Management and organisation in a global environment

MANAGEMENT AND
ORGANISATIONS IN A
GLOBAL ENVIRONMENT

Executive summary
This report contains the general framework of globalisation and the views of P.Ghemawat and
Anthony Gidden's express the view about the globalisation in this shrinking world.. P.Ghemawat
born in September 30, 1959. he is Indian-American Economist and he is the author and speaker
in the study of globalisation. P.Ghemawat has expressed its view about that many people has
done the over estimation of the globalisation level and also they believe that international flow is
very high as compare to actual. Anthony Gidden's born in Edmonton, London. He is the
professor in King's college, Cambridge and his opinion about the globalisation is that it has
decrease the value of tradition and now people are negotiating for the values and belief. This
report also suggest about the elimination of poverty through increasing the trade.

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Views of P Ghemawat's on globalization................................................................................1
2. Anthony Gidden's – idea on globalization...............................................................................3
3. End of Poverty movement and the contrary assertion that “Trade not aid” is the way to a
more globalized world that mitigates against poverty ................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management and organisations in a global environment is the technological forces that is
outcome of the changes which is being affected from the global environment by the use of
design, produce or goods and services. This report explains the rapid changes in the global
environment in context of socio political and technological changes. This report explains the
opinion of P.Ghemawat about the globalisation is the 'risk consciousness' and
'detraditionalisation' in the society . This report also contains the measures to eradicate the
poverty by increasing the trade.
1. Views of P Ghemawat's on globalisation
There has been two leading views on globalization that either the world is flat i.e. it is
done with globalization or that the world is not that one vast market, but most economies are still
relatively closed till date. Globalization is associated with economic and social development
from the popularity of outsourcing to the prevalence of fusion cuisine.
For quite many years, we have been listening that world is done with globalisation and
the world is flat due to the dramatic rise in telecommunications, easy travels, internet and cheap
communication. It has been heard that economies have integrated together on the path to
globalisation. But Pankaj Ghemawat who is designated as the Professor of Global Strategy at
IESE Business School located in Barcelona (Spain) argues that economies are not that much
integrated at it is portrayed to be. Pankaj Ghemawat has worked as professor at Harvard Business
School for the period of 25 years. He published a book in 2011, named “World 3.0: Global
Prosperity and How to Achieve It” which expressed his views on globalisation. According to his
views, world is still globalised and will continue to do so because of the geographical, political
and cultural factors (Olhager, Pashaei and Sternberg, 2015). There is vast scope of globalisation
which is still unidentified and the potential benefit of it is untouched and there is much more to
gain and integrate for economies. He suggests a combination of both integration and regulation
should coexist and integration and globalisation should not consider a choice between 2 options.
The key thrusts of the argument provided by him contains that there is a deviation
between reality and people's beliefs on globalisation. He reviewed many existing literatures to
gain attention on his argument on globalisation. According to the GCI report, only a share of
29% of the total economic output of the world is exported. It is stated that only 7 percent of

phone calls inclusive of calls over internet are international. It has been observed that
globalisation is underdeveloped because of geographical distance as despite of development in
telecommunications and transport, many nations trade maximum with their nearby neighbours. It
is reflected that world is still semi-globalised. Globe is not fully integrated as required as over
the past few years the rates for foreign direct investment in proportion to total international
investment flows is consistent at about 10 percent. The international flows are not only
constrained by geographical factors but are also distorted by cultural and political factors. We
can assess with all the indicators the same thing that the majority of the trade flows that have the
capability to place between countries is rather limited in the domestic market (Malviya and Kant,
2015).
According to the research study conducted by Ghemawat, it is reflected that many
individuals have overestimated the level of globalisation and they believe that international flows
are higher than in reality. The people's belief holds a rigid degree of inaccuracy in regard to
globalisation. The reason behind these inaccurate beliefs of people are they do not examine and
analyse the facts and they seek a perspective of being right for what they believe and hence do
not bother on published data. The misinterpretation of people's knowledge have also a
psychological dimension because they have been taught globalisation in an exaggerated form for
many years. But there are many significant barriers present to hinder the growth of globalisation.
Ghemawat’s research study attempts to reduce these misconceptions in people's belief
about globalisation and is an attempt to give a greater accurate and true expression of how the
international platform actually operates and function. He argues that though there has been a rise
in integration of economies but there is significant impact of barriers on the scope of
globalisation. The leaders underestimate the potential gains which act as barrier to globalisation
of companies from closer international ties and they overestimate the harmful effects of
globalization.
These facts discussed in the study highlighted in regard to globalisation have significant
implications for business organisations. It expresses in that in order to make globalisation more
effective, business concerns need to understand the importance of trading outside national
borders. The organisations need to evaluate and analyse where they come from and when and
where they should expand. They must evaluate the political and cultural differences before

