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Globalization can be explained as process of taking operations of the company to the international level. The concept of globalization also can be explained as developing influence on an international level. In process of globalization, organizations start operations on an international level. Main purpose of globalization is to increase the reach of organization to large population and increasing operating profit of company. This study will be providing overview of challenges that are faced by organization in process of taking their business to the international level. Various challenges of globalization will be analysed in report and appropriate solutions for specific issue. This process can help organizations to make the process of globalization error-free and successful for companies.
Globalization is most important for business organization and it can be used by organization to develop their business operations at the international level. Globalization process can help company to get access to new culture and improve technological process that is used by the company in internal operations. Internationalization can reduce the operational cost of company. Organization also can get access to new population and new markets that can help the company to gain more profit in business operations(O’Rourke, 2019). Availability of raw material and raw material also can be improved by the process of globalization process. Globalization process also can help company to perform talent management and employee management. There are different benefits of globalization for business organization but process of globalization could be challenging for them. Organization must consider the challenges of globalization at planning stage to make globalization of organization successful. Major challenges that are faced by organization are- It is challenging to design structure of company for global operation, this is also difficult for the organization to adhere to laws and other business regulations of different country, this is also difficult for the organization to manage competitive performance with globalization, and management of supply chain is also difficult part of globalization. This is most important for organization to consider these issues in the business planning process to avoid difficulties and errors in the business operations.
In process of globalization, structure of company can play important role. Organizational structure is important for organization in different ways. Effective organization structure on global level can be helpful for organization to perform various operations with higher efficiency. On international level, it is highly difficult for organization to perform business operations with accuracy and precision. Effective organization structure can help company to manage business operations effectively. Challenges related to organization structure that must be considered before globalization process are- Poor communication, lack of employee engagement, lack of clearance in reporting process, business expansion, lack of control over operations and power delegation. These are major challenges related to organization that are faced by organization in process of globalization. On international level, this is most challenging for organization have better control on business operations(Blattner, 2019). With process of globalization, the company needs to develop effective structure to manage all business operations effectively. Organization structure and locations of the organization teams can lead to success of organization in target market. This is complex procedure for company to handle all business from a central location.
Central management process can affect the performance of organization at both local and international level. For this challenge, organization can make effective changes in the structure of company to manage business operations on international locations. For example, local management teams can be developed on ground level to get better overview of business operations. For effective operations on global level, this is important for organization to develop multinational organization structure. This multinational organization structure can provide capability to the company to avoid challenges in business operations. For example, Coca Cola is using most effective structure in international business operations. In this structure, one international president guide and control presidents of different other countries. This approach is effective to maintain performance level of company on global level and avoid operational failure on global level.
Issues related to information communication are most challenging for organization. Effective communication is required to perform business operations effectively. Better communication can help organization to prevent errors and major operational failure on global level. In the international business operation, this is challenging for organization to make decision-making process effective. All the challenges related to global business operations can be resolved by developing effective communication system for company. In this process, private network can be used by company to perform internal communication. Password protected communication network can be used by company to setup effective communication platform on global level. This process also can help organization to maintain communication between headquarter of company and other branches of company. With effective communication, higher operational efficiency can be obtained, better communication is also important meet employee engagement standard(Islamiyah, 2021). Private organization network can be helpful for organization to improve conflict management process to avoid major conflicts at the workplace. To resolve other issues related to business operations organization can use divisional structure to focus on effective management of business operations and develop more centralised leadership to avoid conflicts in business operations. This is how challenges related to the organisational structure can be resolved for globalization process.
For a business organization, this is most important to consider international business laws to keep their operations effective in different countries. All countries have different legal regulations and legislations for business organizations. These laws must be followed by the company to keep their operations legal and continue on global level. Local laws must be considered by the organization in business operations(Tung, 2021). This is not possible for the company to perform business operations effectively without adhering to local laws. This is challenging for organization to make successful implementation of legal laws in business operations. Sometimes it is most difficult for the organization to understand legal laws and regulations of company.
There are some laws are defined by the legal authority of country to regulate the operations of different business organizations. These laws must be followed by the organization to keep their operations legal and regular in the country. For example, major laws that must be considered by the business organization in countries are- employment laws, health and safety at workplace act, equality act, intellectual property law, minimum wage act, and consumer laws. These are major legislations must be considered by organization to perform their business operations effectively. For global business expansion, this is important for management of company to consider legal aspects to perform globalization. Some processes and methods can be used by the organization to resolve legal issues in globalization process. To adhere to legal issues it is important to develop effective system and process to implement legal laws in globalization process. In this process, international human resource management of organization can play crucial role to consider various legislations in globalization.
