Factors and Drivers of Globalization in Business Logistics

Business Logistics

Table of Contents
INTRODUCTION...........................................................................................................................3
Critically evaluate key factors facing organizations operating in global landscape of
2019/2020 as well as in the future...............................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
The business logistics is a group of related activities which all are involved in the
movement and transferring of the products and services and information that is from the raw
materials to the finished goods to the consumers. The logistics is very necessary in the
globalization. Globalization is the process through which the different economies interact and
integrates in different forms like doing business, integration of different people, government,
companies and many other for various types of reasons. In the present essay the major discussion
will take place on the different factors which currently the companies who are operating at the
global level are facing. Also, the discussion will take place on the different drivers which leads to
globalization.
MAIN BODY
Critically evaluate key factors facing organizations operating in global landscape of 2019/2020
as well as in the future.
Globalisation – The term globalization is defined as the process of integration and interaction
among governments and companies of different countries and the process is driven by
information technology and investment. There are various types of globalisation such as
economic, cultural, technological globalization etc.
As per the author Janssens, Maddux and Nguyen (2019) there are various factors that
drives the globalization. These factors are divided into various categories such as cost drivers,
government drivers, competitive drivers and changes drivers etc. One of the major factor is
market drivers. This driver depends upon behaviour of people and structure of distribution
channels. Market drivers influences different global strategy levers such as market participation,
uniform marketing approach, product standardization offering, integrated competitive moves etc.
Market drivers are of different types that are global channels, global customers, homogeneous
need of buyers and transferable marketing. Another factor that drives globalization is cost driver.
It involves economies of scale. Scale of production can be increased by firms through
standardization, participation in different markets and concentrating on core activities etc. It is
also having risks like vulnerability and rigidity to disruption.
According to Michalaki and et.al (2015) the new global economy of 21st century has
converted the political, economic and social landscape in indelible manner. The new economy is
based on a culture of innovation. Economic life cycle analysis refers to the technique that helps