Globalisation and Organisation Growth: Impact, Factors, and Issues

This report analyses the impact of globalisation on organisational growth and success. It examines the factors related to globalisation that affect organisational growth and the issues associated with globalisation for businesses. The report also explores the role of globalisation in the development of economies and the concept of globalisation in the context of organisational growth and success.

WRITTEN PROJECT
SUBMITTED TO
PATHWAYS VLE VIA
TURNITIN
(GLOBALISATION AND ORGANISATION
GROWTH)
Table of Contents
1

INTRODUCTION...........................................................................................................................3
Title:.......................................................................................................................................3
Aim:........................................................................................................................................3
Questions:...............................................................................................................................3
Background.............................................................................................................................3
MAIN BODY...................................................................................................................................4
What is the role of Globalisation in development of economies?..........................................4
What is the concept of Globalisation with the context of Organisational growth and success?
................................................................................................................................................5
What are the factors related to globalisation that affects organisational growth?..................7
What are the issues associated with Globalisation for the business in relation to its growth and
success?..................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Title:
Globalisation and Organisation Growth
Aim:
“To analyse the impact of Globalisation in ensuring success and growth in an organisation”
Objectives:
 To demonstrate the role of Globalisation in development of economies.
 To investigate and determine the concept of Globalisation with the context of
Organisational growth and success.
 To examine the factors related to globalisation that affects organisational growth.
 To ascertain issues associated with Globalisation for the business in relation to its growth
and success.
Questions:
 What is the role of Globalisation in development of economies?
 What is the concept of Globalisation with the context of Organisational growth and
success?
 What are the factors related to globalisation that affects organisational growth?
 What are the issues associated with Globalisation for the business in relation to its growth
and success?
Background
Globalisation is determined as interconnectivity among various economic nations with
cross-border trades of goods and services. For instance, it is basically determined as a process of
movement of Goods and workforce across international borders. In addition to that, these cross-
border trades among economic nations include goods, technologies, manpower, flow of
investment, etc. in order to fulfil needs and demands of that economic nation. This report
assessment will be comprised of insightful information and knowledge of determined concept of
Globalisation in context of organizational growth. Furthermore, it will be highlighting factors
and aspects related to Globalisation which influences and affects growth of business
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organization. It will be providing with understanding of issues or problems associated with
Globalisation.
MAIN BODY
What is the role of Globalisation in development of economies?
According to Esteban Ortiz-Ospina, 2017, Globalisation is determined as an engine of economic
development with increasing connectivity of various economic nations in the world. For
instance, international trades among different economic nations have been regulated for
thousands of years in order to increase connectivity among nations by fulfilling their needs and
demands. The initial flow of Globalisation was first observed in the year 1820 with a rapid
increase in international trade among different economic nations. In addition to that,
advancement in technology and political liberalism were the key reasons for the boom of
Globalisation in the initial phase.
With the rise in cross-border trade and increase in labour movement across economic
nations facilitates in access to with the rapid increase in movement of labor from one economic
nation to another, business organizations now have access to cheap and skilled labor from all
around the world. For instance, cheap and skilled labor further facilitates in carrying out business
or operations and activities in an efficient manner. Moreover, it further contributes additional
values towards achievement of organization goals and objectives as well as reducing cost of
operations in order to increase profitability.
With increasing cross border trades with globalization, business organizations have
access to other economic markets which facilitates in serving higher amount of customers. for
instance, this positive aspect facilitates in increasing sales of products and services offered by
respective organization. Increase in cross border trades directly influences coordination and
collaboration among various economic nations by providing them with goods and services as
well as manpower in order to fulfill their needs and requirements. Furthermore, all these positive
aspects directly results in economic development of that particular nation.
According to Justin Kuepper, 2021, Globalization has always been resulted in boost to
economies all around the world by making the markets in those economies more efficient and
productive. For instance primary and major benefits of globalization include foreign direct
investment, technological innovation, economies of scale, etc. Increasing globalization among
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various economic nations’ results in higher competition in market which will lead to spread off
wealth more equally. In addition to that, Cross border trades will result in improving
coordination among economic nations which will further facilitating minimizing military
conflicts.
Foreign direct investment is determined as flow of investment from one economic nation
to another. For instance, it contributes various values towards economic growth by maximizing
flow of investment which facilitates in growth of that particular economic nation. On the other
hand. On the other hand, transfer of technology will facilitate in improvisation an announcement
of business environment with increase in productivity and efficiency.
