Challenge of Globalization for W. L. Gore & Associate

Globalization can be defined as “making worldwide in scope or application”(1). In this comparison of the global corporate culture of Northwest Airlines and American Airlines several areas will be addressed. The strength of the global culture with-in the companies. The fit of the company to the global marketplace, and the adaptive ness or the empowerment of the employees will be examined and compared. Perhaps more important, than whether they currently have a global atmosphere, is whether they can improve or create this atmosphere. A comparison between the two airlines will be made on their mission statements, information dissemination, global-mindedness,

Globalization may be defined as the integration of the world 's people, firms and government. In the modern context, globalization is usually the result of closer ties in international trade, known as bilateral trade agreements. The WTO and NAFTA are two examples of such bilateral trade agreements. With such agreements, cross-country investment increases. This increase in investment is aided by the increase in information technology and communications, which has undergone a significant advancement over the last two decades with the rise of the Internet and mobile telephony (Green, 2013). It is important to the business to expand; global expansion and globalization would a positive business decision to complete in this process due to the strategic goals and objectives the company possesses. Healthy growth can be accomplished by globalization of specific areas selected and determined through research of market and development of these areas outlined within.

Globalization of business has had a large impact on the field of management. Those seeking management roles in large, multinational corporations must have a different set of skills than in previous generations. In his article “Globalization on the Homefront”, Harold Torrence (n.d.) wrote, “As a direct result [of globalization], management teams are racing to develop the skills and competencies needed to comprehend and appreciate an onslaught of values, assumptions, beliefs and traditions that are fundamentally different from their own.”

The business activity of companies in most industries is affected by the process of globalization. The need of globalization was determined by the necessities of companies that had to address markets in other countries in order to expand their business. In addition to this, they had to reduce their costs by hiring employees from other countries, and by outsourcing some of their processes to other regions.

It is crucial to comprehend the concept of globalization. According to Marquardt and Berger (2003), globalization is defined as “the increasing flow and sharing information, connections, or links of people around the world.”(p. 281) or it can define as “the increasing interaction of national economic system.” (Walle & Asgary, 2002, p. 60). In order words, different countries companies can trade with each other and people can work with others’ countries’ companies without barriers.

Globalisation has led to many changes in the international marketing and global advertising industry. Many international companies have projects spanning a variety of nationalities, involving great geographical distances and a range of time zones. In this scenario, companies are forced to make virtual teams - which are comprised of members who are located in more than one physical location (Peters and Manz, 2007). This virtual team trait has fostered extensive use of a variety of forms of computer-mediated communication that enable geographically dispersed members to coordinate their individual effort and inputs (Attaran, 2002). In addition, commitment to a virtual team goal may be further complicated by the single or coherent line of

New York Times columnist Thomas Friedman defines globalization as “the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before – in a way that is enabling corporations, countries, and individuals to reach around the world farther, faster, deeper, and cheaper than ever before.” (Friedman, 2002). Corporations can no longer operate exclusively in one or two countries. Today’s markets are far too complicated and interdependent for that. As globalization expands managers spend more and more time navigating the world to conduct business.

Thesis statement: Even though the Globalization has some negative aspects for businesses, but it also gives such significant benefits as an opportunity to develop a business all over the world, changing and challenging the way of doing business through a new concept of management in a free world.

As globalization increases rapidly, for a company of every size, it will be important to create a

As quoted by Koffi Annan- "We must ensure that the global market is embedded in broadly shared values and practices that reflect global social needs, and that all the world's people share the benefits of globalization", Globalization has made a huge revolution in today's world. Now-a-days, no business is limited to a single country/continent. Companies no more shy away from exploring different countries and culture, they are adapting to different challenging situations to increase their presence felt on the global map. This attitude leads to a high competition among the national firms trying to bring out their markets into the world. Different techno cultural differences lead to multiple need of tackling the situations whilst globalization.

The first issue that needs to be addressed is that of trust, since trust is a foundational issue without which nothing else done will be effective. In order to foster trust, the roots of mistrust need to be investigated. Zakaria and Yusof (2011) point to cultural differences as a key barrier to trust and effectiveness in global virtual teams. There is evidence of cultural differences being a factor in the current morale issues. It has been cited by some members within the company as a barrier, and the company has offices around the world, featuring people from a number of different cultures.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

Managers are looking to globalize operations, developing new markets for their products for better strategic business outcomes. Consumers have better access to a greater variety of goods and services and competition to reach to the new markets with the right product is getting stronger among businesses. Globalization also gives businesses better access to a global workforce, enables them to tap into international raw materials and financial resources. As the world economy is fast becoming a single interdependent system, businesses have competitors, customers, employees from anywhere in the world.

“The Challenge of Globalization.” (Boundless Management. Boundless, 21 Jul. 2015. Retrieved 09 Sep. 2015 from https://www.boundless.com/management/textbooks/boundless-management-textbook/introduction-to-management-1/current-challenges-in-management-21/the-challenge-of-globalization-133-10568/)

“When in Rome, do as romans do” refers to the importance to adapt to the customs or behavior of a different culture or society. In this time of globalization, businesses more than ever must apply this rule. Now, boundaries are eliminated between countries and new opportunities are born. Company enters new countries, moreover, multinational emerges and ultimately evolves to a global posture. It’s becoming part of our life. Every day, we experience various products of globalization. We communicate with friends and family from all over the world, we surf the internet, furthermore, with one click we purchase product from stores miles away from us. However, globalization also implies overcoming cultural challenges company faces when going