Analysis of Trends in Global Business Environment Report
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This report provides a mini-literature review of an article published in the Harvard Business Review by Pankaj Ghemawat and Steven A. Altman, focusing on the state of globalization in 2019. The report analyzes the impact of globalization on business decision-making, the vulnerability of organizations in the international market, the influence of the DHL Global Connectedness Index, and the role of geographic footprint and R&D functions. The analysis highlights the challenges and opportunities presented by a turbulent business environment, emphasizing the importance of strategic decision-making, and organizational adaptation. The report delves into the impact of factors like Brexit, the election of Donald Trump, and trade policies, and offers insights into the strategies multinational companies can employ to navigate these complexities. It concludes by suggesting that organizations should implement complex strategies to deal with issues faced by multinational organizations and that business executives should take the charge to bring in the changes within the organization.
Running head: TRENDS IN GLOBAL BUSINESS
Trends in Global Business
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Trends in Global Business
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1TRENDS IN GLOBAL BUSINESS
Introduction
The purpose of this paper is to construct a mini literature review on the given article. The
article had been published in the Harvard Business Review on 6th of February in the year 2019.
The authors of this article are Pankaj Ghemawat and Steven A. Altman (Ghemawat and Altman,
2019). Some important things will have to be done regarding the analysis of the article. A proper
analysis of the article will have to be given in the following sections. Four key questions or terms
will have to be identified from the article. These questions will have to be analyzed and answers
will have to be found of those questions from the article only. The theme of the article will have
to be summarized so that the strategies employed by different managers in this age of
globalization could be understood. The turbulence and turmoil in the business environments have
become quite common in the contemporary business management.
Summary of the article
The above mentioned article deals with globalization in the year 2019 and its
implications on the strategies employed by the organizations and their managers. The authors
have highlighted the fact that the business environment has been going through a turbulent
period after Brexit and shocking victory of Donald Trump in 2016 (Ghemawat and Altman,
2019). According to the DHL Global Connectedness Index, 2017 was a year in which the impact
of globalization could be felt immensely. The struggle between threat of policies and economic
fundamentals has been the main talking point here. The aim of the business managers should
linger around the changes in the business environment because of globalization. The importance
of the smart business decisions have been discussed in this article. One of the major incidents
that took place in the year 2018 was the problems created between United States and their largest
trade partners due to the increase of tariffs (Ghemawat and Altman, 2019). Therefore, it has been
Introduction
The purpose of this paper is to construct a mini literature review on the given article. The
article had been published in the Harvard Business Review on 6th of February in the year 2019.
The authors of this article are Pankaj Ghemawat and Steven A. Altman (Ghemawat and Altman,
2019). Some important things will have to be done regarding the analysis of the article. A proper
analysis of the article will have to be given in the following sections. Four key questions or terms
will have to be identified from the article. These questions will have to be analyzed and answers
will have to be found of those questions from the article only. The theme of the article will have
to be summarized so that the strategies employed by different managers in this age of
globalization could be understood. The turbulence and turmoil in the business environments have
become quite common in the contemporary business management.
Summary of the article
The above mentioned article deals with globalization in the year 2019 and its
implications on the strategies employed by the organizations and their managers. The authors
have highlighted the fact that the business environment has been going through a turbulent
period after Brexit and shocking victory of Donald Trump in 2016 (Ghemawat and Altman,
2019). According to the DHL Global Connectedness Index, 2017 was a year in which the impact
of globalization could be felt immensely. The struggle between threat of policies and economic
fundamentals has been the main talking point here. The aim of the business managers should
linger around the changes in the business environment because of globalization. The importance
of the smart business decisions have been discussed in this article. One of the major incidents
that took place in the year 2018 was the problems created between United States and their largest
trade partners due to the increase of tariffs (Ghemawat and Altman, 2019). Therefore, it has been
2TRENDS IN GLOBAL BUSINESS
quite important to note that the year 2019 is going to be more challenging and full of
complications regarding making proper business decisions. Some important factors that are
included in this context are growth of GDP, profit generation of multinational firms by export of
goods (Ghemawat and Altman, 2019). The growth of international production and trade metrics
is also a notable fact here indeed. These issues have been discussed in this article. In addition to
that, the ways the company managers will look to make profits in this tumultuous business
environment will be discussed in following sections. Four key questions derived from the article
are:-
 How has globalization impacted on the decision making for the global business
managers? How the vulnerability among the business organizations in the international circuit
can be dealt with? How much influential is 2018 DHL Global Connected Index to discuss about changes
in the international management? How can change in geographic footprint and R&D functions help to organize the
functions of the global business organizations?
