NAME: CLAUDIA PUTRI ADISKA

NPM: 2205170093
SUBJECT: MANAGEMENT

RESUME: MANAGING IN THE GLOBAL ENVIROMENT

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A. Why the ability to perceive, interpret, and respond appropriately to the global
environment is crucial for managerial success?
In today's interconnected world, businesses operate in a global marketplace. Managers
need to understand the global economic, political, and cultural landscape to make informed
decisions. They must perceive and interpret the complexities of the global environment to
identify opportunities and mitigate risks. Without a global perspective, managers may miss out
on emerging markets, fail to anticipate competitive threats, or misunderstand cultural nuances,
leading to suboptimal decisions and reduced success.
Global markets are highly competitive, and managers need to adapt and respond
effectively to stay ahead. By perceiving and interpreting global trends, such as technological
advancements, changing consumer preferences, or regulatory developments, managers can
identify opportunities to gain a competitive edge. They can respond by developing innovative
products, entering new markets, or adopting efficient business practices that capitalize on
global trends. Failing to understand the global environment may result in missed opportunities
and an inability to compete effectively.
The global environment presents various risks that can impact businesses. Economic
fluctuations, political instability, natural disasters, or trade disruptions can have significant
consequences. Managers must be able to perceive and interpret these risks accurately to
develop appropriate response strategies. By understanding the global environment, managers
can proactively assess and mitigate risks, such as diversifying supply chains, hedging currency
exposures, or adapting business models to changing regulations. Ignoring or misinterpreting
global risks can lead to severe financial losses or reputational damage.
Global businesses operate across diverse cultures, and managers need to navigate
cultural differences to build effective teams and establish strong relationships with
stakeholders. Perceiving and interpreting cultural nuances enables managers to adapt their
leadership styles, communication approaches, and decision-making processes to suit different
cultural contexts. A manager who can respond appropriately to the global environment by
fostering inclusivity, respecting diverse perspectives, and promoting cultural sensitivity is more
likely to succeed in managing multicultural teams and leveraging the benefits of diversity.
The global environment demands a heightened awareness of ethical and social
responsibilities. Managers need to understand and respond to issues such as environmental
sustainability, human rights, fair labor practices, and corporate social responsibility. By
perceiving and interpreting global societal expectations, managers can develop responsible
business strategies, mitigate reputational risks, and contribute to sustainable development.
Failure to respond appropriately to global ethical and social concerns can result in public
backlash, legal consequences, and damage to the company's reputation.
The ability to perceive, interpret, and respond appropriately to the global environment
is vital for managerial success due to the impact of globalization, the need for competitive
advantage, the importance of risk management, the requirement for cultural awareness and
diversity, and the growing emphasis on ethical and social responsibility. Managers who possess
these capabilities are better equipped to make informed decisions, adapt to changing
circumstances, and drive their organizations towards success in the global marketplace.

B. Differentiate between the global task and global general enviroments

Global Task Environment:
The global task environment refers to the specific external factors and entities that directly
affect an organization's operations and performance in the global marketplace. It consists of
immediate stakeholders and elements that have a direct and immediate impact on the
organization. Key components of the global task environment include:
1. Customers: These are individuals or organizations that purchase the company's
products or services globally. Understanding customer preferences, needs, and
behaviors across different markets is crucial for success.
2. Competitors: Competitors are organizations that operate in the same industry
and compete for similar customers and resources. In the global task
environment, organizations must identify and analyze global competitors to
develop effective competitive strategies.
3. Suppliers: Suppliers provide necessary inputs, such as raw materials,
components, or services, to the organization. In the global context,
organizations need to establish relationships with global suppliers, manage
supply chains across borders, and ensure a reliable and efficient flow of inputs.
4. Distributors: Distributors are entities that assist in the distribution of an
organization's products or services in different markets. Understanding the
capabilities and reach of global distributors is essential for effective market
penetration and expansion.
5. Partnerships and Alliances: Collaborations with other organizations, such as
joint ventures, strategic alliances, or licensing agreements, play a significant
role in the global task environment. Forming strategic partnerships can provide
access to new markets, resources, or expertise.

