Assignment Design Services

Friday 5 October 2012

Globalization and effect on companies


Globalization, improvement in communication and technological development have totally metamorphised the international trade and business in new millennium. (Albrow, 1997).Competition in all aspects of business hotted up and need to spruce up all operations became the imminent need. The competition this time is not like during the earlier periods where wings of protectionism by local governments, geographical barriers like distance between countries, competition only from domestic peers saved the companies.(Robinson,1996 ). But protectionism has now become a thing of the past, as economies are opened up, geographical barrier removed by improvements in transportation and communication facilities and competition from domestic peers replaced by competition from international giants. (Robinson,1996 ). The advent of internet and e-commerce further hotted up the competition. It is a no-holds barred competition, where everything is considered fair in love and war. This time around there is no escape for competitions, but only two outlets –“fight or perish”. (Robinson, 1996).

The industry’s response to the competition is equally challenging.They did not sit idle waiting for the competition to soften as in earlier times. They realized that this time the competition is totally different this time, fierce and cut throat. The Globalization and global competition is here to stay. (Albrow,1997).

The companies and entities reviewed various aspects of their businesses and came up with new strategies in various areas which were unheard of before. There were structural adjustments, product quality improvement strategies, supply chain improvement strategies, backward integrations, forward integrations, collaborations, mergers and acquisitions. Marketing strategies became innovative and ad-campaigns became mind-boggling for sheer variety. There were diversifications and expansions. Product specializations became obsolete and diversification became the new keyword. (Robinson, 1996).

Whatever be the response of the companies to the new challenges of modern competition, there is one thing that needs utmost attention to be paid. There may be strategies to implement, there may be methods of implementation of the same, but implementers are the most important of the overall strategy. The company may be like an overhauled machine with new strategies, but unless there is a skilled and committed driver, there is no use of the machine. In a similar way, the company needs competent and committed drivers to drive the company in the desired path. (Robinson,1996).

========================================================================
Avail International Business Homework help and Answers by visiting  http://assignmentdesign.com/or mail to contact@assignmentdesign.com for help on  assignments over a wide range of subjects.
-------------------------------------------------------------------------------------------------------------------------------