Globalization on Organizations and Management This Paper

¶ … Globalization on Organizations and Management

This paper uses three sources to discuss the significance of globalization for organizations and for the managers within them. It also discusses the impact of the Internet on global business and commerce.

THE IMPACT OF GLOBALISATION ON ORGANISATIONS AND Management

Just as the Depression, The Cold War Era, the Space Age, and the Roaring 20's are used to describe certain periods of history, the Era of Globalisation is becoming the term to describe our political, economic, and cultural atmosphere of today (New era replaces Cold War and Space Age: (www.about.com/newissues_globalization).Globalisationisthe integration of economic trade among countries around the world. However, it is much more than that. It allows social activists, labor organizers, journalists, academics, and many others to work on a global stage as if national borders do not exist (New era replaces Cold War and Space Age: (www.about.com/newissues_globalization).

Globalisation affects organisational structure, technology, communications, product development, service delivery, people, and training. It is the biggest force driving corporate change today (Trapp 25). To compete successfully in the future, global 500 companies need to transform their organisations into global enterprises (Trapp 25). However, many see a threat to the nation state. The sheer size of companies such as Ford, General Motors, Sony, Unilever, and Shell, tend to be seen as "imperial corporations" that control the flow of money, goods, and information across the world (Trapp 25).

However, size alone is not driving the globalisation of business. New technology, in particular the Internet, is pushing business into the global market (Trapp 25). While large organisations have been able for some time to use their economic power to buy what they wanted from wherever they wanted, it is now possible for the average man and woman to enjoy much the same power. Now, the ordinary consumer equipped with a personal computer can buy a book that until recently would only have been available in the United States or can bypass the travel agents and reserve a beach house on a Far Eastern island (Trapp 25). Thus, the Internet has leveled the playing field and enabled consumers to enjoy the same access to goods and services that has long been available to corporations. Furthermore, it enables a just-founded company to have the same global marketing reach as that of large established organisations employing thousands of people all over the globe (Trapp 25). However, the downside to this is that right from the start the little guy finds himself competing with the big boys. The result, with few exceptions, is that business success is set to be even more fleeting than in the past (Trapp 25). Companies enjoy huge expansion in sales on the strength of dominating a technology or niche in the market, but constantly run the risk from newcomers like themselves (Trapp 25).

A truly global vision must not only encompass worldwide representation, but also global branding, consistency of customer experience, worldwide knowledge management and fully integrated processes and systems (Management pg). To achieve this, companies require solutions that are integrated and unified. They must be responsive to local needs, but provide support to companies in developing and implementing global strategies (Management pg). Companies need to be globalised in their own structure and approach in order to understand and serve the needs of global clients. Furthermore, they must develop and offer strategic solutions designed to support global companies (Management pg). Moreover, they must be integrated with value-added applications covering supply chain, customer management, electronic commerce, knowledge management, and specific industry needs (Management pg).

Currently, suppliers struggle to provide global solutions and support, due to different languages and scripts, accounting and other business procedures, legislative and regulatory regimes and macro economic and political pressures (Management pg). Furthermore, there is the issue of technical infrastructure and operational support. As a solution, suppliers are rushing to establish partnerships with each other or with other organisations. However the Internet is a vital aspect of many companies' approach to globalisation as a sales and distribution channel, as well as a source of information and knowledge transfer (Management pg).