Global integration refers to the production as well as the distribution of services and products which are of the same type and quality worldwide. It can also be referred to as the drivers of an industry globalization which can be divided into four categories which are the cost drivers, government drivers, market drivers, and competitors. It involves the processes that are involved in product standardization and as well as technology development centralization. Global integration in Strategic International Management enables an organization to be able to grow globally through leveraging of its skills as well as capabilities that are involved in a global workforce so as to integrate their operations and also be in a position to manage their business and activities in the current global world. In global integration technology is applied so as to automate the processes carried out in business so as to result in a continuous productivity gain and also bring the required change in the manner that various operations are managed. An organization that intends to go international may experience a variety of problems as a result of globalization. It mostly occurs when business tends to overlook local or regional differences which are important regarding personnel practices or what the customers want (Morschett, Schramm-Klein, & Zentes, 2015).
For an organization to compete in the international market without a lot of problems it must look at the cultural issues as this may pose a significant problem for it rather than being beneficial. Culture lays the basis on whether a global strategy that has been formulated by an organization will be successful or it will be a failure. Different countries worldwide have different assumptions as well as diverse value systems concerning their culture which directly impact on the consumption patterns of the consumers on various products and services. The cultural environment if improperly analyzed or reviewed may result to obstacles in the process of an organization going international. It is because managers may tend to act do perform their duties as if they are in their own country and fail to interpret the culture of the host country which they are doing business in and the two cultures may tend to differ in one way or another. They may end up hurting their customers without their knowledge, and hence this will make the business not to perform well as there will be no customer satisfaction. The different cultural norms and customer needs which are experienced in the various countries may pose a problem that wants to go international as it may require them to change the entire product as well as the sales approach method. For example, some country cultures need people to use official language while communicating while others an individual may use both formal and casual language with no problem or as illegal or disrespectful (In Kwakwa, 2016).
The other factor that may result in an organization that wants to go international face problems due to globalization is that it may lack skilled personnel and professionals to work for them. Globalization has made it hard for countries which are developed to compete it the market. It transfers jobs and employment opportunities from the countries which are more developed to those that are less developed. It is because a state which has a lower cost structure such as lower wages and also worker benefits is in a position to outdo a typical OECD country. For example, in the case of the United States, the number of citizens who had a job started reducing when China joined the World Trade Organization. It leaves other countries who want to become international hence to face the problem of having qualified and skilled workers which result to them giving their consumers low-quality products and services (Whalley, 2011). Globalization has led to the wide usage and implementation of information technology in business.
It can cause problems to a business that wants to go international because it has resulted in the empowerment of services to become delinked from production and causing them to be traded remotely. Firms and organizations are now integrating the production and marketing the goods across national borders. International economic transactions that were previously carried out by entities that were independent as a result of globalization they are now being internalized in a multinational corporation or a single firm. It has led to a business that wants to be integrated internationally to lack a physical location in which they can sell their products and provide their services because most businesses are now being carried out through the internet hence one cannot have a face to face interaction with the consumers as well. An example of an online market is the Jumia Online shop which does not have a physical location but entirely carries the business on the internet (Agmon, Von, & University of Southern California, 1991).
Globalization has led to increased local competition, and hence this is making it difficult for organizations that want to go international to be in a position of convincing the foreign customers as to why they should but their goods and services which are the same as those which are being offered in their own countries. A company that wants to go international should ensure that they have a good market base in their own country so as to be able to convince the foreigners as well to start using their products. For example, if one is dealing with the production of different types of soaps he should ensure that it is first used in his own country before going international since as a result of globalization it may lead to the failure of the business when invested in other nations.
In conclusion, globalization has resulted in causing a major problem for an organization that wants to go international due to the increased cultural differences that are now existing making it difficult for people to interact easily with each other. Due to globalization, a physical market where an organization can carry out its business is slowly diminishing, and hence, in turn, this is changing the manner in which goods are produced internationally.
Agmon, T., Von, G. M., & University of Southern California. (1991). Technology transfer in international business. New York: Oxford University Press.
In Kwakwa, E. K. (2016). Globalization and international organizations.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic International Management: Text and Cases. (Strategic International Management.) Wiesbaden: Springer Gabler.
Whalley, J. (2011). China's integration into the world economy. Singapore: World Scientific.
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