Discuss How the External Environment Influences Management Practice. Identify and Discuss Two Challenges of Managing in a Global Environment.

The external environment refers to the conditions, entities, events and factors surrounding an organization which influence its activities and choices and determine the organization’s opportunities and risks. Factors relating to political, economic, social-cultural, technological, environmental and legal have implications on the functions and long term goals of the organization. On the other hand, management practice refers to the methods and techniques in which the organization goes about achieving its corporate goals. External environment affects the organization from the outside in whereas managers utilizing best practices will attempt to steer the organization to meet corporate goals in the midst of the uncertain environment. However, the ability of the organization to meet corporate goals is not solely dependent on best management practice but also on the opportunities and risks provided by the external environment. E.g. good economic climate will foster the achievement of corporate goals; bad economic climate will hamper the growth of the organization.

There are many challenges that the manager faced in managing in a global environment: * Cultural Self-Awareness * Cultural Consciousness * Ability to lead multicultural teams * Ability to negotiate across cultures * Having a Global Mindset

Two of the challenges will now be discussed:
Cultural Consciousness
One of the challenges for managers managing in a global environment is the ability to adapt to cultural requirements and manage cultural diversity. Those who have an ethnocentric view will find it difficult in assimilation.

Ability to negotiate across cultures
Managers are required to negotiate with people from different countries and cultures. Negotiating styles and approaches vary substantially with each culture.

External environment does affect and has significant implications on the organization. It is therefore that managers consider seriously such implications and