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The paper focuses on the increased complexity of globalized organizations and methods of altering the process within the structure. Business and environment change constantly to sustain development in emerging markets and increase efficiency. Integration of relationships and processes of the world systems, help to manage local, regional and planetary balance to manage duplication of success become conceivable. The retail giant Wal-Mart exhibits its ability to transform the organization asynchronously with the increase integration of globalization.’ Wal-Mart unveils the type of integration possible between globalization, and business services as it adapts, eliminating redundancies and repetitive movement. It observes the effect and influence, propagated on business through it use of supply chains, and influence.
Key words: Expansion, Risk, Globalization, Influence
Globalization and Organizational Structure
Globalization remains a pivotal topic in many schools of thought, and continues being a topic of controversy even in local economies today. Perhaps the reason for this is integration and competitiveness the world over. Conceivably, even more than integration, is the competitiveness of organizations, has possibly facilitating the fascination and misconception about of globalization. Nevertheless, globalization has brought about a number of effects influencing the design and geographical location of the organization. However, globalization has effectively placed the world in a bubble, or maybe one could equate the changes to being placed in an envelope.
In earlier years, organizations relied on traditional forms of communication; they are perhaps considered primitive means on this day. These forms of communication ...
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Grant, R. M. (2010). Contempemporary Strategy Analysis (7th ed.). West Sussex, UK: John Wiley & Sons, Ltd.
Greenwood, R., & Miller, D. (2010). Tackling Design Anew: Getting Back to the Heart of Organization Theory. Academy of Management Perspectives, 24 (4), 78-88.
Oesterie, M. J., Richta, H. N., & Fisch, J. H. (2012). The influence of ownership structure on internationalization. International Business Review, 22(1), 187-201.
Simon, W. (2013, October 16). Memo:To: All Wal-Mart US and Home Office Associates.
Strauss, S. (2004, May 17). Globalization is good for (small) business. Retrieved February 6, 2014, from http://usatoday30.usatoday.com/money/smallbusiness/columnist/strauss/2004-05-17-globalization_x.htm
Wal-Mart (2012). Corporate.Wal-Mart .com. Retrieved February 21, 2013, from http://corporate.Wal-Mart .com/
Cavusgil, S. T., Knight G. and Rosenberger J.R. (2012), International business: the new realities. Pearson: Prentice Hall
There are many critical factors contributing to the success of a global company. Some significant aspects that I had seized are the global brands (Holt et al., 2004), the distance matter (Ghemawat, 2001), the international strategy (Ghemawat, 20...
al, 1990). Significantly, the initial selection of entry mode can have a huge impact on the survival and success of firm international operations (Hollensen, 2011; Root, 1994). The international operations in the target market basically depend on the firm’s choice of foreign entry modes (Hollensen et al., 2014). Many scholars on international market entry strategies examined that whilst making the decision regarding foreign market entry mode, there was a wide range of factors that influenced a firm’s entry mode decision. The entry mode decision can be influenced by different set of factors as the entry modes involve with different levels of control, ownership and resource commitment (Hollensen et al., 2014). The choice of entry modes between exporting, contractual agreement (licensing and franchising), joint venture and wholly owned enterprise are all strategic alternative (Lin, 2000). Therefore, managers need to analyze and determine the most suitable international strategy to enter a foreign country. After reviewing previous entry mode research, most of the research primarily focused on the experience of large multinational enterprises rather than SMEs that discussed about their entry mode strategy in foreign markets (Luo, 2001). Moreover, extant literatures on the entry modes have been
Royal, M. A., & Stark, M. J. (2006). Why some companies excel at conducting business globally. Journal of Organizational Excellence, 25(4), 3-10.
Jones, G. R. (2010). Organizational theory, design, and change. 6th Ed. Upper Saddle River, NJ: Prentice Hall
Contemporary companies utilize global resources and markets to produce and sell their products. Managing a multinational company is vastly more complex than running a retail store in one location. Operating internationally increases the complexity
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2011). International Business (Environments and Operation. (13ed.). Prentice Hall.
4. Peter Killing. “How To Make a Global Joint Venture Work” Harvard Business Review, May
An enterprise operating in more than one country is known to be a Multinational Enterprise or an MNE. The foremost aim of all MNE’s is to globalize their operations. Top managers of large organisations argues that globalization is one of the most critical challenge they face today. Economic globalization refers to the fast increase in the international markets for goods and services and cross border interdependence and integration of production. (Dunning, 1997a).
Higher profits from overseas business operations form a significant motive for international expansion. Such differences in profitability may be due to a variety of factors, including
Mason Carpenter, G. S. (2013). Strategic Management: Concepts and Cases Second Edition. Harlow: South-Western Pub.
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.