expanding heir businesses. The integration should support the growth of the business. The
differences identified should be dealt with establishing and implementing creative strategies.
The economic potential to grow globally is enormous. The ability of business concerns
from smaller to larger ones to reach new markets and to broaden their customer base by tapping
into new customer groups will support economic growth and overall development around the
world. Yet for now, less than 0.1% of all business concerns have international operations, and
only about 1% businesses export their goods and services. The world's domestic sales always
dominate the international sales. This clearly shows that how much of potential areas of growth
have remained untapped.
The financial crises emerged in 2008 brought limitations to the scope of globalisation.
Policy makers and businesses should think about policies regarding integration and regulation by
developing an appropriate action agenda to support economic growth and develop a prosperous
future. Companies should develop the capability and strengths to identify global opportunities
and should construct a strategy to combine global performance with paying emphasis on local
market strength.
2. Anthony Gidden's – idea on globalisation.
Anthony Gidden was born in Edmonton, London son of clerk of London Transport. He
did his schooling from Minchenden School. He pursue his undergraduate degree in joint
sociology and psychology at university of Hull and in 1959, and did his master's degree from
London School of economics. Later he do the PhD at King's college, Cambridge. After this he
started teaching in University of Leicester.
Giddens represents two consequences of globalisation that are 'risk consciousness' and
detraditionalisation that give the ability of institution which provide us the sense of security and
stability. They did not clearly define the norms and value how one has to act in the society.
Risk Consciousness
Anthony Gidden's suggest that to perceive the globalisation is an unpredictable,
destabilising process. Gidden's mention that they were the first generation to live in the global
society that is dimply see. It shakes the existing ways of life no matters what happens to be
(Pattberg and Widerberg, 2015).

Another aspects of globalisation is having the exposure in the manufactured risk and it is man
made that arises as the result of new technology that has been arise due to the advancement in
scientific knowledge these new technology are nuclear and bio technologies that are truly global
in the world. According to Giddens they have experience the how to deal from the new threats
that arrive in fro the last half century. As there is new riskiness to risk in these new technology
that is catastrophic consequences for humanity (Malviya and Kant, 2015).
Detraditionalisation and self identity
This is the second major topic of his work that is detraditionalisation. He argue that if
anyone following the traditional practice than the questions is not have to be asked about the
alternatives. It give the framework for the actions that goes largely unquestioned as per his
opinion tradition gives the stability and the ability to build the self identity against the stable
background (Gutierrez, Boukrami and Lumsden, 2015). Globalisation brings this to an end as
now local cultures and traditions are being exposed to new cultures and ideas that often means
that the ways of tradition comes for questioning. As the outcome of globalisation, societies and
cultures go through the process of detraditionalisation. In this day to day life become less
informed by 'tradition for the sake of tradition. Theme of Detraditionalisation is being found in
many other areas of life for example identity politics is being expressed through the new social
moments that tells us that now the political engagement are changing. Giddens also argued that
globalisation leads to become the religious detraditionalised and having the plenty of evidence
that he is right in practices such as going to church and veiling in Islam is appear to be the matter
of personal choice than unquestioning adherence of tradition.
Cosmopolitanism and Democratisation
It is the positive side of detraditionalisation that spreads the views of Gidden refer to
cosmopolitanism that the every individual is being less constrained by the tradition of arbitrary
or pre global societies. In cosmopolitan society individual is having the more freedom to reflect
on the culture that we are practising such as marriage, politics, religion and choose the aspect
that suits on them. According to the author people become more democratic as people are having
more to say the how the culture impact their life (Olhager, Pashaei and Sternberg, 2015).
Detraditionalisation and Self Identity

Detraditionalisation is having the consequences on the self identity according to the view
of author tradition lapse and the lifestyle prevails, in-fact the self identity has to be made or
recreate in a more active way as before, he further speaks about the individuals that engage in the
outgoing process to reflect their lives and adopts it in the light of knowledge that is being arise
rapidly in this changing globalising world.
Reflexivity, expert systems and therapy
Giddens also argue for the constant needs to adapt our identity in the context of global
changes that leads to the emergence of expert systems as these were found everywhere in the
British society, that gives us the courage to decide about the degree that suits us best. Reflexivity
is very necessary as many of our institution do not provide the clear set of norms and values in
the society. In modern era marriages is no longer come up with the set of values and duties or
responsibilities in-fact the people are negotiating it (Gutierrez, Boukrami and Lumsden, 2015).
Negative consequences of globalisation and detraditionalisation
Giddens is always being considered as optimistic about the changes that is being
happened due to the effect of globalisation (Anthony Giddens Discusses the Globalization
Debate, 2000). He further mention that global risk is that where we can all work together to
handle the negative impact and the detraditionalisation is having the chances of radical
democratization in regular life these were the two major problems. First thing is that there is an
addiction of modern society as now people is having the addiction of sex, food, gambling and for
the shopping (Cascio, 2015). Even the Giddens also observe that increase in addiction leads to
the detraditionalisation. In the societies where stable traditions is there to give the link to the past
, but now it is almost gone and addiction is being observe as an attempt by individuals to
construct a coherent narrative of self from the actions that gives the comfort . Second negative
impact of detraditionalisation is rise of fundamentalism that has been seen as traditional practices
that is being defended by the ideologies and beliefs that resist to engage about the dialoguing
those views.
3. End of Poverty movement and the contrary assertion that “Trade not aid” is the way to a more
globalised world that mitigates against poverty

