Introduction
In the current era of globalisation, when organizations are looking for the best resources and potential business opportunities around the globe, the impact that it can have on its business operations is an important factor. The impact of globalisation on the various business operations is discussed in this study. The impact is found to be in the form of increased competition, better distribution opportunities, access to cheap labour, increased contribution to pollution, increased employment in developing countries and more need for technology adaptation. Thus, whether negative or positive, the impact of globalisation on business operations is evident.
Globalisation
The term Globalisation refers to the interaction among people around the globe. Normally, people consider that Globalisation means sharing of markets and money in different regions. However, the broad definition of this term is the interaction of countries, states, and people. Different people, for some purposes, share different ideas and cultural values, and it enhances the visibility of interactions. With the perspective of a business, the share of goods and services, economic resources, data, and technology is Globalisation (Mahmutovic et al., 2014).
The international trade of goods and services is a depiction of Globalisation. If the management aims to run a global business, it may shift the employment in developing countries. Interestingly, despite having immense benefits for developed companies, the developing countries got more benefits from Globalisation with the increased flow of money due to the increase in the employment rate and increased distribution of goods and service. Globalisation also enables the socio-cultural integration. In short, the social-cultural integration of both business and people is globalisation (Vahlne & Ivarsson, 2014).
Impact of Globalisation on business operations
Business Expansion
Business expansion is a prominent part of the business operations, and any management usually looks forward to expanding in different markets. When the management makes the strategy to expand the business, it must have to navigate through different markets. Navigating in the market size before entering into the international market helps to shape the operational strategies. The first impact that the business operation have is the change in operational strategies, which can be done through the global business trends. For Instance, if an organization emerges in an international market, the most important thing is to conduct the change in operations to come up with things according to the needed requirements of expansion (Vahlne & Ivarsson, 2014).
Rise in the Competition
In the modern business era, the biggest benefit of Globalisation is evident with the rise in the competition. Due to rise in the competition, every organization intends to increase the quality and standard of international markets. Obviously, it has a direct impact on the different business operations, as the operational management focuses on efficiency, quality measures, and productivity. To compete with the big competitors, the improvements in operations are necessary, as it leads towards operational and business sustainability (Bayraktar & Oly Ndubisi, 2014).
Technology
In the competitive business era, it has been revealed that the companies are required to adopt the modern technology to make the operational process pertinent and gain a competitive advantage for a long run. It is a fact that the technology enables sustainable competitive advantage, and interestingly, it is quite triggered by the Globalisation. When emerging in new markets and working with different organizations the management of the company makes changes in the operations through the exchange of the technology. Through transforming the technology, the company starts operating differently. Especially in the production department, the firm exchanges the technology or adopts the new one according to the competitive actions, and it has a direct impact on quality, standards, change, and improvements (Cheng et al., 2015).
Knowledge, Data or Information
Interestingly, it has been revealed that the way of doing business is different in globalisation, and accordingly, globalisation creates the impact different too. For Instance, if an organization operates in the international market, depending on knowledge, data, or information, it usually changes the operational strategy. In today’s business environment, due to technological revolutions, exchange of knowledge or information is easy for companies. Based on the knowledge, the operational integration with the changing global trends becomes visible (Mahmutovic et al., 2014).
Relative to the different business operations such as production, logistics, sales, distributions, decision making and warehousing, the management has to collaborate with different stakeholder, working in different regions. Operations aren’t to be controlled from a single location, as these operations can be controlled through several interventions, which bring the rapidness, effectiveness, and efficiency (Vahlne & Ivarsson, 2014).
Marketing Operations
The moderate impact of Globalisation is the difference in the marketing strategies. Of course, for the local market, the company can keep things simple to position better in the minds of customers. However, when competing in the global markets, the marketing strategy or plan gets more complicated to attract the immense range of customers. In each country, the company has to integrate with different cultural values to enhance the attraction. Accordingly, the marketing operations can be altered to integrate with the trends, as far as the customers, markets and competitors are concerned (Bayraktar & Oly Ndubisi, 2014).
Deriving more insight from marketing operations in the global business, usually, companies contain less expensive marketing strategies. For Instance, instead of focusing on traditional media channels; social media integrations can be the best approach to operate in the market. It can be said that Globalisation has changed the market operations. Customized marketing operations are well received in the global markets, which facilitates the expansions, sales and customer response (Cheng et al., 2015).
Distributions Operations
The company needs a reasonable environment for distribution operations, and these operations get different due to Globalisation. In the global business, the management may have different ways of storing and supplying the products. The impact of Globalisation on distribution process is positive, as the company can have options in several countries to reach the global customers in no time (Vahlne & Ivarsson, 2014).
Negativity in Operations
Relative to the negative impact on the operation, it has been evident that the immense expansions of industries in different countries cause the pollution, which makes the operations of the company controversial. To save the cost of operations and expansions, the company often uses the traditional ways, which disrupts operations. For Instance, the Globalisation is increasing the number of industries in both, urban and rural areas, and it increases the contributions in the global warming. In additions, companies focus on low-cost labour in the global business, which increases the unemployment rate in the developed countries. Thus, Globalisation also creates an impact on the human resource operation (Cheng et al., 2015).
Conclusion
In the end, it can be concluded that Globalisation creates both positive and negative impact on business operations. Production, supply chain, logistics, human resources, expansions, and human resource are prominent operations, which can be changed. In this particular study, the effect of globalisation on mentioned particular business operations has been discussed. When a company intends to initiate its global business, the change management seems essential to have a positive impact. Therefore, the impact on business operations in the form of increased employment, better distribution operations options, and access to cheap labour and resources cannot refrain. On the other hand, negative impacts of globalisation are not so much comparatively. The most important thing is to mould the business operations, according to the global trends to gain and sustain the success for a long run. Some appropriate administrative strategies can be effective to make the global operations successful and lucrative.
References
Bayraktar, A. & Oly Ndubisi, N., 2014. The role of organizational mindfulness in firms’ globalization and global market performance. Journal of Research in Marketing and Entrepreneurship, 16(1), pp.26-46.
Cheng, Y., Johansen, J. & Hu, H., 2015. Exploring the interaction between R&D and production in their globalisation. International Journal of Operations & Production Management, 35(5), pp.782-816.
Mahmutovic, H., Hadziahmetovic, A. & Talovic, S., 2014. Globalization Opportunities and Their Implications on Business Operations and Competitiveness of Companies in Bosnia and Herzegovina. Asian Economic and Financial Review, 4(11), pp.1638-52.
Vahlne, J.-e. & Ivarsson, I., 2014. The globalization of Swedish MNEs: Empirical evidence and theoretical explanations. Journal of International Business Studies, 45(3), pp.227-47.
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