Essay Sample on Globalization: A Business Perspective for Growth & Financial Gains

Introduction

The modern world is becoming more integrated and enlarged by the growth of the companies to seek better marketing strategies to support their demanding market. Through this, the worldwide concentration of trade, financial support, economic, and communication integration is regarded as Globalization. Through this, a business can operate beyond its local geographical location for better financial gains and growth of the organization. The concept of globalization is widely affected by several factors which include economic, sociocultural, as well as political factors which restrict and control the establishment of new business, and their expansion. In a nutshell, the concept and growth of globalization have been driven and projected by different factors both internally and externally.

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For decades, globalization has been the new trend, which has gradually affected the growth of many businesses across the globe. Gray, Narciso, and Tortorici (2019) observed that, nearly 92% of the giant companies in the world have extended their branches beyond their geographical countries. More so, almost 60% of these companies have more than three divisions in their domestic location, which has helped create awareness of their brands (Gray, et al., 2019). In today's world, companies such as Coca-Cola, have dominated the beverage world, with Coca-Cola's product, reaching over 93% of humankind around the globe (Blutstein, 2018). This has made the company to be the leading producer of non-alcoholic beverage that is highly consumed.

On the other hand, fashion and design have become a common trend, with the increasing demand for a durable and stylish outfit. In this case, the Denim jeans, have become part of our culture, which has been globally accepted, manufactured, and distributed to the demanding market. Through this, it is essential to understand the causes, facilitating globalization, which led to the growth of Levi Straus' idea of durable denim.

How Did it Happen

The concept of globalization is made possible due to several practices that play along. This includes financial status, market, and political interventions. The growth of any organization is rooted deep in demand for their products. This is made possible by the attractiveness, sophistication, and uniqueness of a company's products, which attracts more customers. The growth of Levi's is attributed to the increasing demand, beyond its geographical borders. This was made possible due to the favorable political stabilities between the US and several governments across the European Union. In this case, the company gradually started operating from a single domestic company stationed in the US to several stores across Europe. This made it possible for the company to establish new production plants that sourced cotton and other raw materials from Europe to manufacture the jeans, which reduced the production cost, attracting more potential customers.

Change of Corporate Practices

As an organization transitions from local practice to globalization, several factors change to help accommodate the shift in practice. Cultural values, ethics, and management are among the critical components that are affected by globalization. Companies are forced to a line their interest with the surrounding market they are dealing with, which is as a result of globalization. On the other hand, different communities have different cultural practices, which affects the performance of the company. Organizations face a critical challenge, dealing with a diverse and multicultural society to help improve the performance of workers.

Marketing to a Global Audience

Marketing has been the backbone of growth; every organization depends on a critical and stable marketing team to help persuade more customs to their direction. For this case, companies employ different tactics to make the product more appealing, which allows swaying both existing and new customers to their course. This may involve several factors such as endorsement, public magazine newspaper advertisement, or even the use of social media to convey marketing. Whereas the concept of marketing is conducted using a critical choice of the strategies, cross-culture, and legal issues play a crucial role in a globalized organization.

As Schnall, Dobson, and Landsbergis (2016) observed, cross-cultural marketing is the strategic marketing process, that adopts the cultural values and practices that are slightly different from the marketer's cultural value. As diversity and use of cultural practices aim for better financial growth through sales, global organizations are faced with a critical marketing strategy, which requires explicit cultural observation to help reduce the negative impacts that a product may receive. Racial discrimination and gender inequality are one of the cross-cultural practices, that affects most of the global marketing. This requires proper observation to reduce the possibilities of weak or negative perception from a community. As a result, all marketing strategies and approaches should be brought in line with the community's interests, to help reduce the perception. On the other hand, the marketing team can accomplish its objective to lure customers to their direction successfully.

How Globalization Has Changed Marketing

Whereas the concept of marketing remains a critical element in every organization, globalization has significantly changed the idea of marketing tactics, for better sales, and awareness creation. Local organizations use less sophisticated concept and means of marketing due to the population of their market. This requires less, advanced methods, and capital to conduct their entire exercise. Local newspapers and radio broadcasting become the ideal concept of marketing based on the size of the organization. However, as a company shifts to globalization, new marketing strategies are adopted, such as endorsement, use of billboards, national magazines, and sponsoring of sports clubs, which helps create awareness to a broader audience. On the same token, cultural practices, are also factored in to ensure that the impact of the marketing strategy does not favor one community or culture at the expense of the other.

