Summary
The global business environment is undergoing rapid changes over the decades. Businesses and industries are continually growing at an alarming speed and maximization of producing the good and services are one of the core strategies. Hence the need to adapt to new trends prevalent in the business world is important so as to minimize consists. Outsourcing is an effective strategy that does not only save money but also saves time. The global business environments comprise of a large number of huge companies as well as the small and medium industries that have indicated tremendous growth. For companies to achieve quality and low production costs, they have opted to use advantageous services particularly the offshore development centers. Some businesses that have managed to penetrate in the global business environment include Walt Disney, Coca-Cola Company, and Samsung Company.
Implications for Practice
Offshore development centers are popular in the business environment because they serve as revenue generating concepts. Offshore outsourcing is a type of business that deals with disseminating of IT related works from developed countries such as the US to other parts of the countries that are both politically stable and characterized by low labor costs. Outsourcing is a procedure where one company offers services for another business. The internet has been a contributing factor that has enabled outsourcing to be possible in other parts of the world. The business trend economists’ refer this strategy as globalization. Domestic companies that show interests in offshore outsourcing do not necessarily focus on saving money, but it also enables them to remain competitive with other business and industries.
Delegate your assignment to our experts and they will do the rest.
Customized services are provided at lower costs, and this is the major concept that has to enable the offshore development centers to penetrate in almost all businesses and industries globally such as tour and travel, banking and finance, Human resource and manufacturing. Professionalism is another concept that is characterized in the outsourcing firms. Knowledgeable and skilled personnel are critical to ensuring these businesses continue to stay relevant and competitive in the market. Additionally, the popularity of the outsourcing firms is well equipped with appropriate technological devices as well as advanced infrastructure that make them popular and attractive. Therefore companies that seek outsourcing services benefit a lot through the promotion of their products and acquisition of positive reputation globally.
Implications for Theory
Essentially, cultural relativism is an approach that focuses on the role and nature of values concerning culture. This theory argues that when values are shared, they give rise to norms and beliefs of behavior to which individuals or a group sorts out its collective life and objectives. Globalization has become a revolutionary phenomenon historically, and its major impacts have been felt over the world.
Cultural relativism principle suggests that an individual’s beliefs and activities ought to be understood by others in conditions of that individual’s culture (Banutu-Gomez, 2014). A key concept of this theory is that nobody even the research hails from a neutral position. Therefore handling our assumptions is not to pretend that they are nonexistent but rather recognize them and use that knowledge that no one is neutral to educate our conclusions. Therefore for a business to penetrate the global market, it is important to understand other countries culture, languages, beliefs, ethics and other elements that are deemed important in that society. These elements are learning foundations that will aid a company in entering a foreign market. It takes training education and total commitment for the company to conduct business abroad. All the education and training a company provides to the employees would be totally useless unless the top management is devoted to learning, adjust and conduct business abroad.
Culture differences that exist domestically and internationally are not easy obstacles to overcome (Banutu-Gomez, 2014). Learning languages will enable the company to converse with the locals and also learn how to interact with them. Through interactions, businesses can be able to learn the needs and expectations of the people. Interpretation of the language cues is important as it guides the businesses on how to conduct their business activities to avoid provoking the locals. Hence postures, facial expression, hand gestures, eye contact, touching, and proxemics are essential tools for businesses willing to penetrate the international markets.
A business that has managed to succeed in the global market is Walt Disney Company. Walt Disney established the Disney land in 1955 and in a year the company had received over 1 million visits (Banutu-Gomez, 2014). Like any other company, Disney Company wanted to penetrate in overseas and hence they had to send some of its employees abroad to market their products. They have a division that is known as Walt Disney International that is the main objective is to focus on conducting businesses worldwide. Trial and errors are common and because at first, the company did not know which country’s new culture would suit their goals concerning revenues (Banutu-Gomez, 2014).
Therefore the company needed to evolve and transform so as to achieve their goals. The company needs to imitate the type of culture that already exists in the country, and their products should be designed and created to fit the needs and demands of the given community. Consequently, the company has managed to penetrate various countries such as Russia, Hong Kong, China and many others.
Future Direction
Personally, I think globalization is headed to a screeching halt because of increased turmoil and conflicts, especially in the Middle East countries. The business industry will begin to slow, hence the flow of money, information and ideas would also go down. If such incidents occur the businesses will be unable to conduct their transactions abroad and this might even lead to the closing of the businesses, and thus many people will lose their jobs and the government will lose revenues (Bremmer, 2015).
Furthermore, the US has dominated the world in trades and as a power country but this is deteriorating. The US country can no longer provide global leadership because other developing countries have steadily become powerful such as the China, Turkey, and Russia. As these countries rise, tensions are building up between these countries as the struggle for dominance in the developing countries. These tensions might escalate in the future leading to conflicts between these two countries, and the possibility of escalating is high. Hence the businesses might suffer from decreased profits due to the tensions between the developed countries struggle to dominate. Moreover, the global business environment will enable the countries all over the world to become one global village (Bremmer, 2015). The developing countries are also growing concerning the technological innovations and competition will be very stiff.
References
Banutu-Gomez, M. B. (2014). The Role of Culture, Language, and Ethics in Global Business: European Scientific Journal .
www.eujournal.org/index.php/esj/article/viewFile/3280/3062
Bremmer, I. (2015). These Are the 7 Challenges of Globalization. What Happens As The World Becomes Even More Interconnected…And Even More Leaderless?
http://time.com/3753284/these-are-the-7-challenges-of-globalization/
