Globalization Influence on Big Companies Management Research Paper

Globalization Influence on Big Companies Management - Research Paper Example However, latter 20th-century managers have faced some new challenges coming along with age of information, and particularly, globalization. Nowadays, globalization has influenced big company’s management on levels of organization and administration making specific impacts and bringing certain ramifications in managers’ work. On a field of economy and business, for big companies, globalization is â€Å"a process of interaction and integration† among companies from different countries around the world, a process, which is â€Å"driven by international trade and investment† (Globalization101, 2015). Globalization reasons most of the innovations and renewals, which world companies come through because under the conditions of globalization business competition increases omnidirectionally. Globalization also â€Å"forces† companies to interact, and be open to the world market because national economies of world countries (especially, developed ones) are deeply involved in process of globalization too. Thus, in the world market all the internal companies’ organizations, as well as companies’ business-to-business partnerships, are in need to be reorganized according to general modern tendencies (Globalization101, 2015). The case is that along with the modernization, big companies face the new sort of dependency. Earlier â€Å"dependency† implied a kind of business relationships when peripheral economic areas were subdued to core national economic where big companies usually came from. â€Å"With globalizing tendencies taking over†, a current situation is changing â€Å"from dependence on interdependence† (Zafarullah and Huque, 2012). Subdual is replaced by cooperation. National economic development starts to matter less for big companies because they are organized according to regionalization tendency (Zafarullah and Huque, 2012).  

The topic is to answer the case questions that are in box Coursework

The topic is to answer the case questions that are in box - Coursework Example Therefore, the statement is correct since firms are different and cannot all adopt similar strategies. Multinational firms have many departments and units, and there is a high probability of the organizations operations not being smooth. The international markets are very uncertain and hence there is a need to combine integration and differentiation in order to operate effectively even with the uncertainties. Performance ambiguity occurs when the firm cannot understand the reasons as to why a subunit or a department is experiencing difficulties. It is necessary that a firm predict possible causes and consequences of performance ambiguity before venturing into an international or a transnational strategy. Understanding the causes and consequences leads to designing better performance strategies, and losses are  minimized. The main reason for an expansion is maximization of profits.it is necessary that performance ambiguity is avoided by understanding its possible causes and consequences so that the firm does not fail to achieve its aims. Organization architecture determines how decisions are made, how individuals are and how performance is evaluated (Miles & Snow, 2003). Transnational organizations have complex environmental demands that require flexibility in internal integrative process. There is a tendency to have conflicting domestic and foreign operations, and so each unit should operate individually. An international divisional structure should be  adopted. All units will operate individually but under one overall management. The operations of one unit will not influence the other units. Each unit should be independent and should adapt to its business environment. When each firm operates individually, controlling becomes easy since mistakes can be identified and corrected without affecting the whole organization. Shared decision-making is  avoided. A firm that requires globalizing is subject to operating in diverse forms of business