World Business Environment, Management, And Operations (Essay Sample)

BЕNЕFIСIАL ЕFFЕСTS OF GLOBALIZATION OF BUSINESS UРОN THЕ WОRLD
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Globalization of Business
With the advent of the new century, the world business environment, management, and operations have taken a completely different picture. Business competitions have gone beyond the national borders to international industries. Evident are firms with diverse national home bases extend their entrepreneurial interests to tap into strategic resources in diverse locations (Hamilton & Webster 2015). The volume of merchandises and services transacted across the international borders has risen rapidly with the dawn of the 21st century. According to Hill (2009), nearly $1.6 billion foreign exchange transactions occur across borders on a daily basis. From the World Trade Statistics, $2.20 trillion services are often provided across the international borders. Similarly, over $9.1 trillion worth of goods is often transacted across the borders on a daily basis (World Trade Organization 2015). Evidently, the world is swiftly becoming a solitary community, a global village.
The impact of globalization is felt in different dimensions (politics, socio-cultural, economic, anthropology, and sociology). However, a harmonized definition has never been among the different disciplines. Economics concentrate on the exchange of goods, services and foreign direct investment across the world countries. Political science, on the other hand, focuses on the role of such international organizations as United Nations and the World Trade Organization in putting world states together. For anthropology and sociology, globalization signals the interconnectivity of diverse cultures across the world. Globalization, therefore, is a controversial topic attracting contributions from different authors and disciplines. For the purpose of this paper, globalization of business is defined as the shrinkage of space and time for business activities (Starger 2009). Globalization denotes the aspect of trade liberalization. The state-forced restrictions on business transactions and exchanges across the international borders have been actively eliminated making the world business environment become integrated to form complex systems of production and distribution called global market.
Different countries have unique resource endowment, production capabilities, cultural backgrounds, legal systems, and natural landscapes. All these elements usually influence the types of goods and services demanded in different locations (Govil & Rashmi 2013). The global market is the integration of historically distinct and discrete national markets in a unitary global place (Govil & Rashmi 2013). Global markets often attract businesses and companies from different states, with various goods and services to offer to global consumers. Thus, the global market gaps are often met in a combined effort. Through, global markets countries often import goods and services they are unable to produce while exporting goods and services within their production their capabilities to earn revenue. In this context, globalization is seen a stabilizing agent in the world of business. Countries exchange their strengths for what they feel can mitigate their weakness to achieve equilibrium within the economy.
Internationalization of Firms
Companies headquartered in a single country but conducting business operations in different countries are common features in the current international business environment. McDonald's is a discrete example of such multinational companies. The company runs business restaurant business in 100 world countries including China, Australia, Tunisia and Argentina (Watson 2006). However, its head office is in Oak Hills, United States. Undeniably, this is a result of globalization. Businesses perforate the international borders to tap into the strategic resources in other countries.
Unlike domestic organizations, transnational companies engage in foreign direct investment, controls valued added activities in various countries and internalize cross-border business ventures. Multinational companies also help create strong global supply chains (Nigam 2009). They acquire different resources from the global pool facilitating the global market momentum and mobilization. Becoming a multinational company, thus, require a domestic corporation to re-adjust in various dimensions and view the world as a business society with familiar stakeholders. As a result, establishing a world presence for such a business is not a hard task to roll. Of great importance is the development a global business strategy that can transcend both internal and external boundaries
Most world traded companies often have specific tenets that spur their prosperity throughout the global markets. Creation of a consistent and strong branding culture is one of these strategies. They create unique brands that are always familiar to target customers but foreign to the potential business rivals. With the expansion of the internet, branding structure has rapidly changed to brand culture. Most companies identify themselves with a single construct across the globe. Multinational companies often proliferate various digital platforms and market themselves as if there were no borders. Through this strategy, reaching out to international markets has become very easy. The rise in international consumption is evident. People can make purchases for goods and services the desire online.
In this regard, globalization is seen as a substantial tool driving inventions and innovations in the business world. Consumers and business vendors of often seek to achieve the aspect of efficiency in meeting their desire. For instance, common with transnational business ventures is the desire to control and manage their customer and employees around the world. As a result, a lot of discoveries have been made. Customer Relation Management (CRM) and Employee Management Systems are directly attributed to the effort to control and manage large populations of business stakeholders across the international borders. Thanks to the globalization of business for spurring knowledge in technology.
New business ideas flow from one country to another promoting the entrepreneurial culture. The idea of pyramid selling or multi-level marketing, for instance, has rapidly diffused across the international borders since its realization in California. Many people and companies around the world use multi-level marketing to source revenues and improve their sales value. Multi-level marketing is a situation where the process of sales and distribution of goods and services is completed through a network of interconnected people (agents) (Gupta &Westney, 2003:134). A multi-national company in the Philippines can effectively sell its products or services to consumers in Angola, Australia or the United States through chains distribution agencies. The essence is that size does not determine the degree of globalization of a company (Condon 2016). The size only reflects the market coverage and not the transnational aspect. According to Condon, firms with small economies tend to have wide transnational index rankings giving them a better competitive edge in the world markets. Therefore, globalization of business of business has not only enhanced the flow of business ideas across the international borders but also liberalization of capital markets.
Industry Competition
Before the advent of globalization, U.S companies dominated the world export. After the phase of globalization, other countries (like Germany, France, Japan, China, and South Korea) realized their potential in the world export and actively challenged the position of U.S (Smart 2012, Horowitz 2004:13). The trend has continued in different world industries with different countries coming up with unique business strategies to avert the heightened competition.
Currently, competition in the various world industries has greatly hiked. Only those countries whose companies have strong competitive edge manage strong to survive the danger of being edged out of the market (Porter 2011:8). In the fertilizer industry, for instance, few companies prevail including Norsk Hydro.
Competition downsizes rates of return on investments. However, the consumers’ point view competition is an important element in purchase decision-making. With intensive competition in the global industries, the world consumers find the freedom to make appropriate choices for products and services. The current trends in the world consumption grid are the aspects of quality and safety. Certainly, with the increase in competition in different industries have the chances to choose goods and services that are of high-end quality and are safe to their health. Businesses, therefore, have tremendously changed towards achieving these variables that appear to be the key market drivers. After all, it is sales volume, rates of return and capital capacity that keeps companies operational in various market niches. Organizations must, therefore, strive and re-adjust its element to remain active in the markets. The implication is that globalization has greatly spurred the formulation of business strategies in a rush to meet the consumer demands. Quality improvement and safety assurance result signaling a better future for the world of business.
Further, through active international business competitions, companies learn and innovate new business tactics. Evidently, these transpire in the world of technology. E-commerce, improvement in data mining, development of quality control software and many other technological advancements is directly a...