jggfkjfkjg
- 1. Business and Marketing 1 Date: To: From: Subject: Managerial implications of the globalization process Based on the rate at which globalization has taken place in particular industries, senior managers are discovering that the behaviors and needs of customers across the world are increasingly homogenized (Aurifeille, et al 2007). The objective of this presentation is to analyze managerial implications of the globalization process. What is globalization and its implication on managers? Globalization has been given several definitions, but most of them tend to acknowledge the presence of increased movement of people, capital, goods and ideas as a result of greater economic integration which also enhance more trade and investment (Rao, 2001). World economic order is unified through elimination of international trade barriers such as tariffs, import quotas, and export fees. The impacts of globalization tend to differ from one industry to another, implying that managers must make strategic decisions based on the evolving conditions. Global orientation enables managers to gain from economies of scale, crucial value-creating activities and manage their companies according to international standards. Importance of globalization to a business Globalization plays a significant role when it comes to competitiveness and profitability of a business. First, the business gains from global strategies such as transfer of technological innovations, increased size of global market, huge investments, and development of strategic alliance. Since globalization has spread in several if not all countries in the world, governments are gradually eliminating barriers to trade such as tariffs, quotas and duties (Aurifeille, et al 2007). This implies that companies can sell their products in international market with minimal additional costs. This leads to less reduced wastage in terms of production, which in turn reduces expenses and increases revenue. How managers deal with globalization Depending on the way the impacts of globalization have been interpreted by managers, there are several mechanisms which can be adopted which will effectively impact on their decisions and organizational strategies. For instance, globalization opens up national borders thus increasing the market size, technological flow and increased flow of foreign exchange. In such a situation, managers can expand the amount of organizational investment, enhance quality assurance to
- 2. Business and Marketing 2 meet international standards and increase production so as to improve the bottom-line of financial performance (Rao, 2001). This globalization can lead to unfair competitive environment which can lead to collapse of local strategic industries. Globalization is an evolving phenomenon whose impacts are being felt the world over. We have seen that there are several advantages and disadvantages of globalization, implying that managers must analyze its impacts on a specific industry. Global orientation has led to increase in market size and technological flow. Managers need to make strategic decisions depending on the globalization trends so as to ensure that long-term policies do not become obsolete due to innovation.
- 3. Business and Marketing 3 References: Aurifeille, J., Svizzero, S., & Tisdell, C. A. (2007). Globalization and Partnerships: Features of Business Alliances and International Cooperation. New York: Nova Publishers Rao, C. P. (2001). Globalization and its managerial implications. Westport, CT: Greenwood Publishing Group.