Critical Issues in Business: Globalization and Challenges

This report provides a comprehensive analysis of critical issues in business, focusing on globalization, the complexity of the business environment, innovation and competitiveness, leadership and transformational change, and the challenges of governance and sustainability. The report examines the impacts of globalization on business environments, resource strategies, and constant changes, including the role of technology and policy. It delves into the intricacies of a complex business environment, emphasizing risk management, information management, and decision-making processes. The analysis further explores innovation and competitiveness, including understanding competitiveness, the changing nature of firms' value chains, and organizational imperatives. The report also addresses leadership and transformational changes, including leadership paradigms, social systems, and models of organizational transformation. Finally, it considers the challenges of governance and sustainability. The report incorporates scholarly sources and provides a detailed overview of the interconnected challenges and opportunities faced by businesses today.

CRITICAL ISSUES IN
BUSINESS

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
THEME 1.............................................................................................................................................3
Globalization....................................................................................................................................3
THEME 2.............................................................................................................................................4
Complexity of business environment-.............................................................................................4
THEME 3.............................................................................................................................................5
Innovations and competitiveness.....................................................................................................5
Theme 4 ...............................................................................................................................................6
Leadership and leading Transformational change...........................................................................6
Theme 5................................................................................................................................................8
Challenge of governance and sustainability....................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
Critical issues is main agenda of the business and it directly impacts on the business and its
success. Every business has to face issue up to date. Main issue of any organisation is production
cost. This file will include globalization and critical impact on the business in term of resources,
competition, constant changes and uncertainty, Complexity of business environment, information
management, risk management, decision making. Innovations and competitiveness that how to stay
in the market with facing complex it, changes the nature of firms value chain. Leadership and
leading transformation changes, models of organisational transformation, challenges of government
and sustainability.
MAIN BODY
THEME 1
Globalization
Shaw and Barry, (2015) stated that It is the process in which an organisation makes their
reputation in all around the world and it is an economic development of the organisation as well as
country. Globalization makes an organisation reputed and helps in growth of country and GDP rate.
It represents technology, trade and investment, informations, Through globalization any
organisation can make profit due to their products and additional market. Main factors which
considered in globalization are technology and policy of public. Economical trend and legal policies
are included in globalization. It makes people aware about the global situation of the country.
Impact of globalization on-
Business environment- If an organisation faces globalization then it changes their business
environment because due to globally business they have to face many of the problems like
resources to spread out the business. It has to face legal formalities because globally spread means
one country to another country so faces responsibilities and legislation and also have to pay more
of the money to the both of the government. Waddell, (2017). Issue also related regarding external
factors like political, social, technological, economic, legal, environmental. Technology helps to
spread out the business, social factors may be affected the organisation because nobody knows
about the demand of public in another country so it is a risk factor. It can help in positive ways like
mergers and joint ventures with other organisations and increase in awareness of people toward the
brand and organisation.

Resources strategy utilization-(Sekaran and Bougie, 2016) Resources plays main role in
production because without raw materials and resources nothing happens in the organisation. If a
company spread out globally then they have to need more resources for making the product. It is
critical to make a strategy regarding the resources which will be used for globalization because no
idea that how far it is and how many resources they want so there is also a risk for industry to make
profit. Resource management clear the need of resources in production process. Reduce the
conflicts and utilize the resources with better team work.
Constant change and uncertainty- The organisation which is globally performed, for
them product has its substitute product in the market and many of the customers are price conscious
and many of quality conscious so its depend on the population to run any organisation because
customer is everything for the organisation management have to know about the demand of the
customers and understand their need and wants that what actually they want from that particular
product. Through survey method or feedback method they can easily know about the problems of
the customers. After all of that market is not constant because of uncertainty. Every day comes with
an innovation and invention so it is harmful for other companies.
THEME 2
Complexity of business environment-
Complexity of business increase due to globalization. business environment is closely
affected by interference of stakeholders because they are also included in decision making process.
Main reason for complexity in the business is technological changes and market uncertainty.
Technology mainly meant to the internet access.
Managing risk- In globalization risk management depends on the organisation. It can
manage risk from understanding the market demand, understand the thing which satisfy the people,
resource management etc. every organisation who work with global industry have to face risk
because of many of the reasons due to the interference of stakeholders and their commitment. Due
to unavailability of resources, constant changes, different response of public and daily changes,
changes in their needs and wants make an effect of the organisation(Barrios, Fasanand Nanda,
2014.).
Complexity- It is the term which includes problems of the company and in what manner an
organisation faces problems and how it complexes for the organisation to being stable in the market.
Because globalization is the big thing which provide assurance the company to be reputed and from
which their products are globally used and people aware about that all products.

