Globalization with new value migration (more financially effective business design) has starts up more gates to opportunities. The literature review is cracked into 5 parts: Firstly scheduled to globalization, there will be restructuring in income resulting in more customer connections/segments restructure. With better segmenting ability and new business models, new opportunities can be drive on and unique requirements be achieved. Secondly, extension of section requires customization for every new market and effective management includes managing between custom proportion and business design portion to get right combination of response rate/cost composition. Thirdly, increasing development at base section leads to business owners providing low-cost design, but eventually high success will attract them to premium segment. High grade players will counter invasion by also providing new low cost business design. Company must defend against market takeover which creates lead increased competition/risk. Fourthly, redefining innovation is important to produce high impact success activities. There must be balance in investment in innovation beyond product/processes that create worth for traders/customers like alliance and global talent sourcing. Finally, unique information string that connects customer to creativity is important for organization to create proprietary information to gain head begin by deploying its unique information/software system. To end off, there should be risk management system to react to new waves of trend/risk.
Globalization is unavoidable, ever-changing, form competition and waits for no one. In such a technology-fueled global environment, businesses must stay forward these trends to stay competitive. I wish to have better knowledge of Globalization as it's the stepping natural stone for International Business giving rise to international commercial transactions.
Positive Areas of this article: Slywotzky et al (2006) recognizes the significance of experiencing appropriate business models due to consumer pressure and income restructuring induced by globalization. I concur that when operating overseas, global competitive strategy must be followed for different foreign conditions. Daniels et al (2011) support this and evaluates that organization will need to have different market replies to become global to be competitive, response to international opportunities and learn from one another. Hence, altering business models by committing on R&D, source worldwide to work more proficiently in technology/products is vital to meet the demand of global customers. Example: To gain global emphasis, two Brazilian organizations alter business design and merge to create BRF-Brazil. Slywotzky et al (2006) also provided reason that globalization will drive business to be progressive in creating its proprietary information for success. Daniels et al (2011) and Davis et al (2007) concur by saying that international companies will be the source for domestic companies to stay innovative and create own unique business models. Globalization supplies the stepping natural stone for multinational ventures because of technology growth, liberalization of cross-trade, increase demand in overseas product and chance for global assistance. Example: Foreign firm provides in new technology and better skilled employees. Also, increasing international competition will generate local firms to include skilled workers to take care of new technology. This will help companies to explore innovative means of more efficient production which lower cost and increase development. Pursing international sales usually increase potential market segments, helps acquire resources at less expensive, better/new products and extra operating knowledge to gain competitive advantage. These really helps to build better global branding resulting in more profit as a consequence to higher exports demanded.
Negative Aspects of this article: Slywotzky et al (2006) comment that globalization has induced far better low-cost business design, more customer relationships and segments which organization can exploit. But I feel that article fails to cover many negative pitfalls like communal and environmental problems. Kumenit (2008) and Daniels et al (2011) dispute that low cost strategy brings about negative effects and income/income disproportionate. Recent shift in manufacturing job from US to China has help China to increase faster and reduced US real wage growth. We see that in US's garment industry, where it is cheaper to create in China. This would imply a mass migration of work and many People in america would be jobless. Globalization in this sense is good for business as they can capitalize on cheaper labor, but bad for US citizens especially if they may be lowly skilled. Those lowly skilled will be jammed in underground economy leading to politics instability which undermine international trade/investment. In growing countries, globalization/multinational investment causes environmental degradation and generates pressure for cheaper labour to sustain competitiveness. Hence, it erodes prices of cultural justice and increase inequalities. Small companies in developing areas will face intricacy in taking benefit of globalization and poverty persists. Global restructuring also significantly affects rights of employees in growing countries. Example: Development of China as a world factory due to its cheap labour is causing staff member suicides problem. Because of poor working condition/low salary, emotional health of China's migrant staff is on the down toll. Nine employee fatalities at global gadgets company Foxconn, Apple's main distributor of iPhones discovered some harsh communal aspects (The Straits Times, 2010).
In order to enjoy the full advantages of globalization, organization will need to have the right global business design, global procedure strategy, global concentrate, customization, organizational framework, customer connection activities, development, proprietary information and risk management system in place. Though there are viewpoints on optimizing its benefits, the article failed to explore issues in relation to human protection under the law, environmental matters, political instability and inequalities. These are common global concerns that have to be respected and since international business ventures have link with these concerns, it is crucial for laws of international business trades have to be able to promote guidelines to modify global concerns which will in turn profit businesses.