The paper "Concept of Going Global, Globalisation Models" is a great example of management coursework. In the modern context, business entities focus on exploiting globalisation in the process of achieving a competitive advantage in the industry of transaction. Globalisation associates with increased effectiveness and efficiency in the course of handling the needs and preferences of the consumers in the global context. Globalisation refers to the processes and procedures of interaction as well as integration among the people, business entities, and authorities of diverse nations under the influence of technology, international trade, and foreign investment.
The purpose of this business essay is to examine the major challenges managers need to consider in the course of making a vital decision to go global. In addition, the essay will concentrate on discussing the most effective strategies as well as actions in the course of handling and dealing with one of the major challenges of going global. Concept of Going Global The concept of ‘ go global’ relates to the issue of globalisation. From this illustration, it is ideal to understand the essence of globalisation in order to facilitate an effective description of diverse reasons why organisations tend to ‘ go global’ .
Globalisation refers to the expansion of the global linkages, organisation of social life on a global context, and development as well as the growth of global consciousness in attempts to consolidate world society. Globalisation is essential in connecting diverse economies, social well-being, ecology, and culture from individuals and places across the globe through the integration of trade, travelling, technology, and media fraternities (United Nations, 2002). Business organisations tend to have diverse reasons and perceptions in relation to the concept of globalisation. In the first instance, business entities focus on exploiting the concept of globalisation to gain substantial access to a larger market.
In this context, going global enables managers to maximize diverse opportunities while operating on the huge economies of scale as well as scope in relation to a much larger and more diverse market of transaction. In addition, some business entities focus on integrating the concept of globalisation in order to gain access to low-cost input factors such as labour and technology. From this perspective, globalisation is ideal in the achievement of improved profitability levels.
Similarly, business entities tend to consider globalisation to develop new competencies to aid the achievement of competitive advantage in the market and industry of transaction. In the course of ‘ going global’ business entities and managers focus on adopting and implementing diverse models as well as frameworks in accordance with the needs and requirements of the organisation (Baldwin & Winters, 2004). Furthermore, there is a need to consider the trend while evaluating internal and external factors in relation to the industry in which the organisation transacts its business operations. Globalisation Models There have been four critical phases of globalisation in its history of development.
The first phase of globalisation peaked between 1830 and 1890 under the influence of the rail and ocean transportation systems. In this case, globalisation was mainly associated with the automation of manufacturing as well as cross-border trading of diverse commodities. The second phase of globalisation peaked between 1900 and 1930 under the influence of electricity and steel production. The main characteristics of this phase include the emergence of the European and American manufacturing as well as extracting industries.
The third phase of globalisation peaked between 1948 and 1970s under the influence of GATT and the end of World War II, which was essential in the course of rebuilding diverse economies. Some of the characteristics of the third phase include increased efforts to reduce trade barriers as well as the rise of Japanese multinationals. The fourth phase of globalisation started in 1980 under the influence of ICT, automation, privatisation, and consultancy. Some of the characteristics of the fourth phase of globalisation include the influence of FDI in enhancing growth in LDCs, technology, the innovation of transportation systems, global media, and the essence of branding.
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