The strategic challenges in globalization

The emerging global order is being constructed on a technological foundation; the sooner that foundation is in place, the sooner this system can behave as a coherent global community.

Challenges of Globalization

Top-down corporations are struggling to diversify so they can serve myriad market niches; governments have not yet begun to grapple with the intricacies of education, poverty, crime, and other chronic social problems. In other words, they are going to have to be much more precise about the purposes of working with civil society groups and about how they fund them.

And it is certainly true that difficult choices at dangerous junctures could deflect the trajectory toward maturity into other directions.

The global company’s challenge

Civil society organizations concerned with development have traditionally focused on aid and resource transfers; they now are going to have to broaden their agenda to deal with the much more complex issues of trade and investment, international financial flows, environment, and migration, among others.

Diversity and Complexity It is a great paradox that global integration will be accompanied by disintegration into a highly diverse system. This new field is a blend of strategic management and international business that develops worldwide strategies for global corporations.

Global Integration The globe is becoming integrated into a single community connected by a common communication system, a global economy, and a shared international culture. This revolution will wire the earth into a single communication network, a central nervous system for a planetary society.

A coherent new world order will emerge only if global corporations, national governments, and educational institutions are able to adopt major strategies such as those outlined above. This does not mean that individuals and institutions are passive observers of an immutable process of natural development: Making the Leap to a Global Order Most of the problems the world struggles with result from the fragmented economic and political systems that continue unchanged from the industrial past.

Each of the five challenge areas listed above must be placed in the context of the need to create prosperous economies and societies. The GCRF delivery partners are: A good example is the way U. The Fund is well placed to address these complex issues given the size of the fund, its challenge led approach and broad remit.

The result is political gridlock, economic stagnation, destructive personal stress, social disorders, and many other symptoms of breakdown. This problem, which toppled communism, is becoming severe in the West. Human Rights Dialogue 1.

The decentralization of authority, then, empowers people to care for themselves more effectively, which provides a self-organizing system for managing a complex world. Following is a global strategic plan, developed by synthesizing the literature and then reviewing the plan with groups of executives.

Hazel Henderson, "Beyond Economics: The second is to deal with the fear that globalization leads to instability, which is particularly marked in the developing world. By gaining new insights into the emerging world system, social institutions may better understand how they can adapt to these changes.

Global Challenges Research Fund

Human Rights, Good Governance and Social Justice It is increasingly recognised that development, human rights, good governance and social justice are indivisible. A Stable Population of Billion The earth, which already is teeming with 5. Halal, "The New Management: Lynne Rienner Publishers, Human Rights Dialogue 1.

Strategic alliances must be encouraged on a global scale to avoid the conflicts that now divide the world. Foster Collaborative International Alliances A knowledge-based society fosters pockets of collaborative problem solving in which all partners benefit, while competition drives collaborating parties together.

Global Challenges Research Fund

William Halal et al. Progress against the pursuit of the Sustainable Development Goals SDGs has been particularly challenging in fragile and conflict-affected states, while multiple refugee crises are applying mounting pressure in countries of origin, transit and destination.

Intense global competition should, in time, drive most economies in this direction because it is efficient. As communication systems encircle the earth to form a central nervous system for the planet, the fragmented parts of today's failing global order are being joined together into an interconnected, coherent system.

That will certainly not happen automatically. It represents a fresh examination of the forces that are integrating the earth into a coherent global order as well as those that are creating the disorder that tends to characterize our time:. Globalization poses four major challenges that will have to be addressed by governments, civil society, and other policy actors.

One is to ensure that the benefits of globalization extend to all countries. That will certainly not happen automatically. But being global also brings strategic challenges. Many companies find it increasingly difficult to be locally flexible and adaptable as they broaden their global footprint.

In particular, processes for developing strategy and allocating resources can struggle to cope with the increasing diversity of markets, customers, and channels. In spite of its growth, globalization is only one of many aspects in the development of international and global business strategy.

For many organisations attempting to develop an international or global strategy, globalization is not the prime strategic focus. Global Challenges Research Fund Global Challenges Research Fund The Global Challenges Research Fund (GCRF) is a £ billion fund announced by the UK Government in late to support cutting-edge research that addresses the challenges faced by developing countries.

Geo-economics: Seven Challenges to Globalization 3 Contents 4 Geopolitics vs Globalization: How Companies and States Can Become Winners in the Age of. The objective is for students to learn about the opportunities and challenges of global expansion—in this case focusing on the fast-moving high-tech space.

Students should also be able to analyze the company’s business model and evaluate whether a model that succeeded domestically would also.

Challenges of Globalization The strategic challenges in globalization
Rated 5/5 based on 33 review
The global company’s challenge | McKinsey