¶ … Globalization
Scholars define globalization as the growing integration of the societies and economies across the globe. It is the process of integration and interaction among individuals, governments and companies of different countries. This process is influenced by international investment and trade, with the aid of information technology.
Globalization is creating environmental uncertainty for business enterprises (Bryson, 2011). As markets become international, the numbers of variables a corporation must consider in decision-making become huge and much complex. The uncertainty of the environment is a threat to the strategic planning process because it hampers the ability to craft long-term goals and to make strategic decisions that hold the firm in equilibrium with its external atmosphere. Drawing from Michael Porter's concepts, global sectors differ from multi-domestic to international. Multi-domestic enterprises focus on a nation while multinational industries and corporations tend to be global. The difference between these two patterns is extremely challenging for strategic planning. As such, each provides new challenges particular to its environment. Therefore, operating a business sin the global field needs international societal consideration.
From the business dimension, another impact of globalization is that of expanded markets. It implies that businesses that had previously only sold...
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