Impact of Globalization on Business Organizations

This essay discusses the impact of globalization on business organizations and the challenges they face. It explores strategies to stay ahead of competitors and harness opportunities for development. The essay also examines the contribution of offshoring and outsourcing in globalization, with a focus on Apple as a successful example. The importance of organizational culture and the role of political factors in global business are also discussed.

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Introduction
The aim of the following essay is to determine the impact of globalization on the business
organizations in the recent times. Globalization has been one of the recent trends in the business
that has impacted largely on how it should be conducted. In this era of globalization, it has
always been a challenge for the international managers to stay ahead of their competitors because
competitive quotient is very high now. Therefore, it is the duty of the managers and employees to
adjust with the aspect of globalization so they can bring out some processes that would harness
the chances for the business organizations (Dunning, 2014).
In this perspective, the business organizations of the current times believe that they
should not follow the old rules that had been followed in the domestic concerns. Rather, their
approach to business should be global and they should take some positive measures on how they
can expand their business organizations in the new locations. In the last few decades, the
business managers have faced several challenges that are worth mentioning. In this essay, some
of those challenges would be discovered to find out how business organizations in the different
industries have been facing some challenges and it has affected their business.
Apart from that, the ways business organizations can implement some strategies to stay
ahead of their rivals would be discussed as well. The various challenges and opportunities for
developments in the organization should be discussed in this essay to find out the success route
for organizations (Shenkar, Luo & Chi, 2014).
Impact of globalization on organizations
The business organizations in the current times are facing many issues regarding
globalization. They have realized that globalization has placed before them an ocean of

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opportunities. They will need to think that these opportunities are also very swift to be utilized.
There are several challenges in front of them that they will have to be overcome if they have to
stay at the top. Rather, it has become very challenging for various business organizations to stay
at the top of the business for a long time (Dunning, 2014). This aspect of globalization in the
business has impacted various things like society, economy, environment, communication,
technology, business life and many others. So, it is quite evident that managers have to give
more focus on how they can overcome the odds and be triumphant in this rat race. Globalization
and winning the challenges have really become the most crucial factors in the lives nowadays.
The information sharing technologies and information technologies have improved in a large
manner. So, organizations will have ti implement this properly as well (Shenkar, Luo & Chi,
2014).
If the companies always want to stay ahead of their competitors in the business, they
must utilize some strategies that will go in favor of them to confront the problems. The new
entrepreneurs are largely dependent on the use of technology and how they can communicate
with their customers based on new and latest technologies (Dunning, 2014). The international
organizations will look to improvise this opportunity for better production and better supply
chain management options within the world. Therefore, they must abide by some regulations
within the business as well. These international organizations tend to use the new technologies so
they can implement new technologies. These new technologies will provide them with the best
opportunities within their business environment (Shenkar, Luo & Chi, 2014). The target for these
organizations is the new international market. In order to make developments, they will have to
utilize the latest trends of technology so they can make proper service delivery to their
customers. In this era of globalization, the speed of technology improvement has aggravated and

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users will need to identify latest knowledge sharing methods. In order to increase the sales and
quality of products, organizations and their managers will have to use the recent technologies in
a proactive manner (Shenkar, Luo & Chi, 2014).
Critics have argued that expectations of the customers are increasing and changing on a
regular basis. In order to cope up with this, they will have to understand how globalization has
impacted on their business. In order to stay ahead, business managers must understand that they
need to cater to their customers what they want. Until they do it, they will not be able be
successful in their business. Some companies in the world have become very famous all over the
world because they have understood the relevance of globalization properly. Some examples can
also be given regarding successful companies feeling the impacts of globalization. Some
examples are Apple, Google, Coca Cola, IBM and others. The organizations that will be used
here to show how globalization has impacted on business organization is Apple. Another factor
that is an effect or aftermath of globalization is the knowledge or information sharing. The
transfer of information is needed to be swifter and easier because business decisions should be
made by the managers based on the requirements of the organization (Charles Jr, Schmidheiny &
Watts, 2017). They should develop the proper frameworks for the organization to cater to the
needs of their organization.
The organizations in the current times should be able to assess the minds of the customers
and what types of products and services they need. Nowadays, social media platforms are very
handy for the customers to understand and gain the knowledge about the different products and
services of several companies. Companies need to acquire the ways how they can deal with risks
of capital intensive markets (Charles Jr, Schmidheiny & Watts, 2017). When the global business
is changing rapidly, the companies should learn to make the most of the situations and

