Globalization and Business Challenges

This assignment examines the impact of globalization on businesses. It delves into both positive aspects such as expanded market reach and negative consequences like data breaches and ethical dilemmas. Students are tasked with analyzing how companies can effectively manage these challenges by enhancing data security, implementing ethical business practices, and adapting to diverse cultural environments.

Running head: MANAGEMENT AND BUSINESS CONTEXT
Management and Business Context
Name of Student
Name of the University
Author Note

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Executive Summary
Globalization is an important phenomenon in the modern world, which is gripping the whole
world. The selected organization for the purpose of study is Apex Service Limited, which gives
optimum services to the customers belonging to the automobile industry. The main aim of the
report is to give strategic advice to the different Board of Directors about the contextual factor
and its relation with the organizational business objectives. The effect of the globalization on the
business functioning would be enumerated. The potential benefits as well as challenges of the
globalization would be determined.

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Table of Contents
Introduction......................................................................................................................................3
Definition of Globalization..............................................................................................................3
Benefits of Globalization.................................................................................................................4
Effect of Globalization on the business structures..........................................................................5
Potential challenges of globalization in given business context......................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The globalization is a massive phenomenon that has gripped the whole world. The
globalization can be regarded as the free flow movement of the goods, people and service across
the world in a major seamless manner (Baylis, Owens & Smith, 2017). There has been major
opening of the global economies as increased trade between the multiple nations. The countries
are increasingly liberating the import protocols as well as welcoming the various foreign
investments. The countries are attracting a large amount of the global capital and the productive
sector is ready to do export related activities (Baylis, Owens & Smith, 2017). The globalization
is inclusive of all the sectors of politics, life, technology, education and others. The multinational
companies are said to own a significant chunk of the world capital and hence they are considered
as the major players of the global economy. The selected organization for the purpose of study is
Apex Service Limited and the effect of globalization with respect to this organization would be
determined.
Definition of Globalization
As opined by Hirst, Thompson and Bromley (2015), the globalization has become
extremely popular concept in the social sciences and the management spheres. A truly global
economy is emerging in which there are distinct national economies. The cross-border
boundaries are diminishing in a rapid manner and hence there is greater promotion of trade and
commerce (Baylis, Owens & Smith, 2017). The phenomenon of globalization is embedded in the
competitive advantage theory so that the better efficient countries can export particular goods to
countries that are not so efficient. The underlying assumption behind this principle is that not all
the countries are experts in producing goods of all kinds and hence they can improve this

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situation by mutual trading with each other (Beck, 2015). There are different wage differentials
and hence the countries benefit a lot by trading with each other. Globalization ensures that the
countries of the world adhere to the rules of WTO or World Trade Organization and they oversee
the terms as well as conditions with different countries (Baylis, Owens & Smith, 2017). There
are several other regulatory bodies such as UN in which the countries agree to different policies
of free trade (Crane & Matten, 2016). The effects of globalization can be seen across all the
sectors and across all the industries. The World Economic Forum gives alternatives to the
country for effectively interacting with each other on a regular basis.
Benefits of Globalization
The benefits of globalization can be analyzed by very industry and hence it is proved that
globalization do have many benefits. The concerned factor would ensure that the Apex Services
would excel in their operational processes. Some of the important benefits of globalization are
listed below-
 International development- Apex should engage in globalization as it would lead to
greater business development. The globalization would ensure that there would be
expanded markets for the company (Stromquist & Monkman, 2014). It would be able to
sell its products to a wide variety of audiences located in distant geographical bases. This
would help the company to improve its profitability.
 Cheap resources- The company would be able to source the raw materials at a much
cheaper rate. This is due to the reason that local resources would be used for the purpose
of business functioning (Ferraro & Briody, 2017). Along with the raw materials, local
talent would be used to handle the local business operations.

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 Cross-cultural awareness- The company would have greater cross-cultural awareness,
which would lead to greater business prosperity. The amalgamation of the goodness of
each culture of the world would imply that there would be more business success (Baylis,
Owens & Smith, 2017). This would also be reflected in the better achievement of the
organizational goals as there would be more talented workforce.
 Better market opportunities- One of the most important benefits of the globalization is
the better access to the international markets. The company can venture in profitable
markets so that they can gain lucrative customer pool (Hay, & Marsh, 2016). There are
many lucrative regions in the world, which provides tremendous growth opportunities.
For example, the markets of South East Asia such as India and China pose huge growth
potential where the company would have huge profits (Baylis, Owens & Smith, 2017).
The company should engage in proper market research wherein they should scan the
markets in which the companies would get highest profit.
Effect of Globalization on the business structures
Globalization is a major exchange of ideas, cultural traits and products, which leads to
integration of people. However, the businesses need to modify their existing business structures
in a way that becomes convenient or doing business (Baylis, Owens & Smith, 2017). When the
business opens its foreign branches, then they have to either set up new organization structure at
the new or they modify and use the existing organizational structure (Benería, Berik & Floro,
2015). There would be changes in the production process in the new domain, which should be
properly planned. The customers should be able to receive the products at timely manner; hence
it is important to give attention to the supply chain mechanisms too (Hay, & Marsh, 2016). In the
new market, it is important to implement smooth supply chain channels so that the delivery of

