An explanation of the implications of globalization on organizational strategic planning
Globalization is viewed as a “worldwide movement toward economic, financial, trade, and communications integration” (BusinessDictionary.com, n.d). Globalization implies “opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers” (Ibid). I understand these definitions as meaning that the world economies have become one and that we now live in a global village.
The implications of globalization on organizational strategic planning are enormous. It will require the organization to identify itself as part of the global trend in its operations, stakeholder base, product and service delivery, competitors in the market and how access to funds and markets changes significantly for all organizations. According to Szintay (2000), globalization imposes new challenges such as larger markets, which require full efficiency in organizational operations. These operations need “proper coordination – ordination and control” (Ibid).
An organization’s strategic planning and change cycle must recognize that globalization erases borders and boundaries. It introduces new stakeholders beyond the local or national frontiers. Globalization also means that the organization has new competitors and competing for products and services within the new and big market according to Szintay (2000). Survival within this market requires the organization to adopt new methods of communication, intensify use of technology, become accountable, and more transparent and appealing to a larger customer base and susceptible to being pushed out of the competition.
Organizational success and stakeholder involvement for a sustainable future
Organizational success and stakeholder involvement may lead to a sustainable future for the organization and community within the global village. Here, the success of the organization in the global world depends on the recognition that everything about the organizational environment has changed. The organization must be willing to factor in the new and expanded environment and seek to collaborate, cooperate and coordinate activities with like-minded organizations for survival. This is amply demonstrated by airline through various alliance like Star Alliance, Sky Team, etc. The organization will have to reach out to the larger stakeholder group using new communication technology, and seek their approval using the market approach to creating a difference for products and services.
Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (4th ed.) Chapter 12. pp. 283 – 401. San Francisco, CA: Jossey – Bass.
BusinessDictionary.com (2016). Globalization definition. Retrieved from http://www.businessdictionary.com/definition/globalization.html
Korukonda, A. R. (2006). Globalization, social development, and operations research: An exploration of strategies for success. Annals of Operations Research, 143(1), 21–30.
Laureate Education (Producer). (2008e). Strategic planning: Future vision and implementation [Video file]. Baltimore, MD: Author.
Szintay, I. (2000). Globalization and Strategic Management (Paradigm Shift-New Strategic Theories). Business Studies, 1, 201-199. Retrieved from http://www.matarka.hu/koz/ISSN_1586-0655/BS_vol_1_no_1_2001_eng/ISSN_1586-0655_vol_1_no_1_2001_eng_201-222.pdf
Zomorrodian, A. (2011). New Approach to Strategic Planning: The Impact of Leadership and Culture on Plan Implantation via the Three Cs: Cooperation, Collaboration, and Coordination. SSRN. Retrieved from http://papers.ssrn.com
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