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opportunities that they get. The technology transfer issues should be dealt with proper steps as
these problems are increasing slowly. Global business managers are liable for keeping accounts
of these factors. Globalization has affected both small and big business in the different industries.
This is the reason managers are very cautious about conducting business operations in a proper
manner (Charles Jr, Schmidheiny & Watts, 2017). Apart from development in technology, large
impacts have been noticed from the economic perspectives as well. The globalization thus is one
of the most effective things in the world business today. Another impact that can be felt in this
scenario is that of the organizational culture of all the organizations (Hirst, Thompson &
Bromley, 2015).
In the course of conducting global businesses, organizations are required to recruit their
employees from the host countries. This is why employees will have to adjust with different
working cultures. Many problems can arise in this context like the religion, ethnicity and other
issues. As a result of technology, the rise in the employment levels has been observed as well.
People tend to get jobs in different countries as thir organizations are shifting to new countries.
The rise of employment and economic perspectives can be measured that will cater to more job
opportunities for people (Hirst, Thompson & Bromley, 2015). However, one negative impact can
be seen in the course of the job insecurity. This is evident because big organizations are
outsourcing their jobs to the other developing countries. This is done because business managers
believe that they can complete their tasks through outsourcing in developing countries at a lower
rate. They can get their job done at lower wages and organizations can save their money through
this. So, people in the developed countries are losing their jobs because of unemployment. These
challenges should be overcome to set up a progressive business environment (Sorrells, 2015).
This has affected the economic improvement and GDP of several countries.

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Contribution of off shoring and outsourcing in globalization
Two essential factors that will be discussed in this paper about the impact of globalization
in business are off shoring and outsourcing. In this current business scenario, several
organizations are targeting to outsource their tasks to other nation because they can complete this
at a lower expense (Hirst, Thompson & Bromley, 2015). The native people of the developed
countries will surely want higher wages to complete these works. Due to this outsourcing process
of jobs in the developing countries, scarcity of jobs can be seen. Big companies like Apple has
invested in the of shoring and outsourcing of their services (Adekola & Sergi, 2016).
Though, Apple is a technology giant in based in United States, they have aimed at
conducting their businesses through the process of outsourcing. Apart from that, many attempts
have also been seen in the current times that Apple has been interested in off shoring their
products and services to Asian countries (Apple.com, 2019). They have done it so in countries
like China. This is a major part of globalization in these businesses. They have set up their
production team in China. Foxconn is the company that has the responsibility of manufacturing
different products of Apple. This is why it has been relevant that globalization has impacted on
China in large levels (Meyer & Peng, 2016). If this is done properly, it will help the Chinese
economy to grow largely indeed.
Apart from China, Foxconn has also aimed at manufacturing several products of Apple in
India. The expansion of Foxconn from China to India will be a great step for the economic
growth of India’s economy as well (Adekola & Sergi, 2016). Therefore, off shoring has really
been really helpful for companies like Apple. Recent and latest models of Apple iPhone will be
developed in different cities of India just like it was being done at China (Apple.com, 2019). So,
both Apple and Indian economy will be strengthened. Critics have argued that Apple has made

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much research in this field before entering the Asian markets like India and China. Their
partnership with Foxconn has really been very much effective in different cases. The main
reason for Apple’s inclusion in India is the fact that Apple has not been a major player here
because of high prices of their devices. If they work here to manufacture their products, they will
surely be able to cut off import duties. This will also be good for Apple customers in China and
India as well as Apple would gain better revenues. Thus, benefits can be measured in this
scenario. (Kopnina & Blewitt, 2018).
Globalization and success for Apple
One important issue that can be discussed over here in this issue is that of the issue of
organizational culture. Evidently, most employees of Apple are Americans by majority. If these
engineers and other employees would have to come to China and India to guide through these
projects, they will surely face issues like language and communication problems. Racial and
ethnicity related issues can also be raised in this scenario (Adekola & Sergi, 2016). Thus the
economic globalization should be addressed in this issue from the bigger perspectives. The
political factors are also essential ones for the global managers to consider. If big companies like
Apple think it is not safe to venture into some countries for political instability, they would not
do so because it might affect their overall reputation as well. All the electronic equipments of
Apple like their iPads, tablets, laptops, mobile devices and other gadgets have been the drivers of
globalization in the current context. (Cartwright, 2017).
Apple has been very successful and effective in their outsourcing strategies. The
marketing strategies of Apple have been very much efficient and they have catered to the needs
of their customers in the best manners (Apple.com, 2019). They have evolved themselves and

