Impact Of Globalization Affecting Organizations

1175 Words5 Pages
2.4 GLOBALIZATION EFFECTING ORGANIZATIONS Organizations have to respond to globalization as well as to the rapid changes in technology. They must improve their performance and pay more attention to their customers. Companies no longer have the opportunity to only enter new markets as once globalization meant, the old rules don’t apply in today’s situation. With today’s facts organizations have to deal with a fast growing number of competitors and sources of lower cost labor and take responsibility for the risks that are associated with global supply chains. Businesses must adapt to the global market by creating and going after new opportunities. In this chapter we will be analyzing the impact of globalization to the effectiveness…show more content…
Capital cultures ideas people information even threats have no borders to stop them and travel everywhere in the planet. Globalization symbolizes a world of free flow of technology and human resources that cross boundaries and present a competitive business environment. Employees, assets and products are moved freely everywhere in the same way. This means that a homogeneous international market of products and services is created and in order for businesses to withstand the size of that market they have to get bigger and narrow down their cost. ‘’Globalization is a widely and somewhat loosely used term intended to describe the recent and rapid process of intercontinental economic, social, and political integration. This worldwide integration allows people to communicate, travel and invest internationally, and helps companies market their produces widely, acquire capital human and material resources more efficiently share advanced technology, and enjoy economics of scale. While many benefit from globalization, others are hurt economically, some cultures may be harmed, and local environments may suffer.…show more content…
One of the most important forces that drive globalization is technological development. As technology advanced it gave the means to break the barrier of time and space which in its turn helped the national markets to integrate without difficulties as they could now collect worldwide information. Furthermore communication has become easier as well as faster through internet as it allows messages to be sent and be received at the same time with no delays. Transportation improved and lead to faster traveling as it reduced the time but it increased the efficiency of transferring. “Advocates and critics of globalization basically agree on the big forces behind it: a great freeing up of trade and capital flows; deregulation; the shrinking cost of communication and transportation; an IT revolution that makes it possible for companies to digitize the boundaries between design, manufacturing and marketing and to locate these functions in different places; and the availability of large numbers of workers and engineers in low-wage countries.” (Suzanne Berger 2005

More about Impact Of Globalization Affecting Organizations

Open Document