Contemporary Business and Management Environment in Relation to Theoretical Concepts - Coursework Example

Introduction Globalisation is described by Stiglitz as “breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent) people across borders”. Thus, to a large extent, globalisation is concerned with the movement of resources and other factors of production across borders. There is an increasing trend towards the reduction of the powers of states and governments in favour of an international structure whereby people seek the best options in everything they do. Businesses are currently operating in an increasingly globalised environment. They operate in a system where they have components of their activities being carried out with parties from different parts of the world. This enables the businesses to operate in a way and manner that allows them to have stakeholders scattered around the world. The aim of this paper is to examine the concept of globalisation and its impact on businesses around the world. To this end, the following objectives will be explored: 1. A critical review of globalisation and the modern business environment. 2. An evaluation of the transport and communication matters that relate to the globalised world and its impact on businesses; 3. The issue of fraud and crime and its impact on businesses in the globalised world and 4. Immigration and employment issues in relation to businesses in the globalised world. Globalisation and the Business Environment In the past, nations were set up to pursue their interests. Governments of nations had absolute and sovereign authority to make laws that influenced and impacted on all the people within the boundaries of the nation. This meant that a business had to work with the resources that were available within the context and the framework of the nation. Most nations in the 1800s were based fully on the authority of the sovereign authority. Hence, there was little possibility of a business in the nation to have any other foreign interactions. The earliest process through which businesses sought to internationalise their affairs was in the age of Exploration where new colonies were established in Africa, Asia and the Americas where businesses sold their products to these foreign parties and international consumers around the world. However, after 1945, the world set onto a path of globalisation. Globalisation has created a long-term shift to global consciousness and standardisation of matters in the international community (Johnson and Turner, 2012). In other words, globalisation has enabled the business environment to change significantly. The economy within which a business operates is somewhat different from the monolithic and nationalistic system in which nations are positioned in a way and manner that involves a specific approach for dealing with issues and matters relating to doing business and carrying out various activities. Gangopathy and Cahtterji (2012) identify that globalisation has to do with the death of distance and a process through which nations and communities are strongly interlinked due to ICT and media connections. International logistics are easily transferred and moved from one point to another. Thus, the world is modified and changed into a global village and the world is somewhat a small village and there are lower barriers that prevents a nation and a community from communicating or businesses from transacting various activities between each other (Sirinier and Neniecka, 2009). Thus, a business has the ability and possibility of trading throughout a large spectrum of nations and communities. Nationalism which involved focusing on one nation only and not being able to interact or conduct business across borders have been modified and changed significantly (Karagiannies and Madjd-Kadjadi, 2012). Globalisation has led to the liberalisation and the internationalisation of the work environment and now there are factors that enables a business scope to overlap and exceed the limits placed on a nation by virtue of the fact that globalisation leads to liberalisation and flexibility in different areas (Dorde, 2012). Thus, the conservative and rigid policies and rules that related to nations and communities around the world in the 20th Century are fast disappearing (Acocella, 2012). As a result of globalisation, financial systems and other methods and processes are liberalised and there is an easy and better way through which people and organisations can interact across boundaries (Aitken, 2004). The implication of globalisation is that instead of the traditional system in which a business had to operate within a single and minute framework of national structures limited by a definite boundary, there is a broader scope. People from different backgrounds and different origins can interact with fewer limitations than it was in the past. This is because society is moving from a strict-state orientation to a community-oriented activity. And transport and communication has played a major role. This implies that a business can operate with stakeholders from different parts of the world and has different concerns from different parts of the world. In taking a decision concerning production, a manager will have to consider international factors in the scanning of the external environment. This is because in the normal sense, when a manager is planning and building a strategy for a firm, there is the need for the manager in question to get a fair view and a fair analysis of the external environment. Environmental scanning uses the PESTEL model which includes Political, Economic, Sociological, Technological, Environmental and Legal factors. The implication of globalisation is seen in the fact that the environmental scan will have to include a scope that is much larger than a small nation or country. Rather, a manager will have to integrate and recognise elements of the international environment and ensure some degree of sensitivity in dealing with such situations and such matters. The implication is that there must be the integration of aspects of the global and international environment in order to come up with a strategy or plan for running a business. Transport and Communication and Globalisation Transportation and communication enables people from one place to interact with people in another part. Since national structures sought to create a geographical scope of communication and transportation in one nation and there were strict limits, nations were organised in a way and manner that businesses could only interact with people within their boundaries. However, with the advent of globalisation, people from different parts of the world could interact and have various levels of discussions and transactions. This enabled nations and people to have strong connections and business transactions were spread over a wider area than just a small jurisdiction defined by national boundaries. The growth in trade rules and trade agreements amongst nations around the world have led to various international communications and international transportation routes (Knitting, 2010). Notable amongst this is the growth in airline routes that came with the liberalisation and deregulation of the global transport industry. This clearly culminated in an ease of doing business across nations. This was further complemented by the growth in global cities and increases in transport and communication through various hubs in international interactions (Morgan, 2008). Thus, transport and communication has brought the world closer together. Global communication and global interaction has changed significantly and there have been various kinds of communication and information sharing that enables cross-border business to proceed significantly (McNeill, 2008). The growth in communication and transportation coupled with the legal transfer of goods and services has led to a trend whereby businesses are increasingly conducting business across borders (Magee and Thompson, 2011). Transportation and communication enhances and promotes international trade. It also promotes the movement of logistics across boundaries and enhances the possibility of other support services to provide services across other nations (Acocella, 