Globalization Plays a Central Role in Making the World a Better Place - Essay Example

Globalization: Take Home Exam Professor (Tutor) The Name of the School (University) The City and State Date Globalization: Take Home Exam The world has advanced into a village where boundaries no longer exist. Businesses and consumers can interact across borders through different means as a result of globalization. The idea of globalization is of great significance for companies as they focus to mature and become successful in their local markets and across borders (Knight & Cavusgil 2004, p. 125). Nevertheless, this has not been the circumstance as only certain countries benefit from globalization. According to the famous Albert Einstein, imagination is considered more significant than knowledge. Through this perspective, imagination plays a key role in the development and achievement of progressive and positive globalization. Businesses must focus on how they can foster productive activities that progress and unite the civilization (France, Mott & Wagner 2014). They should encourage peaceful imaginations that pursue to reduce alienation and rejoice interdependence rather than self-sufficiency. Furthermore, businesses should focus on inclusion rather than exclusion, openness, hope, and opportunity instead of grievance, limitation, and suspicion. The following paper aims at discussing how a global business could harness these ideas to develop a better world for all countries particularly the countries that do not benefit from globalization. Knowledge, capabilities, and innovation have been the core subjects of study on performance and strategy of the global organization. Firms that operate across borders or internationally are a common discussion among business leaders and scholars. Regardless of all the numerous challenges such as human resource, capital, and technological adoption, businesses in the global market leverage knowledge, capabilities, and innovativeness to accomplish significant success internationally (Knight & Cavusgil 2004, p. 124). Nonetheless, the idea of globalization has proved positive or successful for only a few developed and developing countries. Most international or global businesses are large multinational from developed countries such as American and European firms. Nevertheless, businesses in emerging economies such as China have also achieved increased successes in their global encounters. This accomplishment has been realized as a result of increased capacity building, reliance on knowledge, and increased innovation. However, there is a huge gap in how businesses interact or practice in terms of fostering imagination. One of the main ways that firms can harness these ideas to create a better world is through leadership. According to France, Mott & Wagner (2014) study, the biggest challenge to achieving global business results is lack of leaders encouraging a climate for innovation I the global firm. Innovation is as simple as attempting to bring something new that is radically diverse or different. Businesses cannot afford to use similar strategies, policies, and practices with the idea of realizing global success. Leaders play a big role in encouraging people to concentrate on productive results that progress and unite the civilization. They have the capacity and opportunity to change corporate culture to enhance the firm’s innovation capacity. France, Mott & Wagner (2014) identify a culture that promotes innovation as one that includes freedom of expression, taking risks, and questioning the status-quo. Leaders must always be open to employee’s ideas by creating a culture and avenues for sourcing such ideas. Moreover, employee’s ideas should be valued and welcomed that forms the essential mass and foundation needed to uphold constant innovation. Leaders and executives in global firms should focus on innovation instead of creating new skills. This tends to emphasize on value rather than capabilities (Werhane, 2008, p. 463) Leaders also play a major role in encouraging peaceful imaginations that seek to reduce alienation promote interdependence. According to Wibbeke & McArthur (2013, p. 45) businesses that succeed in the global market begin with a global vision that is developed and communicated by leaders and managers in the firms. The second idea that businesses should use to harness the idea of globalization positively is through increased sustainability, social responsibility, and environmental responsibility. Most businesses are out to make profits and not developing a better world. Such companies will act unethically by bringing alienation to society or destroying the environment (Crane & Matten 2010, p. 66). In the past few decades, businesses have had increased focus on society and the environment. Businesses must recognize the need to consider all stakeholders affected by their business operations. This includes customers, employees, the environment, and stakeholders. A global must act ethically by ensuring that employee welfare is at the level best. This means applying human resource management strategies that balance work and life. Moreover, firms must be open to diversity where increased capabilities and knowledge can be harnessed. Firms such as Salisbury have comprehensive diversity strategies and initiatives that have seen consideration of disabled employees and older employees (Crane & Matten 2010, p. 122). Such initiatives and strategies set to encourage communities form different countries