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MGMT1101 Global Business Environment

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MGMT1101 Global Business Environment

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MGMT1101 Global Business Environment

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Course Code: MGMT1101
University: University Of New South Wales is not sponsored or endorsed by this college or university

Country: Australia

Discuss the impact of globalisation on business organisation.

Business organisations have been adapting itself efficiently with various changes that occur time in time. However, the organisations, which fail to do so, they either suffer from great loss or cease to flourish and grow. It is observed that one of the phenomenon that have been making its influence all over the world has turned out to be a significant change that the organisations want to adapt with (Delanty & Harris, 2018). The opportunities and threats that it possess for business organisations are dynamic. Every major organisation around the world have realised the influence of globalisation and tries to expand itself on a global basis. Another, factor that organisations are heavily influenced from is the organisational culture. In the below discussion the two factors are discussed in an elaborated way.
It is observed that the practice of globalisation has been existent from an immensely long time. However, in the past, the terminology of globalization were not used by the people. Globalisation can be defined as a phenomenon that involves integration of local and international cultures, societies, economies with the channel of trade, communication and transportation (Jones, 2013). In recent times, its impact has been immense on majority of organisations and thus, every organisation wants to practice it. There is immense scope for the organizations to globalize itself with the help of respective tools and strategies. Firstly, one of the significant scope that globalisation has offered is the integration of diversified culture and communities and trade. It has opened up channels for organisations to explore and expand on distinctive markets (Grant, Butler, Orr & Murray, 2014). This has created an interconnection between the organisations and people around the world. Secondly, the organisations have been able to increase the quality of their functioning with the engagement of migrated workers. In this way, organisations have a scope of enhancing the functions and productivity level by hiring highly skilled employees from international landscape. Globalisation has given the opportunity to expand instead of being constraint within a limit.
In the contrary, it has certain threats as well for the organisations that could hamper its reputation. One of the major threat that organisations often have to deal with is the inability to understand the cultural difference of the foreign landscape (Homann, 2016). The results of such are devastating for the companies or organisations as it would have to suffer from heavy loss from all aspects. In addition to this, the increasing popularisation of globalisation has pushed some business organisations to join into the bandwagon and adopt this global phenomenon. However, some organisations fail to cope with the changes that they need to adapt for flourishing on the global landscape and as a consequence of which have to fall from their current position and ultimately lose its position in the competitive market.
From the discussion, it can be said that globalisation has opened up new doors of opportunities for business organisations however; it is accompanied with the threats as well. Taking the example of Australian hardware store company Bunnings, the company had to suffer from immense loss as it failed to recognise the differences in the Britain market (Bartholomeusz, 2018). The company is a huge success in its home country Australia and has been proved a success in international base as well in New Zealand. However, the company’s attempt to expand its business in Britain turned out to be a disaster as it led the company to lose a hefty amount of investments. As discussed above, the company failed to recognise the difference of culture, market and other factors and ended up in loss. On the other hand, companies such as Pepsi Co., Tesco has been flourishing in global market due to the right choice of strategies to globalise the brand in the British market.
Organisational culture and management
Every business organisation has a set of values, assumptions, beliefs that are embedded within the functioning procedure of it. These norms, values and so on the companies abide by and this is termed as Organisational Culture (Stensaker & Vabø, 2013). This aspect of every organisation makes them unique and stand out from the rest of its competitors. One of the key opportunity that an organisational culture offers is giving a framework to business organisations with the help of which the companies function and disseminate the information among the distinctive levels of workers. A positive organisational culture gives every employee the satisfaction of working with the firm or a company. Without these values, beliefs, an organisation will be in disarray and will not have the ability to deal with various circumstances. However, the organisational culture of various companies differ from each other due to its mode of operations. Certain organisational culture puts a negative impact upon it employees and thus have to deal with the consequences as well. For instance, there are certain organisational culture that puts a vicious strain on employees, which affects the working environment of the entire organisation. The market culture is one such example of organisational culture that has proved to be a vicious cycle for the organisations along with its employees (Aliyu & Mahmood, 2014). The market in which the company operates is based mainly on results, which affects the working condition of the employees within the organization.
Netflix is an example of good practice of organisational culture. The media service company sets a good example of a healthy organisational culture. It has been proved an excellent place to work with its sensible approach of organisational culture (Arruda, 2018). The employees of the company are not judged by their working hours instead are appreciated for their efficiency and ability to do work. Such sensible organisational culture not only helps the organisation to achieve success extensively furthermore even keeps the employees of the organisation satisfied.
Therefore, from the above discussion, it can be said that business organisations could make the best use of various factors such as globalisation, organisational culture if it analyses and adopts the appropriate approach towards it. Both are key factors with the help of which business organisations could attain the heights of success. However, there are threats accompanied with it that can hamper the organisations position hence, it is necessary for organisations to analyse thoroughly before entering into the realm of globalisation. Similarly, the organisations have to do so for implementing a healthy organisational culture.
Aliyu, M. S., & Mahmood, R. (2014). The relationship between market orientation and business performance of Nigerian SMEs: The role of organizational culture. International Journal of Business and Social Science, 5(9).
Arruda, W. (2018). 5 Great Companies That Get Corporate Culture Right. Retrieved from
Bartholomeusz, S. (2018). Going off script: how the $1.7b Bunnings UK disaster unfolded. Retrieved from
Delanty, G., & Harris, N. (2018). The idea of critical cosmopolitanism. In Routledge International Handbook of Cosmopolitanism Studies (pp. 113-122). Routledge.
Grant, R., Butler, B., Orr, S., & Murray, P. A. (2014). Contemporary strategic management: An Australasian perspective. John Wiley & Sons Australia, Ltd.
Homann, K. (2016). Globalisation from a business ethics point of view. In Globalisation and business ethics (pp. 15-22). Routledge.
Jones, R. B. (2013). Globalisation and interdependence in the international political economy: rhetoric and reality. Bloomsbury Publishing. (pp. 11-13).
Stensaker, B., & Vabø, A. (2013). Re?inventing shared governance: Implications for organisational culture and institutional leadership. Higher Education Quarterly, 67(3), 256-274.

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