This is how various processes and methods can be used by the organization to resolve legal issues related to the globalization process.For the process of globalization, organization also can consider latest updates in legislation to keep their operations and processes according to law. All these aspects can be used by the organization to avoid challenges in the globalization process.In multinational business operation, this is challenging for company to work as per regulations and legislations of local legal system and develop balance with global operations of organization(Jamagidze, 2020). This is complex process for company to adhere laws of different nations with their international business strategy. To resolve this issue, organization can develop multiple teams in different country to understand the laws of these countries to manage business operations and business strategies. This approach can be helpful for organization to avoid legal challenges in business operations. This is how legal challenges are most crucial for business organization in process of globalization.
Other challenges that are related to the globalization process are related to increased competition level. With globalization process, business organizations enter in global market which is consists of many companies that are operating in same industry. This is challenging for company to manage competitive performance in different countries. In globalization, process organization have to deal with different local and internal organization in market place. It is challenging for company to enter new market which is full of competitors(Rossi, 2020). To manage performance of organization on global level company needs to improve operational standards to maintain performance in market place. Some of major challenges that are faced by organization due to higher competitive market are- This is highly difficult for organization to develop effective competitive strategy to maintain performance in market place. Ineffective and basic competitive strategies can lead to major failure of organization in target market. In process of strategy development process, organization needs to consider internal and external factors of organization in different countries to manage competitive positioning in market place.
This is highly challenging for company to develop business strategy of organization on both global and local level. This challenge can be resolved by organization through developing global vision and mission for organization that can cab be considered by company to develop better image on international level. On local level, management of organization can develop effective strategy as per the business environment of the company. This approach can help the company to avoid business failure in different countries.Quality related challenges are also associated with challenges of higher competition. This is important for the company to manage quality standards to develop effective customer base in country(Eleodor, 2018). Quality of goods and services is also based on availability of goods and services. This is difficult for organization to maintain quality of their products and services with limited availability of raw material and resources. In this case, appropriate changes can be made in the company products and services as per availability of raw materials to maintain competitive position in target market.
Most common challenge that is faced by an organization with globalization process is related to management of supply chain on global level. Before global business expansion, this is important for company to develop and design framework of global supply chain network to avoid challenges of supply chain management process. This challenge is directly related to performance of organization and satisfaction level of employees. Major challenges that are related to the supply chain management process of organization are- with global operations, supply chain management process becomes more complex for company. This is highly challenging process for organization to handle supply chain process effectively. For example, delay in delivery, slow delivery average, complex, and slow cash flow, poor data management, exposure to risk, accountability of appliances, quality management challenges, language barriers, time zones and exchange rate and foreign transactions costs.
These are major challenges that are associated with the management of supply chain processes on global level(Vlasov, 2017). These challenges must be considered by the organization to avoid failures in business operations. Most of challenges relate to delays and slow delivery can be resolved by developing local hubs in different countries. These hubs can help the organization manage supply chain operations in different countries. Integration of supply chain management system with information system of company can help organization to reduce challenges related to data management processes. End to end encryption and block chain technique can be used to improve the reliability of supply chain system. Proper channels of supply chain can be managed to avoid issues related to supply chain process. This is how different processes and methods can be used by company to avoid challenges related to supply chain operations at global level.
This report is concluding information about challenges that are related to globalization of business operations. Importance of globalization has been analysed in report to evaluate its benefits for business organization. Challenges related to adhering to legislation and regulation of different countries also have been analysed in report. Challenges related to the organization structure also has been analysed in report to analyse their impact on business operations of organization on global level. Various solutions also have been evaluated in study to resolve issues related to organization structure with global business operations. Challenges related to supply chain management and competitive market also has been discussed in study to provide better solutions to maintain competitive performance of company in target market.
Books and Journals
Blattner, C.E., 2019. Protecting animals within and across borders: Extraterritorial jurisdiction and the challenges of globalization. Oxford University Press.
Eleodor, M.A., 2018. CONTEMPORARY BANKING SYSTEMS: THE CHALLENGES OF GLOBALIZATION. Annals of'Constantin Brancusi'University of Targu-Jiu. Economy Series, (3).
Islamiyah, U.H., 2021. Islamic Education Responds to The Challenges of Globalization. Islam Universalia, 2(3).
Jamagidze, L., 2020. Trade performance and policy challenges under globalization 4.0.
O’Rourke, K.H., 2019. Economic history and contemporary challenges to globalization. The Journal of Economic History, 79(2), pp.356-382.
Rossi, I., 2020. Challenges of Globalization and Prospects for an Inter-civilizational World Order. Springer Nature.
Tung, D.D., 2021. World's marketplace in the challenges of globalization.
Vlasov, V.I., 2017. The New Paradigm in Research and Evaluation of the Processes and Challenges of Globalization.
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