on the need to be interdependent. Firms must also encourage employees to development through training, knowledge, and promotions. This tends to increase the overall pool of talent, knowledge, and capabilities that can be harnessed by other firms as well as developing entrepreneurs and leaders of the future. The environment and society are also paramount in harnessing the idea of a peaceful and better world. Businesses can no longer realize the idea of globalization without being reasonable for their activities and operations. The idea of caring for the environment such as reducing the use of natural resources illustrates increased concern of future generations. Reducing pollution of the environment has a positive impact on both businesses and society. The global business deals with a complex network of suppliers who all-together contribute to warring concerns such as climate change and global warming. Nonetheless, global businesses have moved to support their partners in the supply chain that is through interdependence. Companies have taken the initiative of sharing their resources with suppliers in terms of technology, training, and knowledge (Idowu & Yüksel Mermod 2013, p. 33). This has changed the idea of sustainability as well as businesses-to-businesses relationships. Taking such measures is set to not only address environmental and societal issues, but also encourage interdependence across borders. Overall, businesses need to come together in terms of their partners to address issues of the environment to encourage a better world and recognize the benefits of globalization. Globalization is a complex system that exposes firms to different consumers. Consumers want increased value for their money while enjoying quality products and services (Guo 2013 p. 88). The customer relationship is still of great importance to the global firm. Without innovative products, services, and strategies most firms cannot play in the global marketplace. Each country has a distinctive culture and values that they use to identify themselves. This means that firms need to understand the culture, values, and needs of each customer from different countries or regions (Guo 2013 p. 122). In this way, businesses will not only be making profits, but fostering unity and advancement of the civilization. Businesses have a greater impact in the development of a civilized society, where innovation and knowledge play a critical role. Again, firms should always uphold their public image by implementing Corporate Social Responsibility in order to maintain increased consumer relations (Hartman, et al. 2008, p. 55). The idea of CSR is based on developing openness, hope, and opportunity. Businesses in the global arena should be guided by a greater purpose and agenda, which is bringing change, not just through making profits, but impacting societies as well. Most businesses that lose out on globalization lack the experience, human resources, innovation capacities, and capital to implement global strategies. Nonetheless, global businesses use different strategies that may not encourage interdependence and the idea of imagination. A global business must be willing to create partnerships with other businesses or players in different regions of the world. The global business should focus on strategies that benefit local players through strategies such as mergers or joint ventures (Guy 2009, p. 144). Joint ventures allow other local businesses to access business opportunities as well as grow as global firms develop. Choosing to work with local suppliers or businesses is a good message to fostering interdependence. Moreover, the idea of empowering local suppliers is relevant in ensuring that not only outside or global businesses benefit from globalization. A global business should encourage supplier by offering training, knowledge and resource-sharing. Without such strategies, global firms will exploit the easiest opportunities to reduce costs and make more profits. This will ultimately discourage the idea of imagination (Hartman, et al. 2008, p. 77). When businesses come together to find common-solutions for achieving their goals, the chances of unity and progress are higher. In conclusion, globalization plays a central role in making the world a better place. Businesses are at the center of driving globalization to achieve a better world through capacities, knowledge, and innovation. Today’s global firm is faced with numerous challenges that require change of the mindset to encourage productive outcomes. Leaders have a critical role in developing imaginative global visions that unite and advance the civilization. The global vision should be communicated and fostered into corporate culture to encourage increased progress. Moreover, businesses should also focus on sustainability and CSR. The global firms should integrate the customer, employee, and stakeholder as well as the environment into all their strategies. More focus should be given to value rather than capabilities. Businesses should act ethically by protecting and conserving the environment, advancing employee relations, and delivering value to the consumer as well as the stakeholder. Although these ideas may be challenging to achieve in the complex web of globalization, firms have the prospect to make a progressive impact that will make the world a better place. References Crane, A. & Matten, D. 2010, Business ethics. Oxford: Oxford University Press. 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