Effectiveness is the degree to which the organization achieves a stated goal. Efficiency is defined as the use of minimal resources- raw materials, money, and people- to produce a desired volume of output. Performance is the organization’s ability to attain its goals by using resources in an efficient and effective manner (Daft, 2003, p. 9).

If effectiveness is the degree of achieving an organizational goal then efficiency is the amount of resources used to achieve that goal. The difference is that effectiveness is evaluated on the finished goal while efficiency is measured on what was used to accomplish the goal. Neither one can be considered more important for measuring performance. Performance is measured on whether an objective has been accomplished and what resources were used to accomplish this. If resources are used efficiently but the final objective is not complete then the company’s performance has gone down. For example, ACME Corp., a furniture manufacturing company uses wood to build desks for college students, successfully budgets resources so it ca

Management must also take into account economic elements such as exchange rates, inflation, and local business laws. Global markets change everyday and it is up to a manager to be informed and always able to adapt and make sound decisions. If an organization is buying raw materials from a foreign supplier, exchange rates are important and can significantly affect input costs (Daft, 2003, p. 113).

An entrepreneurship has a good chance to be successful if there is a unique product or a service that will attract a broad customer base. It is also very important that there is a target market in that area. With good promotion a new company may be able to succeed right away and structured planning is not always necessary. It is up to the entrepreneurs to determine whether planning is necessary or not.

The organization of the subsystems is another component of systems theory. Managers group their company into different departments and allow the departments to perform specific independent tasks to benefit the entire organization. Since all departments are dependent on one another, changes in one part of the company will influence other departments. Therefore, when all departments work efficiently and effectively, the entire organization is productive.

There are many problems that an organization faces when operating in foreign countries. Language barriers, cultural and religious dissimilarities as well as economic differences and foreign laws give plenty of reasons to prepare managers for international. Especially in the technology era, competition and complexity increase.

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