Globalization on Business and Its Environment - Assignment Example

Business in a Global Context Introduction The three case studies “The Business of Sustainability” (Theme1), “The Business of Happiness” (Theme 2), and “A Gift of Fire: Technology, Society and You” (Theme i3) simply try to provide awareness concerning matters to do with global business. Generally, the three case studies bring about factors like sustainability, happiness in business, and technology in business through certain issues and debates, that according to me, brings out the intended meaning of the matters under discussion. Certainly, the three Themes instill lots of insight regarding globalization on business and its environment, conceptual and theoretical categorization of the global business environment, responds to changes in the business environment, statistical and non-statistical techniques and tools in analysis of business data and information, and I am able to make connections between technology and global business. Globalization on Business and Its Environment A reflection I acquire from Theme One is that the environment within which a business operates is very critical for its success and generally the wellbeing of the society and the global community. Globalization, on the other hand, is moving the economies of the world closer into being single, unified global economy. Certainly, several barriers still exists between various economies of the world, including investment restrictions and a surplus of import, market regulations, and several other discriminatory policies of the government in addition to natural barriers imposed by geography culture, or history (Hamilton & Webster, 2012, p.47). However, I feel that there exists profound evidence of rising worldwide economic activity, worldwide competition, and interdependence amid national economies. Some of the key effects that the business environment experiences resulting from economic globalization are as follows: Markets’ internationalization with inclusion of the use of global marketing strategies and development of global products Production internationalization with inclusion of strategies of global production like the off shoring of manufacturing, service operations, and outsourcing Technology applications including: data transmission and rapid communication, and international technology transfer which increases opportunities for economies of scale (adopting common platforms of production to produce differentiated modifications of generic products); alterations in the relative significance of economies of scale (ensuring a reduction in the minimum efficient production scale in conventional large-scale industries such as steel, as economies of scale remain significant at the organization’s level as a whole) (Oshri & Global Sourcing Workshop , 2010, p.67) Altering industry structure while the relative shares of employment together with manufacturing in national output decrease in ‘industrialized’ nations and conversely elevate in newly, industrializing ones. ‘De-industrialization’ in developed nations usually gives way to an elevation in service industries, however India also develops a large service sector, particularly in services related to information technology. Triggers alterations in labor demands, in that as the industry’s structure changes, developed nations elevate their demand for skilled and educated labor in service and high-tech industries; however, they lessen their demand for labor with low skills, while traditional manufacturing employments become formed in developing nations. Categorization of the Global Business Environment From the case studies, I have gained an understanding of the theoretical and conceptual categorization of the global business environment. From the general knowledge I have, theories offer significant approaches into the operations of firms in businesses everywhere, with inclusion of international firms; however, they fail to make a spotlight on the distinguishing features of business operating amid different countries. Global business involves business activities that go beyond national borders, and essentially concerns itself with firms, which embark on that business, and the national Governments that control them. A theory, which is exceptional to such a business, ought to clarify the responses of businesses to the policy-making of Governments themselves and policies of the government towards international firms (Cunliffe & Luhman, 2012, p.178). In other words, theoretical categorization of the global business environment is achievable based on such factors. Conceptual categorization could be basing on the concepts that a business environment depicts. For instance, a concept categorizes a business environment through explaining what it is. It further does the categorization by explaining where a business acquires resources from the environment and supplies its services and goods (Cunliffe & Luhman, 2012, p.179). The categorization could base on various levels of environmental forces and their resulting threats or opportunities to a business community. Responds To Changes in the Business Environment Generally, a proper and effective management of change requires movement of the organization from its present state to a future preferred state at minimum cost to the organization (Wetherly & Otter, 2013, p.50). Additionally, in relation to Theme Two, I can comment that a proper and effective management of change is factor that can result to the “Business of Happiness” since it ensures a quick and successful adaptation to the business environment that is rapidly changing. Generally, from the understanding I have gained from Theme Two, I can comment that in order to ensure “happiness” in a situation of change, managers and their staff should consider: 1. Understanding the Current Situation For an individual to understand their current situation they must recognize whatever is happening in their job now. An individual can have this knowledge through recognizing factors like; The mission of their unit, The purpose of their job, Their key assignments and responsibilities, What their supervisor expects of them, How well they are performing, How their managers and peers view the significance and performance of their unit, The obstacle that stand in their way, The resources they have at their disposal, and The changes likely to come Being unable to recognize these factors can make an individual be in a position whereby unanticipated forces of change overwhelm them. Often, people miss essential information when they use selective habit, specialization, and perception to evade exposure to ideas they may not desire to hear (Abel & Bruno, 2012, p.45). Normally, this is human nature; however, it is not an appropriate strategy for managing change. Therefore, individuals should consider broadening their information sources to explore new ideas. 2. Designing the Preferred Future State of the Business This simply involves picturing the perfect situation for the organization after the implementation of change, conveying the vision appropriately to every person involved in the effort to change, and formulating a transition to the new state. The most vital part of the transition should be maintenance of some kind of stability; things like the key personnel or over-all mission of the organization should remain invariable in the midst of chaos to assist in the reduction of the staff’s anxiety. 