Information management- Information management for the global company is critically
analysed due to the technology issues and slow internet surfing facilities because it is worldwide
information system which take time to deliver information. Romero, (2014). Information is
managed with complexity of business environment through follow the rules and regulation and
understand the privacy security standards. All stakeholders are responsible for the information,
information due to the quality product, technology and other rules and regulations etc. Knowledge
about the critical thing can help in decision making process because if employees work with the
right information and with rapid technology sources then it is easy to communicate with global
companies. All role in information of information technology which p[provide the best quality
resources to inanimation and managing information.
Decision making- Decision making is also depends on the best information system because
it is good for company to work with the best information regarding anything. Work of decision
making in global companies take by the board of directors., they have authority to solve any critical
problem and take decision regarding to the benefit of the company because it is not a normal talk to
take decision for the company. It is a big complexity of the business environment and affected by
external factors
THEME 3
Innovations and competitiveness
Innovation is the theme for company to grow up in the competitive market and these all are
the norms from which it helps to company to suffer in the competitive market.
Understanding competitiveness- An organisation which is globally spread, have to
understand the market and understand about the competition which will be faced by them in the
future. In the business environment everyone focusing on the new technology and it is the major
part to being successful for a company. (Nelson, Palonsky and McCarthy,2017)In the market many
products are available which is already affordable by the customers so organisations have to focus
on this factor because customer switch the brand for a little difference in cost of the product.
Understand about the market and analyse the market that how many competitors exist in the market
and threats of their existence to the organisation. Focus on something different which through a new
creativity born and penetrate the market towards the organisation to follow the customers needs and
their satisfaction level. It will definitely help the organisation to grown up.

Changed nature of firm's value chain- Value chain is the process in which an organisation
works. That means value chain start with the production of the product and ended with the sell of
product analysis provides competitive advantage to an organisation in the globalization. Value chain
analysis helps an organisation to better understand the environment and their key elements. Value
chain refers to the areas where target market situated and where has to it situate. Market
segmentation is the process of identify the market opportunity and target the market where the
product will sell and also make a positioning strategy from which that product make existence in the
mind of customers. A value chain includes production, sales, marketing, design, distribution etc.
(Palvia, Jacks and Brown, 2015).within this process everything included in the value chain process.
It is said that every company which have good value chain management will better perform in the
organisation and outside the organisation with globally presence of itself.
Organisational imperatives and requirements to create a fit -Product differentiation is
the best thing to positioning in the mind of customers so an organisation has to focus on the
positioning, targeting, segmenting(Malecki, 2017).
Theme 4
Leadership and leading Transformational change
New Leadership And Transformational Paradigm
As Per the view of Grandori (2016), transformational leadership may be found at all levels
of the organisations:- teams; departments; divisions and organisations as a whole. So as per Malecki
(2017), such types of leaders come in category of visionary; inspiring; daring, thoughtful thinkers
and risk takers. Such type of leaders have a charismatic appeal. But, charisma alone is not sufficient
for dynamically adopting or looking at the way an organisation should operates. The fundamental
principle of transformational organisation paradox uses naturally, occurring paradox in thinking,
activity and outcome for trans formativeness of activity. Transformative paradox is something that
must be taken in as a whole rather than, it is expressed as a piecemeal by an individual.
In the views of Romero (2014), new leadership can be defined as a concept which is having
more focus on the no. of employees or the subordinates, those are having more capability to resolve
any particular type of problem.
Understanding Social Systems:-
According to professor( Talcott 2015), it is the concept of such a system which is present in
the modern sociology. It refers to an orderly arrangement and the interrelationship of all the parts.
Now, society is a system of usage, authority and mutuality which is based on the concept of "WE"