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goods to the customers becomes a hassle-free process (Amin, 2014). The company should also
give attention to the already existing companies in the foreign market. There are bound to be stiff
competition between the existing market plans in the foreign location and hence the company
needs to make sufficient plans for that. The new locations would have adequate number of local
players and the company should handle this issue by giving more attention to quality, customer
service and price (Hay, & Marsh, 2016). It is also important for the company to adopt
technological innovation where the company would have advantage in giving unique services to
the customers.
Potential challenges of globalization in given business context
Globalization also have potential challenges when it comes to the actual implementation
of the process (Hay, & Marsh, 2016). When the company is venturing into new geographical
domains, there are bound to be some difficulties. Some of the potential globalization challenges
are outlined below-
 When the companies become global, then there is a potential change in the customer
expectations (Caprar et al., 2015). They expect that the products would be better and
superior. They also expect that the company should engage in corporate social activities
in which they would work for the betterment of the society.
 Higher instances of data breach in the global market sphere would lead to additional
challenges for the company (Spiekermann & Novotny, 2015). In this world of
technological knowhow, there is loss of confidential and vital information. This may
happen through one channel or multiple channels.

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 The globalization often leads to improper moral standards and maintaining of the
domestic ethical standards becomes difficult (Lerch, 2017). There may be difficulties for
the companies to maintain the same ethical and legal practices as was originally
maintained by the parent company (Caprar et al., 2015). This may lead to severe
consequences for the company and there may be legal action against it.
Recommendations
It is important to solve the issues of globalization so that the company can gain smooth
process controls. It should aim to enhance the products so that the customer expectations are
being met. The company should try to add additional features and benefits for the clients so that
they are satisfied with the service. This should be followed by the higher data security where the
processes of the company would be secured and the intruders would be prevented from gaining
access to the confidential data. It is also important to install sufficient number of firewalls that
would filter the amount of information given to the external third parties. The company should
aim high in maintaining the high moral standards and should not engage in any kinds of
unethical practices. It should formulate ethical business policies in the new geographical domain,
which would be helpful in gaining new customers as well as retaining the old ones.
Conclusion
The globalization of the existing firms is a positive process and the firms should embrace
it in a whole-hearted manner. It leads to greater business prospects as the products of the
company are being exposed to new customers. The companies enjoy greater market demands as

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the companies venture into new market segments. The globalization is responsible for delivering
the products of the company to new territories, which may prove lucrative for the company.
However, the company should not ignore the negative consequences of globalization as well.
The different consequences of globalization such as data breach, enhanced data quality and the
ethical way of conducting business should be well identified by the company.

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References
Amin, S. (2014). Capitalism in the age of globalization: The management of contemporary
society. Zed Books Ltd..
Baylis, J., Owens, P., & Smith, S. (Eds.). (2017). The globalization of world politics: An
introduction to international relations. Oxford University Press.
Beck, U. (2015). What is globalization?. John Wiley & Sons.
Benería, L., Berik, G., & Floro, M. (2015). Gender, development and globalization: economics
as if all people mattered. Routledge.
Caprar, D. V., Devinney, T. M., Kirkman, B. L., & Caligiuri, P. (2015). Conceptualizing and
measuring culture in international business and management: From challenges to
potential solutions.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Ferraro, G. P., & Briody, E. K. (2017). The cultural dimension of global business. Taylor &
Francis.
Hay, C., & Marsh, D. (Eds.). (2016). Demystifying globalization. Springer.
Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.
Lerch, M. (Ed.). (2017). Challenges of Globalization: New Trends in International Politics and
Society. Routledge.

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Spiekermann, S., & Novotny, A. (2015). A vision for global privacy bridges: technical and legal
measures for international data markets. Computer Law & Security Review, 31(2), 181-
200.
Stromquist, N. P., & Monkman, K. (2014). Defining globalization and assessing its implications
for knowledge and education, revisited. Globalization and education: Integration and
contestation across cultures, 1.