The Inclusive Business Stratagem: Going Global - Assignment Example

?The Inclusive Business Stratagem: Issues on Going Global In my point of view any society is formed only when its required components are combined and blended as essential; these components include the development of many established aspects such as politics, culture, education and the last and the most important; business or economic institutions. These are considered to be the important because they are considered to be the backbone of a society. Thus to understand my proposal we better know how the economy or business in a society stands up. It constitutes and formulates in accordance to the six M’s of management, namely: man, material, machine, money, method and management. The economy or business organizations of any society revolve and circulate around the above mentioned regulations. I believed that there is an unswerving association between a community’s mental picture and the money-making bustle which is being carried out it. How so? This is possible when a community has a well maintained financial foundation which provides the people with sufficient financial resources, as a result of which the community develops and grows. Hence for a balance society the economic cliques are extremely essential. But who are these economic cohorts? Business organizations that help in the circulation of the money in a society through various methods of selling goods and services to associates, contractors and other businesses are called the economic supporters. Some important examples of these economic devotees include the retail and construction organizations. In the last twenty years the entire motive and cause of the business industry has changed. New organizations are being constructed and developed. The ideology of the people belonging to business has changed. Even though the objectives of the business men have remained more self centered and narrow interested, but now the idea of denying such characterization is not given much review and thought. But the fact that the entire process of buying and selling affects the economy vastly cannot be denied. Ristau (2011: pp.24) has verified that “The United States is a market economy in which buyers and sellers in the marketplace are able to freely make decisions that affect the economy” A trend in the fusion and consolidation of various businesses throughout the world has been noticed. In my perspective this trend is mainly due to the factors which include economic development, demographic importance and technological development. Hence, the question that has been put in front of the entire circle of business organizations and is going to be pondered upon further in this verification is ‘Why have almost all of the business organizations gone global and what are the problems that they are facing in the process of strategy implementation?’ It is believed by many people that the decision of globalization in the business industry is more of a corporate plot. To which the expressions of anyone would be ‘Pfft! Globalization to business, my sir, is like oxygen to human body.’ Hence, this imposed question is rather intriguing due to its nature of debate and actual collection of causes and effects. Hence, keeping away any sorts of biased views it is better than we ponder upon Milton Friedman’s saying that ‘The business of business is business.’ During the past twenty years a significant progress has been noticed in globalization, due to modern communication, transportation and many other factors like improvement of the infrastructure, political decisions regarding international trade and finance through agencies like WTO, GATT, GATS, EU, NAFTA, and ASEAN etc. This progress consisted of a wave of efforts in which the broadening of the business organizations to provide their products on an internationally widened ground; was the most important flourishing step. In order to evaluate the question provided above for exploration we rather study and assess the business organization of Wal-Mart Stores, Inc. This American organization is multinational in nature due to which we are taking it under study for the assessment. Sam Walton found this organization in the year 1962 and its head quarters are located in Arkansas’ city Bentonville. Formerly known as Wal-Mart this organization has been termed jointly as Walmart since the year 2008. This corporation manages retail and discount stores in large numbers around the world. Being world’s 18th largest public corporation it is considered to be the biggest organization in the world of business. The success of this organization cannot be overlooked when discussing the era of business expansion and globalization. Walmart spread like fire after its establishment and construction. Other than being operated in the fifty states of America including the unincorporated territory of Puerto Rico, it has been known that this organization has around eight thousand and five hundred stores which have been instituted under various names in more than fifteen countries. The countries in which the branches of this organization are being run include Mexico, United Kingdom, Japan, India, Argentina, Brazil, Canada, China, Germany and South Korea etc. The former senior vice chairman of the Wal-Mart Stores, Inc. Soderquist (2005: pp.16) stated that “If vision, hard work, integrity, focus on the customer, passion for excellence, and having fun at work is luck, then we, indeed, were some of the luckiest people alive.” Hence, what were the basic factors that lead this organization towards such a successful future? Although these factors are enormous in number but the two major aspects which are considered to put other organizations at awe include the recruitment triumph