Analysis of Question 1
The first question deals with the globalization in the business industry and its impact on
the business organizations. According to the critics, it can be said that globalization is a very
wide phenomenon and its impact can be felt among the business operations of the multinational
companies (Ghemawat and Altman, 2019). When those companies act in complicated business
environments in the foreign companies, they face some climate and cultural challenges. The
quite important to note that the year 2019 is going to be more challenging and full of
complications regarding making proper business decisions. Some important factors that are
included in this context are growth of GDP, profit generation of multinational firms by export of
goods (Ghemawat and Altman, 2019). The growth of international production and trade metrics
is also a notable fact here indeed. These issues have been discussed in this article. In addition to
that, the ways the company managers will look to make profits in this tumultuous business
environment will be discussed in following sections. Four key questions derived from the article
are:-
 How has globalization impacted on the decision making for the global business
managers? How the vulnerability among the business organizations in the international circuit
can be dealt with? How much influential is 2018 DHL Global Connected Index to discuss about changes
in the international management? How can change in geographic footprint and R&D functions help to organize the
functions of the global business organizations?
Analysis of Question 1
The first question deals with the globalization in the business industry and its impact on
the business organizations. According to the critics, it can be said that globalization is a very
wide phenomenon and its impact can be felt among the business operations of the multinational
companies (Ghemawat and Altman, 2019). When those companies act in complicated business
environments in the foreign companies, they face some climate and cultural challenges. The
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3TRENDS IN GLOBAL BUSINESS
impact of Brexit can be felt while the organizations go on to operate in Europe. Therefore, it is
quite sure that employees have to be ready to face the consequences of globalization- both
positive and negative.
The new policy implementation by Trump is quite challenging for the organizations that
operate in United States. These threats regarding policy seemed to be rhetoric at one pint of time.
However, this has turned into a major reality and impacted on the future of the organizations.
The increase in tariffs worked as a great challenge for the organizations to work in USA and
generate high profits (Ghemawat and Altman, 2019). On the other hand, critics have counter
argued the fact that these new challenges also opened up a window of opportunities for these
business organizations (Ghemawat 2015). A major factor in this situation is the growth of
foreign direct investments. But, this also went on to go down because the growth of trade was
not going in a full pace as in earlier times. The foreign operations of the companies would be
revitalized by the increase of global GDP.
Analysis of Question 2
The vulnerability among the business organizations in the international circuit is regarded
as very problematic factor in the current times. According to the authors of the article, managers
of the multinational organizations will have to find out how they can deal with these
uncertainties and issues. Therefore, they will have to fix some strategies that will help them to
find a way out (Ghemawat 2017). The authors have pointed out that issues like capital
information and measures for globalization should be measured properly. Therefore, it will be a
very important factor to identify the issues for the growth of the organization. The authors have
found out that many people are crossing their national borders for better opportunities in their
impact of Brexit can be felt while the organizations go on to operate in Europe. Therefore, it is
quite sure that employees have to be ready to face the consequences of globalization- both
positive and negative.
The new policy implementation by Trump is quite challenging for the organizations that
operate in United States. These threats regarding policy seemed to be rhetoric at one pint of time.
However, this has turned into a major reality and impacted on the future of the organizations.
The increase in tariffs worked as a great challenge for the organizations to work in USA and
generate high profits (Ghemawat and Altman, 2019). On the other hand, critics have counter
argued the fact that these new challenges also opened up a window of opportunities for these
business organizations (Ghemawat 2015). A major factor in this situation is the growth of
foreign direct investments. But, this also went on to go down because the growth of trade was
not going in a full pace as in earlier times. The foreign operations of the companies would be
revitalized by the increase of global GDP.
