Globalization And Its Impact On Apex Service Limited

Benefits of Globalization

Examine and apply critical issues related to business and management context.

The globalization is a massive phenomenon that has gripped the whole world. The globalization can be regarded as the free flow movement of the goods, people and service across the world in a major seamless manner (Baylis, Owens & Smith, 2017). There has been major opening of the global economies as increased trade between the multiple nations. The countries are increasingly liberating the import protocols as well as welcoming the various foreign investments. The countries are attracting a large amount of the global capital and the productive sector is ready to do export related activities (Baylis, Owens & Smith, 2017). The globalization is inclusive of all the sectors of politics, life, technology, education and others. The multinational companies are said to own a significant chunk of the world capital and hence they are considered as the major players of the global economy. The selected organization for the purpose of study is Apex Service Limited and the effect of globalization with respect to this organization would be determined.

As opined by Hirst, Thompson and Bromley (2015), the globalization has become extremely popular concept in the social sciences and the management spheres. A truly global economy is emerging in which there are distinct national economies. The cross-border boundaries are diminishing in a rapid manner and hence there is greater promotion of trade and commerce (Baylis, Owens & Smith, 2017). The phenomenon of globalization is embedded in the competitive advantage theory so that the better efficient countries can export particular goods to countries that are not so efficient. The underlying assumption behind this principle is that not all the countries are experts in producing goods of all kinds and hence they can improve this situation by mutual trading with each other (Beck, 2015). There are different wage differentials and hence the countries benefit a lot by trading with each other. Globalization ensures that the countries of the world adhere to the rules of WTO or World Trade Organization and they oversee the terms as well as conditions with different countries (Baylis, Owens & Smith, 2017). There are several other regulatory bodies such as UN in which the countries agree to different policies of free trade (Crane & Matten, 2016). The effects of globalization can be seen across all the sectors and across all the industries. The World Economic Forum gives alternatives to the country for effectively interacting with each other on a regular basis.

Challenges of Globalization

The benefits of globalization can be analyzed by very industry and hence it is proved that globalization do have many benefits. The concerned factor would ensure that the Apex Services would excel in their operational processes. Some of the important benefits of globalization are listed below-

• International development- Apex should engage in globalization as it would lead to greater business development. The globalization would ensure that there would be expanded markets for the company (Stromquist & Monkman, 2014). It would be able to sell its products to a wide variety of audiences located in distant geographical bases. This would help the company to improve its profitability.
• Cheap resources- The company would be able to source the raw materials at a much cheaper rate. This is due to the reason that local resources would be used for the purpose of business functioning (Ferraro & Briody, 2017). Along with the raw materials, local talent would be used to handle the local business operations.
• Cross-cultural awareness- The company would have greater cross-cultural awareness, which would lead to greater business prosperity. The amalgamation of the goodness of each culture of the world would imply that there would be more business success (Baylis, Owens & Smith, 2017). This would also be reflected in the better achievement of the organizational goals as there would be more talented workforce.
• Better market opportunities- One of the most important benefits of the globalization is the better access to the international markets. The company can venture in profitable markets so that they can gain lucrative customer pool (Hay, & Marsh, 2016). There are many lucrative regions in the world, which provides tremendous growth opportunities. For example, the markets of South East Asia such as India and China pose huge growth potential where the company would have huge profits (Baylis, Owens & Smith, 2017). The company should engage in proper market research wherein they should scan the markets in which the companies would get highest profit.

