Globalization in Business: Challenges and Opportunities for Managers

This report provides an in-depth analysis of the impacts of globalization on international business, focusing on the challenges and opportunities it presents for managers. The study explores key aspects such as increased competition, the role of technology, and the effects on employment, including outsourcing and offshoring. It emphasizes the importance of market research, cultural understanding, and strategic partnerships for international business leaders. The report also highlights the need for executives to adapt to cultural differences, stay informed about market trends, and think globally to remain competitive. The report underscores the importance of clear expectations, performance measurement, and innovative strategies for success in the global business environment.

Globalization in Business for International Managers 1
IMPACTS OF GLOBALIZATION IN BUSINESS FOR INTERNATIONAL MANAGERS
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Globalization in Business for International Managers 2
Executive Summary
In the international business environment, globalization is not a new concept. It has opened many
opportunities for business organizations across the globe but as well come with certain
challenges that international business leaders needs to be aware of with the aim of making
effective strategic steps. With globalization, business can now access the global customer base
without the fear of geographical boundaries. It is also influenced by outsourcing and offshoring,
aspects that mainly determine the impact it will have on the business, both positive and negative
in the business arena. Globalization has increased competition which has influenced many firms
to upgrade their services and products in order to capture the loyalty of their customers this
intern becomes advantageous to the consumer who enjoys high quality services. Despite all these
advantages, an international leader needs to be aware of a number of things in order to stay ahead
of the game globally such as conducting thorough market research to find a niche, thinking
globally, finding the rightful partners who can connect them with the best customers,
maintaining professionalism and keeping in touch with the customers. All this is fabricated by
knowing the culture of your customers to avoid controversies.
Introduction
The current state of the world calls for diversity when dealing in business whether internationally
or not (El Namaki 2017, p. 89). Globalization is not a new term in the field of business and it has
been there for centuries. It is only experiencing a number of revolutions from that is
advancement in technology. This factor has influenced the integration of countries and

Globalization in Business for International Managers 3
continents to the extent of doing business together and having them managed from a fur off place
away from the nation. Globalization provides both positive and negative effect to the business.
The business maybe affected positively in terms of technology (Santos Salazar & de Moraes
2017). Technology implies the extent to which the company relies on computers and other
machineries to influence its productivity and distribution of services positively. Competition is
also a factor of globalization that may positively or negatively influence the firm in terms of
productivity and customer retention as will be discussed below.
The rising challenges that is associated with globalization calls for the international executives or
managers to be equipped with a number of techniques in order to ensure that those firms remain
at the top in the global business (Clavel San Emeterio, Fernández-Ortiz, Arteaga-Ortiz, & Dorta-
González 2017). In line with the necessities of a manager to remain at the top include making a
thorough research on the market, gaining the knowledge about the various cultures to avoid
controversies and also measuring the performance index of the firm to gauge whether it will
yield success in the future among others as will be discussed later.
Clavel San et al. (2017) in their research, also tries to bring out the link between outsourcing
&offshoring and how it has influenced globalization through creation of opportunities to
international businesses such as Siemens company and also the challenges/ problems associated
with it. The essence of this research as will be elaborated is to provide the necessary conditions
that can facilitate a firm to act favorably in the global arena and be able to remain ahead of the
game. It also shows how the integration of global culture can foster the success of the company.
Section two

Globalization in Business for International Managers 4
The term globalization has become a common word in our daily life. In relation to business,
globalization represents the integration and fabrication of international trade globally (Bartsch,
Riefler, & Diamantopoulo 2016, p. 34). The diversification of investments, information
technology, and integration of cultures as increasing as a result of globalization in many business
aspects. The designed policies to create link between economies of different nations thus
boosting development in poor countries and which leads to generation of international market
which benefits multicultural firms. The introduction of globalization in this contemporary world
has led to a number of impacts on businesses around the world.
Competition
Firstly, looking at competition, there has been an increased rate of competition between
companies and firms (Engsing 2017, p. 89). The competition ranges from product and service
delivery. In terms of the prizing of commodity, the targeted market niche, technological
adaptation and time taken to respond to customer requests and quick production of goods. The
presence of competition has forced firms both local and international businesses to upgrade their
standards so as to suit consumers’ needs which stands to be beneficial to many people all over.
despite the fact that globalization has led to competition of firms which has positively affected
the productivity of goods and services to a standard level, it is also important to note that
competition has also resulted in to negative and diverse activities globally (Peters, Riley,
Siedschlag, Vahter, & McQuinn 2018, p. 7). The production of generic goods and services by
competing firms may end up affecting the health of consumers; for instance, the production of
plastic rise that may cause cancer to people.
Increased technological use

