World economy

Best Practice

World economy

Introduction

The ever increasing size of Multinational companies around the globe; their financial practices and global operations pose several questions regarding the implementation of the best practices of the world economy that do justice to all (Gitau& Jarrett, 2005).  This is more agonizing especially in countries with developing economies in which these global companies operate than in developed nations.  .  However, there are several companies that are winners in the global corporations of best practices and they include Toyota, Dell Inc., Google, Corning and IBM.

Most of these companies operate on the principle that companies can be able to chart the best practices, winning strategies and operating tactics in world economies. These best practices include the following; use of technology, management, economic policy contribution to growth, and consulting research.

Use of technology best practice

The structural changes that are taking place in the world economy especially those in the internet, telecommunication and information technology are having a lasting effect on the practices that companies use.  These companies are leading in this practice, and especially the Dell Company.  These companies have identified themselves as the leading pack in use of technology in the world economy.  The companies realized that low cost and ease access to the internet are increasingly the basis for competitiveness in the global economy best practices.  In addition, the companies realized that most customers are seeking services and products globally, therefore increasing the need for innovativeness and best practice technology.

Consulting best practice

IBM is a leader in the field of best practice consulting.  The company provides a customized consulting and research service facilitates its business in the world economy.  This helps the company to address its most challenging times through using best practice consulting insights.  Gaps are identified on time thereby providing a room for developing lasting solutions hence realizing increased revenues and profits.

Management methods best practice

The rise of these companies to a global scale in the field of best practice is due to its increased management thinking.  All the companies have a prepared management team that aims at putting their ideas into practice for improved performance.  For instance, IBM Company believes in the job specification and getting the best personnel to do that work through devised incentives.  This management methods and techniques have seen these companies achieve global recognition in economic growth and best practice.  Corning was quicker in adopting new management skills and methods and putting them into practice, which saw them, edge their competitors and thus becoming a global leader.

Differences and similarities

A similar technique used by the companies is that they are able to learn from their own experience as well as draw lessons from their competitors.  These companies manage their best practices by observing their suppliers, customers and competitors therefore modifying their strategies and maintain their leadership.  The impact of these practices is evident across all the companies and is more pronounced in the relationship that exists between them.  In both organizations, there is evidence of best practice in continuous research development, benchmarks, and best practice in management and critical thinking in challenging times.   Both companies use comprehensive best practices in development of staff performance and informed leadership so that pitfalls can be avoided.

On the other hand, the organizations differ in a number of practices.  The position taken by Dell Inc. Company in management method is different from the others.  Dell insists of collective leadership as opposed to others who practice objective leadership.  In addition, technology use differs from one organization to another.  While Toyota is in the mid pack in its technology application, the others are competitively far.  Furthermore, Toyota thrives in the global best practice mainly due to its corporate philosophy off production system.  This practice ensures that there is overproduction, continuous flow and systematic waste elimination and customer pull.  This practice relies majorly of the efficient supply chain and stimulation of employees.

Critique

Global corporations that use best practice may in the long run create problems with regard to national accounts balancing.  To competitively remain relevant, companies may adopt best practices that contravene the existing local practices.  This is because every organization that operates globally always aims at maximizing profits.  In addition, most people and companies find that smart and best practices of the global economy may give insight into solutions in some cases, but in other situations they do not work.  A company may deem a practice the best but that does not give the guarantee that it works.  Some scholars such as Scott Amber often challenge this assumption that there is the best practice (Measham, et. al2007). He argues that the contextual nature of best practice varies from one scenario to another.

Implementing best practice

I realize that it is important to maintain realistic notions when implementing a best practice.  The best practice might not work hence continuous research will be to the success of my best practice. I will continuously analyze the best practice so that it takes advantage of low risk and add value to the organization.  I will identify the core contribution of the best practice, and allow flexibility in implementation so that it is sensitive to changes.

References

Gitau, W., & Jarrett, R. (2005). A tool for estimating best management practice effectiveness for phosphorus pollution control. Journal of Soil and Water Conservation 60, 1-10.

Measham, T., et. al (2007). Best Management Practice for complex problems: a case study of defining BMP for Dryland Salinity. Geographical Research 45 (3), 262-272.

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