Report: Globalisation's Impact on Business Operations and Strategies

This report provides a comprehensive analysis of the impact of globalization on business operations. It begins with a definition of globalization and its integration of economies, emphasizing the shift from a divided world to a globally connected one. The report then assesses how globalization influences business activities, focusing on five key dimensions: the fluid nature of manufacturing and sourcing, intensified competition, complexity in international business transactions, technological growth, and finance availability. The report references academic journals and articles to support its findings, discussing examples such as outsourcing to China and the increased competition among businesses. The conclusion summarizes both the positive and negative impacts of globalization, acknowledging the increased complexity of transactions while highlighting the opportunities for business expansion. The report also includes a list of references used in the analysis.

Globalisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Meaning of Globalisation............................................................................................................1
Assessment of the impact of globalisation on business operations.............................................2
CONCLUSION................................................................................................................................3
REFERNCES...................................................................................................................................4

INTRODUCTION
The economic development of one economy is reliant on another in present scenario.
This is due to globalisation of every single market in the world. It is the very process which
integrated every country economy into global one and assured that the concept of isolation is no
more. This also assist in making a world which is more connected with one another (Zoomers,
2010). This report states about how globalisation impacted business and its operation in a wider
context. This will assist reader in understanding how an integrative idea has improved stability in
world economy.
Meaning of Globalisation
The definition of globalisation as stated by Nobel prize winner Joseph Stiglits is, “It is a
closer integration of nations and people of this world which is brought by tremendous reduction
in the cost of logistics as well as communication while breaking down different barriers created
by mankind in flow of good, services, assets, knowledge, people and capital between countries”.
Globalisation basically connected different nations and their economy which minimised
risk but increased reliance on one another. Today, business are more reliant on one another than
they were a decade ago. There are different types of benefits of globalisation as this allowed
nations to share technology, resources and improve relations with one another. The complete
idea behind this concept was to make a global economy and connect different people in the
world to one another as it would bring peace and growth (Wright, 2016). To understand the
concept of globalisation the following table can be analysed: It depicts about the paradigm
changes that took place from cold war to age of globalisation-
Cold War Globalisation
Based on Division Based on integration of nations and economies
Developed a wall Created Web to connect globally
Only 8% of world economies had free markets More than 45% of markets are free
Divided on the basis of culture One global culture and citizen
Weight was measured in megatons Now it is measured in Gigabits
Power of countries Power of people and markets
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This table clearly states about the difference between globalisation and previous world
model. It also describes about the changes that were made overtime. This concept has swept
away in the world and has visible impact on business operations.
Assessment of the impact of globalisation on business operations
Globalisation is a concept which has impacted various activities conducted by firms in
order to gain more market share. It is also one of the most fascinating developments that took
place in this century. It is a concept which challenged established frameworks and changed the
mindset of people of the world. Globalisation of markets is best reflected in the
internationalisation of transactions that take place between business houses (Hopkins, 2011).
This means that one or more activities are connected with international shifts in market. There
are basically five facets or dimensions that can be used as a way to understand the impact of
Globalisation on the business operations taking place in different countries.
These factors were identified by going through the journal (Indian Journal of Commerce
& Management studies) which was written by Prof. Lidija Stefanovska and Prof Marjan
Tanushevski (2016). They highlighted various factors that impacted business operations. .They
are as follows: Fluid nature of manufacturing and sourcing: The outsourcing of manufacturing is very
easy. Today, most of the manufacturing is being outsourced to China which is known for
its cheap production capacity. For example, jaguar and land rover are being mass
produced in the country at a minimum price while quality is maintained. This is the very
first impact which was there on business operation as they were able to outsource
different activities to other countries. For example many customers does not know that
when they are calling for issues in their computer, that time they are talking to an Indian
software solution provider. Intensified competition: This is the second impact on the business operations that is there
due to globalisation. Few decades ago only few MNC were there which dominated whole
global market but due to internationalisation, there are many small as well as major giants
who have come into the market. The level of competition has increased and it will keep
on increasing till globalisation is there. Complexity in international business transactions: Before globalisation was there, the
transactions between companies were simple import and export type. Today they are
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more complex as, contract manufacturing, franchisee operations, countertrade, turnkey
contracts and transfer of technology are example of increasing complexity. Technological growth: There are rapid changes in the field of technology, and in a time
there are some of the break through which lead to competitive advantage but it can not be
retained for long. Companies need to capitalise their inventions in a set time period.
 Finance availability: Globalisation opened financial sector and because of this the
companies are able to take monetary assistance from different banking entities. The
organisations were able to expand into international market due to more finance
availability.
Mark Williams (2011) a known author for management training specialist has
highlighted similar points in his article posted in 2011 on the website. He stated that there are
certain impacts of globalisation on business operations which are rise in competition, rapid
growth in technologies, a more positive rise in opportunities to explore and last thing he pointed
out was increase in investment level for company.
Another research known as Mike Myatt (2016) in his article on Hub for growth website,
he also mentioned similar impacts that are there on the business operations. Though he tried to
develop an inter-relationship between all connected economies. He highlighted certain points
that are there on an country due to globalisation, such as, rising economies, demographical shifts,
changes in commercial demand, improvement in infrastructure and also, it lead to opening up of
market system.
CONCLUSION
Globalisation has certain positive and negative impact on the business operation. On one
hand it assist in growing the size of company while on another hand it made transactions more
complex. Though it has become a concept which swept across globe and opened borders for
movement of capital, goods, services, trade, etc.
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REFERENCES
Books and Journals
Hopkins, A.G., 2011. Globalisation in world history. Random House.
Wright, S., 2016. Language policy and language planning: From nationalism to globalisation.
Springer.
Zoomers, A., 2010. Globalisation and the foreignisation of space: seven processes driving the
current global land grab. The Journal of Peasant Studies. 37(2). pp.429-447.
Online
Mark Williams, 2011, The Effects of Globalisation on Business. [Online]. Available
through:<http://www.mtdtraining.com/blog/the-effects-of-globalisation-on-
business.htm>. [Accessed on 21st September 2017].
Mike Myatt, 2016, The impact of Globalisation on Business. [Online]. Availaible
through:<http://hub.n2growth.com/the-impact-of-globalization-on-business/>.
[Accessed on 21st September 2017].
Lidija Stefanovska and Marjan Tanushevski, 2016, The impact of Globalisation on
Organisational Culture. [PDF]. Available
through:<http://scholarshub.net/ijcms/vol7/issue3/Paper_01.pdf> [Accessed on 21st
September 2017].
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