GLOBALISATION AND MANAGEMENT 1 Essay Example

  • Category:
    Management
  • Document type:
    Article
  • Level:
    High School
  • Page:
    3
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    1609

Globalisation and Management

Traditionally, businesses were operating in specific localities and geographic regions. These businesses were commonly mortar and bricks in which consumers visited the businesses for services and products. In such situations, numerous challenges and benefits were associated with the business processes. For example, face to face experience was common between the business and consumer, and it was easier to engage with the customer. Trust was/is also common because the customer can easily seek for clarification and can present their respective complaints easily. However, the needs and requirements of consumers keep changing while businesses have to evolve to sustain the market dynamics. For example, the advancement of technology and innovation has changed the way consumers and businesses relate and operate. It has brought into focus the significance of globalization in which businesses and activities can relate easily with the purpose of accomplishing specific needs and requirements. Management strategic approaches also have to change to reflect the needs of globalization. Globalization requires reconfiguring numerous processes, which includes strategic operation, human resource management, and newer methods to engage with the consumers. Thus, globalization is integral to the society, and it has different impacts. For the management, the management has to contend with the challenges and benefits associated with globalization depending on the nature of the business and the location of the business. Globalization is good for the advancement of enterprises both SME and MNE provided effective measures of management and regulation exists.

The essay defines globalization and variables associated with globalization in relation to management. The essay also discusses the conditions favorable or hindrance to globalization. It employs numerous organizations as examples to advance the analysis and significance of globalization in the development and sustaining of businesses and the involved regions. For example, the needs and requirements of developing countries are different from the needs and requirements of developed countries. Do the developed countries share the same benefits with the developing countries? Are the developing countries disadvantaged? These are some of the areas in which the essay answers based on the perspective of management.

Globalization is the integration of ideas, businesses, economies and philosophies (Hill, Cronk & Wickramasekera, 2013). It is bringing together different economies and sharing the benefits associated with such economies. It also enables people to work together through sharing information and ideas with the purpose of advancing their diverse requirements (Calabrò & Mussolino, 2013). The proponents of globalization argue that it is important since the world would develop equally since resources can be shared easily (Festing, Schäfer & Scullion, 2013). For example, a business in a developing country can engage with a business in the developed country to accomplish business transactions. The opponents argue that globalization is inappropriate because it disadvantages certain regions and economies (Cavusgil et al., 2014). For example, the developed countries would continue to benefit because these countries have resources to produce products and services cheaply resulting in disadvantaging the developing countries (Liu et al., 2014). Both assertions are correct, but the person of humanity is to encourage competition and social responsibility (Clarke, 2013). Therefore, the definition of globalization for this essay is sharing resources to enable accomplish of organization and social requirements (Davoine & Ravasi, 2013). It means that the philosophies and ideals have to complement each other in ensuring the world and societies operate effectively. For example, it enables an individual in developing the country to access high-quality products from developed country while the developing country also offers services to the developed country (Nielsen & Nielsen, 2013). It is the complementary approach in which each society should develop equally through encouraging legislations, standards, and resolutions to advance the societies.

The management is important to the operations of any organization (Segatto et al., 2013). The management has to analyze the operational situations and determine the appropriate strategies to achieve the organizational goals and objectives (Calabrò & Mussolino, 2013). To achieve the benefits of globalization, the management has to introduce and maintain different resources especially technological and human resource; whether small or multinational enterprises, effective management strategies are important (Festing, Schäfer & Scullion, 2013). For example, a small business has to engage with an international organization while the same international organization has to engage in the local small business (Hill, Cronk & Wickramasekera, 2013). Therefore, conducive working relationships with the supporting frameworks are important and crucial to achieving the benefits associated with globalization (Cavusgil et al., 2014). The developed and developing countries should encourage and manage globalization (Liu et al., 2014). The developed countries have resources whether human resource or legislative framework to advance globalization, but the developing countries rely on these developed countries legislations. The developing countries use the legislations of developed countries to create their own (Davoine & Ravasi, 2013). Hence, the collaborative and responsive relationship between the developed and developing countries is important to the success of businesses (Festing, Schäfer & Scullion, 2013). For example, General Motors and Microsoft are examples of companies that have succeeded in embracement of globalization. These companies have developed products and standardized the products based on the requirements of the diverse customers. The different product and service offerings have engaged and attracted the customers (Cavusgil et al., 2014). General Motors and Microsoft have also engaged different stakeholders through the creation of framework and structures to advance their respective expectations. Thus, availability of information and effective engagement are important for globalization.