Global General Environment:

The global general environment refers to the broader, external factors and conditions that
influence all organizations operating in the global marketplace, regardless of industry or sector.
It includes macro-level forces that shape the overall business environment. Key components of
the global general environment include:
1. Economic Factors: Economic conditions, such as inflation, interest rates,
exchange rates, and global economic growth, impact the overall business
climate. Organizations need to monitor and respond to these factors to adapt
their strategies accordingly.
2. Political and Legal Factors: Government policies, regulations, political stability,
and legal frameworks differ across countries and have a significant impact on
businesses. Organizations must understand and comply with international laws
and regulations to navigate the global business environment effectively.
3. Socio-cultural Factors: Cultural values, social norms, demographic trends, and
consumer behaviors vary across countries and regions. Organizations need to
adapt their products, marketing strategies, and operations to suit different
cultural contexts and societal expectations.
4. Technological Factors: Advancements in technology, digitalization, and
communication infrastructure shape the global business landscape.
Organizations need to embrace technological innovations, stay updated with
emerging trends, and leverage technology to gain a competitive advantage.
5. Environmental Factors: Environmental concerns, sustainability, and climate
change impact global business operations. Organizations must consider
environmental regulations, resource scarcity, and consumer preferences for
environmentally-friendly products and practices.

The global task environment focuses on specific stakeholders and factors that directly impact
an organization's operations, such as customers, competitors, suppliers, distributors, and
partnerships. On the other hand, the global general environment encompasses broader external
forces, including economic, political, socio-cultural, technological, and environmental factors
that affect all organizations operating in the global marketplace.

C. The main forces in the global task and general environments and the challenges
that each force presents to managers
The main forces in the global task and general environments encompass a range of
factors that influence organizations in the global marketplace. Here are the main forces in each
environment and the challenges they present to managers:
Forces in the Global Task Environment:
1. Customers: Customers' preferences, demands, and behaviors vary across different
markets, presenting challenges for managers. They need to understand diverse customer
needs, adapt products and services to local markets, and deliver value propositions that
resonate with customers worldwide. Managing customer expectations and maintaining
customer loyalty across cultural and geographical boundaries can be challenging.
2. Competitors: Global competition poses significant challenges to managers. Managers
must continually monitor and analyze global competitors, anticipate their strategies,
 and differentiate their offerings to gain a competitive advantage. Keeping up with the
pace of innovation, staying ahead in technological advancements, and effectively
positioning the organization against intense global competition are ongoing challenges.
3. Suppliers: Managing global supply chains and working with international suppliers can
be complex. Managers need to ensure a reliable supply of inputs, manage quality
control across borders, and address potential logistical and operational challenges. They
also need to anticipate and mitigate risks related to supply chain disruptions, such as
geopolitical conflicts, natural disasters, or transportation issues.
4. Distributors: Building and managing relationships with global distributors require
effective coordination and communication. Managers must select reliable and capable
distributors, align distribution strategies with local market dynamics, and ensure
efficient distribution of products or services across diverse geographical regions.
Overcoming language and cultural barriers, maintaining consistent branding and
customer experience, and managing channel conflicts can be significant challenges.
5. Partnerships and Alliances: Forming and managing partnerships and alliances in the
global context present unique challenges. Managers need to identify suitable partners,
negotiate mutually beneficial agreements, and establish effective communication
channels. Cultural differences, legal complexities, conflicting goals, and varying
business practices across partners can create challenges in establishing and maintaining
successful collaborations.

