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The impact of globalization on business organization
Impact of globalization on management
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The business world has never seen a better time than now. With the world wide web, technology and cheaper transportation options, we are seeing more and more growth within the business world, with the potential for even further growth. However, it is also a scary time as unprecedented roads are being found in the midst of it all. That brings new, untouched issues to all sectors of an organizaion. The impact can be felt all around them and do not appear to be lessening anytime soon. So what are some of the impacts of globalization, you may ask?
Here is where we will be taking a look at what some of these issues are.
One of the top issues found can be culture differences. When you live and work in a country you have called home your whole life,
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companies finding themselves suffering from importing foreigners into jobs previously held by their own citizens (Preston, Julia (2016)).
Those are only a few examples of those who frown upon the so-called “lack” of morals companies have when it comes to growing and globalization. While these are profit based examples, it does not take into account possible environmental or social consequences that can be faced. It is a very big threat that can be felt far and wide, if one tiny item is overseen during the planning or oversight of working towards going
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Opening a branch in another country, those costs vary widely based upon where you were to open it. Depending on country laws, they may have to buy permits and file documents within local bureaucracies just in order to legally set themselves up (Echiburu, Anna Marie (2013)). That is not counting other fees a local city/town/tribe that can also apply in some areas. Those fees can be hefty and add up quickly, which is not even counting in the cost of hiring, putting together office space and training future employees.
Based upon these examples, it is pretty clear that a company or organization faces many battles within the globalization category. It is an uphill battle for many to climb, but one with grand rewards once the summit is reached.
As for the takeaway from this, it can be said that globalization is not an easy step to move towards. Many factors come into play, some obvious and others not so clear from the start. The decision to go global must be carefully made, by weighing the risks of each path that is an option. Great efforts have to be made with planning and knowing that unexpected issues are almost guaranteed during the process. What works for one company may not work for all, and that is okay. The key is knowing what is needed and when it is need is what will keep your organization afloat in choppy waters of the
“To kill the Indian in the child,” this was one of the many atrocious quotes which were spoken during the peak of residential schools from 1913 to 1932. Residential schools were government-sponsored, church ran schools established to assimilate Aboriginal children into Euro-Canadian culture. This quote means what it simply says, to remove the Indian culture out of a child. There were many quotes which outlined the goals of residential schools in Canada; some of them as shown in source II for example, were made by Duncan Campbell Scott, the Deputy Superintendent General of the Department of Indian Affairs between 1913 and 1932. The quote depicts his Eurocentric views towards the Indians and his intentions on what to do with them. The first Source
Osland, S.J. (2003). Broadening the Debate, the Pros and Cons of Globalization. Journal of Management inquiry, Vol. 12 no. 2, pp.137-154
Others accept that globalization has opened entryways and given individuals more decisions. Globalization has brought easier costs on the grounds that there is more rivalry in the business sector, consequently, the makers must fight between one another to win over the shopper. Creating nations have additionally been impacted by it too by the expansion of manufacturing plants and work in their nation which have given occupations to individuals who may have overall been unemployed.
...ade becomes a larger part of our countries economic well being, our nation's workforce will have to be responsive to the new trading environment. We can do that by looking beyond our "neighborhood" when it comes to selecting a workforce. Having an individual that is familiar with the customs of another ethnic group an individual who is a member of the ethnic group you are doing business with, is fundamental in creating a truly rewarding business. For many companies like Banco Popular, or Intel having foreign and bilingual employees has proven to be the right ingredient for their success. An added benefit to a diverse workforce is that often ethnic stereotypes and barriers are broken down in the process. Bringing our nation one step closer to the American Image of the melting pot.
Dewhurst, M., Harris, J., & Heywood, S. (2011). Understanding your 'globalization penalty'. Mckinsey Quarterly, (3), 12-15.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
Globalization remains a pivotal topic in many schools of thought, and continues being a topic of controversy even in local economies today. Perhaps the reason for this is integration and competitiveness the world over. Conceivably, even more than integration, is the competitiveness of organizations, has possibly facilitating the fascination and misconception about of globalization. Nevertheless, globalization has brought about a number of effects influencing the design and geographical location of the organization. However, globalization has effectively placed the world in a bubble, or maybe one could equate the changes to being placed in an envelope.
...o we can achieve our dreams in life: “we are now living in a world where time and space don’t matter anymore” just like J.Mittleman said. Globalization as we just learned is relative, whether it’s an opportunity or an exploitation depends on where you sit and how you look at the world. Kent, J., Kinetz, E. & Whehrfritz, G. Newsweek. Bottom of the barrel. - The dark side of globalization (2008/March24). David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62)
Globalization is a term that is difficult to define, as it covers many broad topics in the global arena. However, it can typically be attributed to the advancement of economic, social, and cultural interactions among the companies, citizens, organizations, and governments of nations; globalization also focuses on the interactions and integration of countries (The Levin Institute 2012). Many in the Western world promote globalization as a positive concept that allows growth and participation in a global community. Conversely, the negative aspects rarely receive the same level of attention. Globalization appears to be advantageous for the privileged few, but the benefits are unevenly distributed. For example, the three richest people in the world possess assets that exceed the Gross National Product of all of the least developed countries and their 600 million citizens combined (Shawki and D’Amato 2000). Although globalization can provide positive results to some, it can also be a high price to pay for others. Furthermore, for all of those who profit or advance from the actions related to globalization, there are countless others who endure severe adverse effects.
Using 1997 financial crisis and other examples, discuss how globalization is important to the modern business journalism. Introduction
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Today, in a highly competitive market and the growing technological age businesses must adapt in order to sustain themselves and maintain competitiveness. With globalization increasing, there are more opportunities for cheaper resources and untapped markets. As a result, foreign markets are a natural progression for any domestic or global corporation. Growth in networks of economic, political, social, scientific, or environmental interdependence to span worldwide distances has created a more integrated world and market. These opportunities, however,
Not only is there a sense of globalisation in the things we watch but also in the way we watch them. For example, digital television has become such a part of everyday life for the majority of UK viewers that many don’t even know they have it. The total number of households in the UK with digital television now stands at 15,715,178. We are now able to watch the same channels as people at the other side of the world, thanks to digital television. We have so much choice that we, at times, don’t know what to do with all of it. It has the availability to hold around 999 channels ranging from BBC channels to children’s cartoon channels, from DIY shows to adult content channels; it is all available to us.
Larsson, Thomas. The Race to the Top: The Real Story of Globalization. Cato Institute, 2001.
An enterprise operating in more than one country is known to be a Multinational Enterprise or an MNE. The foremost aim of all MNE’s is to globalize their operations. Top managers of large organisations argues that globalization is one of the most critical challenge they face today. Economic globalization refers to the fast increase in the international markets for goods and services and cross border interdependence and integration of production. (Dunning, 1997a).