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Knowledge management issues in the new global economic order - Essay Example
Author : vernjaskolski
Pages 11 (2761 words)
The process of innovation has a greater role in the new global economic order. Increasing competition and expanding markets are compelling the large multi national companies to undergo a continuing process of evaluation and remodeling of business strategy and improving product profile…
At the same time technology is playing a major role in the development and existence of the Trans national companies. The Board, chief executive officers and top level of the management always think about new strategies and systems to maintain the growth and prospects of their organisation. However the growing competitive environment and emergence of new industry houses from developing markets are compelling existing multi national companies to give shape for solid action plan for the long term existence. With the opening up of economies world over the capital flow has now become more free and margins have come down significantly. Most of these companies are now working on shoestring margins or carrying out specific cost saving measures to increase their competitive advantages. The major challenge these companies are facing today is the high competitive advantage for companies in the emerging economies such as India, China, Brazil and other East Asian countries. Companies from these areas have an inherent competitive advantage due to the availability of cheap labour, raw material and skilled human resources. Also these companies have good knowledge of their domestic market, which is now emerging as the largest global market. It is in these geographical areas that a two third of the global population lives. ...