Faculty of management - Essay Example

The article, ‘Hunger for innovation and global expansion will fuel Canada’s competitiveness: GE Canada CEO, Elyse Allen’ is highly pertinent in the current times because it raises critical issue of various factors that significantly influence expansion of business across geographical boundaries. Allen strong asserts that innovation is hugely important issue that gives impetus to grow beyond domestic borders. She feels that the innovation driven businesses are better equipped to garner financial resources to reduce the risk of expanding their business internationally.

According to her, Canadian businesses have stagnant growth because they not only lack resources but they have also not enough motivation for growth. Canadian Banks have conservative notions about businesses that discourage people to be creative. She nevertheless thinks that some of the government initiatives like Canada Export Development and Sustainable development Technologies have encouraged businesses to exploit new opportunities of growth in emerging economies. I agree with Allen that businesses must innovate to compete and expand.

But at the same time, government must create facilitating environment for growth. In the current environment of advancing technology and globalization, business has become highly competitive. Moreover, process of globalization has changed the dynamics of global business. Emerging markets of South East Asia, Middle East and BRIC countries offer huge potential for businesses. They are high growth markets with high income where demand for new product can be easily created (Hook, 2001). This is a very important factor that must be exploited by the business community.

Growth of business contributes to the growth and development of nations. Thus, it becomes imperative that businesses must constantly make efforts to expand and grow. R&D facilities promote innovation of ideas, new product development and innovation in business processes for greater productivity. Furthermore, innovative approach and resource based strategy provide the firms with unique value creating capabilities that give them distinct advantage against their rivals. As such, they emerge as critical elements that facilitate businesses to compete successfully and grow even in adverse circumstances (Coombe and Georghiou, 2002).

Indeed, government initiatives are major incentives for businesses to look for new opportunities and motivate them for diversifying their interests. But unless and until they are backed by conducive environment of growth, businesses cannot fully exploit government initiatives. Various issues vis-à-vis availability of loan in easy terms for businesses which may or may not conform to the predefined model of business or business activity, facility for research and development, encouraging tie up with academia for R&D etc.

are major issues that need to be addressed for motivating businesses to diversify and expand across wider geographical boundaries. The vast potential of emerging markets and liberalization are key elements that attract offshore businesses. The Canadian business community must become more proactive in exploiting changing environment of business dynamics. As Allen says, lack of capital and risks in expanding business interests internationally can be easily met through business alliances with other multinationals.

This is a good proposal which not only reduces financial burden but also provides them with huge opportunities to grow (Powell and Grodal, 2005). Thus, article reveals important facets of business compulsions that need to be addressed by the government as well as by the business community at large in Canada. (words: 532)ReferenceCoombe, Rod and Georghiou, Luke. (2002) A new Industrial Ecology, Science, 296(5567): 471.Hooke, J. (2001) Emerging Markets: A Practical Guide for Corporations, Lenders and Investors, NY: John Wiley and Sons.Powell,W. and Grodal, S. (2005) Networks of innovators.

The Oxford Handbook of Innovation, 56-85. Ovsey, Dan. (14 September 2012) Hunger for innovation and global expansion will fuel Canada’s competitiveness: GE Canada CEO, Elyse Allen.