and the very much obvious globalization. These two points have been discusses in detail below. The recruitment procedure of this organization is considered to be amongst world’s best recruitment modus operandi. This organization aims at the hiring of such a talent that would play its role in the successful achievement of its objectives. The recruitment process is carried out by the senior leaders of the corporation and their approach includes the full attendance of the organization in national conferences, regional summits, and local chapter activities to help understand the national economic and monetary circulation needs in a better way. Through computerized application processes people are given the opportunity to join this organization. Bell (2007: pp.83) has defined this procedure as “Recruitment is an important and accepted means of increasing numbers of qualified applicants from diverse background”. After short listing the candidates are introduced to written tests (depending upon the nature of their position) and interviews. A detailed drug test is carried out of each selected candidate and after re-interviews job offer letters are sent to the selected candidates and they are asked to join. Walmart participated in up to 30 assortment and specialized events to support their recruiting efforts in the year 2008. The research and evaluation of this organization with reference to its globalization is has been chosen by me specifically to put forth the problems through which this organization has been going through while spreading and establishing itself internationally. This research will help and prove of value to this organization by putting in light the pret-a-porter solutions to the problems they have been facing whilst going global and establishing themselves internationally. Hence, to do so I will further evaluate what other researches have to say and conclude. Besides this the elaboration of the aims and objectives behind the target of this organizational development shall be reviewed, which will help in the clarification of this proposal. A research was conducted by Iacovone, of the World Bank, Javorcik from the University of Oxford, Keller from the University of Colorado and Tybout from the Penn State University (2008), by studying the Walmart Inc. in order to understand how foreign direct investment affects the structure of the business industry, performance in productivity and innovation rates of the domestic Orms. This was done by studying this organization and its working in Mexico which followed the NAFTA in 1994. This brief elaborated study verified how product producers selected the Walmart Inc. to serve as their retail supplier and developer and how it varied amongst greater and less appealing product companies. This research was concluded on the fact that the globalization of this corporation created a spontaneous cycle between globalization and company orientation. The more people selected this organization as their provider the more this corporation spread globally. Similarly the more the globalization of this organization occurred the more people appealed to select it as their provider. In another research which was conducted by Stone, Artz and Myles (2002) a similar analyses was made in which the researcher studied the region of Mississippi and the effects which were cast by the Walmart Inc. on the existing business of the region. This study was briefly put forth and evaluated by referring to the globalization of this organization due to which it has been affecting Mississippi’s internal business. This research was concluded with the viewpoint that the Walmart Inc. has been benefitting by globalizing its service whereas the local businesses of many smaller or underdeveloped regions are being threatened by this organization and their sale is being reduced. Hence this organization benefits itself through spreading but costs other organizations a fortune in the business market. Hence the above provided researched puts forth two case scenarios of this organization. The most important point that we rather understand and elaborate intricately is the description of the methods of globalization and the processes or strategies through which the Walmart Inc. after deciding to go global spread like an epidemic throughout the world and blanketed the business market like locusts in a field. As Cummings and Worley (2009: pp.189) have stated that “Most discussions and applications of OD evaluation imply that evaluation is something done after intervention.” Hence, it can proved very obvious that the leaders and founders of the Walmart Inc. had something really special going on in their minds as they targeted towards a leap in the path of struggle in the business market. What was this ‘something special’? Was it gigantic enough that it might have established this organization both as an economic supporter and money circulator at the same time? The answer is yes! This ‘something special’ was not really a diabolic plan that the leaders of Walmart might have preached and implemented but it was basically more of a ‘set’ of strategies through which this organization ignited the engine and steered towards the destination which may or may not have been achieved yet but we can definitely tell where it tends to move. These strategic steps included; viewing and reflecting exterior to the border, shielding the products, upholding elevated principled standards, remaining sheltered, anticipating the unanticipated, getting involved in person, having a transparent formula. These points helped this organization in spreading both nationally as well as internationally. If the Walmart Inc. had not thought outside the box it wouldn’t really have globalized. It was due to the organizations efforts