The transformation of local issues and phenomenon into the global ones are known as globalization. The process of unifying people of different culture identities and societies occur in the element of globalization. The entire process of globalization is basically a combination of different factors which are economic, socio-cultural, political and technological. However, globalization is usually referred to as economic globalization and it is related with the concept of integration of national economies into international arena where there are different factors like capital flows, mitigation, foreign direct investment and etc (Stiglitz). Strategists and economist suggests that organizations focuses a lot on globalization and international organizations which are termed as multinationals have to comply with the process of globalization because through this strategy they can enhance their profits and they can they experience growth in both the short and the long term.
Different scholars believe that globalization is a wide spread term and this term can be taken and defined into number of ways. However, economic concepts of globalization depicts that the removal of trade barriers between different countries to initiate a proper flow of goods. This phenomenon is not new and it initiated in the 19th century but slowly and gradually this phenomenon gained momentum and different countries and organization started to adopt this phenomenon.
Strategic management on the other hand is an important element for the organizations of today's world and strategic management allows the organizations to opt for new and modernized methods and how they can excel in this competitive world. Strategic management is the phenomenon of implementing decisions that are usually of cross functional nature and these functions enable the organization to achieve the long term goals of the organization. The organization's mission, vision and objectives are identified in the strategic management processes (Hitt, Ireland and Hoskisson). Different approaches are used by different organization like business balance score card, situational analysis, matrices and etc.
Globalization and its impact on businesses
The effects of globalization are far reaching and it is considered as a complex phenomenon and it is considered as a hotly contested issue in global and corporate arena. This phenomenon is considered to be irresistible at one end and organizations and different companies have to campy with this but on the other this element is considered as a source of contemporary ill. The corporate effects of globalization are wide and varied and organizations have to transform themselves in order to face the challenges of globalization. Organizations have to adopt a novel approach because they have to comply with the changes (Steger). These organizations hav