Assignment On Law Of Distance Impact On Business


Added on  2019-09-30

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Assignment Week 6: Research paper 1Topic 1: Pankaj Ghemawat on GlobalizationKey IdeasIt has been heard and observed that the companies are becoming more integrated with each otherin the world that has become flat. This integration is happening due to the rise of the internet andthe ease of doing business with the development of technology. This makes the people and theorganizations believe that the world is reaping the benefits of globalization. But the key idea thatI have got from the views of Pankaj Ghemawat is that the world is not globalized in its truesense. Instead, it is semi-globalized (Ghemawat, 2007). The problems in doing business due tothe distance of the companies, the differences in the cultures of the companies and thegeographical separations cause problems, and the hindrances are caused in ease of doingbusiness. If we consider the behaviors of the people, the distances between organizations and theborders between countries, then it will be observed that these things do matter in the businesses,and they reduce the benefits that technology has created for the companies for doing business.The law of distance has a huge impact on the way business and people are connected to eachother (Ghemawat, 2008). There are a lot of differences between the people in the world thataffects their ability to interact with the people in other countries or cultures. Other than cultures,the differences in administration, the economic scenario also affects the nature of globalization intoday’s world. Application of the ideas to the organizationThis idea can be applied to the McDonald’s stores when they tried to enter the Indian market.McDonald's is a fast-food restaurant that was famous for its products: burgers and French friescontaining beef and pork. The fast food retailer tries to enter the Indian market with sameproducts. But it failed massively. The culture of India did not allow people of India to eat Beefand Pork as they worshiped cow and it was a religious crime to kill the cow and eat its flesh.This was an example of the semi-globalized world that Pankaj Ghemawat talks about. Theglobalization helped McDonald's to enter and access the markets of other countries like India,but the differences in the cultures of India and USA did not allow the organization to flourish inthe other country. Here, the separation existed due to cultural differences and hence the law of1

culture prevailed. The organization had to completely change its products composition toestablish itself in the market of India. This shows that the company did not have the liberty tosell what it wanted; instead, it has to change itself for selling its products in the globalizedmarket of India. Thus, the world is flat and integrated, but it is not globalized completely. Topic 2: Definition of CultureKey IdeasThe key idea that I have got from the discussion and the activity is that the component of culturen the organization is malleable, and it has the ability to evolve itself through various influencesso that value can be created for the organization. There is a great deal of internal momentumwhich is present in the cultures of the company and it very difficult to modify it or change it. Thecontributors to the cultural inertia of the organizations include the size of the company and thestrength of the culture (Boulle, 2012). The cultures of the companies have the tendency to movein the same direction as that of the movement of the company. So, it becomes important for themanagers that they understand the way of developing the culture and the way to change it. Themodifications in the culture of the company are very important to happen from time to timebecause that ensures a positive, efficient and ethical impact on its working (Carlos Pinho, 2014).The change in culture is a long process, the change manager or the change agent has tounderstand that what the first step was when the culture was created because that determines thatfrom where the change should be initiated. Culture is an important consideration for theorganizations when they plan for restructuring, or they merge with another company or whenthey acquire some company. In all these situations, it is very important for the companies tothink about the integration of culture with other processes of the company. Application of the ideas to the organizationThis idea can also be applied to the McDonald’s stores when they tried to enter into the Indianmarket. They could not integrate with the cultural norms of the country that the people of Indiarespect cows and they don't kill and eat them. For Indians, cows were a symbol of worship, andwhen the fast food retailer came up with the beef products, the sentiments of the people of Indiawere hurt. They could not accept the food products and they mad the company fails in thecountry. Thus, culture is an important consideration whenever a business is planning for2

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