Question

What is globalization? Discuss the positive and negative aspects of globalization in business. Describe the challenges of managing for globalization. Suppose you manage a    coffee ship in a city with a diverse immigrant population. What are some of the challenges you might face in managing for globalization, and how would you rise to the challenges?

Answer 1

Globalisation is nothing but taking your business beyond geographical boundaries in different parts of the world to serve people of different expectations, cultures, tastes and preferences and paying capacity.

Positive aspects are it generates more revenue, it increases the reach of the organisation, the number of customer increases and the overall business expands. Negative aspects are that it demands investment and there is no guarantee of return so risk factor increases, the company has to customize products as per the global market and hence at time they lose their identity.

Challenges for managing globalisation are:

- Increased investment

- Lack of adequate manpower

- Comply by that articular country’s export laws and legal rules and regulations.

Some of the challenges that I would face are that their tastes would be different, their paying capacity would vary, their adoption to change and newer products might be tough so initial free distribution of products could be helpful as they might like the sample and then decides to buy more.