Increasing global trades allows large companies to expand their business units to other
economic markets which results in ensuring growth and development. Though, this affect many
small businesses who are trying to compete with them in their economic boundaries as people or
customers often prefer products and services offered by these large organizations. Therefore, all
these factors and aspects further facilitates in economic growth and development of an economic
nation.
What is the concept of Globalisation with the context of Organisational growth and success?
According to the author, globalization a term and process which is used to describe the
integration of trade and technology together in changing the world into a more connected and
independent place. Globalization has offered an opportunity for different businesses belonging to
separate industries to grow and increase their scope. The scope of globalization includes changes
taking place within economic and social environment. The concept of globalization is also
referred as a spider’s web by the author which is this developed over millennia and keeps on
increasing its reach by every passing decade and by time.
In accordance to the author, globalization is referred to a process by which different ideas
knowledge information goods and services are region to different ends of the world. In terms of
growth and success of organizations, globalization is a phrase use in an economical context for
describing the integration of different economics that are marked under free trade, free flow of
capital among different countries and places of the world as well as easy access to several
precious foreign resources. Some of the examples of these foreign resources are increasing
returns on investments, labour market and benefits from the services and goods being provided.
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According to author globalization is driven by convergence of cultural and economic
systems of different nations of the world. This convergence is beneficial and being constantly
promoting increased interaction integration and interdependence of separate countries with one
another. The author also stated that increasing interrelationship and integration of different
regions as well as countries together in political cultural and economic manner will continuously
promote globalization change in the world into connected and related.
Increasing development and revolution taking place in technology and of different technological
aspects have supported the notion of globalization by accelerating its flow and resulting in better
international interdependencies and interrelations. Technology not only advances the process of
globalization but also supports it coherently in order to fulfil its purpose.
According to the author, globalization in context of businesses and their success is
referred as a change brought in which enable it to move further and operate in multiple countries
around the world rather than staying in the single region. While referring to the influence of
globalization on business it can be categorized into parts which are market and production
globalization.
In reference to the author’s point of view, market globalization is defined as a practice
which reduces the barriers of selling once goods and services in different countries. This form of
globalization offers and easy access to the business to sell their products internationally due to
lower tariffs and taxes which ultimately enable them to reduce customer price and earn higher
profits. It also develops easy access for company to the foreign markets and allows them to
understand different cultures around the world while taken steps and moving towards gowth.
Globalization offers companies a chance to potentially understand and develop their business in
a new country by taking statistical and potential steps towards developing their products in the
respective market and positioning them with the best possible marketing strategies in front of the
targeted audience’s introspective marketplace.
On the other, globalization is the process of sourcing materials and services from one
country by taking advantage from price differences of different nations. In simple words, this
form of globalization in able a company to procure or raw material for different parts of a
finished good from different countries where they can receive lower prices to purchase them and
then assemble those raw materials for parts into one finished good. This practice reduces the
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production cost for the businesses and increases their profits automatically along with benefiting
them with better relations with other countries as well as businesses in those respective areas.
Hence it is critical that the concept of globalization in the current scenario have played a
major role in growth and success of businesses belonging to separate industries of different
countries around the world. It is determined as phenomena which helps world and businesses in
changing into a better place to work grow and develop together.
What are the factors related to globalisation that affects organisational growth?
According to Gail Tverberg, 2022, Globalisation is determined as that the world is
interconnected by trade and cultural exchange. Globalisation is a huge and wide concept which is
comprised of various different factors in aspects which impacts upon business environment in a
positive as well as negative manner. For instance, it has always been the major factor behind
success and growth of an economy with cross border trades of goods and services. In addition to
that, globalisation is also impacting upon different economic nations in a negative manner in
some more the other way.
The primary and foremost negative impact associated with globalisation is determined as
globalisation majorly operates in richest countries which results in dominating Other small
economic nations. For instance, these richest countries are dominating small economic nations at
the expense of developing economic countries. In addition to that, there is no guarantee that the
flow of investment will result beneficial for the local community as the profits are sent back to
where the is originally based. In the absence of effective international trade laws could lead to
generate risk with poor working conditions as well as low wages is provided to labour or
workforce engaged in that particular economic nation. Furthermore, it could lead to negative
impacts up on those specific economic nations. Globalisation is also considered as threat Cultural
diversity as it might drown local traditions, economies, and language of that particular economic
nation. For example, Hollywood film industry is highly preferable by people in society as
compared to other film industries in other economic nations.