2012). Treaties like the World Trade Organisation supervised by the United Nations and other entities in the international environment provides the impetus for the promotion of transportation and communication across borders (Kwon, 2013). The implication of transport and communication in promoting globalisation is that it helps in the economics of businesses. This is because most businesses will want to find cheaper and less expensive options in dealing with issues and matters. Thus, when a business is sourcing products and services, it will seek to use options in foreign nations that are less expensive and much more productive and efficient. Thus, globalisation enables a business and a manager to come up with options and possibilities of doing things in a way and manner that will bring better results and productive methods to deal with issues and problems. Thus, the utilisation of transport and communication to achieve better results is a central aspect and part of globalisation. This is because it enables a reasonable manager to cut down on his costs and increasing profitability by comparing different options and possibilities in order to come up with an appropriate solution to dealing with an issue or matter. Fraud and Crime & Globalisation Another distinctive element and aspect of globalisation is that it has changed the face of crime and fraud. Instead of the traditional approach and traditional method of causing crime and illegality in a small area, people utilise transport and communication and other factors to commit crimes. Risk management and risk analysis are a central part of management. A manager and other directors will need to evaluate the risks of fraud and error in the organisation. Hence, there is the need for the manager to factor in elements and aspects of international fraud and error. The growth of information technology and improved communication has led to a spate of advance fees fraud that is perpetrated over the Internet and businesses are major targets for such activities (Blommaert and Omoniyi, 2000). Also, there is fraud in the supply chain system of most organisations and most entities around the world (Blanchard, 2013). There are global issues and matters that affect business processes and these business processes imply that there are many risks and problems that managers need to be sensitive to in order to deal with all risks and all limitations. Floristeanu (2009) states that crime and global fraud is important in the international and global world. Cyber fraud and other forms of crime are rampant around the world. Thus, businesses must factor and assess such risks in their information systems and deal with it. Therefore, the impact of globalisation comes with an increase in fraud and a modified framework of illegalities and crime. This include different approaches and methods to defrauding others. Thus, a manager of an organisation will need to conduct due diligence checks and balances in order to come up with solutions and better ways of dealing with crimes and illegalities that are of a cross-border nature. Immigration and Employment & Businesses The growth in globalisation and internationalisation has led to a system whereby there is massive migration and movement of people from nation to nation (Lane, 2010).Due to the easier and quicker methods of transportation and communication, people move from nation to nation in search for work. This has changed the community and society. Most nations are diverse in nature. Most nations have a high degree of diversity and people have to be sensitive to diverse views and people of different backgrounds and origins. People from all backgrounds must be respected and relevant rules on respecting people of all racial and ethnic origins are in vogue in all nations around the world. Another aspect of globalisation comes with the growth in supranational organisations and regional blocs which allow the cooperation of nations and communities around the world (OECD, 2010). A notable example is the NATO and European Union which allow closer ties and trade between certain nations and certain sub-continents around the world. These arrangements bring immigration and employment rules that leads to some degree of consideration and sensitivity that a manager needs to be aware of. With such arrangements, a manager can change things and modify activities and plans to balance his options and come up with the best solution to issues and problems. In the quest to spend less and achieve more, businesses will have to be sure of the legality of the employment of certain people in the society. Legal compliance with movement and the regulation of foreigners and persons of foreign extractions is a central aspect and part of the newly globalised world and there is the need for businesses and managers to conduct a critical and thorough review of their employee base (Talani, 2010). These employees must be of an appropriate and a good standing in order to remain compliant and legal in their employment activities. Persons from poorer nations gave high number of economic migrants who move to richer nations in search for greener pastures (Standing, 2013). Such persons move into these countries with limited skills but they use various means and methods to acquire legal recognition. Managers will have to find ways and means of dealing with such persons because it is generally problematic and difficult to deal with such employees. Once such employees are given a place in an organisation, there is the need to train them and give them the proper guidance and arrangements so that they become productive and important in the organisation. Thus, the globalisation and growth in internationalisation leads to a spate in migration and this spate causes businesses to require the need to be more circumspect and careful in selecting who they deal with and how they go about their employment, HR and training processes and procedures. Conclusion Globalisation refers to the fast disappearance of national boundaries in favour of an international environment where people from all backgrounds interact across national boundaries. The primary issue of significance in globalisation is the fact that businesses will need to scan the external environment without restricting their search to the country of operation. The main driver of internationalisation and globalisation is the fact that communication and transportation enables a business to operate across boundaries. Thus, a manager will need to analyse the circumstances and factors in the business environment and come up with a process of maximising their benefits in the process or cycle of operations. Also, globalisation comes up with a modification of fraud and crime. This poses a unique and distinct challenge to businesses and there is the need for managers to be aware of these issues and deal with them. There is the need to come up with a risk assessment system that is sensitive to the needs and expectations of various processes and various factors that exist in reality. Migration and employee mobility also comes up naturally as a result of globalisation. The growth in globalisation allows people from different backgrounds to move into other nations. This has two impacts on the workplace and decisions managers take. The first aspect is the fact that there are employment rules and regulations that guide the way and manner in which employers and business owners must employ people. This provides a strong basis for the creation of constraints in the affairs of organisations and businesses. Secondly, there is the need for a business to have an environment within which different people from diverse backgrounds can operate. A business must be sensitive to diversity issues and managers must take reasonable steps to ensure that diversity matters are noted and addressed in the work environment. References Aas, K. F. (2009) Globalisaiton and Crime London: SAGE Acocella, W. (2012) Economic Policy in the Age of Globalisation Cambridge: Cambridge University Press. Aitken, J. (2004) “Global Gospels” American Spectator 37 (6) pp56 – 57 Blanchard, D. (2013) “Globalisation Blues” Industry Week 362 (12) pp45 – 54 Blommaert, J. and Omoniyi, T. 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