Analysis of Question 2
The vulnerability among the business organizations in the international circuit is regarded
as very problematic factor in the current times. According to the authors of the article, managers
of the multinational organizations will have to find out how they can deal with these
uncertainties and issues. Therefore, they will have to fix some strategies that will help them to
find a way out (Ghemawat 2017). The authors have pointed out that issues like capital
information and measures for globalization should be measured properly. Therefore, it will be a
very important factor to identify the issues for the growth of the organization. The authors have
found out that many people are crossing their national borders for better opportunities in their
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4TRENDS IN GLOBAL BUSINESS
careers. Therefore, this situation has to be overcome. The challenges will have to be found out
and proper recommendations should be utilized (Altman, Ghemawat and Bastian, 2018).
There are various issues in this context that could be used to curb the issues. These are
identify the advanced policies for localization of data, takeovers by the foreign corporate
companies and policies of immigration implemented by Trump. Therefore, this has been
recognized as a very crucial factor for the success of the expanding organizations. The trade
barriers should be identified and measures should be taken to increase the international
production all over the world. The export of goods by companies should be managed properly by
generating the global outputs to 9% (Ghemawat 2015). The level of competition is very high in
the business environment. Therefore, organizations must not respond to each development that is
short-run. The ways to gain the competitive advantage should be sought as the experts have
addressed the situation.
Analysis of Question 3
According to the critics, the 2018 DHL Connectedness Index has discussed about some
of the changes that have taken place in international management system of the organizations
(Altman, Ghemawat and Bastian, 2018). The geopolitical environment has shaped to be quite a
complicated one and several cultural, economic and political issues should have to be considered
in this discourse. The CAGE framework can be used here to address the complex scenarios that
include cultural, administrative or political, geographic and economic factors. Therefore, the role
of International Monetary Fund (IMF), a branch of United Nations should be judged because
they tend to focus on short run gains for the countries like Mexico, Canada, countries of Europe
and Japan (Ghemawat 2015).
careers. Therefore, this situation has to be overcome. The challenges will have to be found out
and proper recommendations should be utilized (Altman, Ghemawat and Bastian, 2018).
There are various issues in this context that could be used to curb the issues. These are
identify the advanced policies for localization of data, takeovers by the foreign corporate
companies and policies of immigration implemented by Trump. Therefore, this has been
recognized as a very crucial factor for the success of the expanding organizations. The trade
barriers should be identified and measures should be taken to increase the international
production all over the world. The export of goods by companies should be managed properly by
generating the global outputs to 9% (Ghemawat 2015). The level of competition is very high in
the business environment. Therefore, organizations must not respond to each development that is
short-run. The ways to gain the competitive advantage should be sought as the experts have
addressed the situation.
Analysis of Question 3
According to the critics, the 2018 DHL Connectedness Index has discussed about some
of the changes that have taken place in international management system of the organizations
(Altman, Ghemawat and Bastian, 2018). The geopolitical environment has shaped to be quite a
complicated one and several cultural, economic and political issues should have to be considered
in this discourse. The CAGE framework can be used here to address the complex scenarios that
include cultural, administrative or political, geographic and economic factors. Therefore, the role
of International Monetary Fund (IMF), a branch of United Nations should be judged because
they tend to focus on short run gains for the countries like Mexico, Canada, countries of Europe
and Japan (Ghemawat 2015).
5TRENDS IN GLOBAL BUSINESS
In the managing of the international business some trade agreements can be mentioned.
These are Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),
THE African Continental Free Trade Agreement (AfCFTA) and European Union-Japan
Economic Partnership Agreement. In this situation, making higher profits seems to be a big
challenge for the organizations and countries (Altman, Ghemawat and Bastian, 2018). Still some
of them are making profits despite these challenges being present. According to the critics, things
like proper contingency planning and strengthening supply chain initiatives will be a big step to
make the things go right.
Analysis of Question 4
As per the words of the authors of the article, R&D functions and geographic footprints
are quite interesting factors to shape the business functions in this turbulent business
management. The architecture and structure of the organizations are needed to be changed by for
the organization if the competitive strategy of the organization is changed (Ghemawat and
Altman, 2019). Therefore, it would be of immense importance that the organization would have
to implement proper strategies so they can overcome the deficits. The R&D functions of the
organization would have to be made stronger so the supply chain structure could be rejuvenated.
The leadership and management of the international organizations should be managed properly
so they can implement disruptive innovation within the organization (Ghemawat and Altman,
2019). Critics are of the opinion that national diversity is one of the main reasons why the
organizations have been longstanding deficits. Therefore, more complicated organizational
structures should be applied to these organizations to cope up with these changes.
