Differences between organizations that are working in different sectors, industries, and the context
As a result of globalization, we have organizations operating businesses in different sectors, contexts, and industries. The selection follows the scope plus objective. For different nations, they have got different emphasis as well as context. The difference should be understood clearly before going global.
A sector is a universal segment where larger companies are classified. According to the type of ownership, the sector could be subcategorized as either public or private. For private sectors, they are owned by the government, and they are nonprofit whole for the public sector, the general public owns them. The individuals have to work for the company. Corporations plus not-for-profit are the private sectors.
The manufacturing, producing, distributing, and marketing processes differ based on the industry. Context is the mode for organization operations besides how it’s structured, including the values plus culture of the company. Cappelli and Sherer (1991) portray context as surrounding associated with the phenomena that illuminate that phenomenon. This might differ from one organization to the next. The strategy of the organization, tactics, plus operation might. The strategy of the organization, tactics, plus operations cannot be suitable for the other organizations.
Responsibilities for the business organizations which operates globally
Accepting global responsibility is defined as the action for leadership. It’s voluntary besides being deliberate in using the organization’s resources to achieve sustainability. The responsibilities of the organizations which are operating globally are: –
Customers: they are the key focus for the company. The company should understand customers’ needs to do business consistently and in a fair manner to give the customers a good experience. To maintain the customers globally, the organization should deliver quality products and services.
Community: This group comprises the local chambers for commerce, services lab, the social clubs, among others. As part of the global society, the organization has to be involved in meetings being held by the community. The organization has to donate to charitable organizations to enhance organizational goodwill in a global context.
Employees: Since the employees are the organization’s asset, the responsibility of the organization doing business globally increases when its operations are global. The organization should not discriminate during the hiring process. The organization should be at the forefront of promoting diversity plus equal employment opportunity.
Suppliers: The organization should maintain a good relationship with the suppliers through honesty and fairness. This is vital for reducing the costs and speeding up the growth in the new nations.
Law: When going global, the organization has to understand the rules plus regulations of the host nation. It should abide by the laws plus regulations of the host nation. Contract papers plus other documents should be prepared at the time of registration.
Ethics: The business is required to conduct its activities ethically. If it leads to pollution of the environment, then it might end up losing its reputation in the host nation.
Research: The organization should research and analyze market segments to know the needs of the culture of the new area. If the organization does not research, it will be hard to survive.
Strategies being employed by businesses that operate in the global environment
When the business goes global, it has to develop strategies that will assist them in surviving in the global environment. The global strategy considers the new global factors. For example, in the case of Toyota and BMW, they have come up with a distribution channel plus a marketing network centered on the leading brands in the market, which are well known globally.
The key characteristics of global strategies include:
- Treating global markets by way of the local markets.
- Establishing marketing mix globally.
- Launching the production and distribution systems globally.
- Concentrating on the leading brands rather than several brands that confuse individuals.
In establishing the global strategy, the organization can carry out a pestle analysis which is vital for understanding the external factors while operating globally. The mission statement has to come up with a global focus. The organization is well aware of its goal for carrying out the plans, which will assist in focusing on the global markets.
The global strategy comprises the marketing plan that includes the marketing mix, process of production, plus the plan for distributing. For instance, Singapore Airlines adapted the global strategy to decide the country for deliberating on its business. It created a strong brand image globally that led to instant recognition.
Benefits and the challenges to global businesses operations from the external factors
For globalization, it can be rewarding to the growth of the business. It is also beneficial for the development of the global economy. By tapping into new markets besides expanding the base of customers, you bring the people close together. One of the key benefits is providing access to the new or too different markets, assisting in developing the products in new ways, sharing of the knowledge, technology plus culture, Through the knowledge for the sharing of the basic industry standards having been set besides international bodies working in setting the standards for the labor plus employment laws plus the tax regulations. This also assists in accessing the diverse tools, diversified work culture, and workforce.
Some challenges are encountered by globalization. This disadvantage refers to the socio-political issues that the governments plus the companies face. The companies in the developed nations have outsourced their production and some of the services to the developing nations. Although this has been good for the local economies in developing nations, local workers are exposed to higher levels of exploitation. The other challenge is the loss of jobs where for the developed nations like the U.S., most of the services and unskilled labor are being outsourced to the developing nations. Due to this, most of the locals have lost their jobs. Globalization and expanding internationally are expensive endeavors. It leads to environmental degradation, taxes which is a nightmare to employers and businesses across the borders.
Measures which the governments take to influence activities for global business organization
For the government, it has got some objectives which include full employment, reducing inflation, balancing exports and imports, improving living standards, plus the reduction in the gap between the poor and the rich. In achieving objectives and controlling the economy, some measures are taken by the government, which influences the activity of the business organization. The measures taken includes.
