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Globalization Globalization is defined as the worldwide interdependence of resource flows, product markets and business competition that characterize our new economy. It is hardly unnoticeable how countries, organizations, people, resources, money, services and information are all interrelated globally. Thanks to the improvements in communication and transportation technologies, such interrelation is more and more achieved. There are many positive effects of globalization such as the rise of some developing nations through increased employment and technological advances. However, one can never underestimate the negative effects, such as the declining national sovereignty and shift of domestic jobs overseas where labor is much cheaper.…show more content…
The main positive effect of the new system was that caused by the importation of Western best practices related to strategy formulation, talent management and compensation into Samsung’s existing business model. Due to the rigid nature of the company’s Japanese system, the road to such a modification was bumpy. Therefore, chairman, Mr. Lee Kun-Hee took great care to change only what needed to be changed. He supported only the best practices he deemed most critical and encouraged employees’ input. Their feedbacks were carefully measured. If resistance was too strong, the company delayed adoption, modified the practice or abandoned it all together. The aim was to improve marketing, research, development and design. The results have been staggering. The company achieved record profits of about $14.4 billion on $138 billion in revenue in 2010. The flexible management process adopted by the chairman and his remarkable insight of the changing nature of organizations were the key factors for the astounding results. Another good example of a positive effect would be that caused by recruiting non-Korean employees. Same as introducing Western practices, the newcomers met with a great amount of resistance. Samsung’s efforts to recruit and retain non-Korean were slowed down by cultural, social and political barriers. In order to bring those barriers down, a unique internal management consulting unit, the Global Strategy Group (GSG), was formed in 1997. The members

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