In the managing of the international business some trade agreements can be mentioned.
These are Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),
THE African Continental Free Trade Agreement (AfCFTA) and European Union-Japan
Economic Partnership Agreement. In this situation, making higher profits seems to be a big
challenge for the organizations and countries (Altman, Ghemawat and Bastian, 2018). Still some
of them are making profits despite these challenges being present. According to the critics, things
like proper contingency planning and strengthening supply chain initiatives will be a big step to
make the things go right.
Analysis of Question 4
As per the words of the authors of the article, R&D functions and geographic footprints
are quite interesting factors to shape the business functions in this turbulent business
management. The architecture and structure of the organizations are needed to be changed by for
the organization if the competitive strategy of the organization is changed (Ghemawat and
Altman, 2019). Therefore, it would be of immense importance that the organization would have
to implement proper strategies so they can overcome the deficits. The R&D functions of the
organization would have to be made stronger so the supply chain structure could be rejuvenated.
The leadership and management of the international organizations should be managed properly
so they can implement disruptive innovation within the organization (Ghemawat and Altman,
2019). Critics are of the opinion that national diversity is one of the main reasons why the
organizations have been longstanding deficits. Therefore, more complicated organizational
structures should be applied to these organizations to cope up with these changes.
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6TRENDS IN GLOBAL BUSINESS
Conclusion
On a concluding note, it has to be said that this article has provided an in-depth analysis
on the complicated business structures within the contemporary business environment. Various
types of issues have been identified as the reason for such failures. The managing of internal and
external diversities, importance of implementing diverse strategies, implementing organizational
structures and engaging in better societies have been discussed in the article. Therefore, it
suggests that organizations should implement complex strategies to deal with the issues that
multinational organizations will face. The business executives should take up the charge to bring
in the changes within the organization. They can only succeed when they will be able to identify
the real benefits and implement effective trade policies within their business.
Conclusion
On a concluding note, it has to be said that this article has provided an in-depth analysis
on the complicated business structures within the contemporary business environment. Various
types of issues have been identified as the reason for such failures. The managing of internal and
external diversities, importance of implementing diverse strategies, implementing organizational
structures and engaging in better societies have been discussed in the article. Therefore, it
suggests that organizations should implement complex strategies to deal with the issues that
multinational organizations will face. The business executives should take up the charge to bring
in the changes within the organization. They can only succeed when they will be able to identify
the real benefits and implement effective trade policies within their business.
Paraphrase This Document
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7TRENDS IN GLOBAL BUSINESS
References and Bibliography
Altman, S., Ghemawat, P. and Bastian, P. (2018). [online] Available at:
https://www.logistics.dhl/content/dam/dhl/global/core/documents/pdf/glo-core-gci-2018-full-
study.pdf [Accessed 30 Apr. 2019].
Boon, M. 2017. Business enterprise and globalization: Towards a transnational business
history. Business History Review, 91(3), 511-535.
doi:http://dx.doi.org/10.1017/S0007680517001015
Carpenter, J., Preotiuc-Pietro, D., Clark, J., Flekova, L., Smith, L., Kern, M. L. and. Seligman,
M. 2018. The impact of actively open-minded thinking on social media
communication. Judgment and Decision Making, 13(6), 562-574. Retrieved from
https://search.proquest.com/docview/2140083942?accountid=30552
Davies, J. 2016. Are business school deans doomed? the global financial crisis, brexit and all
that. The Journal of Management Development, 35(7), 901-915. Retrieved from
https://search.proquest.com/docview/1809034021?accountid=30552
Engsig, J. 2017. The laws of globalization and business applications: Unplugged - book review
essay. M@n@gement, 20(3), 287-297. Retrieved from
https://search.proquest.com/docview/1977742139?accountid=30552
Ghemawat, P. and Altman, S. (2019). The State of Globalization in 2019, and What It Means for
Strategists. [online] Harvard Business Review. Available at: https://hbr.org/2019/02/the-state-of-
globalization-in-2019-and-what-it-means-for-strategists [Accessed 30 Apr. 2019].
References and Bibliography
Altman, S., Ghemawat, P. and Bastian, P. (2018). [online] Available at:
https://www.logistics.dhl/content/dam/dhl/global/core/documents/pdf/glo-core-gci-2018-full-
study.pdf [Accessed 30 Apr. 2019].
