Business and
management will take the exam on 18 of March. I would like to focus on
globalization. First of all, I will introduce the definition of globalization.
Secondly, I will indicate the business strategic in terms of external and
internal. Lastly, I will make a conclusion as well as solve the problem.
Globalization is the
international integration of human activities with technology, goods and
services due to have positive and negative affect on businesses. Globalization
is very important for people who expand the business in another countries. It
can greatly increase the standard of living for people.
In order to
achieve global success, it must be considered the business strategies in terms
of internal and external. As regarding internal strategies, exporting can have
positive affect people to sell goods and services to other countries, because
it more widely to gain profit from aboard. However, this is no operation to
establish. Therefore, It saves more money for expenses such as electronic and wages.
But, it also detrimental to economy of our own country, since more people
decrease buying goods and services in their own country. That means the supply
will be less, if the percentage of demand decrease at the same time. Therefore,
it will appear more unemployment rapidly. On the other hand, direct investment
can run a business and trade in other country. For instance, some countries
build a manufactory in China, because China has cheaper wages for labour, which
is benefit for cost of production. So it is good to develop a business. As far
as we concern negative, it is likely to create pollution in some countries. If
the government solve the problem, they may charge high tax to the industry,
which create any pollution. That is one of the financial burdens to go business
in the future if people keep paying a fine. In addition, e-commerce is buying
goods and services from the Internet. This is a good business, as its
convenience to the customer who buys a product at home. It also has cheaper
costs to operate a business. For example, it has no cost of services,
electronic expensive in the shop. So it saves more money. But, some people may
worry about e-commerce; it may have potential negative effect people for
safety. Maybe some products are fake or second hand. Moreover, it is hard to
return the products as well as money if the customer is not satisfied about it.
For external strategies, joint venture is meant two or more companies share the
cost of investment in anther country. That is good for people who can share the
risk and decision-making. It might be lose less profit. But it will be more
opportunity to argue about the profit share. Franchising is a franchisor who
agrees franchisee to use the brand name to run business in other countries. It
can also help for advertising such as McDonald. But it may damage the
reputation if worker has bad attitude. Furthermore, merger is a two or more
business amalgamates as a single business. Merger can increase the money from
other company of property rights. It can help a domestic business gain access
to a market. But, the expenses will be high at the same time, as merger will
become bigger company. In order to pay less money, an entrepreneur may reduce a
number of employees. So it will increase unemployment. Finally, acquisition is
a people takeover a company to manage a business. Actually it is the same
advantages as a merger. There is more than one majority stakeholder to gain
property rights as well as revenue. But it is badly affect to work efficiency
for employee, because they may not adopt a new manager.
To sum up,
globalization is significantly effect on business. In order to solve this
problem, government ought to charge a high tax to protect the environment. This
is not only benefit for society, but also benefit for individual such as fresh
air and healthy life. From my perspective, I think this is good for business to
increase motivation, because they may improve technology if a government to warn
them.
