Globalization is basically the operation, integration, and competitiveness of organizations in the economy on a worldwide scale. Rather than being nationally confined, the activities of these organizations are more self-governing. Globalization affects the nature of business ethics and social obligations. As large organizations embrace a more global viewpoint, it shall have an important impact on the wider setting of organizational behavior and management (Mulling and Christy, 2013: 22). Globalization has been made possible by various factors.
The first factor is the improvement of technology when it comes to telecommunication and transportation. In the past, it was not possible for individuals from all over the world to interact and communicate without facing difficulties. Today, a text message, phone, or a video conference call can be used easily for people to communicate with each other. Apart from that, anyone who has the funds could book a flight and get to any destination in just a couple of hours. The second factor is the movement of capital and people.
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The increase in transportation technology, opportunities, and awareness has enabled individuals to ravel around the world in order to look for a new Job, a new home, or to escape from a place that is of danger. Most migrations take place in countries that are developing as lower living standards and lesser wages drive people to move to places where there is a higher chance of economic improvement. Capital on the other hand, is transferred electronically on a global scale and this leads to an increase in opportunities for investment.
Due to the vast room for growth, investors often place their capital in developing countries. The next factor is the spreading out of knowledge. It does not remain a secret for Eng when a new way of doing something or a new invention comes up. An example of this is the arrival of automotive machines used for farming in Southeast Asia, where they used manual agricultural labor for a long time. The last factor is the existence of non-governmental organizations (Nags) and multinational corporations.
Since the awareness of certain issues has increased globally, the numbers of organizations that are aimed to deal with them have increased as well. These non-governmental organizations bring individuals that are not affiliated with the government and enable a national or global focus. As all the Mounties are interconnected through the increase in transportation and communication, they form a ‘market’. This means that a certain population represents more individuals to purchase a certain service or product.
As more markets open up, individuals from all over the world come together to create multinational corporations so that they have access to these new markets. Apart from that, businesses are getting globalizes as foreign workers compared to domestic workers can do certain Jobs for a much lesser cost. This is referred to as outsourcing. Globalization eases borders as they become less significant since countries depend n each other to flourish (Sties, 2014). Three types of strategies have been used by organizations in order to become global which is the multinational, global, and global strategy (Harding, 2002).
In organizations that adopt the multinational strategy, they compete on a national level that adapts to the policies and products of the local markets. According to this strategy, organizations invest away from their national platform (Chattels, 2000) but carry out their activities according to the local markets of different countries. These organizations are labeled as a regionalisms network with comparatively self-governed rims attending local markets (Harding, 2002). In the global strategy, organizations provide, source, access knowledge and sell around the world.
The products are custom-made for the world market. These organizations pursue the economies of scale and scope, and carry out their activities as if the world were a single entity (Sevenths, 2001 : 7). This shows that there is an emphasis on the standardization of activities in markets globally (Sevenths, 2001 ; Lloyd, 1996). The global strategy is built on a balance between adoption and standardization of activities in the local markets. Therefore this strategy is a combination of the local, multinational, and global approach.
Globalization is a good basis to new organizational paths in order to reach world markets. These world markets are built on organizations that attend the regional, multiple domestic, and global markets (Sevenths, 2001 ; Reversions, 1997). Nikkei brings together many parts of the world. Nine’s headquarters and most of its research are conducted in Beaverton, Oregon, which is in the USA. The rubber that is used for its trainers is from Indonesia and Malaysia, and the cotton used is from India, Turkey, and the USA.
Its products are produced in China, Indonesia, Pakistan, Vietnam, and the Philippines, as the cost of labor is cheaper there. Most of Nine’s factories are situated in South East Asia due to the fact that labor is cheap, every country that is involved offers numerous governmental incentives so that Nikkei chooses them over other countries, the countries are situated closely together which reduces the cost of transportation, raw materials are cultivated in these countries, and products can be shipped between these countries without encountering costs for import and export as they are in a trade bloc (Hubcap’s, 2013).
