How can businesses

respond to the changing

global landscape?
Introduction
Globalization can be defined as the process by which integration occurs and leads to
interchange of facts, ideas and opinions which are related to products, companies, people and
culture. As a matter of fact globalization has lead to advancement in various fields and is
evident from the vast advancements which are made in the field of transport, communication,
infrastructure, etc. One of the major turnaround has been witnessed in the field of business.
Beyond question, the upsurge in the technological factor such as internet and telegraph has
lead to better results.. But, the globalization process is also impacted by several changes
which are mostly through work culture, social culture, environment, etc. Wolf in his book
mentioned that the process of globalization has provided various advantages which accrues in
the form of cheap availability of raw material as well as helps the firms to be cost competitive
(Wolf, 2004)

Challenges
Globalization today is the globalization of finance capital and not production capital. The
flow of finance leads to a prompt result and development. The term globalization has been
traced since the mid 1980s and in the year 2000 the four major principles of globalization was
introduced by International Monetary Fund which are trade and transactions, capital and
investment, spread of knowledge, movement of ideas and people (Alfaro, 2003).
Globalization infused with different challenges and hence it is on the part of organization to
meet these challenges so that that the organization can face the problems with ease and

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flexibility. To get the international exposure and goodwill, the localization of product needs to
be done which is a major challenge. Kitching in his journal stated the implementation stage is
one of the major considerations and hence needs a special dedicated team because it is the
ultimate way through which customers are attracted (Kitching, 2001). The UK is perhaps the
biggest economies located in the western world. It was around 20 years ago that the foreign
exchange controls were removed and the financial markets were completely deregulated. This
led to trade and other good relationship with other countries and ultimately this proved to be
of great advantage as it helped in increment of the total national output (Alfaro and
Rodriguez-Clare, 2004). The process of globalization has provided an edge to the companies
as the base has increased.

With the advent of technology and other forms of socialization activity the criticism has also
increased in this global society and hence appears to be a major challenge. This drives
managers to work hard on the process as ignorance of it will lead to erosion of the name in
the society (Sheila L, 2004). As a matter of fact global economy has continuously influenced
a global culture. The domestic culture is now being abolished and hence it’s a challenge
because the performance is now assessed on a global platform. Localization of product is also
a major challenge because the culture of the society where the company operates needs to be
known else the effort will fall flat (Steger, 2003).

Globalisation its challenges and overcoming measures

Globalization can be defined as the trend where single countries become less impactful in
connection to the cross national bodies. It is only by dint of globalization that the concept of
global sourcing has appeared. The regulations are also eliminated by the advent of
globalization process. It has accrued many advantages to the overall economy but with a
good level of challenges. Hence, it is of utmost importance that in order to prosper the
challenges and barriers to globalization needs to be faced properly which enables to bring
success in the long run. Bellak in his journal mentioned the process of globalization has led to
far reaching impact but before a company aims to reach the pre determined results it needs to
be noted that there are various challenges which comes in the way (Bellak, 2004). There is
always a fear that whether the decision making will be fruitful and will reach the desired
results. In order to reach the exact result the company needs to consider and evaluate the
challenges which will enable to eliminate the problem. Siemens is one such organization
where challenges to globalization have been removed.

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Siemens is a multi-national company and has more than 190 individual nation states. The
executives are mainly responsible for making decision which is in the best interest of the
shareholders. It needs to be noted that multinationals has made the best use of the
globalization process because it has enabled them to increase their reach and availability
related to the products. The decisions are taken concerning the global economy. In case of
Siemens it is not easy to produce the products for all countries separately. Hence, it is
important to put emphasis on economies of scale through the process of specialization. The
shipping of products can be done from anywhere which is one of the main advantages and
helps in eliminating the problems.
As a matter of fact currency fluctuations are one of the major problems which get accrued to
big multinational. The price of products gets fluctuated as there is a constant movement of
materials from one place to another. The currency changes are one of the major challenges
which are faced by Siemens. Euro’s value can enhance as compared to the US dollar. It has
been witnessed that in Europe Siemens has become expensive as compared to US. The
internal risk management of Siemens is one of the major tool through which the threat can be
checked and eliminated. Therefore, steps are taken in consultation with the internal risk
management which enables to negate the risk factor.

Globalization has presented many challenges and yet it has remained a forerunner in the UK
market and from many decades it has contributed to the entire mission with ease and
flexibility. One of the major way through which the business is secured in UK is the presence
of first class customer service.
Secondly, Siemens provides products which are upgraded in terms of technology and service
benefits are also equipped. Hence, such quality services enable competitive advantage and
eliminate competition to a considerable extent. It is one of the deliberate strategies which

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gathers it the momentum. Siemens has effectively undertaken the globalization process and
also has adequately updated its portfolio which has enabled it to acquire more business with
ease and flexibility. The main view of Siemens is to look after the customer’s satisfaction and
this is why it has earned a niche in the company. With the advent of globalization the
customer’s base has increased by leaps and bounds and this can be cited as one of the main
challenges. This is termed as a challenge because the entire customer base needs to be
satisfied else the rivals will take away the customer base. The employees base is also
increased which has effectively provided services to customers and cater to their
requirements.

With the presence of global business there is presence of cut throat competition. To lay stress
on this matter and to have a good market it has built up centres of excellence which can help
to meet the needs of the masses. In case of UK Siemens operates with a different global
strategy termed as ‘Siemens One’. This strategy is done in order to ensure a better
understanding of the problem and providing the best result. It is evident from the success of
Siemens that this policy has immensely benefitted Siemens. The process of globalization led
to many problem and challenges and with the proper strategy as well team work it has been
able to eliminate the risks. Various problems cropped up during the turnaround stage but with
the effective team it has been able to provide a great service which has led to enormous
success and popularity. The process of globalization has also led to an increase in the number
of competitors which was also a big challenge for Siemens. But, by dint of effective
management and proper strategy all the competition was faced with great ease and flexibility.
Moreover, the widespread popularity and reach of Siemens indicates that all the challenges
have been met.

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Conclusion

From the overall discussion it can be said that the process of globalization is a big boon to the
business and brings ample opportunities for the business. The process has been clearly cited
with the example of Siemens where it has effectively used the management and the resources
in order to eliminate the obstacles. Moreover, in order to update the customer and to meet
their taste and preferences it is important that the challenges of the globalization are meeting
effectively. This task is entrusted with the management so that the opportunities are used at
the earliest. Through the process of globalization Siemens has effectively entered the stage of
specialisation and used the principle of comparative advantage. Even the market base has
increased and caters to a huge base of customer. This has led to economies of scale along
with reduction in product cost.

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References

Alfaro L. and Rodriguez-Clare A. (2004). Multinationals and Linkages: Evidence from Latin
America. Economia. 4 (2), 113–157.

Alfaro L. (2003) Foreign Direct Investment and Growth: Does the Sector Matter? Harvard
Business School Working Paper, 34(1), 15-21

Bellak, C. (2004) How Domestic and Foreign Affiliates Differ and Why Does it Matter?
Journal of Economic Survey. 18 (4), 483–514.

Kitching, G. (2001). Seeking Social Justice through Globalization. Escaping a Nationalist

Perspective. Penn State Press

Steger, M. (2003). Globalization: A Very Short Introduction. Oxford, New York: Oxford
University Press.

Sheila L. C. (2004) Globalization and Belonging: The Politics of Identity a Changing World.
London

Wolf, M. (2004). Why Globalization Works. New Haven: Yale University Press.