Managing in a Global Economy

In today’s global economy, managers must show that they have imagination to create and facilitate innovative ways of operating business. Managers can’t afford to be static. Managers are no longer competing on a local or national scale. They’re now competing globally hence the need for managers to be dynamic. Managers must now look at all aspects of doing business. Some of these aspects were generally neglected by management.How do you know if you are a traditional manager? First, one must understand that managers always focus on the bottom line. In a traditional style of management, the bottom line is based on two sources of data, planned expenditures and actual expenditures. While this style of management works, it is not enough to compete with the rest of the world, because this linear style of management lacks imagination.So what do managers need to do? In order for managers to compete globally they must first possess the mind set for innovation. The more innovative a manager, the more dynamic he/she will be at integrating all measurement of cost. These managers I like to call activist managers. They are forward looking, and are generally more dynamic in their way of thinking. In their decision making, they draw on different elements within the business society whether it is on the local, national, or even international level.What are these elements? The elements are factors that impact doing business. These factors are many depending on the industry that one is in. Here are some examples of elements that affect managers in doing business.o Consumer credit risko Resourceso Political Climateo Foreign Exchange risko Competitiono TechnologyUnderstanding their respective elements will better enable managers to make the necessary adjustments to doing business. These adjustments will allow managers to achieve a viable bottom line.This Article was provided to you by