Globalization in Business for International Managers 5
Globalization has forced firms that operate internationally to exchange technology and adapt to
more efficient and reliable once (Peters et al. 2018, p. 4). Firms that are oriented focus on
exploiting new business opportunities through the use of e-commerce. Being one of the main
equipment of competition in the market, globalization has enable firms to struggle to acquire
latest technology in order to increase their sales and quality/ quantity of their production.
Globalization has facilitated the expansion and the rate of technological transfer and its
improvement all over the world with the aim of giving ease to the provision of services and
goods to clients. Talk of electronic commerce such as amazon which is an online platform where
people all over the world can access goods and services at their conveniences. due to
globalization, the demands and expectations of customers are the ones influencing the direction
of the markets. This calls for firms that invest so much on capital to adapt to the expectations of
the clients.
The second impact of globalization on business today is the transfer of knowledge and
information across nations that participate in the international business. The current business
arena makes it difficult and expensive/ worthwhile to get relevant information concerning
production factors. Ease of exchanging information from one nation to another has rapidly
increased. The random change in the global market has necessitated transfer of knowledge from
nation. In this context, knowledge refers to skills, abilities and know how of he stocks of
competence. Thus, many firms can now operate and produce world class goods and services as
pointed out by Bojnec and Ferto (2018, p. 89)
Employment

Globalization in Business for International Managers 6
Taking for example the siemens company that operates in more than 190 nations across
continents, it has got more than 400,000 stocks of competence from different races and nations.
The presence of globalization has influenced the job market (Li, Yi, & Cui 2017, p. 83). Access
to talented employees who facilitate the productivity of the firm. Individuals from various
countries are provided with jobs. This bring about the concept of outsourcing and offshoring.
Taking a job out of the country to be done in another foreign nation. This has positively impacted
on the business today.
On the contrary, globalization has also affected businesses adversely. Beginning with price
fluctuation. Increased price fluctuation across the globe has been the norm of the day. The
presence of stiff competition organization in third world and second world nations are forced to
lower the prices of their product. For instance, goods and services produces in China and japan
are less costly than other nations this intern force other firms in globally to reduce their prices so
as to compete favorably in the market and capture the loyalty of their clients with this, the ability
to provide for social welfare become difficult (Li, Yi, & Cui 2017, p. 83).
Secondly, globalization has also presented job insecurity in businesses. There is continuous
outsourcing practices raise an alarming risk of locals of a particular nation to lose their
employment in various firms as pointed out by Carolina Zonta & Amal (2018, p. 64). This is
more common especially in developing nations that desire firms to produce products at a more
affordable price thus necessitates outsourcing. This intern leads to job insecurity for instance jobs
such as software programming among others are outsourced to developing countries thus making
individuals with same kind of professionalism to lose their job. The ability to compete favorably
and remain successful as a manager in global market calls for a lot of patience and keenness.
This international manager can do a number of things according to various researchers in order

Globalization in Business for International Managers 7
to stay ahead of the game (Oladimeji, Ebodaghe, & Shobayo 2017, p. 56). Deeping yourself into
the unknown global world can be very dangerous and may cause loss to your firm. As an
international manager, it is rudimentary to understand the different cultures that exist between
the nations of which your firm is involved in business.
The manager needs maintain a leading executive on his team who is well versed with the culture
of the surrounding so that you may not end up clashing with the culture of the locals. The
presence of an executive with worldly experience will influence and help the company to put
first the global market and find solutions for the unknowns. This can be incorporated through
researching and tying to understand the various cultures that they may be involved in thus
creating room to remain successful through getting the best clients of your products (Hilmersson,
Johanson, Lundberg, & Papaioannou 2017, p. 78). This will help the manager to be able to adopt
an outside perspective of how to run the firm without incurring loss. The benefit of conducting a
market research is that helps in the identification of the robustly growing market product.
For an international executive to stay ahead of the game, they must aware of and have the ability
to select the right international partners and do research on the market to find the best niche
(Zhang, Yu, Yu, & Jin 2017, p. 2834). Having a trustworthy and loyal partner in a different
country is essential for growing your company so as to attract and retain customers absence of
this knowledge for a manager may make it a tall order to spearhead the market. Knowledge of
the right business practice and sending out executives on the ground to get information about the
goods and services is quite vital. Carrying out business without doing a good research on the
market and finding a niche may be suicidal for the company. In order to stay at the top, the
leader needs consider this aspect. Before finding a business partner from other nations, Zhang et
al. (2017) denotes that it is important to set up clear expectations of what you plan to achieve