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they have employed numerous employees at different branches in different countries. The
outsourcing strategy of Apple as a part of globalization has helped other developing countries to
flourish in terms of their economic growth. This is the way they have gained success through the
recent years. On the other hand, some critics have discovered the fact that it is not always
essential to implement the outsourcing strategies. This is where organizations have not been able
step up properly to be completely successful. This can also be true for Apple in some cases as
their profitability has sunk down from $700 Billion to $566 Billion (Apple.com, 2019).
In the words of the critics, this factor of the outsourcing can be critical sometimes
because it can jeopardize the business organizations regarding loss of reputation due to cultural
problems (Cartwright, 2017). This kind of problem has already been seen in Foxconn before.
Therefore, it is advisable that the organizations should not indulge in this kind of outsourcing
strategy all the time just to keep ahead of their future rivals and competitors. However, in most
cases this factor seems to be very much positive. This emergence of outsourcing is regarded as
an evolution for the tech giants like Samsung and Apple (Apple.com, 2019). These things are
very much important to be noted since these organizations’ primary target will be to increase
their profitability to huge margins. As a result of these steps, these organizations will be able to
see through opportunities of entering new markets. In order to do this, they will surely beat their
other competitors very easily in the future (Kopnina & Blewitt, 2018).
Through globalization, Apple has been able to increase their market share and brand
equity in a large manner. Therefore, critics have opined that Apple has come up as the market
leaders in this generation (Wetherly & Otter, 2014). Their performance in their respective
industry is something to be praised. They have utilized all their opportunities and entered the
European market through some tough competition as well. The company has been revered as the

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most admired company over the last four years. They have faced some problems regarding
cultural clashes in their expansion. However, this problem has not been able to suppress their
desire to evolve as one of the best companies in the world. The leadership programs of the
companies and motivation for better work also leads to success in the global sections. The third
party interference in the development of mobile apps in their iTunes store is also an example of
globalization (Wetherly & Otter, 2014). The distributions channels of the organizations have a
major role to play in the Thus companies have been able to gain the competitive advantage. The
sale of different products in different countries of the world will be crucial for the successful
venture for globalization. Thus they will get a better place in the international market through the
selling of their diverse products. The collaboration strategy with Foxconn for Apple is regarded
as one of their best strategies for international success through off shoring and outsourcing
(Afuah, 2014).
Methods to overcome globalization challenges
In this section, some methods will be discussed on how different organizations would be
able to overcome the different challenges regarding globalization. Some probable challenges
have already been discussed in the above sections of the essay. The organizations should be able
to overcome these challenges so the rivals of those companies would not be able to beat them.
The most probable challenges for the globalization of companies are differences in culture,
regulatory problems, supply chain issues and communication related issues (Afuah, 2014). At
first, cultural differences should be resolved so the employees can feel connected with each
other. Employees, who have to work in the host nations with their native people, must learn to
respect their culture (Kopnina & Blewitt, 2018). No racial abuses, comments regarding their
ethnicity and class should be tolerated. Zero tolerance policies should be issues to the people

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who will indulge in disrespecting the cultures of other people. Proper conversations should be
initiated among people who belong to different cultures. No bad comments on religious
ethnicities should be tolerated by global companies (Hamilton & Webster, 2018).
The issues and problems regarding business regulations should be overcome by the
problems. The organizations who are expanding into other countries should abide by all the
business regulatory protocols. These are the manners how the global companies should be able to
mitigate their challenges. On the other hand, uncertainties should be dealt with positivity and
ensure best outcomes for the companies. Proper financial policies and environmental issues
should be confronted properly indeed. These are the ways in which challenges regarding
globalization of organizations could be dealt with. The issues regarding supply chains should be
mitigated properly (Hamilton & Webster, 2018). The challenges are faced by global companies
regarding the labor issues, climate and energy problems, unavailability of raw materials,
recruiting foreign workforce to complete the works and many such things. In this scenario, it will
really be effective enough for the companies to deal with these challenges. The communication
issues regarding technology can arise because of poor accessibility of internet. These issues can
prove to be detrimental for global companies when they will venture out in different countries of
Africa and developing countries of Asia (Sethi, 2016). So, it seems that global companies have to
look at different issues before they could finally help out themselves in the international market.
Conclusion
On a concluding note, it should be said that the business managers will have to keep in
mind numerous things before they try out to expand into their target countries. The technological
and economic developments are very essential for the companies to keep in mind. In this

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situation, companies like Apple have been very sincere and successful to show they have
ventured into different countries of the world with grand success over the years. Therefore,
business managers should also keep in mind how they can cope up with the difficulties that arise
regarding globalization.
They might get higher revenues but they will have to think how they can overcome
problems of cultural differences to gain the competitive advantage. In this context, business
managers must believe that they have the capability to launch credible marketing strategies that
will attract their customers in new countries. They have to follow regulatory rules of businesses
in countries where they will expand. Business organizations should also consider the impact of
economic issues related with off shoring and outsourcing. It has been seen from the paper that
the outsourcing and off shoring of business services and products help the companies to gain
more profits through paying lower wages but it will hamper economic growth of developed
countries as well. So, it will have a mixed reaction on the globalized business organizations.

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