Introduction
Organization no matter what their sizes is i.e. small, medium, national and multi-national firm are spending big part of their financial and human resources to obtain quality research for the progress of their business. Similarly mangers must do quality research to continue their operations smoothly. The success of organization is highly base upon the better understanding of the society and business environment of relatively location. Appropriate Cost-Minimization Methods based on quality research ensures the accuracy and reliability of business decisions made by the management.
Taking it further in Australian scenario and to continue business operations smoothly Australian business environment managers have to follow certain predefined tools of cost minimization. They must emphasize on gathering data of the employees of their organization first i.e. the number of direct and indirect employees, sex, social and cultural norms, and other key factors are concern. “Cultural relativism represents the antithesis of global culture. Under a relativistic ethical view, existing cultural beliefs and practices in various societies should not be judged or overridden by conflicting external standards. Hence, one aspect of examining culture and the human environment relates to deciding whether core values exist that provide a basis for rejecting cultural relativism, perhaps defining common morality principles upon which a global society could develop.” (Kline, 2005) The collection of data will not be difficult for management because the HR or Admin departments of the organization have already recorded normally such data.
Once organization understands and starts reading minds of its customers, it can better implement its business plans and make right decision at the right time. It also helps managers in segmenting its market in an effective and efficient manner. For instance, a coffee bar decides where to have its outlet and which form of its outlet is appropriate for specific locations. Managers emphasize on having its business operation at such places where they can maximize their retunes and have less to invest.
Globalization
Improvement in communication and moving technology are plying a major role in gathering people and removing traffic hindrances between them at large. This produces a multicultural trend in all aspects, especially in Australian multinational businesses, where the people with different races or social backgrounds are engaged and work like a team for the unit benefits. The mixture of such races as a single unit raises a question that there are different minds working at same place with different background cultures but most of them have to destroy or obliterate their social identities at some extent in order to move ahead with the whole for the goal of team. For instances, an explorer in South America has intentionally altered the Native American’s culture with another one. Many other examples of such alteration of culture have occurred in other parts of world i.e. Africa, India where the same procedure were adopted. The mean of whole process is to get the single and united benefits for the nation by working together while avoiding their social ethics. This mixture also provides the creativity and competence in numerous occasions. Manager who is operating international business has to deal with the group from varied backgrounds at work place skilfully.
Downsizing
Strategic management of organizations often force manages to help them in cutting down their operating cost. Therefore, management often utilizes, downsizing tool to help this cause. It then becomes a serious issue, which employee should continue and which should not. They have to be very sure that there is no shortage of employees to avoid any potential threat. In most countries including Australia limited financial resources available for managers to carryout routine operations managers employ rather unorthodox operational strategy, by having rich data from its secondary resources and should have internal validity check. This will provide some comfort to the researchers that their own interpretations are nearly matching to primary. Managers often not entertain any face to face interview to find out what actually people think about such international brands, we may overcome this hurdle by having online surveys as community especially teenagers and adult like to participate in such activities. This will help management in getting maximum updated and much authentic research data for making business decisions.
Outsourcing
Outsourcing is one of the latest trends adopted by several multinational firm is outsourcing; they outsource offered services by involving third party service providers. Most of the airlines have already adopted this tool to cut down their operating costs. Usually this outsourcing is linked with human resources; therefore HR management has to be quite sure if they can use this tool effectively with no threat of violating organizational privacy.
