Global Operations Management

Unit 1 - Global Operations Management

Theodora Wilson

American InterContinental University

Abstract

Multiculturalism and diversity play key roles in the success of a company expanding on a global horizon. Political and economic concerns must be known for the countries that will be part an expansion.

Global expansion for companies like PPQ Parts will face issues as a result. This paper will discuss the challenges PPQ Parts will have as the expansion of the company moves into the global competition. Cultural barriers, diversity and its importance will be discussed. Description of political and economic issues will be addressed and the importance of these will be discussed.

Expansions of companies face issues with a host foreign country based on their human capital, technology, and joint ventures. Human capital is the major difference in the employee contracts like the benefits. Benefits vary in the aspect of salary requirements, the number of hours worked, vacation time if any is allowed and retirement. Each country has their own rules for these benefits. So, research must be conducted first to analyze what the affect human capital will have on the company. The second issue is technology. Technology is changing rapidly and is improving. Virtual communication is imperative however a company must be able to centralize their systems with a broad range of languages which must be fluent enough to meet the everyday challenge of each country. Regional skill set must be in place to adhere to company requirements. Laws and regulations in regards to information sharing must be kept in place so as one does not interfere with privacy laws in another country. The third issue is the joint venture to be taken. A company must be knowledgeable of partnership strategies. The goals and methods of a foreign company must be in line with the host company. When a company is compatible with the partnering company in the host country the risk of corporate governance and fraud will be alleviated. The issues mentioned can be overcome with research and analyzed reports.

Cultural barrier and diversity are always in question when expansion occurs internationally. With respect to other cultures and diversity in another country a company will have to successfully execute knowledge management by building it to fit the other culture. Sharing values, beliefs and practices of employees of a company creates the organizational culture of a company. This means people will act a certain way, treat one another with respect and expect the same, and their actions make sense to one another. The result is the core value of the company which in turn is culture.

The importance of diversity acknowledges appreciation of cultural differences. Diversified companies encourage communication. Diversity teaches people how to accept the differences in another person as well as see past the language, ethnicity, skin color, and culture. The talent of another person's performance on the job is goal of the company to succeed so when diversity is met there is goal met. Diversity creates acceptance of differences and adjustment which opens up the mind to new things. The new things encountered will bring better solutions to problems and allows better ideas to arise to allow for multiple solutions. The effectiveness to solutions are more adaptable and productivity is positive in the workplace.

However, when multiculturalism and diversity are ignored consequences happen. People who identify themselves based on their ethnic background and or gender create barriers to their talent and prosperity within a company. The affiliation with the company becomes negative