What has Changed

Over the decades, it is quite easy to observe the changes made by the concept of globalization in marketing strategies. The mode of advertisement is one of the notable changes that has shifted from the local marketing strategy to global strategy. International organizations use different platforms for marketing products, which has been enhanced by the use of technology in social media. Never the less, this concept has also been used by the local businesses, to gain more local customers.

Corporate Responsibility

Corporate responsibility is defined as the responsibility taken by a company over their actions, and activities on the impact on employees, community, and stakeholders. Every organization is required to practice ethical activities that do not endanger the workers, customers, as well as the surrounding community, which helps create a positive image of the organization.

The concept of corporate responsibility helps an organization to conduct its business with greater accountability to the community, as well as how it treats employees. More so, corporate responsibility helps a community overcome social problems such as poverty or any form of discrimination. As a result, this gives the organization a series of both advantages and disadvantages, which impacts their performance.

Advantages of Corporate Responsibilities

In a competitive market, every organization seeks to be the leader in its industry, which prompts for better and qualified staff members to help run the organization. However, for this to happen, workers have to make their choice, which includes, the assessment of excellent track records maintained by the company on its employee. A company with good behaviors will attract more skilled workers, which gives it a competitive market advantage over its competitors. On the other hand, positively treating employees, minimizes the costly workers turnover.

On the other, hand, if a company shows that it has interest in curbing the high levels of high school dropout, this indicates positive values, which makes people believe that the organization is focused on empowering the community. Whereas this may be beneficial to the community, the organization stands a better chance of succeeding, from customer support, who support the organization knowing that in return their input, will also help eradicate poverty in the community.

The Disadvantages of Corporate Responsibilities

Among one of the challenges in any investment is that they are expensive to maintain and run, which may affect the relationship between consumers and the organization. Many organizations face allegations of false promises, due to late delivering of the promises, this results in poor performance of the organization, as customers lose interests due to the developing trust issues. Never the less, the organization is forced to overspend irrespective of the loses being made due to low sales. This affects the organization financially, which may lead to bankruptcy.

As a way of fueling the corporate social responsibility, it is vital for every organization to ensure that they are receiving high returns. Through this, customers suffer from the imposed charges to cater to the organization's interest, which may affect overall business performance. Companies struggle with the issue of imposed costs, which threatens their growth and development in a dynamic market.

Five Global Business Trends

Banking

The banking sector has been a critical element in many organizations, which has helped to positive growth of may nations' economy. World bank is one of the world's largest organization that offers financial aid to different business, around the globe irrespective of their size, has dramatically impacted the global business movement. Many organizations are enjoying the benefits of low-interest rates from local and international banks which offer different types of loans to help grow the business. Through this, there has been a steady growth of companies and the invention of new ones, due to a larger pool of capital that is locally and readily available

Technology

Nearly 97% of all businesses across the globe, utilize the dense network of technology that fuels development and growth (Blutstein, 2018). Innovation has been on the high rise, due to the availability of information to produces from a more extensive database, which provides manufacturers with the changes in consumer test. On the other hand, consumers have access to vital information thanks to the expansion and integration of internet that has fueled the entire operation. Users have detailed information regarding the product, changes in the market, which provides the users with better knowledge of the product even before consumption of use.

Climatic Changes

As the world becomes more industrialized, climatic change has taken its course, which has gradually affected many businesses across the globe. As the environment becomes, more polluted nations have started forming legislation regarding environmental protection, which emanates from climatic changes. Through this, several businesses, involved in higher rates of environmental degradation and pollution, may be forced to shut, or operate in loses, which may trigger investors to focus on other profitable ventures that may yield high returns in future.

Population Growth

As the world becomes more populated, so does business opportunity knock from different communities. The growth of the world's population has offered investors with better and cheaper labor, which creates a better incubator for their workforce. On the other hand, the increased population forms a diverse market...