Boon, M. 2017. Business enterprise and globalization: Towards a transnational business
history. Business History Review, 91(3), 511-535.
doi:http://dx.doi.org/10.1017/S0007680517001015
Carpenter, J., Preotiuc-Pietro, D., Clark, J., Flekova, L., Smith, L., Kern, M. L. and. Seligman,
M. 2018. The impact of actively open-minded thinking on social media
communication. Judgment and Decision Making, 13(6), 562-574. Retrieved from
https://search.proquest.com/docview/2140083942?accountid=30552
Davies, J. 2016. Are business school deans doomed? the global financial crisis, brexit and all
that. The Journal of Management Development, 35(7), 901-915. Retrieved from
https://search.proquest.com/docview/1809034021?accountid=30552
Engsig, J. 2017. The laws of globalization and business applications: Unplugged - book review
essay. M@n@gement, 20(3), 287-297. Retrieved from
https://search.proquest.com/docview/1977742139?accountid=30552
Ghemawat, P. and Altman, S. (2019). The State of Globalization in 2019, and What It Means for
Strategists. [online] Harvard Business Review. Available at: https://hbr.org/2019/02/the-state-of-
globalization-in-2019-and-what-it-means-for-strategists [Accessed 30 Apr. 2019].
8TRENDS IN GLOBAL BUSINESS
Ghemawat, P., 2017. Globalization in the age of Trump. Harvard Business Review, 95(4),
pp.112-123.
Kwak, D., Young-Joon, S., and Mason, R. 2018. Investigating the relationship between supply
chain innovation, risk management capabilities and competitive advantage in global supply
chains. International Journal of Operations & Production Management, 38(1), 2-21.
doi:http://dx.doi.org/10.1108/IJOPM-06-2015-0390
Marikina, M. 2015. The Processes Of Globalization For Emerging Markets And Growth
Prospects. Varazdin: Varazdin Development and Entrepreneurship Agency (VADEA). Retrieved
from https://search.proquest.com/docview/1785959938?accountid=30552
Rask, M. 2014. Internationalization through business model innovation: In search of relevant
design dimensions and elements. Journal of International Entrepreneurship, 12(2), 146-161.
doi:http://dx.doi.org/10.1007/s10843-014-0127-3
Saleh, A., and Watson, R. 2017. Business excellence in a volatile, uncertain, complex and
ambiguous environment (BEVUCA). TQM Journal, 29(5), 705-724. Retrieved from
https://search.proquest.com/docview/1950655541?accountid=30552
Silvanto, S., Ryan, J., and Gupta, V. 2017. A study of the impact of business education on global
career mobility. Journal of International Education in Business, 10(01), 31-48.
doi:http://dx.doi.org/10.1108/JIEB-09-2016-0027
Ghemawat, P., 2017. Globalization in the age of Trump. Harvard Business Review, 95(4),
pp.112-123.
Kwak, D., Young-Joon, S., and Mason, R. 2018. Investigating the relationship between supply
chain innovation, risk management capabilities and competitive advantage in global supply
chains. International Journal of Operations & Production Management, 38(1), 2-21.
doi:http://dx.doi.org/10.1108/IJOPM-06-2015-0390
Marikina, M. 2015. The Processes Of Globalization For Emerging Markets And Growth
Prospects. Varazdin: Varazdin Development and Entrepreneurship Agency (VADEA). Retrieved
from https://search.proquest.com/docview/1785959938?accountid=30552
Rask, M. 2014. Internationalization through business model innovation: In search of relevant
design dimensions and elements. Journal of International Entrepreneurship, 12(2), 146-161.
doi:http://dx.doi.org/10.1007/s10843-014-0127-3
Saleh, A., and Watson, R. 2017. Business excellence in a volatile, uncertain, complex and
ambiguous environment (BEVUCA). TQM Journal, 29(5), 705-724. Retrieved from
https://search.proquest.com/docview/1950655541?accountid=30552
Silvanto, S., Ryan, J., and Gupta, V. 2017. A study of the impact of business education on global
career mobility. Journal of International Education in Business, 10(01), 31-48.
doi:http://dx.doi.org/10.1108/JIEB-09-2016-0027
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