3. Understanding Change Additionally, in relation to Theme Two, I still insist that change can to some extent determine “happiness” in a business. It only depends on how an individual views the change. It is also possible that change can represent some sort of improvement hence result to a “business of happiness”. Additionally, flexibility and readiness to embrace change makes an individual a more valuable member to the organization, since such an individual can dependably deal with several different circumstances and opportunities; this also results to “happiness”. It is possible not to like the changes that are taking place, but one can be sure that failure to accept them can make then not to prosper. Additionally, it is fine for one to make suggestions and voice their opinion; however, it would also be important to understand that technology and competition are relentlessly merging up to force managers to reevaluate the operations of the organization. Moreover, it would be helpful to consider the challenges and changed circumstances they present with a new employee’s attitude and, as a new member of staff would, employ these challenges willingly and with a desire know all that one can in order to perform well (Ghuman & Aswathappa, 2010, p.25). Therefore, from Theme 1, I can argue that recognizing the possibilities brought about by change simply implies that one is more ready to exploit them. At this point, an individual can find change to be something not to fear, but something to welcome and model it into an advantage. 4. Implementing the Change This is whereby there is effective management of transition. It may be of help to formulate a plan, allocate resources, and assign a key individual the responsibility of taking charge of the process of change. The leaders of an organization should undertake the generation of passion for change through sharing their vision and goals, and being role models. In certain cases, it might be of help to first try for small successes to pave way for later achievements. Analysis of Business Data and Information For the success of a business, information and data need perfect analyses and high level of privacy of the data/information maintained. Business data and information analysis is best through the existence of a high level of technology incorporated in the management of the business statistics. There exist two major categories of tools and techniques used to analyze business data and information. These include the statistical and non-statistical tools and techniques. Just as mentioned in Theme 2, for one to understand statistics it is important to differentiate real values from nominal values. Real values formulation is through removal of the effect of changes in price level from the nominal value of the time-series data, in order to attain a real picture of economic trends. A deflator to obtain their real values alters a real value like gross domestic incomes and product. Nominal values, on the other hand, are unadjusted values, rates or alteration in value (Israel, 2009, p.15). This measure usually reflects the present situation, for instance, the current price of a machine, and never makes adjustments for reflecting factors like inflation or seasonality, which offer a more precise measure in real terms. Statistical Tools and Techniques Generally, the statistical tools in business normally need varying levels of statistical knowledge and may have their use with most of the spreadsheet programs like Excel (Linoff, 2013, p.21). Such tools and techniques include; A. Statistical Process Control (SPC) This is a set of tools used for improving and monitoring production processes. It has its basis in manufacturing and needs no advanced statistical skills to use. Skills in basic mathematics and the aptitude to use a spreadsheet are enough for efficient use of the SPC tools (Linoff, 2013, p.22). In addition, SPC bases on the notion that reliable and stable processes produce quality products and its tools ensure the determination of the stability of a process over time. B. Time-Series Forecasting This is a statistical tool, which enables business managers to study changing business and economic conditions, and analyze how such changes will influence their operations ultimately. This tool involves the data collection at regular times and uses regression techniques in analyzing the data. Its assumption is that factors that affected business activity will keep influencing the activities in the future (Israel, 2009, p.17). Additionally, this tool attempts to identify factors with the most significant impact, so that managers can respond and plan to such conditions. C. Regression and Correlation Regression is a statistical tool used for prediction. It predicts the dependent variable values, like a company’s stock price or annual sales based on the one or more independent variables values. Most managers use regression models, which employ multiple independent variables for prediction of a dependent variable’s value. Meanwhile, correlation analysis measures the association’s strength between two exact variables (Israel, 2009, p.17). Often, businesses may use it, for instance, to determine the relationship existing between sales of a product and marketing expenditures. Non-statistical Tools and Techniques These tools and techniques do not use algorithms or take a sample to validate a hypothesis (Peng, 2011, p.178). Instead, they take input from a larger data volume and output the outcomes from the data alone; all the presented data is considered. Technology and Global Business Generally, technology blurs the boundaries existing between business organizations (Morrison, & Morrison, 2011, p.30). From theme Three, I can insist that technology is likely to ensure the growth of the power of an individual thereby resulting to an emergence of new competitors, which will disrupt global business and ensure wealth creation. On the other hand, technology can also impact on global business negative; in other words it is a “gift of fire”. Conclusion Certainly, a focus on business sustainability and happiness, and technology in business provides plentiful knowledge regarding globalization on business and its environment, categorization of the global business environment, responds to changes in the business environment, analysis tools and techniques of business data and information, and the connections between technology and global business. In other words, I can comment that the Three Themes in the case studies are appropriate sources of information and knowledge concerning global business. References Abel, A. & Bruno, S. (2012). Global Business Management: A Cross-Cultural Perspective. Ashagate Publishing Ltd, England. Cunliffe, A. L., & Luhman, J. T. (2012). Key concepts in organization theory. London, Sage. Ghuman, K., & Aswathappa, K. (2010). Management: concept, practice and cases. New Delhi, Tata McGraw Hill. Hamilton, L., & Webster, P. (2012). The international business environment. Oxford: Oxford University Press. Israel, D. (2009). Data analysis in business research: a step-by-step nonparametric approach. Mathura Road, New Delhi, Response Books. Linoff, G. S. (2013). Data analysis using sql and excel. Hoboken, N.J., Wiley. Morrison, J., & Morrison, J. (2011). The global business environment: Meeting the challenges. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Oshri, I., & Global Sourcing Workshop . (2010). Global sourcing of information technology and business processes: Revised selected papers. Berlin: Springer. Peng, M. W. (2011). Global business. Mason, OH, South Western Cengage Learning. Wetherly, P., & Otter, D. (2013). 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