Impact Of Globalization On Strategic Management

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Running Header: Final Paper 1 Final Paper Global Strategic Management – GSM 730 Colin Mars Vickerie TESC/Mentor- Dr. Perry Haan December 27, 2014 Final Paper “The impact of globalization on strategic management – Trends, Risks and Rewards”. 2 In a world today where there seems to be no boundaries or real borders when it comes to business, firms strategically have to put policies and structures in place to deal with its ability to offer its products or services internationally. This paper will address the impact of globalization on strategic management. It will also focus on certain trends, risks, and rewards. To begin with, Globalization can be defined as a process of interaction and integration among the people, companies,…show more content…
Yes, globalization have shifted the paradigm for international trade and forced companies and even entrepreneurs to expand their policies and horizons that now looks at the world as a large village. Globalization got tremendous support from market integration and deregulation that was evenly supported by advances in telecommunication and transportation (Szintay, 2000). The said advances in telecommunication and transportation removes any excuses and lower barriers that would prevent a company from adding a global initiative to its product launch. Therefore it is actually expected that companies launching products today will literally have simultaneous opening offerings in various countries at the same time. Apple quite often demonstrates such in recent times when launching various versions of its I-phone in New York, Hong Kong, London, Brazil, and other markets literally on the same day. Globalization can be seen as a true challenge to intended free flow of capitalism. Markets and the offering of products and services can no longer operate with containment within a certain space or isolated arena. The advancement of technology and telecommunication allows people to trade literally from anywhere in the world. With the increasing amount, speed, diversity, and complex nature of international corporations being developed, Thurow cited, “The first time in the history of mankind, anything can be produced anywhere” (Thurow, 1997). In dealing with the impact of globalization…show more content…
From a globalization perspective, an organization may use its ability to offer services in a particular country or set of countries as a way to raise the bar within its grouping and thus acquire competitive edge. Strategic grouping is not easy. But analyst are able to use several financial and performance measurement statistics to organize companies into strategic groups. The companies is specific groups are typically applying similar strategies to compete and tend to produce nearly similar results. Companies literally are indirectly bonding to create artificial barriers of entry to new companies into their group. In like manner, reference groups are borne out of the cognitive abilities of the leaders to use branches to create cognitive communities. In addition the leaders are well aware of the strength and weaknesses of their organizations and effectively use such to gain competitive edge and avoid the threats of competition (Porter, 1985). The company is able to utilize globalization and its classification in a strategic group to become the point of reference in an industry or market sector. In a sense the company is now been viewed globally as a benchmark or standard within that particular industry. Though a company may adopt strategies to implement a globalization plan they may find it very difficult to execute based on specific abilities, skills, and knowledge that maybe needed (Porter, 1985).

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