Business manager of different organizations in Australia also take some key considerations before setting up their businesses. They must also learn the buying behavior of the targeted market, i.e. how the react to a new product, what kind of attractions and product feature might divert the attention of its target market from already existing competitors. “Given the multitude of choices, marketers need to understand how consumers make their product and purchase decisions. Research in consumer behavior has proposed various models, which may differ in details but, by and large, share the same steps in the decision process. However, consumer choices are special in several aspects. First, whereas with many other decisions the decision maker faces a rather neutral environment, consumers are subject to quite massive attempts by marketers to influence their choices. Second, maybe more so than most other decisions, consumer choices quite often involve repeated choices. This latter aspect in particular points to the relevance of previous experience in consumer choices.” (Betsch, 2004, p. 289)
Managing Financial Assets
We often see or hear investment made by a multinational corporation in any country; they do invest to improve their position as far as their global competition is concern. With this investment they actually make their way to achieve the projected long run organizational strategic mission. One of the other important reasons of making such investment especially countries like Australia is that they get full benefits of different capital markets, duty and taxation, production cost, different selling markets. Management at multinational level often holds attitude and favoritism of globalization to achieve these objectives. They have to be deeply involved and connected with their foreign operations to manage their international operation well. “The process of international marketing requires careful planning to achieve the organization’s strategic goal. Different marketing approaches are likely to be used for different markets.” (Stone, 2004)
Apart from segmenting the market, management of organizations must take considerable steps towards the implementation of its business activities. The core issue of implementation is based on the position of its services. The right position of its bars, restaurants, stalls and other form of delivering organizational product to its customer actually defines the importance of its products to consumers. Managers have to occupy such places in the market that bring not only its actual customer to its restaurants or bars, but also attractive for its potential customers. Usually more then one firm go after same place which have enough potential as far as business growth is concern, to overcome this problem managers often build unique bundle of offers beneficial for its customers. Smart placement of product divides more than half of the load of sales promotional operations of the organization. Firms do need to send their representative to all areas of when their product already occupied such places.
However, these international firms have no control on environmental factors and they may also have relatively little influence. Therefore, managers at these Multinationals usually have separate setups of measurements for management processes of global and domestic business units. To compare actual performance with expected performance of foreign subsidiaries use to have performance evaluation systems traditionally. This provided great help to top managers in making effective resources allocation decisions to help their subsidiaries to achieve organizational objectives along with highest returns to the business.
Domestic and Global Environmental Factors
No matter an organization involves in producing, selling or distributing goods or services at domestic or global level, it must be based on basic marketing definition or marketing key elements. However, the organizations marketing span will definitely broaden as it decides to sell its goods and services across the international boundaries. The reason for that is now the organization has to consider numerous dimensions that may come across associating with global marketing environment. On a broader vision domestic marketing decisions also have been made after carefully considering macro forces such as social, economic and political, which help developing the market in an effective and efficient manner. Managers in Australia realize it constantly observe level of job satisfaction of employees because it is completely linked with their performance. "The concern for creating favorable workplaces to significantly effect employee behaviors and job satisfaction has been a central endeavor of managers." (Holtbrügge, 2006, p.p. 306-312). HR management takes good care while offering benefits and rewards to employees. They know that if they offer handsome benefits
In the case of global marketing, organization not only considers all the aspects of domestic market, in addition they also emphasize on international relationships of countries in which they are planning to or have setup their subsidiaries. To gain maximum access to the target market of their goods and services these organizations work with government officials and their competitors, they develop networks to reach target and potential customers. If domestic marketing is dealing with satisfaction of organizational objectives, global marketing extend it to the satisfaction of government, society, workers and above all their stakeholders.
Conclusion
Although domestic and global both cost management decisions require a clear identification of product and its business objectives, having deep analysis on internal and external environmental forces effects. The differences come between these two kinds of marketing decision making because of the different demographic condition of different regions around the world and market environment sensitiveness.
Strategic cost minimization decision of any multinational company usually based on micro & macro, domestic and global factors exist and they have an effect on its operations. Most of the large level factors are uncontrollable and those companies who have already or are dealing effectively with them represents their ability.
References
Betsch, Tilmann. (2004) The Routines of Decision Making. Mahwah, NJ: Lawrence Erlbaum Associates. P. 289.
Holtbrügge, Dirk. Wilson, Sarah. and Berg, Nicola. (2006) Human resource management at Star Alliance: Pressures for standardization and differentiation. Journal of Air Transport Management. Vol. 12, Issue 6, pp. 306-312.
Kamoche, Ken N. (2002) Organizational Improvisation. Routledge: New York P. 52.
Kline, John M. (2005) Ethics for International Business: Decision Making in a Global Political Economy. London: Routledge, p. 170.
Stone Marilyn A. (2004) International Strategic Marketing. New York: Routledge, p. 221.
Warner, Malcolm. (2001) Comparative Management: Critical Perspectives on Business and Management. Routledge: London. Vol: 1. P. 176.
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