Impact of Globalization on Organizational Culture Behavior

¶ … Globalization

Scholars define globalization as the growing integration of the societies and economies across the globe. It is the process of integration and interaction among individuals, governments and companies of different countries. This process is influenced by international investment and trade, with the aid of information technology.

Globalization is creating environmental uncertainty for business enterprises (Bryson, 2011). As markets become international, the numbers of variables a corporation must consider in decision-making become huge and much complex. The uncertainty of the environment is a threat to the strategic planning process because it hampers the ability to craft long-term goals and to make strategic decisions that hold the firm in equilibrium with its external atmosphere. Drawing from Michael Porter's concepts, global sectors differ from multi-domestic to international. Multi-domestic enterprises focus on a nation while multinational industries and corporations tend to be global. The difference between these two patterns is extremely challenging for strategic planning. As such, each provides new challenges particular to its environment. Therefore, operating a business sin the global field needs international societal consideration.

From the business dimension, another impact of globalization is that of expanded markets. It implies that businesses that had previously only sold to domestic buyers can sell their offerings to other nations. A good illustration of expanded markets is the auto sector. Before the collapse of the Berlin Wall, inhabitants of nations under communism could only access cars that were manufactured domestically or in communist member nations. This was because of existing trade barriers with the West. After the collapse of communism, Western nations expanded their markets to former communist economies. In turn, this expanded their profit potentials (Markovic?, 2012).

Following globalization, the business arena has been altered dramatically in recent years. These changes are profoundly affecting organizational efforts to become successful. As such, organizations are identifying and focusing on factors that affect their success. One factor that seems to be getting more attention than others is stakeholders, particularly employees as they are the people within the firm. Organizations have realized that their chance of success relies on learning to get the most out of their employees (Markovic?, 2012). This realization has significantly impacted the practice of strategic planning. Experts project that the role of stakeholders is expected to see more changes in future. Therefore, new business entrants must understand the importance of organizational success in gaining a sustainable competitive advantage.