Globalization Impact: Challenges, Strategies, and Business Insights

This report delves into the multifaceted aspects of globalization, examining its impact on businesses operating across borders. It highlights the opportunities presented by globalization, such as location flexibility and expanded market reach, while also addressing the significant challenges that companies face. These challenges include increased competition, the need for substantial capital investment, and the complexities of managing diverse organizational structures and human resources across different cultural contexts. The report emphasizes the importance of thorough market analysis, understanding competitive strategies, and adopting a 'think globally, act locally' approach. It stresses the need for managers to adapt to local cultures to foster effective human resource management and reduce conflicts. References to real-world examples, such as the Walmart-Flipkart merger, illustrate the competitive landscape and the strategic responses of companies in the global market.

Managing Across Borders

MANAGEMENT 1
Globalization
Globalization is the process of integration and interaction among people, companies, and
government worldwide. Globalization provides opportunities to the companies to spread the
business at the global level. It has been seen that the globalization affects the business in both the
aspect such as positive and negative. The advantage of globalization is that the companies have
the opportunity of location flexibility. Location flexibility enhances the operational activity of
the company or the revenue (Triandafyllidou, 2018). It is a fact that the companies that operate
the business in a large area have the opportunity to provide the services to a huge number of
consumers and earns high revenue.
Some challenges faced by the organizations while operating the business at the international
level. The main challenges faced by companies in the high risk of competitors in a similar
industry. The risk among the competitors has been arising as the companies expand the business
at the global level. There are a lot of companies operates under a similar industry and also
provides similar services to consumers with attractive offers to attracts more or more consumers
towards the services. Acquisition and merge are the strategies that are implementing by the
companies to beat the competitors at the international level. As per these strategies two
companies have the opportunity to spread the business at the global level or grasp the large
market share. These strategies increasing the competition as these are included in the process of
globalization. As the competition is increasing, companies have a high risk of losing consumers
(Lane, 2016).
For example- Amazon and Walmart are the companies that provide a wide variety of good
consumers through an online website. Walmart merges with Flipkart by acquiring 77% of the
share of the company to beat Amazon (Economic Times, 2018).

MANAGEMENT 2
The other challenge that the companies face due to increasing globalization is the organization
structure. The companies require huge capital to invest in the company to operate the business at
a global level. The manager also has to design the structure of the organization as per the market
to operate effectively and smoothly. It is difficult for the manager to take a favorable decision
towards human resource management as there are different HR policies in a different country
due to different culture. It is a difficult task for the managers to reduce the conflicts which are
arises among the human resource due to different culture at the international market (Moeller,
McPhail, and Fishers, 2009).
It is suggesting that the mangers of the companies have to analyze the market before entering the
market. He should also analyze the competition in the market while entering as it helps to reduce
the threat level of competitors (Hirst, Pand Thompson, 2019). It is required to evaluate the
strategies of the competitors so that it can beat the companies by providing the high quality of
services to consumers so that the threat of competitors will be reduced. Think globally and act
globally is another strategy that the manager has to follow to stay ahead from globalization. As
per this strategy, the manager has to make the decision as per the local level of the market. The
manager has to follow the local level of culture to design the infrastructure or philosophy to truly
allow their region to work independently together (E2F, 2019). The issue of conflict is also
reduced with these strategies. It has been found that the implementation of the strategies to
design the infrastructure by following the local level of culture helps the manager to retain the
human resource for a long time and reduces the conflicts (Potrafke, 2015).

MANAGEMENT 3
References
E2F. (2019) Marketing Strategies for Globalization. [online] Available from:
https://e2f.com/9053/ [Accessed 13/09/19].
Economic Times. (2018) Walmart acquires Flipkart for $16 billion in world’s largest
ecommerce deal. [online] Available from:
https://economictimes.indiatimes.com/articleshow/64095145.cms?
from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppsthttps://
economictimes.indiatimes.com/small-biz/startups/newsbuzz/walmart-acquires-flipkart-for-16-
bn-worlds-largest-ecommerce-deal/articleshow/64095145.cms?from=mdr [Accessed 13/09/19].
Hirst, P. and Thompson, G. (2019) The future of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Lane, J.E. (2016) Introduction: The Challenges of Globalization, World Capitalism and the
Global Open Society. In Globalization–The Juggernaut of the 21st Century, Routledge, pp. 13-
22.
Moeller, M., McPhail, R., and Fishers, R. (2009) Globalization and its impact on global
managers' decision processes, 12(4), pp. 353-370.
Potrafke, N. (2015) The evidence on globalisation. The World Economy, 38(3), pp. 509-552.
Triandafyllidou, A. (2018) Globalisation and migration: An introduction. Handbook of migration
and globalisation, pp.1-14.