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Globalization has dramatically changed the businesses landscape since the early part of 21st century. As per definition of the International Monetary Fund, Globalization is more of a relationship of interdependence of different nations all over the world. Many goods and…
By itself, globalization is a change that stimulated millions of business transactions which offered millions of products and services that consumers from all over the world can choose from. This resulted to a very competitive market as cheap imports came in from big markets like China. However, the local economy of a less developed country bore the impact of these cheap goods especially if the goods were in direct competition against their products. In many countries with poor competitive advantage, this meant survival of the fittest as small shops would compete with huge retail giants such as Wal-Mart. Eventually, mom and pop stores closed as consumers trekked to bigger stores that offered variety.
Another reality that globalization presented to business is the possibility of outsourcing jobs due to lower costs. Hence, many companies downsized creating collateral damage to stakeholders like employees. Furthermore, globalization has decentralized or debureaucratized organizations in order to create more efficient teams or departments that can be accountable for goals. Hence, the whole organizational that was once rigid had to change by removing structures and becoming an open system that can accommodate changes brought upon by technology. Even the speed and method of communication within organizations have changed as workers can now telecommute. All communication platforms such as electronic gadgets (mobile phones, notebooks, iPad) became instant necessities in a globalized wired world.
Economic elements like international trade and integration of financial markets are not the only aspects to consider since human migration plays a major role in determining the success of globalization. As such, multinational sent many senior managers to different parts of the world; it meant adopting not only to a new set up but to local culture and language as well. In fact, many CEOs found it challenging to adjust to the business culture of the ...
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