The Forces Driving Global Businesses Business as an entity will always be driven by the imperative of profit motive. Without this driving force that animates and motivates business, it cannot survive and grow. As an entity, it will always look for new ways, means and methods to make profit and will adopt to the ever changing internal and external environment in pursuit of this objective. It is always on the look out for threats and competition that will undermine its position in the market but is also ready to capitalize on any opportunities that will make the business grow and profitable. The advent of globalization however made the environment of business tougher albeit it also presented many opportunities.
With the interconnection of economies and free sourcing of materials and labors, competition became tougher because other similar companies with the same objective of making profit are finding ways to offer its good and services at a lower price and better quality (Irani et al 1346). This puts pressure on any company to perform, to become efficient, to be able to produce and provide the better goods and services at the least cost possible.
Unlike before, the pressure is greater today because with the globalization of business, competition is not only confined within the domestic players but also other companies abroad. It is an imperative that every business should remain competitive otherwise competition will eat its share in the market and push the business out to oblivion. Globalization of business however is not only about the intense pressure which resulted from the increased competition. It also afford opportunities to explore other markets which were unavailable before.
Globalization brought down the restrictions on trade and companies with better products and services at lower prices can enter into markets and expand its market base. This meant more profit for the company and could be beneficial for the consumers as well. To be able to provide better products and services at a lower price, companies are always on the look out to improve their supply change management. Where they can source quality materials for their products at a lower cost and dependable availability which they can be reflected into a competitive selling price (Janvier and Assey 197).
Along with the improvement of their supply chain management, businessess are also constantly on the look out on how to improve their systems and processes where they can eliminate waste, improve efficiency, and increase production (Allen 56). Producing goods and providing services efficiently will render the business more competitive with a greater chance of not only surviving in the market but also thriving with the competition. Such, business will always optimize the use of its resources; be its human resource and material resource.
For human resource, it will optmize their use by motivating and enhancing the performance of its workforce. For material resource, it will always look for vendors that can provide a reliable source of materials at the cheapest cost possible. These two forces coincide together to drive the business into competitiveness that will ensure its growth in the market. Works Cited Allen, Tim. Improve Your Business, Strategic Finance, 92.11(2011): 54-59. Irani, Farhad Nezhad Haj Ali; Noruzi, Mohammad Reza.
Globalization and Effects; A study on the effects of globalization in the society. Interdisciplinary Journal of Contemporary Research in Business, 3.1(2011): 1345-1348 Janvier-James, Assey Mbang. A New Introduction to Supply Chains and Supply Chain Management: Definitions and Theories Perspective. International Business Research, 5.1(2012): 194-207.