Globalization Of Management For Engineers - Myassignmenthelp.Com

Question: Discuss about the Globalization Of Management For Engineers. Answer: Introduction The globalization is being referred to as the increased interaction of the states, people, countries and others by the mode of the growth of various international exchanges of ideas, money and culture (Hirst, Thompson Bromley, 2015). The process of globalization is concerned with the economic process involving integration having cultural and social aspects. There are usually different kinds of globalization namely economic, cultural and political globalization (Baylis, Owens Smith, 2017). There are different positive aspects of globalization such as enhanced trade flow between the business prospects and the nations. There is increased business growth which leads to the prosperity of the nations. There are several negative consequences of globalization namely deterioration of the indigenous culture, inequalities of income and the enhanced currency issues (Hirst, Thompson Bromley, 2015). The selected organization for this research is Serving Delicacies, which is a fast food restaurant that is situated in Melbourne, Australia. The primary goal of the report is to give strategic advice to the Board of Directors regarding the effect of the selected business contextual factors on the organization. The effect of globalization on the business structures of the company would be identified. The concept areas would also be discussed relating to the expertise of globalization. Definition of relevant concepts- Globalization The globalization provides overall advantages to the individual economies all around the world and makes the market efficient, competitive and wealthier by giving increased income opportunities to the nations all over the world (Crane Matten, 2016). The globalization has affected all the spheres of modern life and it is s strong force in the global economy. There are periods of nationalism and protectionalism of the world economy in the past and globalization is usually considered as the most important solution for ensuring consistent economic growth all around the world. The current wave of globalization has been driven by the opening of the economies in both domestic as well as international spheres (Hirst, Thompson Bromley, 2015). The Government of the nations has reduced the inter-nation borders to different commerce so that there can be setting up of international agreements so that there is better promotion of goods, investment and services (Pieterse, 2015). The corporations are increasingly making foreign factories and establishing production as well as marketing arrangement with the different cross-border partners (Hirst, Thompson Bromley, 2015). The technology has played one of the most important roles in the globalization process. The various advances in the technology have transformed the economic life of the nations (Hay Marsh, 2016). Globalization affects the international business and financial structures of the nations. It also leads to faster analysis of the economic trends around the world and easy transfer of the different assets. Benefits of Globalization There are several advantages of the globalization process that is implied on the organizations. Serving Delicacies should undergo cross border trade as it would lead to greater business growth (Stiglitz, 2017). Since the company is a start up firm, hence cross-border trade would imply more business prospects. Some of the benefits of the globalization would include- Serving Delicacies would find access to the larger markets which implies that the firm would witness higher growth of demand as well as benefits resulting from the economies of scale (Hirst, Thompson Bromley, 2015). This would imply a greater reduction in the average production costs. There would be increased avoidance of the process of regulation by the location of production in countries so that there are less strict regulatory processes like those in the less developed countries (LDC) (Richard, 2014). The aspect of globalization has led to enhanced inward investment flows in between the different countries that have created multiple benefits (Hirst, Thompson Bromley, 2015). There would be greater sharing of the technology as well as knowledge between different countries. Serving Delicacies would have access to the worldwide access of the raw materials at an affordable price in both the home markets as well as overseas market. The sourcing of cheap labour and cheap materials for the purpose of production is regarded as global sourcing and it would lead to increased shareholder profits (Shum et al., 2014). International Contextual Factors in Fast Food Industry The fast food industry has witnessed the greatest effects of globalization in the recent past. There are adaptations of the typical French cuisines and Italian dishes all over the world. The fast food corporations such as Pepsico Restaurants, KFC, McDonalds and others have opened its branches in almost every countries of the world (Jenkin et al., 2014). The primary target market of the fast food industry is the children and teenagers who like to taste yummy foods within reasonable budget (Jenkin et al., 2014). The agriculture as well as food industries have become global which have crossed the national boundaries. The increased effect of globalization has threatened the local food cultures and the local food businesses. Effect of Globalization on the business structures The globalization implies that the business would be moving to new territories which imply that the company needs to set up new organizational structures or modify the existing business structures. The aspect of globalization would allow the company to implement decentralization (Crane Matten, 2016). This would imply that the company may have to use local management team who are well conversant with the local culture (Crane Matten, 2016). This would imply that there would be minimum degree of trainings required for the new staff inducted. Depending on the scale of operations, the company needs to invest heavily in technology so that the business would stay on schedule and also remains profitable (Hirst, Thompson Bromley, 2015). The customers would also be able to receive the food orders in a timely manner irrespective of their locations. The globalization implies that a greater amount of the communication systems need to be developed in the countries where the business has venture d. The globalization ensures that the company would be able to embrace low-priced workforce as well as raw materials since the local resources would be used for this purpose (Chung, 2014). There would be greater access to cheap labour and there would be more access to the raw materials. The companies also need to focus on the fierce competition, which is a major bi-product of globalization. Potential Challenges of Globalization The globalization poses major challenges for the business entities and there are questions regarding the long-term sustainability of the firm (Crane Matten, 2016). There are several challenges that should be considered before venturing into foreign locations- Organizational Structure- The organizations in the new regions need to incorporate value chain as well as corporate structure in their business organizational structures (Jones Weder, 2017). This can be a hurdle for the development of particular business development units. The finding of the value for fixing organizational investment is a troublesome matter. The organizational structure may be difficult to follow in the foreign locality. Leadership- The business start up Serving Delicacies may face difficulties in the leadership processes as they may lack the leadership skills required in the specific geographical markets (Jones Weder, 2017). Labour- There can be issues with the mobility of labor between the countries where the labors working in the home country may not be willing to travel in a foreign location (Ma?ek Bobek, 2015). This may enforce the company to recruit local talent, which can be difficult at times. Recommendations The new company should keep in mind that it has to deal with the already established market players. It should devise suitable policies for combating with the big multinational companies. The following points should be kept in mind before venturing into foreign locales- The company should give adequate attention to the cultural differences that is bound to happen between the team members in the foreign locale. The company should focus more on the mutual agreements so that there is enrichment of the organizational culture. There should be equitable distribution of the resources and more attention should be given to the supply chain operations. It should allow the local workforce development through constant development as well as management of the different environmental resource. The HR department should be careful in their hiring decisions and should concentrate on hiring of local talents more. This would also help them to curtail the operational prices. Conclusion Globalization has major impact on the business functioning. The international contextual factors of globalization have a major effect on the way the organizations operate on a day to day basis. The potential benefits as well as challenges of globalization are being discussed in a coherent manner. The effect of globalization on the business structures of the selected firm is also discussed. 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