2.1.3 The international dimension
In the changing organisational environment where businesses are linked by ever more efficient and expanding technologies, business leaders and managers of the present (let alone the future) need to possess wide-ranging and international business skills.
Peter Vaill (1989, page 2) uses the metaphor of 'permanent white water' to describe the dynamic nature of doing business in the later part of the 20th Century. This metaphor aptly illustrates the world of international business.
Most managers are taught to think of themselves as paddling their canoes on calm, still lakes...They're led to believe that they should be pretty much able to go where they want, when they want, using the means that are under their control. Sure there will be temporary disruptions during changes of various sorts - periods when they will have to shoot the rapids in their canoes - but the interruptions will be temporary, and when things settle back down, they'll be back in a calm, still lake mode. But it has been my experience that you never get out of the rapids! No sooner do you begin to digest one change than another one comes along...In fact, there are usually lots of changes going on at once...
Vaill, P (1989). Managing as a Performing Art: New Ideas for a World of Chaotic Change. San Francisco : Jossey-Bass.
While we do not consider that most modern managers or their instructors still believe that the waters are calm, the analogy is useful in demonstrating that intelligence, experience and skill are required to successfully operate in a turbulent environment. Vaill also notes that in the world of international business there are many issues that are only very partially under control, yet the effective navigator of the rapids is not behaving randomly or aimlessly.
Get real
Winning companies see the environment for what it is and themselves for what they are. It is all too easy to see things as we wish them to be not as they are.
Like everyone else business people are prone to overestimate their own strengths and their competitors' weaknesses. There are eight realities that companies most often misperceive:
- Your strength in your market
- Your quality, especially as compared with that of your competitors
- What your customer thinks of you
- Why your noncustomers aren't dong business with you
- The potency of your competitors
- The cost position of your competitors especially as compared with your own
- The potential impact of merging technologies and market segments
- Your projection for your products future.
Adapted from: Hamermesh, R (1996). 'Fad free management: the six principles that drive successful companies'. Vision Business Book Summaries , number 171.
Reading 2.3
'What's the competition doing?' About the Human Internet . URL: http://www.management.about.com (accessed 2001, 3 April). [3 pages]