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Global strategic management - Research Paper Example

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This will not only be important from the viewpoint of the business but also affect the way in which they affect the society in a…
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Download file to see previous pages rkets as centres for consumerism and innovation, improvement of productivity in the developed market, expansion of global networks, the issue of sustainability and the strengthening of role of state as a business partner (McKinsey, 2014).
The purpose of this paper is to describe these forces in details to find their expected outcome on the future of the business. There may be many other forces that can shape the nature of the business and society in the future. However, this paper only limits itself to the five above mentioned forces as they are expected to create maximum impact on the business activities.
Global forces have been described as external forces which creates significant which are beyond the control of the business. The global business environment is filled with examples where business enterprises have missed global trends and they have not been able to survive in the long-run. For the last ten years there has been a massive change in the consumer market. The role of the Western economies especially the U.S.A. as a dominant centre for consumerism and innovation has fallen. This has been accompanied by an equivalent rise of the emerging economies as a centre for consumerism. It has been observed that Asian countries especially India, China, Indonesia, Vietnam and Latin American countries like Brazil, Argentina and Chile have made significant progress in terms of overall GDP growth of the country and the overall level of standard of living (Vlad, et al., 2011). The per capita income of the middle-class people have increased considerably in these countries. This in turn have raised the purchasing power of the people and boosted consumerism.
In an empirical research that has been done by Kharas and Gertz (2010) that in the decade of 80’s and early 90’s the high income countries of the OECD which had accounted for 80% of the global output and captured majority of the world economic growth rate. It has been estimated that by 2009 the share of the ...Download file to see next pagesRead More
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