Organizational Behavior and Management Essay 2022

Running head: ORGANISATIONAL BEHAVIOUR AND MANAGEMENT
ORGANISATIONAL BEHAVIOUR AND MANAGEMENT
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ORGANISATIONAL BEHAVIOUR AND MANAGEMENT
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Introduction
 Globalization has been augmented with the decline of trade obstructions with the spread
of unrestricted trade as well as trade management in the digital era thus reflecting decline
in the bureaucraticism related to international trade. Global business primarily refers to
global trade. However, in different terms a global business is recognized as an
organization executing its business across the world (Andreasson and Johansson 2018).
 This type of business tends to draw variance from an international business which trades
products and merchandises, yet has provisions particularly in its home nation. According
to Agrawal (201), through a broad network of their branches in number of countries,
global business aims for expanding their industries along with marketing operations.
 Furthermore, global business shows great competence of decreasing its level of reliance
on the local markets (Nikolova, Rodionov and Afanasyeva 2017). Even during extreme
stagnation of local competition, global businesses can continually depend on additional
markets in order to trade its products or services.
 The essay will evaluate functioning of global business and classify the stages in the phase
model of globalization. Additionally, enlighten the strengths and weaknesses embedded
in those stages to analyse significant aspects of executing business operations during
globalisation.
Background
Analysis of four stages in phase model of globalisation
 The four stages in the phase model of globalisation have been incorporating
disseminating, cooperative contracts, strategic alliances and lastly wholly owned
affiliates. In recent times, with increasing rate of globalisation, the yearly earnings of

ORGANISATIONAL BEHAVIOUR AND MANAGEMENT
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planetary business in the signifier of exports as well as imports have been anticipated to
transcend nearly $12 trillion.
 According to Tessema (2016), few years before, global business has systematically
developed at a rapid rate as compared to global productivity. Nikolova, Rodionov and
Afanasyeva (2017) have found that the concept of ‘export’ in the phase model of
globalisation has been derived from the conceptual importance as to transport the goods
as well as services out of the port of state wherein company trades domestically produced
goods to customers in overseas states.
 However, in the view of Tessema (2016), selling products domestically encountered
critical hazards with exportation related to increased financial outlays along with
complex political, legal as well as cultural impediments.
 Van den Berg and Lewer (2015) have cited example of Speedo, renowned Australian
swimsuit trading company exports their products to states like the U.K, Italy, France and
Japan. By drawing relevance from marketing strategy of Speedo, number of Australian
interior designer has increased the exportation of their designs along with products. The
subsequent stage in the phase model of globalization involves cooperative concerts
comprises of licensing as well as franchising.
 Licensing is known as the understanding whereby domestic organization commonly
receives royalty reimbursements for authorizing licensee in order to utilize company’s
trade name in specified overseas market (De et al. 2015).
 On the other hand, the strategic alliances stage is related to an understanding wherein
organization involve fundamental resources, expenditures, manufacturing and labour
forces. According to Harding and Venables (2016), strategic alliances are developing