Global leadership and expectations of leaders & managers

Global leadership and expectations of leaders managers

2007 Global leadership and expectations of leaders managers

Introduction

Corporate objectives to reduce costs and increase revenue amidst fierce competition have driven companies to explore new markets . In to do so , expanding into foreign market could be a sweet temptation for the companies in to increase revenues and market share

Despite the attractiveness of international expansion , the process still presents potential threats as international market demands a company to adjust several aspects of operation and strategies to cope with the intense competition p

There are many ways to grow in new market through merger and acquisition and joint ventures . In joint ventures , the main objective is to provide complementary HYPERLINK "http /www .1000ventures .com /business_guide /mgmt_stategic_resource-based .html " \o "Resource-Based Model " capabilities and resources including channels of distributions , strong brands , technology , or marketing . A joint venture is basically established through an agreement between two or more companies that share their resources , market knowledge technology expertise , and skillful human resources (Kotelnikov , 2001

However , joint ventures do not have to lead to unfavorable condition . At some occasion , there are many facts that joint ventures lead to declining performance due to disharmony of the combined companies especially concerning the human resource managements

Concerning the joint venture , this will discuss about a successful joint venture or strategic alliance , the differences between Greek and American culture , organizational culture , and political and technology aspects of Greece

Joint Venture and Global Business Leader

By meaning , joint venture refers to an agreement between two or more companies to form a new company that conduct particular business . In this scheme , each party signs a commitment to share profits and losses that the joint venture experiences (WebFinance , 2005

At any joint ventures , the combined companies face two conditions success or failure . A joint venture may success if it can take benefits as following

Providing the new company (joint venture ) with opportunity to grab new capacity and expertise

Allowing the new company to explore business opportunities in new geographic market or obtain new technological knowledge

Offering the new company with creative ways of doing business out of core competence (Kotelnikov , 2001

In addition to the benefits , a joint venture may lead to a failure due to several reasons as following

Inability to deal with cultural differences

Poor and unclear leadership and

Poor integration process (Kotelnikov , 2001

In some cases , the failed joint ventures happen since the company cannot manage their human resources effectively , especially for joint ventures that combine two companies from different countries /cultures According to Kotelnikov (2001 ) the main challenge for a joint venture is concerning its human resource strategy . This is because human resources are responsible of translating the business plan or strategy into day-to-day activity

This is in line with Mercer (2007 ) that says human capital becomes one key success in joint venture is human resources . This is because human resources play important role in executing business strategy of the joint venture

In the case of joint venture between...