Introduction
In recent times, as a result of major advancement in technology, most organizations have considered the option of going global a viable alternative. It widens the boundary limits of the organization besides other benefits. Globalization can be defined as a process through which organization acquire the link necessary to operate in the international markets upon possessing what it takes to operate as such. As much as there are benefits associated with globalization the ride is not smooth all the way, there are challenges to tackle. The major catalysts to this process can be attributed to the boost in the telecommunication industry, developed infrastructure and the internet.
In this international arena, organization are meant to be aware of the world market forces that come into play as they influence their causes of action and direction in which to head. These factors have away of affecting the performance of the organization in general. Therefore, it is important for the organization to pay special attention to the stability on politics, the economy, technological advancement to name but a few (Taylor, 2005).
The political platform presents the organization with challenges such as; laws and regulations concerning businesses and taxation strategies differing at a global scale. Besides, the commodity introduced in foreign states in most cases finds stiff competition from the local commodities thus leading to price wars. This is the situation, for instance, faced by the coca cola company as it competes with other beverage products of other countries. Hence there is the need to analyze the political atmosphere of any sovereign state.
Another challenge would emerge where there is instability in the economic conditions. An analysis to weigh the economic strength at the local and the international levels is mandatory in that it reveals recession periods and rates of inflation in states. A practical case is Zimbabwe, where the economy was unstable and inflation rate was at an all time high not so long ago. As a result, global organizations have no option but to adjust their structures in a way that will suit them for the global market. Some of the changing trends of organizations to stay afloat include implementing the idea of outsourcing in their structures. This is a situation through which an organization moves some of its functions to other states for the purposes of producing more and at a cheap cost. India is very marketable when it comes to availability of cheap labor and most global organizations are known to take advantage of this. Besides saving, organizations also reduce the barriers of trade through this move (Taylor, 2005).
Also due to globalization, organizations have diversified in the aim to cope with the different tastes and preferences of the consumers from the global market. Different people have different likes and dislikes hence it would be wiser for organizations to diversify their options and commodities. For instance different mobile phone subscriber organizations offer different commodities and services in countries they have invested in. This calls for different management skills and advertising strategies for diversity to be achieved. Moreover, management skills are important to make decisions depending with the prevalent economic conditions and political atmosphere.
In some cases, organizations are faced with outdated technology especially in developing countries. As such, the organization has two options for it to operate in such a country. Either it imports the appropriate technology to manufacture its commodities there or it operates within the means available to it at that moment. This refers to manufacturing commodities with the available technology (Vandekerckhove, 2006). However, no matter what the organization ensures that the benefits outweigh the costs.
Communication within global organizations is covered through the concept of networks. This is the situation in which the organization interlinks all its branches globally and maintains relationships with all those associated with its line of activity from the suppliers all the way down to the consumers.
Reference list
Taylor, P. (2005). International Organization in the Age of Globalization: Continuum International Publishing Group.
Vandekerckhove, W. (2006). Whistle Blowing and Organizational Social Responsibility: A Global Assessment: Ashgate Publishing, Ltd.
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