that it spread my increasing its centers through investing and taking risks. It was due to the act that this organization promised and proved the safeguard of the product of its engrossed companies that it succeeded in globalization as more and more companies were appealed to it. Travis (2007: pp. 45) believes that “While safeguarding intellectual property rights is the cornerstone of brand protection, international business must also focus on becoming a respected global citizen.” Hence this was done y increasing the ethical standards which were required to run this organization and establishing itself as a protected organization through earning global recognition and respect. There was a huge contrast in Walmart’s beliefs in my perspective when it planned to be both secure and expect what is unexpected at the same time, because the unexpected can even bring havoc to the security. As far as getting involved in the entire business procedure was concerned Walmart’s leaders and workers did their best to create an atmosphere that promoted devotion and managing strategies that promoted commitment. This was possible through the effort of being transparent which not many people believe that Walmart is but the truth cannot be denied. The transparent formula of this organization mainly rotated around the factor of provision of such technologies in their centers that no other organizations used or provided. Cathy Hotka (2000: pp.4) believed and stated that “There’s just no question that Wal-Mart has set the standard.” By following the above mentioned and many more strategies of the Walmart Inc. for globalization this organization made it possible for itself to become world’s largest retail company. But the fact that it since its globalization it has been facing various problems in the continuity of its strategy. For which in my perspective the steps which would help eliminate these problems and create Walmart a problem free organization and for any other organization to reach to the highest level of globalization without facing enormous amounts of problems it is necessary to follow the steps that include; comprehending and applying Michael Porter’s generic strategies which focus on the strategic scope and strategic strength of an organization resulting in product differentiation and product cost, specifically in accordance to today’s operating atmosphere. Recognizing and implying technologies in various business approach and policies. In order to stand out in today’s fast paced market place and gain profit the organization shall ponder upon the Human Resource Management and support related strategies. In an era where patrons and clients overlook and desert their products such strategies shall be made which provide principles that help the organizations to fight back. To elaborate this further Davenport, Leibold and Voelpel (2006: pp.182) have authenticated that “Strategy generally requires careful, analytical calculation and choice, which assumes that there is a great deal of reliable information available.” Just because an organization has spread internationally does not mean that it has gained all that it can. In fact the point that pops up is that at this current state of the organization it is now the obligation to make sure what is happening on both global and local level that may or may not threaten the prosperity of Walmart. Other than the above propositions strategies for establishing multinational firms shall be examined keeping in mind conflicts and divergences. Also, strategies in business management shall be changed in this age of globalization. The challenges which can be met to change these strategies include product differentiation, service demarcation and personal segregation. All of these will lead an organization towards a path free of perplex conflicts of globalization. Saaksvuori and Immonen (2002: pp.208) have stated and clarified that “It is very clear that your business strategy should have a huge impact on your product strategy, but in some cases also the other way around.” Therefore through the above mentioned propositions I can put forth that to embark in the era of research and study of globalization to understand business organizations and their operation, I am constantly pondering how this proposal will be relevant to the professionals of the human resource management who spend their entire careers in providing organizations the best of the employees and workers. Hence, I have aimed at obtaining tenure pathway arrangement at a business organization where I will be able to launch my research in the field of Human Resource Management. References: Bell, M.P., 2007. Diversity in Organizations. Ohio: South-Western Cengage Learning. Cummings, T.G. and Worley, C.G., 2009. Organization Development & Change. Ohio: South-Western Cengage Learning. Davenport, T.H., Leibold, M. and Voelpel, S.C., 2006. Strategic Management in the Innovation Economy: Strategic Approaches and Tools for Dynamic Innovation Capabilities. Erlangen: Wiley-VCH Verlag. Donald, S., 2005. The Wal-Mart Way: The Inside Story Of the Success of the World's Largest Company. Nashville: Thomas Nelson. Hotka, C., 2000. Wal-Mart CIO Leaves Retailer an IT Leader. Computerworld. ISSN 0010-484, pp.92. Iacovone, L., Javorcik, B., Keller, W. and Tybout, J., 2008. Walmart in Mexico: The Impact of FDI on Innovation and Industry Productivity. Colorado: University of Colorado Boulder. Ristau, R.A., 2011. Intro to Business. Ohio: South-Western Cengage Learning. Saaksvuori, A. and Immonen, A., 2002. Product Lifecycle Management. 3rd ed. Germany: Springer. Stone, K.E., Artz, G., and Myles, A., 2002. The Economic Impact of Wal-Mart Supercenters on Existing Businesses in Mississippi. Iowa: Iowa State University. Read More