Globalization in the Field of Doing Business. Paper Example

Globalization is the recent element that is trending in the field of doing business. Globalization refers to the integration and interaction of people, businesses, and organizations countries. Since globalization began about two decades ago, a lot has changed in the social, political, legal, and economic aspects. This means that both the microeconomic and macroeconomic factors of the business have been affected. Globalization has been described to expand the business activities across the globe and cause changes in strategies for all business categories. Have disclosed that due to globalization, there has been stiff competition in various industries' markets. The strategic components of the business plans have also been highly influenced, and changes occurred due to globalization. Therefore, they understand the impacts of globalization on strategic components, which include mission, vision, objectives, strategies, and action plans, among others.

The strategic components that have been affected by globalization include:

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Mission

Globalization has highly influenced the structuring of business mission statements. Unlike before globalization, the mission statements of the business never had technology values to be expressed. However, in recent years, organizations' mission statements must be conclusive and express how a company plans to take care of the technology values and interaction values in the future (Lasserre 2017). The business strategy plan should show a clear link between the business purpose and the elements of globalization that will enable the organization to meet a particular purpose.

Vision

A business vision refers to the plans that an organization wants to achieve after a certain duration. In most cases, the executives of the company are involved in the formulation of a business. However, this has changed due to globalization. Most organizations are developing visions with room to serve the global market and face stiff competition, especially in the future. Furthermore, the technology experts are also part of the team setting up the business vision.

Objectives

Objectives are one of the sensitive components of strategic management that has been highly affected by globalization. It’s important to understand that objectives provide direction and goals of the company. Due to globalization, both short-term and long-term objectives are expected to have exact timeframes. Objectives involving the utilization of technology, expansion of the market, and the machinery to be used for critical changes in the globalization trends can easily make the objectives unattainable or absolute.

Strategies

Strategies refer to the paths that will lead to the attainment of the goals and objectives. Globalization has caused strategic planners to focus on meeting the expectations of every stakeholder in the organization. It has also influenced the CEOs and marketers to develop ideas that will win all the employers' commitment and make everyone on the same board. This creates togetherness and cohesiveness that causes the entire workforce to work with the same aim of customer satisfaction and winning more target segments hence offering quality and remaining competitive.

Actions plans

Action plan refers to the platform required to meet the organization's mission, vision, strategies, and objectives. Action plans are elements that create accountability within the organization. Globalization has influenced this by creating systems that facilitate transparency within the organization. The allocation of funds and transactions is currently being carried via computerized systems to the rich to spread out global markets (Cascio,2018). Globalization has also caused the actives of organizations to be cost-effective and result to be more profitable.

In conclusion, globalization has revolutionized the strategic components of business organizations. Globalization has been associated with changes in technology. Therefore the components have been influenced to take care of technology changes. Businesses that have adjusted to the globalization impacts are thriving well, whereas those unable to adjust their competitors outdo their components.

Part 2: ORGANIZATIONAL BEHAVIOUR CHANGES DUE TO SHIFT FORM LABOUR –INTENSIVE TO TECHNOLOGY- INTENSIVE OPERATIONS

Over the years, the organizations' operations have been changing, and so has also been organizational behavior. Organizational behavior refers to the behavior of how people interact among themselves as well as their interaction with the organization. It’s argued that most of the organizational behavior changes have been triggered by the transition from labor-intensive to technology-intensive activities within organizations. Labor-intensive operations refer to heavy reliance on human labor in the companies' production of goods and services. In contrast, technology-intensive refers to the production process that relies on machines and modern technology to produce goods and services. The shifting from labor-intensive to technology-intensive operations has caused organizational behavior changes such as:

Structural changes

Organizations have changed their structure due to the adoption of technology-intensive operations. Some of the organizational structures which have changed include management structures, position, and location structures rules and regulations (Keeble & Wilkinson,2017). Objective structures have also changed. For instance, nowadays, management structures are made of few personnel because managers manage small groups of people.

Technological changes

Technological changes have affected the general operation of organizations to increase productivity and improve the quality of production. Some of the technology changes that business organizations have incurred include new software and hardware installation. This refers to the use of modern computer systems that are only functional on modern computers and newly developed software like MS word 2017. The organizations have installed modern machines for product packaging and branding too. Changes in technology have also resulted in the production of new products and services that are of high quality and user-friendly. Training methods, conduction of research, and program development process have also changed to identify new technical problems and develop solutions to them.

Change in human power

For a change in structures and technology to be effective, human employees must first embrace the change. Change in human power refers to both the change in skills and mental change. Since the embracement of technology-intensive, people's mentality has changed towards the production process. Some of the changes that people have faced included promotions for those with appropriate technical skills and firing people without the skills (Autor, Dorn,& Hanson,2016). More training has been experienced to improve the quality of the labor force offered.

The shift from the labor-intensive to technology-intensive operations among the organizations is inevitable. The organizations have responded by having changes in their management structures and adopting the appropriate technology to suit the changes. The people have also been faced it changes where some had had to advance their training, and others have been dismissed from their workplaces.

Swot Analysis of the Organization

According to the SWOT analysis of the Lawson store company in Japan, there are strengths, opportunities, weaknesses, and threats being experienced by the company. Some of the strengths of Lawson Store Company include having over 652 stores operating in Japan (Chung, 2017). These many stores have resulted in high revenues that the company enjoys from the Japanese market. The store also has a variety of commodities comprising foods, electronics, clothes, and furniture. The diversification has ensured the continuous flow of income as well as diversification of the risk involved.

The main weakness of the Lawson stores company has its stores only operate in the main town of Japan. This means that the rural market is yet to be exploited. The Japanese culture prefers the good and services offered by the public sector and not the private sector hence affecting the Lawson store company negatively because of its considered private company.

References

Autor, D. H., Dorn, D., & Hanson, G. H. (2016). The China Shock: Learning from a labor-market adjustment to large changes in trade. Annual Review of Economics, 8, 205-240.

Cascio, W. (2018). Managing human resources. McGraw-Hill Education.

Chung, S. (2017). EMBEDDING THE CONVENIENCE STORE BUSINESS IN A CHANGING JAPANESE MARKET: A CASE STUDY OF FAMILY MART. READINGS BOOK, 105.

Keeble, D., & Wilkinson, F. (2017). High-technology clusters, networking, and collective learning in Europe. Routledge.

Lasserre, P. (2017). Global strategic management. Palgrave.s