International management Essay Example | Topics and Well Written Essays - 2500 words - 1

International management - Essay ExampleThough The global pecuniary crisis battered more European occupancyes, Bernard Arnault, the manager of LMVH, believes that his company pull up stakes not suffer much in the long run, but will, on the contrary, continue growing in acclivitous markets particularly China, India and Russia. This means the manager has faith in his strategy and, indeed, investing into further growth instead of cutting budgets in times of a financial crisis will provide the company with an advantage of getting new sources of income. LVMHs management seems to understand the continuous need for development. As a result, the company will not lose its existing market share because of cost cuts (Pacek & Thorniley, 2007, p. 11). Arnault is setting realistic goals to achieve sustainable growth in the upcoming years. Working internationally Furthermore, intention to work in the emerging markets of China, India and Russia is very logical considering that in the emerging m arkets LVMHs products will be filling large existing voids and, in addition, the company will lease fewer competitors than in the developed markets (Miller, 1998, p. 148). So an emerging market is always a good environment for companys success. Nevertheless, LVMH will face a number of challenges and risks entering the new markets. Among them are differences between cultures, political uncertainty, and currency exchange risks. As for all the other aspects, risks of domestic help firms are basically similar to those of multinational ones and, hence, a decision of the company not to operate overseas may be caused only by these 2 mentioned above particularors. At the same time, a multinational company, despite larger number of risks, has more advantages in comparison with a domestic one. The reason for it is the fact that while, exposed to well-nigh risks, the domestic office is working on the development of new profitable managing strategies, foreign subdivisions of the company ar e working and getting profits. At the same time a purely domestic company puts all its resources for solving the current problem and has no additional income. Nevertheless, a new business abroad will be exposed to a greater number of potential risks than a home-country one. Any multinational company is exposed to risks such as change of foreign currency exchange rate, commodity prices and interest rates because it denominates its transactions in foreign currencies. Thats why there is also some uncertainty in future earnings, liabilities and assets values. Therefore, before taking a decision on the country of entry, a profound analysis of its current political and stinting situation is to be performed. Setting and implementing objectives One more important thing to consider is that there is always a possibility of risk influencing companys strategic planning and strategy. Therefore, objectives should be flexible enough in order for the company to be able to adjust them to particular circumstances in good example market environment or other factors influencing companys operations change. Besides, not only management, but each separate employee of the company should be conscious of such objectives, strategies and special programs in order to understand his/her particular part in their achievement better, and feel free to initiate actions aimed at their achievement. Every employee should have clear responsibilities and duties in this or that project in order for everyone to know and understand one