Employment policy: The government is working on increasing employment opportunities. As a result, the government can arrange training programs for employees and sponsor them.
Local policies: The government has to make the funds available for regions facing problems, including g unemployment illiteracy, and solve the problems.
Inflation policies: The government works on keeping the economy at equilibrium. To maintain this, the government uses instruments such as interest rates. If we have chances for people to borrow besides spending more, the government increases the interest rate. As a result, borrowing turns out to be costly, leading to a decline in purchasing power that results in reduced prices.
Training and education policies: The government has to support training and education to make them advanced.
Policy for taxation: Businesses contribute a lot to the economy through the payment of taxes. The government assists the business by spending money on projects, including constructing roads.
Global policies: Government influences the global trade by encouraging sales of local goods in foreign nations or discouraging imports.
Establishment of new laws: Government could influence business organizations through the improvement of the existing laws or by making new laws that favor the nation.
How national economic performance in a specified nation impact the activities of the global business organizations
The fiscal and monetary policy affects the purchasing power plus the capacity to borrow for the individuals and the businesses. The banking policy affects the rates of interest plus the prices for the goods besides dominating the investments. When the factors favor the business, then we expect growth. However, it will have to have losses. The vital factor which influences businesses is the rate of employment plus income. For instance, in times of recession, several unemployed individuals rise while the purchasing power decreases. Due to this, the business will end up having the dark side.
In case individuals of host nation have education; this is vital for the global businesses. When the individuals are educated, it becomes easy to train and work with them. The level of education is vital for growth globally.
The prices for the commodities have got a huge impact on the businesses. If there is a rise in the price level, the cost for the raw materials, production, transporting, and other costs will rise besides lowering profits margin for the organizations.
The other factors comprise inflation, interest rates, population, recession, and the trade cycles. If there is any change in the economy, it might hamper the businesses greatly. Businesses should be prepared to deal with any challenge that might arise.
The environment in which global business organizations are currently operating in your named country
The economic condition in the United Kingdom is stable. The United Kingdom is advancing in recognition as the business Centre for Europe. It is one of the perfect global business areas since the government supports and cares for international businesses. Due to this U.K. has become the 6th largest trading nation in the world. It has a strong position in the research, development, and technology leading to the global environment. For the government, it has got strong strategies, including building the multicultural methods used in trading, lowering the tax rates, shutting down the illegal businesses, and reducing barriers in the overseas trade, thus supporting the global business plus its sustainability. There is high workforce in the U.K. due to effective training programs. The strict laws and the regulation systems for the businesses comprising ant bribery laws keep the global environment clean.
Strategies for addressing issues that affect business in the U.K.
For the selection of the U.K., it’s one of the nations with a good environment for doing business. For a business to succeed in the global environment, it has to adopt some strategies for it to have a competitive advantage compared to the others. Some of the strategies that the company can adopt includes:
Inviting new individuals: The business can take the initiative of welcoming new investors or adopting a new business process that can increase profits.
Extension of the products: For the target market to be satisfied, the company has to develop new or modify to have quality products.
Technology: Technology has continued advancing over the last decade. Currently, most of the business processes are automated. This will assist in saving time and concentrating on production.
Market extension: The organization has to tailor its products in a manner that attracts new markets for the existing products.
Innovation: To survive in the market, it has to be innovative through creativity.
Opportunities and challenges to the specific business organization operating in the U.K.
In the U.K., the global forces that can impact the businesses comprise increased scale for international trade, an increase in the level of multicultural in U.K. companies, increase in interdependency for the national economy. For Lindum, it has to deal with these challenges. The opportunities will include:
New trading partners: there are lenient trading rules that are springing in the whole of Europe, which is good news to the U.K., which is in the position of finding new partners to trade with.
Riding of tech waves: If the U.K. can create tech growth hubs like the pones in the U.S., it will be in a better position to get a slice of the tech market.
Migrant education: The current population for the U.K. has got first-generation migrants working in less skilled fields. The cosmopolitan Brits, U.K. can build an intelligent population with a good education for the next generation.
Impact of globalization on the operational management of business organizations
Businesses use operational management strategies, including research and development, as a response to the influence of globalization. Research and development are working directly to attaining innovation, introduction, plus improvement to the processes and products. There is a strong positive relationship between globalization plus research and development as the business has the advantage for accessing the latest markets research plus the customers’ preferences that open new markets options for the consumers. The positive implications for using the research and development as the response for globalization involve McDonald using the R&D processes that involve external understanding factors that affect the consumers’ spending habits. McDonald’s engages the suppliers, the customers, and the franchises globally to ensure the products plus services offerings satisfy the world in general. This can be seen when McDonald’s employs the executive chef to assist a team of chefs in creating new menu items for the business in its test kitchen within Chicago, USA.