Forces in the Global General Environment:

1. Economic Factors: Economic forces, such as currency fluctuations, trade policies, and
global economic conditions, pose challenges to managers. They must navigate
economic uncertainties, adapt pricing strategies, manage international financial risks,
and respond to changes in consumer purchasing power. Economic recessions or
fluctuations can impact demand, profitability, and overall business viability.
2. Political and Legal Factors: The political and legal landscape in different countries
presents challenges for managers. They need to comply with diverse regulations,
navigate complex legal frameworks, and adapt business practices to local political
environments. Geopolitical risks, changes in government policies, trade disputes, and
political instability can create uncertainties and affect business operations.
3. Socio-cultural Factors: Cultural and social factors present challenges in global markets.
Managers must understand and respect cultural diversity, adapt marketing messages
and campaigns to different cultural contexts, and ensure products align with local values
and preferences. Social and demographic shifts, changing consumer behaviors, and
ethical considerations require managers to be responsive and adaptable.
4. Technological Factors: Technological advancements and digitalization bring both
opportunities and challenges for managers. They need to keep pace with rapid
technological changes, adopt digital strategies, and leverage emerging technologies for
innovation and efficiency gains. Managing cybersecurity risks, addressing digital
divides across regions, and ensuring technological compatibility and integration can be
challenging.
5. Environmental Factors: Environmental concerns and sustainability considerations pose
challenges for managers. They need to comply with environmental regulations, adopt
 sustainable practices, and address consumer expectations for environmentally-friendly
products and services. Adapting business models to reduce carbon footprints, managing
supply chain sustainability, and addressing environmental risks require proactive and
responsible management approaches.

D. Why the global environment is becoming more open and competitive, and identify
the forces behind the process of globalization that increase the opportunities,
complexities, challenges, and threats managers face

The global environment is becoming more open and competitive due to several factors
that drive the process of globalization. These factors increase opportunities, complexities,
challenges, and threats that managers face. Here's an explanation of why the global
environment is evolving in this manner and the forces behind it.
1. Technological Advancements: Technological advancements, particularly in
communication and transportation, have revolutionized the global business landscape.
The internet, mobile technology, and digital platforms have made it easier for
organizations to connect, collaborate, and conduct business globally. These
technological advancements have reduced barriers to entry, enabled remote work and
virtual teams, and expanded market reach, creating new opportunities for organizations.
However, they have also increased the complexity of managing global operations,
navigating digital platforms, and addressing cybersecurity threats.
2. Trade Liberalization: Governments around the world have been actively promoting
trade liberalization through various mechanisms such as free trade agreements, reduced
tariffs, and trade blocs. These initiatives have facilitated the movement of goods,
services, and investments across borders. As trade barriers diminish, organizations can
access larger markets, expand their customer base, and benefit from economies of scale.
However, increased global competition also presents challenges, as organizations need
to differentiate their offerings and adapt to local market conditions to remain
competitive.
3. Market Deregulation: Many countries have embraced market deregulation, reducing
government intervention and creating more favorable business environments.
Deregulation has encouraged private investment, increased competition, and enhanced
efficiency. Organizations can now operate more freely in global markets, pursue
investment opportunities, and compete with domestic and international players.
However, deregulation can also lead to intensified competition, increased market
volatility, and the need for organizations to navigate complex regulatory environments
across multiple jurisdictions.
4. Global Economic Integration: Economic integration refers to the growing
interconnectedness and interdependence of national economies. The formation of
regional economic blocs, such as the European Union and the Association of Southeast
Asian Nations (ASEAN), has facilitated the flow of goods, services, capital, and labor
within these regions. Global supply chains have become more intricate, with
organizations sourcing inputs and assembling products across multiple countries. While
economic integration increases access to global markets and cost efficiencies, it also
 exposes organizations to supply chain vulnerabilities, geopolitical risks, and economic
interdependencies.
5. Cultural Exchange and Globalization of Consumer Preferences: Globalization has led
to increased cultural exchange and the spread of global consumer preferences. People
are exposed to products, services, and ideas from different cultures, shaping their
expectations and consumption patterns. This presents opportunities for organizations to
expand into new markets and cater to global consumer demands. However,
understanding and adapting to diverse cultural preferences and consumer behaviors can
be complex for managers, requiring cultural sensitivity and localization strategies.
6. International Labor Mobility: Globalization has facilitated international labor mobility,
with professionals and skilled workers seeking employment opportunities across
borders. This has resulted in a diverse workforce in many countries, bringing together
talent from different backgrounds and expertise. Managers must effectively manage
multicultural teams, bridge language and cultural barriers, and create inclusive work
environments to leverage the advantages of a global talent pool.