Globalization is crucial but is also associated with numerous conditions, which do not encourage globalization (Liu et al., 2014). The management of an organization should understand these components and to engage stakeholders to create an enabling environment to advance globalization (Festing, Schäfer & Scullion, 2013). For example, an SME may have limited resources to fulfill globalization requirements, and the management has to create modalities to encourage globalization. The MNE may have resources but lack the capacities to engage with the customers easily (Calabrò & Mussolino, 2013). Therefore, the use of resources and availability of resources determines whether an organization succeeds or fails. Creation of approaches to achievement of goals is also important and based on strategic approaches (Hill, Cronk & Wickramasekera, 2013). For example, government tends to create legislations that protect the local businesses. For example, the developed countries may engage the developing countries to create an understanding of accomplishment of businesses. However, the engagement may not be inappropriate and may create a misunderstanding and conflicts (Cavusgil et al., 2014). For example, Google is an international company but its search engine is facing challenges in China because of legislation and administrative requirements. However, the same company is operating effectively in other countries. McDonald’s is another company that faces challenges international and even in the local market (Davoine & Ravasi, 2013). The health related issues and administrative factors associated with McDonald’s are a challenge to its success. In addition, other companies are facing challenges when it comes to taxation and other legal requirements. The solutions to these numerous processes are the strategies that the management may employ. For example, campaigns and creation of awareness are examples of measures a manager may employ (Calabrò & Mussolino, 2013). In case of human resource conflicts, employee training, and development including effective engagement are some of the measures employed to advance the requirements of globalization (Cavusgil et al., 2014). The underlying component is the role and responsibility of management in ensuring their respective businesses operates effectively.

In conclusion, globalization is an important component of the sustainability of economies and social requirements. Globalization is the integration of numerous processes, ideals, and philosophies. In ensuring globalization is effective, provision of resources and environmental factors are important. The entity needs to advance these requirements is the management. The management should understand the needs and requirements of an organization relative to global requirements. For example, addressing legislative, resource allocation, environmental concerns and the needs of consumers are some of the measures that inhibit or advance globalization. The management should also balance the requirements of the organization and determine when to pursue the international business environment. However, challenges and shortcomings may exist but other measures should be incorporated in championing globalization. For example, engagement with the different stakeholders is important in ensuring an organization becomes successful. The management should review the working environments and situation to continuously develop processes and strategies to improve organizational operations.

References

Calabrò, A., & Mussolino, D. (2013). How do boards of directors contribute to family SME export intensity? The role of formal and informal governance mechanisms. Journal of Management & Governance, 17(2), 363-403.

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.

Clarke, T. (2013). The advance of the MOOCs (massive open online courses) the impending globalisation of business education? Education+ Training, 55(4/5), 403-413.

Davoine, E., & Ravasi, C. (2013). The relative stability of national career patterns in European top management careers in the age of globalisation: A comparative study in France/Germany/Great Britain and Switzerland. European Management Journal, 31(2), 152-163.

Festing, M., Schäfer, L., & Scullion, H. (2013). Talent management in medium-sized German companies: an explorative study and agenda for future research. The International Journal of Human Resource Management, 24(9), 1872-1893.

Hill, C. W., Cronk, T., & Wickramasekera, R. (2013). Global business today. McGraw-Hill Education (Australia).

Liu, W., Guillet, B. D., Xiao, Q., & Law, R. (2014). Globalization or localization of consumer preferences: The case of hotel room booking. Tourism Management, 41, 148-157.

Nielsen, B. B., & Nielsen, S. (2013). Top management team nationality diversity and firm performance: A multilevel study. Strategic Management Journal, 34(3), 373-382.

Segatto, M., Inês Dallavalle de Pádua, S., & Pinheiro Martinelli, D. (2013). Business process management: a systemic approach? Business Process Management Journal, 19(4), 698-714.