Management and Organisation Behaviour - Global Business

Running head: MANAGEMENT AND ORGANISATION BEHAVIOUR
MANAGEMENT AND ORGANISATION BEHAVIOUR – GLOBAL BUSINESS
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MANAGEMENT AND ORGANISATION BEHAVIOUR – GLOBAL BUSINESS1
Introduction
The present-day business organisations are often observed to have been operational in the
global markets. The globalisation of the business activities is observed to maintain a considerable
amount of individual strengths and weakness. These have been affecting the overall performance
of the various business organisations in the various international markets. The following paper
discusses the concept of global businesses and the various stages of the phase model of
globalisation. The paper opens with a discussion on the global business. The paper thereafter
discusses the components of the phase model of globalisation and sheds light on the strengths
and the weaknesses of all the components of the model as well.
Global Business
Globalisation refers to the various processes that are used for the acceleration, deepening
as well as the broadening of the processes that are related to the integration as well as the
connectedness of the movement of the various products and services among the various countries
all over the world. The term global business refers to the practices of the buying and the selling
of the various products and services among the people who have been belonging to various
nationalities in the world (Peng 2016). The globalisation of business organisations helps in the
financial improvement of business concerns.
Phase model of globalisation
The implementation of globalisation in the international markets is aggravated due to the
decrease in the various trade barriers among the participant countries as well as the increase in
the trade harmonisation as is being practised by the concerned organisations. The phase model of
globalisation comprises of four different stages. The primary stage of the phase model deals with
export activities. The co-operative contracts form the second stage of the phase model. The third
stage of the model highlights the strategic alliances. The wholly-own affiliates exist in the fourth
stage of the phase model.
Exporting
The exporting activities as are implemented within the given organisation refer to the
trade of the various goods and the services out of the territorial boundaries of a given country.

MANAGEMENT AND ORGANISATION BEHAVIOUR – GLOBAL BUSINESS2
The export activities deal with the sale of the various domestically produced products and
services to the clients at foreign locations.
Strengths
The major strengths of the export activities refer to the reduction in the dependency of the
concerned company on the domestic markets for gaining a higher amount of revenue (Adekola
and Sergi 2016). The export activities also help the organisation to gain more control over the
decisions regarding the production, designing and the researches that are undertaken by the
company.
Weaknesses
The major weaknesses of the export activities that are undertaken by the organisation
refer to the increase in the cost of production due to greater non-tariff and tariff controls that
need to be maintained by the organisation. The company is also known to face a hike in the cost
incurred from production due to the hike in the transportation costs that are being levied on the
company (Seringhaus 2015). The participation in the export activities on the part of the business
organisations leads to a higher dependency on foreign importers.
Co-operative Contracts
The co-operative contracts comprise of two types of agreements, franchising and
licensing that are widely used for conduction of the businesses in the international markets.
Franchising
The activity of franchising refers to the conditions wherein the franchisor or the
manufacturer of the concerned product or service extends the licenses of the entire business to
another business entity or the franchisee.
Strengths
The major strengths of the franchising model lie in the fact that the franchising activities
that are undertaken by the concerned organisation help the company to have a faster entry into
the international markets (Cavusgil and Knight 2015). This model is helpful in cases wherein
there is observed a slowdown in the domestic sales of the company.