Impact of International Trade and Globalisation on Corporate Strategy - Essay Example

Running Head: IMPACT OF INTERNATIONAL TRADE AND GLOBALISATION ON CORPORATE STRATEGY Impact of International Trade and Globalisation on Corporate Strategy An increase in globalisation is altering the entire way of business that can be seen all over the world and is causing emergence of most modern advancement and challenges at the management level. Keegan defines a global company as the company whose manager contains a geocentric direction and sees the complete globe as an impending market. Keegan describes managers' course to international market opportunities as polycentric, ethnocentric, geocentric and regiocentric. (Keegan, 2009, 204) Increase in globalization has brought more competition, versatility of international businesses, drastic and regular alterations in liking and disliking off consumers, shorter life span for items, and rapid and extreme upgrading of technological goods. In literal meaning Globalisation is defined as a collective alteration, an elevated association between various societies and their fundamentals because of the transculturation; the explosive advancement of communication and transportation technologies to assist an exchange of global economy and culture. The arrangement of a global community – an immense contact linking various parts of the globe, with elevating potential of individual switch over, communal understanding and companionship among "world citizens", Financial globalisation - An added liberty of business and rising connections amongst industry members in various parts of the globe (globalisation of trade), with a related attrition of National Sovereignty in the financial globe. This word of "Globalisation" is not strange to a lot of people. The globe is getting in imperative respects, a solitary social arrangement owing to globalization which is made up by the association and interconnection amongst the societies and states. Such association and linkage is a multi- dimensional course but not a latest one -in the end of19th century, there was previously unfasten global financial system, with a great deal of business, including business in currency (Gratton, Hope, Stiles & Truss C, 2008, 45). The blurry perception of globalisation has been clearly explained in financial vocabulary. Corporate globalization may be viewed as the movement of items, services and money assets or savings across global boundaries and in this manner turned into a predominately financial happenings of the world, all over which, national organisations develop into international corporations and countries are no longer seen as self-governing and closed monarch states, but as a fraction of single large financial system. If we abide by the 'best fit' theory in order to achieve the objectives of corporate strategy, these elements must be continuously linked back, in order to reflect the business strategy employed. 1. Employee relations. This relates to the partnership between employers, and employees. It has strong connotations of 'involvement' and several key theorists advocate that without this, strategy cannot work; it must demand commitment to overall objectives and be practiced on every level of the business. (Macdonald, 2006, 07) 2. Training and development. The theory behind this relates to the employees need for security. According to Herriot & Pemberton (2006 in Hook & Foot, 2008) acquisition of skills is key to job satisfaction and commitment to the company objectives and requires investment on the part of the employer. 3. Recruitment and Selection. This refers to selecting the right people to fulfill the objectives of the company. Hook & Foot (2008) describe the need for a sophisticated process which can assess the supply of human resources, and then, select those, whose attributes and qualities, most closely match the needs of the company. 4. Reward. This is mostly concerned with motivation and retaining of employees in order to reach highest possible levels of productivity. It is important to remember however, that human beings, by nature are all different and thus, are motivated by different things. Reward schemes should therefore, have some degree of flexibility. Strategic planning occurs at three primary levels within the organization, which are the corporate level, the business level, and the functional level. The corporate strategic planning focuses on developing the corporate strategy in other words it develops the question of “which trade should we be into?” Corporate Strategic planning involves assessing the organization’s portfolio of business to determine whether an appropriate mix exists. The objective of the corporate strategy is to develop a mix of business units that meets the long-term growth and profitability goals of the organization. The corporate strategy describes the nature of the organization that is why it is formulated by the organization’s board of directors and top-level executives. The top-level management takes the corporate strategy as a procedure made up of the two components i.e. To set strategic targets that describe the desirable corporate goals to be fulfilled ·and to select the most appropriate strategic methods by which the strategic purposes are to be achieved. According to Foot and Hook (2008) corporate strategy is concerned with the overall direction which a company will follow. There are differing schools of thought regarding approach to formulation of strategy however it is widely accepted, that most successful business' employ some kind of strategic planning to their business activity. ( Boxall & Purcell, 2005, 78) Conclusion Businesses will always have objectives for success, and more often than not, these are achieved by a strategic approach to creating viable benefit and improving organizational presentation. Bearing in mind the concept of 'best fit', and the objectives of the corporate strategy, one would have to conclude that a human resource strategy is necessary in order to achieve this. Bearing in mind the concept of 'best fit', and the objectives of the corporate strategy, one would have to conclude that an effective trading strategy is necessary in order to achieve this. The development and expansion of the world economies and raise in the worldwide trade will go on in the upcoming era. Countries will carry on to get offered with business opportunities with present business partner states along with developing connections with other countries. Every state must be able to understand the factors that can obstruct business and affect goods export or import. Alterations in the business setting can severely transform and change the trade situation and change advantages or produce disadvantages and eventually influence a country’s capacity to make profits through exports. References Aghazadeh SM, (2007) The Future of Human Resource Management, Work Study, p 7 Beardwell I, Holden L & Claydon T, (2007) Human Resources Management - A Contemporary Approach, Essex: Pearson Boxall P & Purcell J, (2005) Strategy and Human Resource Management, Hampshire: Palgrave Macmillan, p78 Foot M & Hook C, (2008) Introducing Human Resource Management, Essex: Pearson Gratton, Hope, Stiles & Truss C, (2008) Strategic Human Resource Management, Oxford: Oxford University Press, p45 Herriot P & Pemberton C, (2006) In: Foot M & Hook C, (2005) Introducing Human Resource Management, And Essex: Pearson Keegan. 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Health Man Power Management, p 48 Tyson S, (2002) Human Resource Strategy: A Process for Managing the Contribution of HRM to Organisational Performance, The International Journal of Human Resource Management, p 3 Read More