Globalization & Changing Business Strategies: A Literature Review

This literature review examines the impact of globalization on business strategies, highlighting the driving force it exerts on firms to enhance their performance and sustain competitiveness. It discusses globalization's benefits, such as new market access and resource allocation, alongside its challenges. Key concepts explored include increased economic interdependence, improved decision-making speed and quality, and the ability to respond to global opportunities. The review emphasizes the need for firms to adapt their strategies to navigate the rapidly changing global business environment, customize products for local markets, and integrate values across international operations to achieve long-term success.

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Why organizations and businesses must change their business strategies in the era of
globalization"
Main concept- The globalization:
Rapid development of globalization is acting as a driving force behind the firms to
improve their performance level. As discussed by Meyer and Peng (2016) this is the key of
sustaining in the highly competitive business environment. In the contemporary times,
globalization has changed the contemporary landscape and driving the firms to strengthen
their mission and vision for the sake of competing efficiently. Globalization is being viewed
as both beneficial and destructive process. Hamilton and Webster (2018) showed that in the
positive term, globalisation is leading to the opening of new market, allocation of high quality
of resources, lower prices of raw material, and greater choices for consumers, which are
paving the way for the firms to be efficient in the way of competing with the business giants.
In the political and economic sense, globalisation is helping the firms to have international
contact and the freedom of improving bilateral relationship. In the extremely competitive
landscape, globalisation is leading people to come up with the global markets, products and
demands and expand their products, services and practices from domestic to
international market.
Concept 1- The companies can enjoy increased economic interdependence:
Rapid development of globalisation is leading the firms to strengthen their action for
the sake of achieving competitive advantage and create value for customers and its
stakeholders. Gray (2019) put stress on the fact that currently, the competitive environment is
largely intensified by the rapid development of globalisation. Through globalisation, the
companies can enjoy increased economic interdependence, which is one of the major sources
of attaining competitive advantage. However, Buckley and Casson (2019) contended on the
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ground that in order to compete efficiently in the global market, it is important for the firms
to change their strategy. This is the way of sustaining in the contemporary business
environment, which is changing rapidly.
Concept 2- firms can improve the speed and quality of decision making:
The firms can improve the speed and quality of decision making the company should
develop a changing mindset, which can help them to be flexible in dealing with extreme
business environment. Through flexibility, the firms can improve the speed and quality of
decision making process, which is the key of attaining long term success from business. This
is the way, through which the companies can be able to work in accordance with the
requirements of customers. Chow and Schoenbaum (2020) commented that in order to cope
with the new market, the organisations need to customise products and services as per the
latest trend of local market.
Concept 3- the firms can response to the opportunities globally:
In the global setting, the firms should create global organisation by expanding their
overseas operation. In addition, the firms should also include certain values and beliefs,
which can be seen globally (Hamilton & Webster 2018). This is the way, through which the
firms can be able to formulate effective mission and vision for overseas operation. In
addition, the firms should communicate the value of the employees of home country with that
of the host country, which is the key of integrating the value of parent company with that of
the human resources (Chow & Schoenbaum, 2020). Through this way, the firms can response
to the opportunities globally.
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References:
Buckley, P., & Casson, M. (2019). Decision-making in international business. Journal of
International Business Studies, 50(8), 1424-1439.
Chow, D. C., & Schoenbaum, T. J. (2020). International business transactions: problems,
cases, and materials. Wolters Kluwer Law & Business.
Gray, D. E. (2019). Doing research in the business world. Sage Publications Limited.
Hamilton, L., & Webster, P. (2018). The international business environment. Oxford
University Press.
Meyer, K., & Peng, M. W. (2016). International business. Cengage Learning.
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