Globalization is a major exchange of ideas, cultural traits and products, which leads to integration of people. However, the businesses need to modify their existing business structures in a way that becomes convenient or doing business (Baylis, Owens & Smith, 2017). When the business opens its foreign branches, then they have to either set up new organization structure at the new or they modify and use the existing organizational structure (Benería, Berik & Floro, 2015). There would be changes in the production process in the new domain, which should be properly planned. The customers should be able to receive the products at timely manner; hence it is important to give attention to the supply chain mechanisms too (Hay, & Marsh, 2016). In the new market, it is important to implement smooth supply chain channels so that the delivery of goods to the customers becomes a hassle-free process (Amin, 2014). The company should also give attention to the already existing companies in the foreign market. There are bound to be stiff competition between the existing market plans in the foreign location and hence the company needs to make sufficient plans for that. The new locations would have adequate number of local players and the company should handle this issue by giving more attention to quality, customer service and price (Hay, & Marsh, 2016). It is also important for the company to adopt technological innovation where the company would have advantage in giving unique services to the customers.

Globalization also have potential challenges when it comes to the actual implementation of the process (Hay, & Marsh, 2016). When the company is venturing into new geographical domains, there are bound to be some difficulties. Some of the potential globalization challenges are outlined below-

• When the companies become global, then there is a potential change in the customer expectations (Caprar et al., 2015). They expect that the products would be better and superior. They also expect that the company should engage in corporate social activities in which they would work for the betterment of the society.
• Higher instances of data breach in the global market sphere would lead to additional challenges for the company (Spiekermann & Novotny, 2015). In this world of technological knowhow, there is loss of confidential and vital information. This may happen through one channel or multiple channels.
• The globalization often leads to improper moral standards and maintaining of the domestic ethical standards becomes difficult (Lerch, 2017). There may be difficulties for the companies to maintain the same ethical and legal practices as was originally maintained by the parent company (Caprar et al., 2015). This may lead to severe consequences for the company and there may be legal action against it.

It is important to solve the issues of globalization so that the company can gain smooth process controls. It should aim to enhance the products so that the customer expectations are being met. The company should try to add additional features and benefits for the clients so that they are satisfied with the service. This should be followed by the higher data security where the processes of the company would be secured and the intruders would be prevented from gaining access to the confidential data. It is also important to install sufficient number of firewalls that would filter the amount of information given to the external third parties. The company should aim high in maintaining the high moral standards and should not engage in any kinds of unethical practices. It should formulate ethical business policies in the new geographical domain, which would be helpful in gaining new customers as well as retaining the old ones.

Conclusion

The globalization of the existing firms is a positive process and the firms should embrace it in a whole-hearted manner. It leads to greater business prospects as the products of the company are being exposed to new customers. The companies enjoy greater market demands as the companies venture into new market segments. The globalization is responsible for delivering the products of the company to new territories, which may prove lucrative for the company.  However, the company should not ignore the negative consequences of globalization as well. The different consequences of globalization such as data breach, enhanced data quality and the ethical way of conducting business should be well identified by the company.

References

Amin, S. (2014). Capitalism in the age of globalization: The management of contemporary society. Zed Books Ltd..

Baylis, J., Owens, P., & Smith, S. (Eds.). (2017). The globalization of world politics: An introduction to international relations. Oxford University Press.

Beck, U. (2015). What is globalization?. John Wiley & Sons.

Benería, L., Berik, G., & Floro, M. (2015). Gender, development and globalization: economics as if all people mattered. Routledge.

Caprar, D. V., Devinney, T. M., Kirkman, B. L., & Caligiuri, P. (2015). Conceptualizing and measuring culture in international business and management: From challenges to potential solutions.

Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Ferraro, G. P., & Briody, E. K. (2017). The cultural dimension of global business. Taylor & Francis.

Hay, C., & Marsh, D. (Eds.). (2016). Demystifying globalization. Springer.

Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.

Lerch, M. (Ed.). (2017). Challenges of Globalization: New Trends in International Politics and Society. Routledge.

Spiekermann, S., & Novotny, A. (2015). A vision for global privacy bridges: technical and legal measures for international data markets. Computer Law & Security Review, 31(2), 181-200.

Stromquist, N. P., & Monkman, K. (2014). Defining globalization and assessing its implications for knowledge and education, revisited. Globalization and education: Integration and contestation across cultures, 1