The paper "Globalisation Benefits and Challenges in a Contemporary Management Context" is a great example of management coursework. Globalisation according to Al-Rodhan (2006) entails knowledge and policies transfer across the borders; economic integration; the power relations; cultural stability; as well as the creation of the global market. Globalisation can be defined as international borders opening to allow flows of immigrations, information foreign direct investments (FDI), trade, and technology (Edwin & Okpara, 2015). In the early 90s, globalisation was described as the final phase of development in the field of international management. Globalisation created a need for managers to manage the responsibilities and challenges of the purported global market.
Decades later, the situation has considerably changed since globalisation has given the large corporations a remarkable level of power that has consequently made international management a key concern not just to managers and business companies, but also to institutions including the governments. Since its emergence, globalisation has continually demanded more resources, skills, and efforts from both public and private organisations across the globe so as to facilitate managers to handle a new reality as well as the ensuing challenges.
The essay seeks to examine the present events associated with globalisation and assess the benefits and shortcomings of globalisation with examples in the management context. Discussion Competitive advantages at the global level are achieved through creation, transfer and exploitation of competences across locations and operations globally. As a result, multinational companies have started to redesign their strategies with an emphasis on core businesses, but still with a global scope. According to Meyer (2009), internationalisation and de-diversification are as a result complimenting one another in global focusing process.
Globally, businesses are continuously facing a competitive environment. Scores of companies in the 1980s emphasised more on their national markets, but still, they served various industry segments. Globalisation in the 21st century has made companies to rarely focus on their domestic markets since international integration together with globalisation has transformed the nature of competition. Doole and Lowe (2008) argue that globalisation has enabled businesses to face improved opportunities for global growth, but the benefits for industries growth at a domestic level have shrunk. Globalisation has enabled conglomerates to concurrently fast-track their internationalisation while lessening the diversification of their products.
That is why internationalisation and diversification are complementing one another in global focusing process. According to Meyer (2009), this process is steered by changes in the relative transferability of competences and resources across countries as well as industries because of globalisation of business models, resources, markets and supply chains. Such changes in corporate strategies bring about challenges to both policymakers as well as business leaders. In the current business context, business leaders not are expected to manage competition at international level and also to pursue strategies, which generate and exploit connections and complementarities in their global operations network.
This creates needs for changing corporate strategies, which requires competences and can be challenging to execute. Meyer (2009) posits that policymakers are facing businesses, whose operating levels is supra-national levels, and therefore are not inclined to respond to policies at the national level. Still, endowments of national resources, particularly human capital, is still attracting business operations and consequently, national competitiveness.