Advantages and Disadvantages of Managing Virtual Business in Global Environment is important to know for the business people. Here, this article will evaluate the Advantages and Disadvantages of Managing Virtual Business in Global Environment because the sense of knowing all these matters will help people to get better idea.
Advantages of managing virtual business
Virtual Business is Cost-Efficient
Cost effective prospect is very much advantageous which could be achieved by utilizing virtual business. It is possible as because it does not require the expense for maintaining an in-office team. Virtual business needs to bear office rent, utilities expense, transportation expense, maintenance expense. Employees of virtual business do work from home. Virtual business is mainly expensed for software and other ICT tools those are affordable by the organization.
Global Talent Pool
Virtual business can hire people from anywhere to accomplish the specific tasks. As, it does not require office room, selecting global talent for particular job is very much easy. Moreover, it does not require living and operating cost for those global talent (Fariborzi, 2012).
Virtual Business is Easily Scalable
With the expansion of business, scale up business operations is essential but it is different for virtual business. The reason as it does not require hiring more employees, less office space, does not need more desks and chairs, and does not need office supplies, other refreshments expenses.
As virtual business operation is operated for 24×7, it is very easy to hire anyone on anytime for a particular job. Moreover, service operation is active for 24×7. Therefore, interaction with customer is active for 24×7 which increase customer service availability (Fariborzi, 2012).
Happier, More Productive Employees
The employees of virtual business are not limited to the company as they do not need to maintain office hour or desk job. Employees can maintain flexible timing which helps in reducing monotonous life. It also increases productivity as they have flexible work hours which make the employees happier and satisfied with jobs.
Due to having flexible work hours, it becomes easy to lead healthy work-life balance by involving in virtual business. To have better control in life, involving in virtual business is significant.
Virtual business have the possibility to arrange a meeting from anywhere by connecting all the team members at a time from different zones. On the other hand, simple email, video calling apps, group chat rooms are the right place to exchange information which reduce the unnecessary meeting volumes (Fariborzi, 2012).
Disadvantages of managing virtual business
- Cost of Technology – The aspect of virtual business and its management is supported by the efficient use of ICT mechanism. In that case, it requires multiple communication technologies for operating virtual business globally. Therefore, the costs of technology is very high along its installation and regular maintenance from getting error free service. Emailing, instant messaging, and video-conferencing are very common but it also require highly configured server which is expensive. If there have any error, it becomes risky to re-establish the business (Simpson, 2017).
- Conflicts, Lack of Trust & Collaboration – Virtual business may incur conflict, mistrusts and difficulties in managing various functional activities. It is arose just because of absence to face-to-face interactions and non-verbal communication.
- Social Isolation – Employees involved in virtual business operation have lack of physical interactions. To some extent, it feels like social isolation which may lead to mental stress (Simpson, 2017).
References
Fariborzi, E., 2012. E-mail Marketing: Advantages, Disadvantages and Improving Techniques. International Journal of e-Education, e-Business, e-Management and e-Learning, 8(6), pp.222-229.
Simpson, D., 2017. Advantages and disadvantages of managing virtual business. International Business And Global Economy, 36(1), pp.51-65.
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