Globalisation
Globalisation is basically the operation, integration, and competitiveness of organisations in the economy on a worldwide scale. Rather than being nationally confined, the activities of these organisations are more self-governing. Globalisation affects the nature of business ethics and social obligations. As large organisations embrace a more global viewpoint, it shall have an important impact on the wider setting of organizational behavior and management (Mullins and Christy, 2013: 22).
Globalisation has been made possible by various factors. The first factor is the improvement of technology when it comes to telecommunication and transportation. In the past, it was not possible for individuals from all over the world to interact and communicate without facing difficulties. Today, a text message, phone, or a video conference call can be used easily for people to communicate with each other. Apart from that, anyone who has the funds could book a flight and get to any destination in just a couple of hours.
The second factor is the movement of capital and people. The increase in transportation technology, opportunities, and awareness has enabled individuals to travel around the world in order to look for a new job, a new home, or to escape from a place that is of danger. Most migrations take place in countries that are developing as lower living standards and lesser wages drive people to move to places where there is a higher chance of economic improvement. Capital on the other hand, is transferred electronically on a global scale and this leads to an increase in opportunities for investment. Due to the vast room for growth, investors often place their capital in developing countries.
The next factor is the spreading out of knowledge. It does not remain a secret for long when a new way of doing something or a new invention comes up. An example of this is the arrival of automotive machines used for farming in Southeast Asia, where they used manual
Globalisation has been made possible by various factors. The first factor is the improvement of technology when it comes to telecommunication and transportation. In the past, it was not possible for individuals from all over the world to interact and communicate without facing difficulties. Today, a text message, phone, or a video conference call can be used easily for people to communicate with each other. Apart from that, anyone who has the funds could book a flight and get to any destination in just a couple of hours.
The second factor is the movement of capital and people. The increase in transportation technology, opportunities, and awareness has enabled individuals to travel around the world in order to look for a new job, a new home, or to escape from a place that is of danger. Most migrations take place in countries that are developing as lower living standards and lesser wages drive people to move to places where there is a higher chance of economic improvement. Capital on the other hand, is transferred electronically on a global scale and this leads to an increase in opportunities for investment. Due to the vast room for growth, investors often place their capital in developing countries.
The next factor is the spreading out of knowledge. It does not remain a secret for long when a new way of doing something or a new invention comes up. An example of this is the arrival of automotive machines used for farming in Southeast Asia, where they used manual
References: Arvidsson, N. (1997), “Internationalisation of service firms: strategic considerations”, in Chryssochoidis, G., Millar, C. and Clegg, J. (Eds), Internationalisation Strategies, Macmillan Press Ltd, Basingstoke, pp. 71-89. Batterson, R. & Weidenbaum, M. (2001) The Pros and Cons of Globalisation, Center for the Study of American Business, Washington University. Castells, M. (2000), The Rise of the Network Society, The Information Age: Economy, Society and Culture, Blackwell, Cambridge, MA, Vol. 1. Colin Stief (2014) An Overview of Globalization and Its Positive and Negative Aspects [online], Available from: http://geography.about.com/od/globalproblemsandissues/a/globalization.htm [Accessed 12th June 2014]. Harzing, A-W. (2002), “Acquisitions versus Greenfield investments: international strategy and management of entry models”, Strategic Management Journal, Vol. 23 No. 3, pp. 211-27. HubPages (2013) Nike-A Global Presence [online], Available from: http://positronwildhawk.hubpages.com/hub/The-Globalisation-of-Nike [Accessed 12thJune 2014]. Lloyd, B. (1996), “The outlook for globalization”, Leadership & Organization Development Journal, Vol. 17 No. 5, pp. 18-23. Pheobe (2013) TNC’s- Case Study McDonalds [online], Available from: http://loquacious-mare.hubpages.com/hub/TNCs-Tesco-A-fact-file [Accessed 12th June 2014]. Saylor Foundation (2012) Globalization and the Coca-Cola Company [online], Available from: http://saylor.org/bus208#2.5.6 [Accessed 12th June 2014]. Svensson, G. (2001), “‘Glocalization’ of business activities: a ‘glocal strategy’ approach’”, Management Decision, Vol. 39 No. 1, pp. 6-18.