkey, Ukraine, United Kingdom and Venezuela.
The Global Management Challenge consists of a Management Simulation in which each team
runs a Company, with the objective of getting the highest company share price on the simulated Stock
exchange.
Managing a company, without running real-world risks, and taking top management decisions, the
competitors are given the opportunity to:
 
Analyse Financial and Economic Indicators,
 Broaden their views on Corporate Strategy,
 Interact with the different Functional Areas of a Company,
 Understand the Market Conditions in which they compete and Customer Satisfaction,
 Become aware of the impact of their Decisions on the Organization itself, within an
environment designed to encourage and develop teamwork
The Global Management Challenge normally consists of 4 stages:
 1st Round
 2nd Round
 National Final
 International Final: in March/April of the following year, that brings together the winners
from each country
Each stage consists of Five Developing Decision Periods during the competition. The Group Winner is
the team that finishes with the highest simulated share price.

The Simulator
SDG and EDIT 515 U.K. are partners in developing and improving this Simulator. Their aim is to
ensure that it is up-to-date, relevant and challenging in order to meet the participating company's
current needs, and to keep up with the latest technology.

The Simulator was designed and developed by Partners of EDIT 515 U.K., Professors of the
Operational Research Department of the University of Strathclyde in Scotland (Key subject for a
Master's in Business Administration of the Graduate Business School of this University).

The Challenge

The Global Management Challenge consists of a Strategic Management Simulation, in which each

team runs a Company with the objective of finishing with the highest company share price on the
simulated Stock Exchange. 

How does the Competition work?

The simulation is on-line. 

Each edition begins with a Team Draw. The teams are organised into groups (Each Group with a
maximum of 8 Teams). Each Group creates a competitive Market, in which the teams compete with
one another.
Each team receives information(Company History) about the Company it is about to run;
Outlines a Corporate Strategy;
Launches its Strategy by making functional decisions in different areas of the Company
(Marketing, Production, Human Resources and Finances).
Then, it submits its Management Decisions (Decision sheet) to the Simulator via the Internet.
The Simulator then analyses and compares the teams' decisions and produces a Management Report
for each team, showing the detailed results in financial and operational terms.
This process is repeated over Five Developing Decision Periods during the Competition, simulating
a year and a quarter of the companies activity. 

Documentation used in the competition

Manual – Explains the organisation and functions of the company.
Company history – Details its performance in the previous five quarters.
Decision sheet – Submits the management decisions to the simulator, within a restricted
area of the organiser's web site;
Management report – Produced once the simulator analyses and compares the teams'
decisions showing the detailed outcome in financial and operational terms.
Using the team's Username and Password, within the restricted area of the organiser's web site, the
teams submit their management decisions and consult/download their Management Report.
All the teams can, at any time, consult its Company History, the Manual, the Competition's Calendar
and its Team's classification/ranking for each Decision Period, in the organiser's web site.
The Global Management Challenge consists of 4 stages:
1st Round
2nd Round
The Winning Team of each Group in the First Round proceeds to the Second Round.
The Winning Teams in the Second Round compete in a National Final, usually held at the end
of the year.
Every year, there is an International Final of the Global Management Challenge, in which the Winning
Teams of each participating Country compete with one another.
 
Personal Challenges for Global Managers
Building an internationally competent workforce whose members know the business and
are flexible and open-minded can take years. Multinational organizations can no longer
rely on just a few managers with multicultural experience or a few experts on a
particular country to succeed. In short, all employees must have some minimal level of
international expertise and be able to recognize cultural differences that may affect
daily business communications and working relationships.

In general, overseas managers share common traits with their domestic counterparts.
Wherever a manager is hired, he or she needs the technical knowledge and skills to do
the job, and the intelligence and people skills to be a successful manager. Selecting
managers for expatriate assignments means screening them for traits that predict
success in adapting to what may be dramatically new environments.

Beyond the obvious job-specific qualifications, an organization needs to consider the

following qualities and circumstances when selecting expatriates for positions in foreign
countries:

 A willingness to communicate, form relationships with others, and try new things

 Good cross-cultural communication and language skills

 Flexibility and open-mindedness about other cultures

 The ability to cope with the stress of new situations

 The spouse's career situation and personal attributes

 The existence of quality educational facilities for the candidate's children

 Enthusiasm for the foreign assignment and a good track record in previous
foreign and domestic moves

Of course, the factors that predict a successful expatriate assignment are not identical
for everyone. These differences—which reflect variations in the expatriate's home
culture, his or her company's human resource management practices, and the labor
laws specific to the foreign country—must also be factored into the selection process.

Even if these complexities are taken into account in the selection process, a person
chosen for a foreign assignment may decide not to accept the job offer. The financial
package needs to be reasonably attractive. In addition, family issues may be a concern.
Most candidates, after a position is offered, also want information about how the foreign
posting will impact their careers.

If a potential candidate accepts the job offer, he or she should be aware of the potential
forcultural shock—the confusion and discomfort a person experiences when in an
unfamiliar culture. In addition, ethnocentrism, or the tendency to view one's culture as
superior to others, should be understood and avoided.