that means a feeling of togetherness and likeness. Interdependence and cooperation are the basis of
it. it plays a crucial role for imparting of social behaviour. As per the view of, Romero (2014) social
system is a comprehensive arrangement. It takes its orbit from around the different systems like:
political, economic, religious, and environmental etc.
Model of organization transformation
transformation is planning of an organizational change. it processes of develop strategy for
organisational polices, process and working environment modification. The model help leader and
manager to understand and analyse organisation polices and guideline. Manager and leader make
model for organisation development and successful business ruining.
Model of organisation transformation:
Environment: it will be define working condition at environment. If the working
environment is held and according to employee satisfaction that will be improve organisation
productivity. In the environment come competitors, social and political climate(Palvia, Jacks, and
Brown, 2015.).
Strategy: strategy will be define make better planning for organisation development and
growth. In that strategy will be make employee motivation and skill development. In the
Organisation transformation the company will use that for the changing strategy for improving
profitability, productivity and employee motivation.
Core process: it will be define Working process and work flow. It is sequence of using
technology, equipment and material in production process. That will be use company for improve
working process and conduct work flow.
Structures: it will be define business running process. In that define understanding company
role responsibilities, and reporting relationship among employee. The organisation will work
according to company rule and responsibilities. The company uses flexible working structure for
making better working process.
System : it will be relate task, activity, coordinate work in organisation. In the any
organisation the company will be fellow a system for the improving working condition. The system
help employee for done work in a specific time(Rapp and Strenge, 2015).
Culture: it will be define employee attitude and there leadership style. Organisation will be
fellow culture for the providing better working condition and improve company policies and
employee satisfaction.
Result : it will show the employee working performance, and define organisation success.
When company and employee work at a good manner that time the company will be achieve a good
result. That result show comp[any work and working environment is good.
Leadership : it will be drive and set goal and monitor business performance. The Best

leadership provide employee best working condition that will help company for motive employee
for the better working condition.
4 challenges of leadership:
leadership challenges define issue of a leader for develop there organisation.
Develop managerial effectiveness.: develop employee skill and help to mange time or help
to take decision. The managerial effectiveness will be provide customer services and management
for improve employee ability that will be help for the customer satisfaction.
Inspiring other :it challenges leader to motive and challenge inspire for work. The leader
inspire there employee for work(Nelson, Palonsky and McCarthy,2017). And in the organisation
that will be use for the improver production and employee work a healthy in the working
environment.
Developing employee: develop employee motivation and working ability. The leader have to
work in the working environment create a development environment so that environment attract
employed for the work and employees are start extra working.
Theme 5
Challenge of governance and sustainability
Current debates in governance
It will work on the company current condition. That will be define company share prize,
when company want to expand there business that time company face legal issue and problem. The
company expand there business in other country that time the company will be change some rule
and regulation. And other function of the company the current debts the company will be change
polices according to country demand and rule. The company will be change globalization according
to business. The current debts create company present and future situation for the development. The
company will work to improve company problem(Rapp and Strenger, 2015). The company expand
there business for the changes company polices and making profit. The company will be analyses
the company working condition and how will change rule.
Barrios of corporate governance
There are various barriers in the governance which hamper the smooth governance. A
system often suffers from the problems of centralization and policies or any in action plan that bring
the barriers in the good governance. These problems may be related to the in-accountability for any
action or for any decision-making(Barriers to Corporate Governance, 2017). Lack of knowledge
about the rights and duties. Ineffective implementation of laws and regulations can also act as the
barrier of good governance. There may be insufficient orientations, lack of commitment, conflicts

and lack resources will act as the barriers of good governance. Rubber stamping is another factor
barrier of good governance(Rapp and Strenger, 2015). Inconsistent and limited governance
assessment is also another barrier of good governance(Shaw and Barry, 2015).
All these barriers hampers in the good governance policies and structure so they need to be
addressed for the proper function and smooth governance. Social responsibility of corporate
governance that will be define company will be work for society development and it will be help
social development. The corporate governance help improve profitability that but the barriers will
be decrease company profit and share. corporate governance help employee for the making
sustainability but the company when face sustainability at the time of corporate governance that me
the company help to reduce profitability.
CONCLUSION
From the above study it has been summarised that an organisation which work with global
industry had to faced many of the problems like resource management, risk management. Whirlpool
Understood the market in which they will invest. Organisations had to use value chain management
because value chain defined the whole market including production, packaging, design, marketing
and selling of the product. it stared from the production and ended with their sell. This report
explained about the utilization of the resources and conflicts in the globalization and business
environment.

REFERENCES
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Organization, 16(3), pp.319-340.
Malecki, E.J., 2017. Corporate organization of R and D and the location of technological
activities. Regional Studies,41(S1), pp.S73-S88.
Nelson, J.L., Palonsky, S.B. and McCarthy, M.R., 2017. Critical issues in education: Dialogues
and dialectics. Waveland Press.
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Vendor Perspectives. CAIS.36.p.36.
Rapp, M.S. and Strenger, C., 2015. Corporate Governance in Germany: Recent Developments and
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Romero, C., 2014. Handbook of critical issues in goal programming. Elsevier.
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Wiley & Sons.
Shaw, W.H. and Barry, V., 2015. Moral issues in business. Cengage Learning.
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Online
Barriers to Corporate Governance. 2017. [Online] Available through:
<https://www.iedp.com/articles/barriers-to-corporate-governance/>