McDonald’s was formed in San Bernardino, California, in 1940 and currently operates in 119 countries all over the world, with more than 33,500 stores. Its main impact on these countries is that it has introduced the Western culture. McDonald’s was introduced in America and has spread worldwide and in this, brought new diets that were not seen formerly in other countries. When another culture in introduced, it could lead to the loss of certain traditions. For McDonald’s, the fast food introduction caused the decline of traditional food. Nevertheless, McDonald’s takes national tastes into consideration.
This process is called Globalization (Phoebe, 2013). For example, beef is not served in India as the cow is considered as a sacred animal and vegetarian options are made available as a large number or the citizens are vegetarians. Coca-cola started globalization in the early sass’s and started forming plants and relationships throughout the world. Local partnerships and branches started distributing and producing signature Coca-cola products that were recognized worldwide. In order to globalize the company successfully, Coca-cola’s strategies of marketing played an important part.
Their marketing strategies included well-known lagans of advertisement and memorable tunes. Apart from their efforts of advertisement, Coca-cola is the commercial sponsor of various sporting events such as the Olympic Games, the International Federation of Association Football (FIFE), National Basketball Association (NAB), and the Cricket World Cup (Sailor Foundation, 2012). Globalization has benefited the world in various ways. Firstly it has accelerated the growth of the economy and increased living standards.
Apart from that, globalization has increased the income and offered more choices of services and products that lowered in price. Furthermore, it leads to an increase in wages and employment, and aids in improving the conditions of work and defends the rights of the workers (Patterson and Weidman, 2001). For example, in Nikkei, over 800 factories in 50 countries employ 600,000 workers. The manufacturing process aids in the economic and social development of countries through the transferring of technology, skills, and the increase in wages. This leads to improvement in the standards of living.
Also, Nikkei provides better communications and infrastructure and creates a workforce that is skilled and experienced. This leads o other countries investing in the country (Hubcap’s, 2013). McDonald’s on the other hand has formed charities that offer support and help to families that had sick children. With the money that was collected, they managed to make 400 rooms for these families for every night throughout the year. McDonald’s also hires more than 1. 7 million employees, trains them and offer them an opportunity to gain qualifications up till their foundation degrees.
Lastly, McDonald’s reduces their impact to the environment by recycling all the cardboard they use in their packaging and by collecting and reusing their cooking oil as bio-diesel to be seed as power for the McDonald’s Delivery fleet (Phoebe, 2013). However, globalization also has its disadvantages. It brings about poverty and financial crisis due to corporate greed and leads to the widening of the income gap globally. Apart from that, developed countries tend to ship Jobs overseas to factories that provide low wages and deprived work conditions, abusing the rights of workers.
Lastly, in the quest of achieving corporate profit, local environments tend to be exploited (Patterson and Weidman, 2001). For example, when Nikkei shifted away from Jakarta in Indonesia, it brought about a gig rate of unemployment and a decrease in living standards due to the fact that Jakarta had become dependent economically on Nikkei. This relocation also affected small local companies that relied on the employers of Nikkei to use the services they provided or to buy their products and also farmers who relied on Nikkei to purchase their raw materials.
Apart from that, Nikkei has been blamed of forcing their workers to work long hours and hiring children in their workforce, which exploited the safety and health regulations (Hubcap’s, 2013). As for McDonald’s, its expansion has led to a rise in the rate of obesity in various Mounties due to the promotion of its fast food’ culture. Accusations were also made that swear shop labor was practiced in the McDonald’s factories that created ‘Happy Meal’ toys in Sheehan.
McDonald’s has also allegedly used Soya beans that grew in deforested areas that were illegal, as food for the chickens that were served as Chicken Nuggets (Phoebe, 2013). The last example is the Coca-Cola company. Numerous countries have banned Coca- Cola products as they were claimed to threaten the health of the public and to encourage obesity. Apart from that, the Coca-Cola company has received several Barbour practice suits, being accused of having child labor sweatshops and discriminating when it came to providing workers with health care benefits (Sailor Foundation, 2012).