Thomas Freidman, three time Pulitzer Prize winner journalist, argues that “the world is flat.” In other words, globalization has leveled the world, and today organizations and countries have fair chance to compete in the global market. He outlined 10 forces that have flattened the world.
In this assignment, you need to write a short essay to answer the following questions.
1) Is the world really flat? What is your opinion? During last few years, do you think the world becoming more FLAT or ROUND? Why? Support your arguments with external references and provide examples that are relevant to your opinion. Note: you may agree or disagree with the idea (both views are okay). What matters is that you provide reasonable justification, evidence, and/or support for your ideas.
2) Point out and discuss two potential drawbacks of a flat world. Support your arguments with external references and provide examples.
3) Pick a flattener that is the most important in your opinion. Discuss why you think it is important and support your arguments with external references.
Solution
Thomas Freidman has derived a remarkable idea of globalization. I think his opinion regarding the globalization and competition is right. There are many factors, which create space from many countries or companies to compete in global markets. Due to the intervention of technology, the communication gap has been removed, and the firms are emerging with equal opportunities. According to my opinion, the world is flat. During the last few years, I have observed many small organizations, which expanded rapidly in the international markets. From retail chains to manufacturing and firms, there are several organizations, which have enhanced the competitive positioning and sustainable competitive advantage in global markets. It depends on the technology, strategies, opportunities, and exploitations, which makes the world flat, and it seems quite visible in recent years. Even in the developing countries, many firms are emerging in the global markets due to expand opportunities.
For Instance, informing has become the prominent factor, which made the world flat. A billion people are having inflation from different search engines about different things. It seems an effective flow of information and knowledge, which levels the planet. Moreover, uploading is also a powerful source to make the world flat. For example, many firms do not have the capital or financial assistance to expand in different countries. However, due to uploading, they are providing services online for international clients. The pertinent example is the intention of Chinese firms in different countries to contain mergers and acquisitions to work horizontally. In the global supply chain, companies can work together for better resource allocations, equal distribution of profit, low labor cost, and mutual benefits. The example of Toyota, a top automobile manufacturer in the world, is pertinent, as it has successfully expanded its operations in China in the presence of low-cost automobile makers. The company had space in this country and emerged in the competitive automobile market. Obviously, it is due to the global supply chaining and in sourcing. Working with the low-cost labor in China has helped this company reduce the production cost and produce the high-quality vehicle (Nakamura).
Thomas Freidman only considers the globalization and competitive advantage, and it seems a big drawback. However, in many developing countries like India and China, there are many firms, which have strengthened their position in the domestic region. The company can also gain the competitive advantage through localization, as suppliers, vendors, employees, and customers can be in the domestic regions. It does not make the world flat, as there can be the big strategic difference, as far as opportunities for expansion and competitive advantage is concerned (Agrawal).
Another argument, which is related to the send drawback, is the leadership traits of different organizations. Different leadership traits cannot make the world flat in term so globalization. First, ten forces that have flattened the world, are not enough to make the earth flat, and leadership to direct a global firm is necessary. For example, in China, many firms contain the autocratic culture in the company, as usually there is not a culture of work delegation and participative decision-making process. On the other hand, when it comes to the western work culture, the management practices the democratic culture with an exceptional work delegation and decision-making process. Thus, it seems tough for a Chinese firm to expand in these countries along with a competitive advantage. Interestingly, many western firms to save the labor cost emerge in China to make profitability. Thus, it is to mention that the world cannot be flattened due to these differences (Ryan, Reeder and Golubovich 441).
Supply-chaining is the most important flatter for me, as it has helped companies around the globe to streamline sales, distributions, and shipping. In this dynamic business environment, supply chaining has been emerged a big tends for companies, especially retail chains, to get the products in the limelight in different countries. The example of Wal-Mart depicts the streamlining of these aspects of supply chaining. The company has expanded in several countries, and due to effective supply chain strategies, it has a successful distribution or placement. When the company expands in the country, it focuses on the concentrated global suppliers (Guillotin and Mangematin 343). Of course, to interact with suppliers, the company management intends to use technology for this particular streamline process.
The company is operating with the purpose of customer access, and supply chaining is a powerful source to reach the target customers. Also, the company is considering the technology and its interrogation as a big measure for effective placement of products and services. It is a fact that the company is using the electronic data interchange in the supply chain management process. Through technology, the supply chaining is quite triggered, and it helps the company keep the cost of the process and prayers low in the industry. Therefore, when emerging in the global market, the company’s approach to streamlining the process seems lucrative (Robinson).
In the end, it is to conclude that business needs an effective globalization strategy to gain and sustain the competitive advantage. However, Thomas Freidman’s opinion about the world should be the main consideration of the company management. Interestingly, all flatters are not to be adopted by a single firm, due to the difference in the business and work process. However, to gain the success, the management has to pick up some of these flatters to emerge in a flattened world, which has been perceived by Thomas Freidman. It has become a need of the company, as opportunities must be exploited effectively.
Work Cited
Agrawal, AJ. “Why Every Marketer Should Read ‘The World Is Flat’.” Forbes. Forbes, 7 January 2016. Web. 6 February 2018. https://www.forbes.com/sites/ajagrawal/2016/01/07/why-every-marketer-should-read-the-world-is-flat/ .
Guillotin, Bertrand and Vincent Mangematin. “Internationalization Strategies of Business Schools: How Flat Is the World?” Thunderbird International Business Review; Hoboken 57.5 (2015): 343.
Nakamura, Yu. “Honda, Toyota post over 11% jump in China sales.” Asian Review. Asian Review, 3 August 2017. Web. 6 February 2018. https://asia.nikkei.com/Business/Trends/Honda-Toyota-post-over-11-jump-in-China-sales.
Robinson, Adam. “Walmart: 3 Keys to Successful Supply Chain Management any Business Can Follow.” Cerasis. Cerasis, 13 May 2015. Web. 6 February 2018. http://cerasis.com/2015/05/13/supply-chain-management/.
Ryan, Ann Marie, et al. “Culture and Testing Practices: Is the World Flat?” Applied Psychology; Oxford 66.3 (2017): 434-467.
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