The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent. Globalization can also be defined as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade. Work can be outsourced to any part of the world that has an internet connection because of improvements in traffic infrastructure one is able to reach one's destination in a short time.
Now under developed areas can enjoy the benefits of scientific advances and industrial progress available in developed countries for the improvement and growth of their areas.īecause of globalization the economies of the world are being increasingly integrated, example mobile phones and internet have brought people closer. Goods that were only found in western countries can now be found across the globe. Globalization in short, points to the whole effort towards making the world global community as a one village.
And today’s networked offices are full of technological distractions that would have been unimaginable to the 20th-century manager. Organizational structures are less hierarchical and more collaborative. Organizations are more global and employees are more diverse than ever before. The rapid changing of the market requires also quick transfer of knowledge and efficient using of that knowledge and information.The worldwide workplaces has changed vastly over the past decade. This issue is similar with the technology transfer issue in global markets. If a company have a chance to use knowledge and information then it means that it can adapt to this global changing. Information can be easily transferred and exchanged from one country to another. Information is a most expensive and valuable production factor in the current environment. These companies have to have efficient technology management and efficient R&D management. Mostly companies in capital intensive markets are at risk and that is why they need quick/rapid adapting concerning the customer/market expectations. Customer expectations are directing markets. Globalization has increased the speed of technology transfer and technological improvement. The company has to use the latest technology for increasing their sales and product quality. On the other hand it necessitates quite a lot of cost for the company. Technology is also one of the main tools of competition and the quality of goods and services. Internet and e-commerce procedures hold particular potential for SMEs seeking to broaden their involvement into new international markets. One of the most striking manifestations of globalization is the use of new technologies by entrepreneurial and internationally oriented firms to exploit new business opportunities. A company must always be ready for price, product and service and customer preferences because all of these are global market requirements. All these expectations need a response from the company, otherwise sales of company will decrease and they will lose profit and market share. They also expect high quality and low prices. When a company produces with less cost and sells cheaper, it is able to increase its market share.Ĭustomers have a large multitude of choices in the market and this affects their behaviors: they want to acquire goods and services quickly and in a more efficient way than before. This competition can be related to product and service cost and price, target market, technological adaptation, quick response, quick production by companies etc. Globalization leads to increased competition. To challenge these changes, companies need to keep in mind various aspects of the main effects of globalization. These changes are mostly related to increasing competition and the rapid changes of technology and information transfer. This phenomenon affects the economy, business life, society, and environment in different ways, and almost all corporations have been affected by these changes. Globalization is a leading concept which has become the main factor in business life during the last few decades.