Globalization in Business for International Managers 8
when involved in the international business. Having this in mind will enable the executive to stay
in touch with the goals and be able to tap the right niche and stay ahead in competition.
Staying ahead of the business globally also calls for an executive to be fully informed of the
success measure and have the ability to think globally (Oladimeji, Ebodaghe, & Shobayo 2017,
p. 56). Working internationally requires more than just capital but a measure of understanding
about your business. The manger must have records that track the success of the company
according to Albert Subbloie. For success to be the norm of the organization, it is mandatory that
the organization must be able to act fast the need to evaluate the current strategies in order to
innovatively come up with new ways of doing business (Hilmersson, Johanson, Lundberg, &
Papaioannou 2017, p. 72). This is facilitated with the ability to think outside the box and act
globally. Thinking globally actually implies upgrading he standards of your company to that of
world class. Keeping the success measure of the company also involves finding out the type of
data that can be used to predict or deduce how the product you wish to engage in will be sold on
the chosen location.
Even though there are several advantages that a company can enjoy as a result of globalization,
an international leader needs to be aware of a number of things in order to stay ahead of the
game globally such as conducting thorough market research so as to find a niche, thinking
globally, finding the rightful partners who can connect them with the best customers,
maintaining professionalism and keeping in touch with the customers. All this is fabricated by
knowing the culture of your customers to avoid controversies.
Many companies remain at the top because of incorporating global way of thinking into their
organizations which is further fabricated with the culture of the firm. A good international
manager needs to ensure that the major thought process driving the firm’s decision is thinking

Globalization in Business for International Managers 9
globally. This acts as an eye opener to impending opportunities in the international business.
This furthermore reduces the difficulty of implementing other global marketing strategies.
It is also necessary for an executive to have after sell services to his clients which will
distinguish him from the other competitors (Vadlamannati 2016, p. 6). The relationship between
your firm and your clients in other countries should not be terminated after delivery of products.
In this case, you need to create a lasting relationship by keeping in touch with them. This can be
achieved through maintaining personal contacts with the new target. In the knowledge of culture
specificity in order to reduce issues that may come up due to controversies to enhance
professionalism and consistency. This should be at the tip of the managers fingers so as to
remain successful.
Talking of outsourcing and offshoring, outsourcing simply means taking an internal operation to
another person or party (Vadlamannati 2016, p. 6). Technically it involves taking jobs from one
country to be done in another country due to cheap labor or move transactional activities to the
experts who are based in another country so as to focus on the extend of expertise. This idea of
taking out services and jobs has developed over the years and has influenced the emergence of
global market.
Despite the fact that outsourcing and offshoring has opened room to globalization, it has also
presented a number of challenges and problems in the business arena (Huo & Ouyang 2018, p.
801). Firstly, too much outsourcing raises the risks of a business fail. Provision of services from
those taking the contract may be underquoted with the intentions of getting the contract and
abruptly be raised when the contract is in the middle. This may bring about falling out of firms in
the market due to lack of capitals to sustain the contract. This has been facilitated by the fact that
most organizations outsource what is not important and fails to pay attention on what is

Globalization in Business for International Managers 10
important. According to research done on dell computer company, the firm nearly ran out of
business due to outsourcing of expertise which raised complains from the consumers which led
to drop in additional sales.
The four major challenges that arises due to outsourcing include unavailability for instance,
outsourcing firms which offers services such as tutorials may not be readily available thus
leading to inconvenience of the firm which may result to running out of business (Hilmersson,
Johanson, Lundberg, & Papaioannou 2017, p. 72). The absence of professional level
management in planning has also been an issue due to outsourcing and offshoring this may in
turn make it difficult to select the right person or organization to provide services. Outsourcing
also raises the challenge of data security resulting to cybercrimes. The data may be breeched and
thus fall in the hands of the wrong organizations who may use it to harm the firm. There may be
issues to do with privacy concern.
Despite the risks of outsourcing mentioned above, they also present opportunities. From a survey
by Duke university on offshore outsourcing on Price Waterhouse Coopers, it has created
increased demand of services that rapidly increase the investments in other new forms of services
which meet the rising demand. It enhanced cost saving and efficiency due to the easy access to
qualified and talented stocks of competence who provide services that are standard. According to
the survey, it was discovered that outsourcing served to make companies more flexible and
equipped to tackle the arising challenges in the process of business interactions and activities.
Outsourcing also led to increased use of technology in business which facilitated quick
communication between clients and the services/ products providers. This is majorly in the field
of logistics, human resource services and stock distribution.

Globalization in Business for International Managers 11
Conclusion
Globalization has been influenced by outsourcing and offshoring which has led to both positive
and negative impacts on the business arena. Talking of positive impacts of globalization include;
increased competition which has influenced many firms to upgrade their services and products in
order to capture the loyalty of their customers this intern becomes advantageous to the consumer
who enjoys high quality services. It has also enhanced technological development in the business
area the desire to be at the forefront in the global business has enhanced firms to acquire
technologies that eases their work.
Despite all these advantages, an international leader needs to be aware of a number of things in
order to stay ahead of the game globally such as conducting thorough market research so as to
find a niche, thinking globally, finding the rightful partners who can connect them with the best
customers, maintaining professionalism and keeping in touch with the customers. All this is
fabricated by knowing the culture of your customers to avoid controversies.

Globalization in Business for International Managers 12
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