Trade not aid can provide remarkable growth to the developing countries and help in
removing poverty. Poverty can be reduced by increasing the economic capacity by trading on
global platform. Trade is always considered better option than aid because trade is a significant
source to enter foreign market and achieve global brand recognition. Globalisation increases
employment opportunities and the unemployed gets employment, hence poverty is reduced. The
right trade policies encourage expanding trade to international boundaries. This helps in resource
base development and generate income. Trade patterns generate income which remove poverty.
The country whose residents are equipped with job possess a source of income whuich helps in
uplifting the standard of living. (Pattberg and Widerberg, 2015).
According to trade-not-aid strategy if developing countries have an opportunity to trade with the
wealthy countries more freely, than there will be the greater chances that the countries will get
more reliable income and will be less dependent on the other aids to carry their projects. If there
will be international trade than it will increase the income of the poor countries as well as living
standard of the people of poor countries. It would able them to export their products
internationally which will help them in economic development. The trade-not-aid theory aligns
with the theory of poverty reduction (The Role of Trade in Ending Poverty, 2019). The both
theory emphasize on the importance of creating export sector in order to increase development.
Trade can operate on three main levels to encourage national growth and reduce poverty. First,
the right strategy encourages the expansion of trade as a whole, which contributes to increasing
income and provides a resource base for development. Second, the government can target
exports to sectors that maximize employment and income (Malviya and Kant, 2015). Third, they
can help the poorest those who are barely in the formal economy - actively participate in export
activities.
In many countries the problem starts from the top. Politicians responsible for developing
development strategies often do not pay enough attention to trade integration into their strategies.
While much has been discussed about how trade acts as a driver of growth, the strategy of
inhibiting and inhibiting trade in many developing countries. There are also several plans that
show countries how to reduce poverty through trade The exports in trade can serve as an
important way to integrate poor communities by integrating them into trade (Ahmad, 2015).

This is done by linking them with export chains of the products and services that can assist in
supplying.
In addition, the export sector that can contribute the most to poverty reduction is not
always included in the national export strategy. To reduce poverty, it is a pattern of trade growth.
Therefore, growth must also occur in sectors where small producers can be integrated into the
product and service value chains (Malviya and Kant, 2015).
Finally, the poor usually do not have the entrepreneurial skills needed to enter global
trade. When it comes to opening new business opportunities, poor people suffer losses due to
little or no education, business education, or relationships with people who can help them start or
expand their business in the formal economy.
Unfortunately the tariff rate is much higher in wealthy countries in compare to the
developing countries such as on clothes, manufacturing goods, export items etc. it means that to
sell the product in developed countries developing nation has to pay higher taxes which
ultimately increase their price and reduces their profit margin. Developed countries also provide
subsidies to the domestically produced goods so they can protect their traders or industries from
the multinational or external companies (Cascio, 2015). The subsidies provided by the
developed countries to their traders will reduce their product price and provide their product on
low cost in compare to the developing countries to increase their profit margin. Therefore, by
depending on aid cannot end poverty, trade not aid is the source to reduce poverty. Thus, trading
in exports uplifts the economic development of a country.
CONCLUSION
From the above report it has been summarised about the opinion of P Ghemawat's questioning
about the world is actually global as it is told, opinion of the author is being explained. This
report also contains the Anthony Gidden's idea on globalisation, he explains the factors that is
being affected from the globalisation, his opinion for the globalisation is about the changing
trend in the society. This report also elaborates the “End of poverty” movement that is being
related to the “trade not aid” it is the way to go towards the globalisation that is being mitigate
against poverty.

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Cascio, W. F., 2015. Managing human resources. McGraw-Hill.
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Online
Anthony Giddens Discusses the Globalization Debate. 2000. [online]. Available through
<https://carnegieendowment.org/2000/07/05/anthony-giddens-discusses-globalization-
debate-pub-8655>
The Role of Trade in Ending Poverty. 2019. [online]. Available through
<http://www.worldbank.org/en/topic/trade/publication/the-role-of-trade-in-ending-
poverty>
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