It can be seen as a negative implication for research and development since it consumes valuable financial resources that do not provide the return for years. This could be seen when McDonald’s tries creating new products in tests kitchens that could be lengthy by depending on the products and taking years before the products hit restaurants. Generally, it has got a strong relationship between influences for globalization plus responses for research and development as the strategy based on the consumers’ preference globally McDonald’s has to go through the R&D to be able to satisfy the demands of the consumers.
The business uses operations management strategies, including e-commerce, as the response to influences of globalization. Ecommerce and globalization have a strong positive relationship where most of the businesses activities are being conducted online, hence being considered time-efficient methods for addressing most of the core businesses activities. It has resulted in the development of e-commerce. This has led to a positive impact on the business, including BlueScope steel in China, which has allowed the business to buy sources for iron ores online from cheap suppliers globally.
Finally, the business uses operations strategies between globalization and outsourcing, as the businesses have an advantage for accessing cheap materials and supplies. There is a strong relationship between globalization and outsourcing, as businesses can access cheap materials plus supplies. The positive implication for outsourcing as the response to globalization involves having instant global access to cost-effective manufacturing.
How technology has impacted global integration
Technological advancement has facilitated globalization. The progress in technology is one of the key factors currently driving globalization. The breakthrough in the technology has compelled the organization to become global through increasing economies of scale plus the markets size required for breaking even.
The advancement in technology reduces transportation and communication costs across the nations, thus facilitating the global sourcing for the raw materials plus the other inputs. The patented technology encourages globalization as firms that own patents could exploit the foreign markets without competition.
Information technology resulted in the emergence of global villages. For instance, the worldwide web has resulted in a reduction in the barriers for a time as well as place in business dealings. The sellers and the buyers could make the transactions anytime and anywhere globally. The sellers and the buyers could make the transactions at any given time. The changes in technology usually affect investments.
Technology was limited to the rich nations having high wages. At the moment, technology can be transferred easily to the developing nations with high-tech production combined with low wages. Many of the firms in the advanced nations currently outsource the labor-intensive service from the developing nations, including India.
The different approaches to leadership and decision making in global organizations
There are three approaches to decision-making: avoiding, problem seeking, and solving.
Avoiding: You should not choose at all. The reasons for this are: Lack of sufficient information for making choices between the alternatives; negative consequences for the selection of alternatives which outweigh benefits of selecting one; lack of pressing needs for the choices existing plus status quo could continue without any harm; the person who is considering alternatives lacks authority for making decisions.
Problem-solving is the desire to arrive at a definite goal from the current condition. This requires problem definition, information analysis, evaluation, and alternatives.
Problem seeking: trying to solve the problem brings in focus. It can be found as poorly defined and missing the key dimension. The decision-maker has to step back and reconsider information besides analyzing where they have to return to the starting points besides specifying issues or the problems they are looking forward to addressing.
When it comes to leadership, three leadership theories have to be considered, including the psychological approach situational plus behavioral approach. The psychological trait is because one has certain behavior that forms a product for the personality, making it easy to distinguish one from the other individuals (Edem,1997). This approach argues that knowledge, the flexibility of the mind, willpower, integrity, and physical and emotional stamina. This approach conceives that leadership traits are present in all the leaders plus groups where leadership exists. For the leaders, the social, cultural, and physical environment play complex roles in developing beside the leader’s existence.
The situational approach believes that leadership is the function of social situations, where we interact between leader and subordinate. Leadership is the concept applied to interacting among two or more individuals. Any group is the system for interacting where each member has been assigned the role within a system (Gibb,1984).
Finally, the behavioral approach sees leaders as the passive ones. The reason for this is that leadership is passion or an interaction of the personality and social environments being propelled for virtues of situations.
Conclusion
Research has proved to impact business growth positively. For any business today, growth is key. When the business decides against going global, this impacts it greatly. As a result of globalization, global growth is a common aspect globally. One thing has to be considered carefully, no matter the growth. The center for the strategies should be for the satisfaction of the customers.
References
Cappelli, P., & Sherer, P. D. (1991). Assessing worker attitudes under a two-tier wage plan. ILR Review, 43(2), 225-244. https://doi.org/10.1177/001979399004300204
Edem A.D. (1987): Introduction to Educational Administration in Nigeria Ibadan; Nigeria Spectrum Books, p 57.
Gibb, A.C (1984): Leadership Gardener Lindsey (ed) Handbook of Social Psychology, Cambridge: Addison Wesley 1954 p 61
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