According to Chris Joesph, (2022) Globalization has a negative impact Upon the business
is over the world. Globalization can also result as a threat of trade war between several
developed nations across the globe. Almost each business is likely affected by the Global events
taking place In any part of the world. For example if a business is located in the United states
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entirely and when China responds to the increase administration tariff their target businesses in
the United states that favoured trump election in 2016. The tariff also likely to have impact upon
the Italian farm equipment manufacturing organization that focus is a point selling its farm
equipment’s in the American market this lead to a huge impact of the trade war between the US
and China in several part of the world.
What are the issues associated with Globalisation for the business in relation to its growth and
success?
According to Ricardo, 2022, there are various issues associated with the wide and huge
concept of globalisation which results in impacting upon business organisations as well as
economies in a negative manner. For instance major and primary of these negative impacts of
globalisation include unequal economic growth, lack of local businesses, increases potential
global recessions, exploits cheap labour market and exploits cheap labour markets.
While the huge concept of globalisation influences economic growth for many richer
countries but also results in being a barrier in the growth of small economic nations. For
instance, richer and large economic nations often observed with huge benefits as Compared to
other economic nations. In addition to that, increasing cross border trades often benefits large
business organisations but on the other hand it results in creating issues and challenges for local
and small businesses in growth and development of their business. Furthermore, globalisation
also increases the potential off global recessions as country’s economy starts to struggle which
could result in a financial crisis. Moreover, globalisation has also increased job opportunities in a
developing country which has resulted in a negative impact for markets with cheap labour.
Therefore, the major negative impact of globalisation is over small economic nations with cheap
labour as it causes job displacement.
Issues in globalisation
In accordance with Velocity global, there are several issues in globalisation the several
issues that are faced as a result of globalisation includes recruitment challenge. International
recruitment is considered as the most common challenge among the multinational organisations.
The organisations are required to create a plan regarding the interview process to screen the
candidate thoroughly which is important to make sure that the individuals are well qualified who
are even miles away from the headquarters. The organisations required to study the demands of
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the market in terms of salaries and benefits so that they can offer competitive remunerations.
Globalisation has resulted in a challenge in the recruitment process in terms of culture, language
barrier and time zones.
Communication is a huge issue of globalisation. Before an organisation establishes a
branch outcome headquarters it is essential for the organisation to put it or establish internal
communication as they tend to come from different culture language and time zones are likely to
work together. In order to cope with the communication challenge soft and digital tools can be
used to avoid hurdles and connect smoothly.
Another issue that has been caused due to globalisation is that globalisation has resulted in
increase of competition. The internal operations are required to adjust in accordance with the
external. Globalisation helps in opening new revenue streams as well as allows largest pool of
talent and as globalisation comes with several benefits it is likely to attract more number of
eligible candidates across the world. This has resulted in the competition at the global
marketplace among the businesses.
CONCLUSION
From the report and analysis of the topic globalization and its impact on business can
conclude the factors and different components associated to the concept of globalization offer
great opportunities and scope of success to businesses. Through an analysis of different
literatures in the above stated report it is highlighted that globalization please a major role in
benefiting international firms businesses to grow through technology and other important
supporting the sources. Process of globalization also reduces with barriers two international trade
and improves the flow of money along with production services in two different nations and
regions are the countries offering increasing interdependencies of different economic around The
World along with their development.
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REFERENCES
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Globalisation, 2022. [Online] Available Through:
<https://www.bbc.co.uk/bitesize/guides/zxpn2p3/revision/5/>
Globalization Benefits and Challenges, 2020. [Online] Available Through:
<https://velocityglobal.com/blog/globalization-benefits-and-challenges/>
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https://www.nationalgeographic.org/encyclopedia/globalization/#:~:text=Globalization
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%20about%20as%20a%20result/>
How Does Globalization Affect an Organization's Business Approach, 2019. [Online] Available
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approach-20077.html/>
How Globalization Works: Pros and Cons of Globalization, 2020. [Online] Available Through:
<https://www.masterclass.com/articles/how-globalization-works-pros-and-cons-of-
globalization#what-are-the-disadvantages-of-globalization/>
Is globalization an engine of economic development, 2017. [Online] Available Through:
<https://ourworldindata.org/is-globalization-an-engine-of-economic-development>
The Impact of Globalization on Economic Growth, 2021. [Online] Available Through:
<https://www.thebalance.com/globalization-and-its-impact-on-economic-growth-
1978843/>
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