These forces behind globalization have increased opportunities for organizations to

access new markets, tap into global talent and resources, and drive innovation. However, they
have also introduced complexities, challenges, and threats that managers must navigate, such
as intense global competition, the need for cultural understanding, managing supply chains
across borders, addressing regulatory compliance, and responding to geopolitical risks. To
succeed in the global environment, managers must be adaptive, proactive, and capable of
leveraging opportunities while effectively mitigating risks and complexities.

E. Why national cultures differ and why it is important that managers be sensitive to
the effects of falling trade barriers and regional trade associations on the political
and social systems of nations around the world?
National cultures differ due to a variety of factors, including historical background,
social norms, values, beliefs, language, religion, education systems, and geographic influences.
These factors shape the cultural identity and behavior of individuals within a nation and
contribute to the unique characteristics and practices of that culture. Here are some reasons for
cultural differences among nations:
1. Historical Development: Historical events, such as colonization, wars, and migrations,
have shaped the development of cultures in different nations. Historical experiences
influence societal values, traditions, and institutions, leading to cultural diversity.
2. Geographical Factors: Geographic location, climate, and natural resources can
influence cultural practices and economic activities. For example, countries with
abundant agricultural resources may have a strong agrarian culture, while nations
located near the sea may have a maritime culture.
3. Social Norms and Values: Social norms, which include behaviors, customs, and
expectations, vary across cultures. Norms can differ in areas such as communication
styles, gender roles, family structures, and social hierarchies. Values, such as
 individualism, collectivism, egalitarianism, or hierarchy, also differ across nations and
influence cultural practices.
4. Religion and Spirituality: Religious beliefs and practices significantly shape cultural
identities and societal norms. Different religions and spiritual traditions have diverse
teachings, rituals, and moral frameworks that impact daily life, laws, and social
interactions.
5. Education and Language: Educational systems and language play a crucial role in
shaping cultural identities and practices. The languages spoken and the education
provided in a nation contribute to the transmission of cultural values, knowledge, and
historical narratives.

Managers need to be sensitive to the effects of falling trade barriers and regional trade
associations on the political and social systems of nations around the world for several reasons:
1. Political Implications: Falling trade barriers and regional trade associations can have
significant political implications for nations. Trade agreements and economic
integration may require countries to align their policies, regulations, and legal
frameworks. Managers need to be aware of the potential political consequences, such
as changes in government priorities, shifts in power dynamics, or geopolitical tensions
that may arise as a result of such agreements.
2. Social Impacts: Global trade and economic integration can have social impacts within
nations. Trade liberalization may lead to changes in employment patterns, income
distribution, and social inequalities. Managers should understand the potential social
effects of trade agreements, including the redistribution of wealth, labor market shifts,
and impacts on local industries or communities.
3. Cultural Preservation: Managers should be sensitive to the effects of trade liberalization
on the preservation of national cultures. Cultural diversity is an important aspect of
identity and heritage for nations. Managers should strive to balance global integration
with the preservation of cultural practices, traditions, and values within the
communities they operate in.
4. Stakeholder Engagement: Falling trade barriers and regional trade associations may
involve collaboration with stakeholders from different nations and cultures. Managers
need to be culturally sensitive, develop cross-cultural communication skills, and
understand the diverse perspectives, norms, and expectations of stakeholders to build
effective relationships and partnerships.
5. Ethical Considerations: Managers should consider the ethical implications of
globalization and trade agreements on societies and individuals. They should be aware
of potential negative consequences, such as exploitation of labor, environmental
degradation, or cultural homogenization. Understanding and promoting responsible
business practices that respect local cultures, labor rights, and environmental
sustainability is essential.