Effect of Globalization on Organizations
Strategic decision that most established business firms currently make is on how to join the global market. They, however, find a number of challenges among them being: stiff competition globally. This paper aims at finding out how global competition affects organization taking Coca Cola as a case study. It will be important to know how the Coca Cola Company manages competition to ensure it remains a profit making organizations (Sundeep, 2009). The paper shall also explore possible government policies that affect the globalized business organizations.
The spread of business or technology all over the world is the globalization. There are movement production factors across the national boundaries with little or no barriers. Coca Cola must work hard to compete for these inadequate factors (Sundeep, 2009). Established businesses work hard to ensure that they source the best personnel in the world to take over their management to ensure that they are able to keep up with the world demand while making profit (Rakesh, 2012). Competition is always on human resource, technologies, market, and resources such as raw materials. Aggressive businesses, like Coca Cola, with high competitive advantage brace over those who cannot compete favorably (Sundeep 2009). There is a shortage of talented personnel in the developing worlds, which result to fierce competition.
Rakesh (2012) believe that even with the ferocious competitions, organizations should find ways of expanding their business. Expanding the business especially through a merger with other organization, will earn the organization reputation and increase its bargaining power in the competitive market. When Coca Cola Company goo for a merger, it will increase its asset base and share liability. With the increase in confidence because of merger, the company will be able to increase their production hence maximizing on profit.
Global company, Coca Cola, deals with different governments that have different policies, which act as a hindrance to the general production of the organization (Sundeep, 2009). Diverse social and ethical issues are among the problem facing global business organization, this have a direct influence on the production as seen with Coca Cola.
References
Rakesh, M. (2012). International Business. London: Oxford University Press.
Sundeep, T. (2009). China blocks Coca Cola bid for Huiyuan, Coca Cola in China, 18, 246-288
