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Globalisation in the Modern Business World - Issues, Challenges & Opportunities

Essay by   •  July 24, 2012  •  Case Study  •  3,223 Words (13 Pages)  •  1,499 Views

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Title: Globalisation in the Modern Business World - Issues, Challenges & Opportunities

Table of contests

Summary

Introduction

Two sides of globalization

The role of globalisation for organisational behaviour

Company and business

Problems and opportunities

Solutions

Conclusions

Bibliography

Summary

In a world, which is characterized by globalization, especially in terms of the operations of different businesses, there is also a need for organizations to demonstrate a higher degree of responsiveness and provide an assurance that its current management systems in place are in accordance with the requirements of the current environment and context. With this thing in mind, it can be noted that one of the things that significant affect the operations of businesses which should be highlighted, in response to being more global, or to globalization, would be organizational behaviour. In the past years, globalization has been taken into different contexts and has become more apparent in the operations of many businesses. In a nutshell, the occurrence of globalization can be seen as the act of being absent of distance in culture and society, as there is said to be unification and in time and space, affecting various facets of the society, including political, cultural, social, and economic life (Ray, 2007). It is apparent that globalization has led into paradigm shifts in the manner at which many businesses operates such as with regards to the presence of a stronger international trade, major technological advancements, and increased cultural exchange (Braun, 2005).

Introduction

Increasing globalisation means that organisations must respond to different market demands and local requirements. In globalization, strategy and organization are inextricably twined. Globalisation impacts on organisational behaviour, and has placed greater emphasis on processes within organisations rather than functions of the organisation (Laurie J. Mullins, 2005, 7th ed., p.28).

The purpose of this individual report is to discuss the impact of globalization on organizational behaviour.

There are several tasks to reach the main purpose of the report:

1) to characterise two sides of globalisation;

2) to identify the role of globalisation for organisational behaviour

3) to analyse company's business, its problems and opportunities to be engaged into international business, especially into CIS (Commonwealth of Independent states) region

4) to identify appropriate solutions and recommendations that can help the company to expand new markets

A chosen company is Study Inn Education Centre based in the city of Astana, Kazakhstan. It is one of the most successful and popular education private companies in Kazakhstan. As the company's work concerns with international affairs in education, the company has plans to integrate into international education area, especially in Commonwealth of Independent Countries (CIS).

At the first sight it seems Study Inn has all chances for successful integration into CIS region. But taking into account the development of education business, all aspects and factors should be carefully considered and analysed.

Two sides of globalization

On one side, there is the mainstream approach. The expansion of global market improves the efficiency and living standards of organization. From these perspectives, organization can use adequate rational decision making to resolve the increasing internationalization problems. For example, Nike Corporation and its products are well known throughout the word. After some experiments, Nike moved toward a subcontracting system, reaching agreements with independent manufacturers to produce the shoes and other goods. This gave Nike a high level of flexibility as they could increase or decrease overall production according to market demand without carrying unnecessary overhead costs, for example, they can set up some tight conditions and contracts.

On the other side, there is the critical approach. It exposes that we need to concern the cost of globalization. There are few people who have the power to influence on the process in terms of social power and concentration of economic. And it reveals that how groups are struggling inside the organization. From a critical perspective, Nike reveals the multinational firms contribute to global inequality. If they produce shoes in the US, they have to cut its profit margins substantially because US employees are paid quite high wages. In contrast, producing the shoes in China reduces the costs significantly. Therefore, Nike's products are well away from the high cost and high regulations of western societies.

The impact of globalisation on organisational behaviour

Because of the significant effects, which were brought about by the advent of globalization in contemporary businesses, it is apparent that there has also been an urgent need for these firms to address such concerns in managing organizational behaviour. Organization should adapt to the consequences of globalization because of the fact that it creates a great impact on its organizational behaviour. Because of the higher degree of interdependence between different factors, which are relevant in the operations of organization such as economic, cultural, and social factors, it has been regarded that there is a higher concern for many to place a gat deal of emphasis on organizational behaviour. In addition, the advent of globalization has also made businesses expand their operations, some even on an international scale. Because of such expansion, or what others would call multinationalization, it can be reflected that there are apparent differences within the employees, and even the management style, within the organization. These differences and diversity, as brought about by various cultures in the work environment, and as a consequence of globalization, can be given the appropriate solutions given the fact that the management has the right approach towards organizational behaviour (Wagner and Hollenbeck, 2010).

The world made closer and smaller, as a consequence of globalization, has made significant changes in with regards to organizational behaviour. From the management

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