Impact of management myopia and organizational culture on the globalization of a corporation
Discuss the impact of management myopia and organizational culture on the globalization of a corporation?
What are some of the challenges faced by marketers in relation to the newly formed smaller countries? Explain giving examples
Management Myopia and Globalization
Management Myopia can be defined as the power to bring innovation and deliver up to the mark performance one can achieve. It is now a world of globalization and businesses are operating at fast pace with a workforce which is extremely diversified. A research reveals that the public companies are not as long term oriented as the private ones are. Another factor that is highlighted is that the private firms are more forthcoming in adopting the change. The change in the way businesses operate has changed many folds for example the marketing done now has changed from the way it was done before globalization had hit the market. The significance of the global marketing can be seen the way it is being ranked by Forbes, Wall street Journal etc. this ranking is based on many different parameters. However, the global market size in the category of each industry represent the amount of sales in billions of dollars. The companies have started to look for opportunities to increase revenue; outside their homeland.
Company management can be categorized by it’s the orientation towards the world for example the ethnocentric etc. Ethnocentric companies are operating locally as well as internationally. Marketing is a function of any business entity. It is a set of process through which the organization communicates with the customers and also to deliver value to these customers. The customers are managed in a manner that it benefits the company and its stakeholders. The company which operates globally also markets globally and hence utilize global resources and market opportunities. This marketing mix compromises of the entities value chain. These are all organized to create high levels of customer value and get successful in the persistent efforts of gaining the customer advantage. (Djordjević, 2014)
Management is an important aspect of any business. Historically there are five controls that can be exercised to improvise the management. This has study has been done for cross cultural purposes and results show that management styles differ in different region which impact the productivity. The Japanese productivity is due to strong managerial control they exercise upon their employees in comparison to US management. (Chow, 1996)
Managers often feel pressurized that the results are achieved. Personal motivation is created for managers with the career advancement opportunities. While in practice the manipulation of performance signals can be done by the myopic management as well as accounting oriented earning. Managers can access the increase in capital and other downfalls but the system can have negative consequences as well. The lawsuits and other such consequences can result for a bad name for the company. On the other hand myopic management can have severe consequences when they don’t invest in the employee development or improvement of employee personal growth.
Negative Impacts of Myopia
The research clearly identifies the negative impacts of myopia management. The cost cutting of the research and development and marketing can result into negative consequences. It has greater negative impact then financial set back. The world has become a global village. There is need for constant communication. The product or service that the company is making or providing is to be brought out and shared with the customer before it can be accessed by people. The lack of communication and gentle reminders that are a miss cause people to forget that certain product exists. Similarly human resource management is one of the key functions of a firm. Investing in the firms smartly and their HR is quiet important for all organizations. (Mizik, 2016)
Myopia and Marketing
The failure for broader perspective is called myopia. When the marketing team fails to translate the strategies regarding services and products to the customer needs and wants a myopia can happen. Businesses solely function to serve their customers. According to an article from Harvard business review the companies trap in this situation when the marketers fail to ask the significant question what business they are in. It is the most important question any marketer needs to ask himself before designing a marketing strategy.
The style to be adopted can be depending upon the location company is operating. As repeatedly discussed above the world has become the global village and the companies are usually exploiting the global resources to get their messages across. Countries with similar cultures can have same marketing scheme or a global advertisement is made which can be understood by all customers all over the world. This again depends upon the company, product or service that is to be sold to people. When the organizations try saving money by restricting themselves to limited amount of marketing or trying to save on cost by running similar advertisement for all customers then it can result in very harmful impacts for the company.
Since it creates ambiguity for customers to understand the message that is being communicated to them they are diverted to better options or something that is well communicated to them. They consider it superior to meet their needs. The ethnocentric companies are capable of handling the different customers with different backgrounds and needs. One such example is Barbie. The doll was initially made that reflected slim, smart and blond dolls that had created a sense of dissatisfaction among the customers. Other brands saw a gap in this case and started creating dolls that were more matching to their local females. The dolls were not augmented only to one style. They became more popular and Barbie dolls were no more the primary choice. The company had lost 20% share when the doll Bratz was created.
Barbie doll marketers realized this gap and then they came up with alternative options eventually. Now the range includes African, Arabian, and a new line of doll that are designed for older girls. Managers are usually accustomed to look at only what is in front of their eyes. They need to have the eyes for finding the missing information. Innovation and the work with organizations around the globe have enabled to create the strategic eye exam. The peripheral vision of the managers is found to be not up to required capacity. The need to see in future and with clearer vision is important. It is imperative to meet the ability with the need. Companies with the complex rapidly changing environments require well developed peripheral vision. The companies which have simpler environment and stability they do not need it much. Hence the right questions asked is necessary like knowing the market share of company and employee turnover etc. (George Day, 2005)
Although past can never serve as the predictor of the future but it cannot brighten the dark spots of the company and industry. The lessons learned from these can enable one to handle the future opportunities and threats better. It is imperative to ask the questions such as what things would affect the business in future. Sometimes the manager perceive future to be idealistic and so they miss the surprises they can raise it. Manager can save the business by asking themselves the question how they would target their own business as new entrants. The out of box thinking is what is needed to improve and deal with the changing environments of today. There is need for a spark in the thinking and a way to handle the changes.